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Economics MCQ Questions and Solutions with Explanations | Commerce

Economics MCQ Questions and answers with easy and logical explanations. Commerce provides you all type of quantitative and competitive aptitude mcq questions with easy and logical explanations. Economics MCQ is important for exams like B.COM, M.COM, BBA, BBM, CA, CS, CMA, CPA, CFA, UPSC, NET, Banking and other commerce department exam. Page-6 section-3

Each section contains 100 MCQs on Economics .
51
According to Marshall, the basis of consumer surplus is
Discuss
Answer & Solution
Answer: Option A
Solution:
According to Marshall, the basis of consumer surplus is Law of diminishing MU. As per the law, as we purchase more of a commodity, its marginal utility reduces. Since the price is fixed, for all units of the goods we purchase, we get extra utility. This extra utility is consumer surplus.
52
Which of the following bodies finalizes the Five Year Plan Proposals?
Discuss
Answer & Solution
Answer: Option C
Solution:
National Development Council finalizes the Five Year Plan Proposals.
53
What implication does resource scarcity have for the satisfaction of wants?
Discuss
Answer & Solution
Answer: Option A
Solution:
Resource scarcity for the satisfaction of wants implicates that not all wants can be satisfied. The classification of human wants is not a rigid concept.
54
Who expressed the view that 'Economics should be neutral between ends'?
Discuss
Answer & Solution
Answer: Option A
Solution:
Robbins expressed the view that 'Economics should be neutral between ends'. He believes that Economics is concerned merely with the utilization of scarce means far the satisfaction of multiple ends.
55
Price-taking firms i.e., firms that operate in a perfectly competitive market, are said to be 'small' relative to the market. Which of the following best describes this smallness?
Discuss
Answer & Solution
Answer: Option D
Solution:
The individual firm is unable to affect market price through its output decisions best describes this smallness.
56
Which one of the following is true about Planning Commission?
Discuss
Answer & Solution
Answer: Option C
Solution:
Planning Commission is an Advisory Body. The Planning Commission is a non-constitutional and non-statutory body and is responsible to formulate five years plan for social and economic development in India.
57
A firm encounters its 'shutdown point' when
Discuss
Answer & Solution
Answer: Option B
Solution:
A firm encounters its 'shutdown point' when average variable cost equals price at the profit-maximizing level of output.
58
Under ______ market condition, firms make normal profits in the long run.
Discuss
Answer & Solution
Answer: Option A
Solution:
Under Perfect competition market condition, firms make normal profits in the long run. In sum, in the long-run, companies that are engaged in a perfectly competitive market earn zero economic profits.
59
Larger production of ___ goods would lead to higher production in future
Discuss
Answer & Solution
Answer: Option B
Solution:
Larger production of Capital goods goods would lead to higher production in future. If investment in capital good increases ,in turn it further increases the production of consumer goods in the long run. So, if an economy is investing more in capital goods, it shows signs of growth in near future, an increase in GDP.
60
Economic survey is published by
Discuss
Answer & Solution
Answer: Option A
Solution:
The Department of Economic Affairs, Finance Ministry of India presents the Economic Survey in the parliament every year, just before the Union Budget.It is prepared under the guidance of the Chief Economic Adviser, Finance Ministry. It is the ministry's view on the annual economic development of the country.