Economics MCQ Questions and Solutions with Explanations

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-8

Which one of the following statement is false?

A) Normally, a price demand curve slopes downward from left to right B) Economies of scale and economies of scope are the same C) For optimisation, equality between marginal cost and marginal revenue is a necessary condition but it is not a sufficient one D) Law of variable proportions denotes input-output relationship during short run

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Answer & Solution

Answer: Option B

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Which of the following statement is incorrect?

A) If demand increases and supply decreases, equilibrium price will rise B) If supply increases and demand decreases, equilibrium price will fall C) If demand decreases and supply increases, equilibrium price will rise D) If supply declines and demand remains constant, equilibrium price will rise

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Answer & Solution

Answer: Option B

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"Economics is the science that studies money" it has been defined as

A) A. C. Pigou B) Marshall C) J. B. Says D) Robbins

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Answer & Solution

Answer: Option C

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The reason the marginal cost curve eventually increases as output increases for the typical firm is because of

A) Diseconomies of scale B) Minimum efficient scale C) The law of diminishing returns D) Normal profit exceeds economic profit

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Answer & Solution

Answer: Option C

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The additivity of utility in the Marshallian analysis is based on the assumptions of

A) rationality and diminishing marginal utility B) cardinality and independence of utility C) constancy of marginal utility of money and divisibility D) consistency and transitivity

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Answer & Solution

Answer: Option B

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According to the market law of Say's

A) Supply is not equal to demand B) Supply creates its own demand C) Demand creates its own supply D) Supply is more than demand

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Answer & Solution

Answer: Option B

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Consider the following statements.
1. TR starts declining when MR is negative.
2. MR can be zero or even negative.
3. TR stops increasing when MR = 0.
Which of the statement(s) given above is/are correct?

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

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Answer & Solution

Answer: Option D

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With reference to the theories of population, which of the following statement is/are correct?
1. Malthusian theory of population applies only to over populated countries.
2. Optimum theory of population applies to all countries.
Select the correct answer

A) Only 1 B) Only 2 C) Both 1 and 2 D) Neither 1 nor 2

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Answer & Solution

Answer: Option C

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A firm may be considered to be of optimum size when

A) its TC and TR curve coincide B) AC is at its minimum C) AC = TFC D) it is faced with a horizontal demand curve

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Answer & Solution

Answer: Option B

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A profit maximising firm in perfect competition produces where

A) total revenue is maximised B) marginal revenue equals zero C) marginal revenue equals marginal cost D) marginal revenue equals average cost

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Answer & Solution

Answer: Option C

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