Economics MCQ Questions and Solutions with Explanations

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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-6

Each section contains 100 MCQs on Economics .

A profit maximising monopolist in two separate markets will

A) always charge a higher price in less selling market B) always charge higher price in more selling market C) charge same price in both markets D) adjust his sales in the two markets, so that his MR in each market just equals his marginal cost

Discuss

Answer & Solution

Answer: Option D

No explanation is given for this question. Let's Discuss on Board

Consider the following statements.
1. Monopolistic competition is characterised by full control over price.
2. In monopoly, the product may or may not be homogeneous.
3. Perfect mobility of the factors is the characteristic of oligoploy.
Which of the statement(s) given above is/are correct?

A) Only 1 B) Only 2 C) Only 3 D) None of the above

Discuss

Answer & Solution

Answer: Option B

No explanation is given for this question. Let's Discuss on Board

Under perfect competition (when input prices are fixed and there are no external economies or diseconomies), the industry supply curve is derived by

A) vertically adding the average cost curves B) horizontally adding the average cost curves C) vertically adding the marginal cost curves D) horizontally adding the marginal cost curves

Discuss

Answer & Solution

Answer: Option D

No explanation is given for this question. Let's Discuss on Board

In which one of the following market situations, are the firms mutually interdependent in pricing-output decisions?

A) Perfect competition B) Monopolistic competition C) Monopsony D) Oligopoly

Discuss

Answer & Solution

Answer: Option D

No explanation is given for this question. Let's Discuss on Board

According to marginal productivity theory, the price of a factor is determined by?

A) Selling price B) Cost C) Marginal productivity D) Cost pricing

Discuss

Answer & Solution

Answer: Option C

No explanation is given for this question. Let's Discuss on Board

Consumer is said to be in equilibrium, maximising his total utility, when

A) the marginal utilities of the two goods consumed are equal B) the proportions of the marginal utilities and respective prices are equal C) the consumer gets full satisfaction from the consumption D) the consumer feels satisfied with his expenditure on the various goods

Discuss

Answer & Solution

Answer: Option B

No explanation is given for this question. Let's Discuss on Board

If demand increases in a market, this will usually lead to

A) a higher equilibrium price and output B) a lower equilibrium price and higher output C) a lower equilibrium price and output D) a higher equilibrium price and lower output

Discuss

Answer & Solution

Answer: Option A

No explanation is given for this question. Let's Discuss on Board

The difference between total cost and total fixed cost represents

A) Total opportunity cost B) Average cost C) Total variable cost D) General cost

Discuss

Answer & Solution

Answer: Option C

No explanation is given for this question. Let's Discuss on Board

Supplementary costs in production are incurred to-

A) make the demand curve less elastic B) bring down the per unit cost of production C) provide after-sales service D) ensure increasing returns

Discuss

Answer & Solution

Answer: Option A

No explanation is given for this question. Let's Discuss on Board

The demand curve of a firm in perfect competition is

A) downward sloping B) a rectangular hyperbola C) parallel to the x-axis D) parallel to the y-axis

Discuss

Answer & Solution

Answer: Option C

No explanation is given for this question. Let's Discuss on Board

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Economics MCQ Questions and Solutions with Explanations | Commerce