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-7 section-11

The Adding Up Theorem under constant returns to scale holds when the factors of production are paid according to their

A) marginal productivities B) average productivities C) total productivities D) ratio of marginal productivities to average productivities

Discuss

Answer & Solution

Answer: Option A

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

The principle of distribution means:

A) Distribution in individuals B) Distribution in the means of production C) Distribution in the society D) None of the above

Discuss

Answer & Solution

Answer: Option B

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

Assertion (A) As the proportion of one variable factor in a combination with fixed factor is increased, after a point the marginal product of the factor will diminish.
Reason (R) Beyond the level of optimum combination of inputs leads to this.

A) (R) is appropriate reason of (A) B) (R) is not appropriate reason of (A) C) (A) and (R) are not related with each other D) (A) is independent of (R)

Discuss

Answer & Solution

Answer: Option A

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

If a firm operates in a perfectly competitive market, then it will most likely

A) advertise its product on television B) have difficult time obtaining information about the market price C) settle for whatever price is offered D) have an easy time keeping other firms out of the market

Discuss

Answer & Solution

Answer: Option C

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

Which of the following is false?

A) Food imports check the rent from rising B) rent accrues to good lands only C) rent is a monopoly receipt also D) rent is excess earning over the transfer earnings

Discuss

Answer & Solution

Answer: Option B

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

The formula for calculating arc elasticity is

A) $${e_a} = \frac{{{Q_1} - {Q_2}}}{{{Q_1} + {Q_2}}} \div \frac{{{P_1} - {P_2}}}{{{P_1} + {P_2}}}$$ B) $${e_a} = \frac{{{Q_1} + {Q_2}}}{{{Q_1} - {Q_2}}} \div \frac{{{P_1} + {P_2}}}{{{P_1} - {P_2}}}$$ C) $${e_a} = \frac{{{Q_1} - {Q_2}}}{{{P_1} - {P_2}}} \div \frac{{{Q_1} - {Q_2}}}{{{P_1} + {P_2}}}$$ D) None of these

Discuss

Answer & Solution

Answer: Option A

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

In a two-input situation (K and L), if one of the inputs, say L, is available free of cost to a producer, then the factor price curve or the producer's budget curve is

A) horizontal B) exponential C) rectangular hyperbolic D) L-shaped

Discuss

Answer & Solution

Answer: Option B

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

The demand curve is . . . . . . . . representation of a demand schedule, demand curve slopes . . . . . . . . ward from left to right.

A) graphical, down B) down, graphical C) graphical, up D) schedule, up

Discuss

Answer & Solution

Answer: Option A

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

Quasi-rent is related to

A) Short-run B) Long-run C) Very long run D) All of the above

Discuss

Answer & Solution

Answer: Option A

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

In monopolistic competition, a firm is in long run equilibrium

A) at the minimum point of the long-run average cost curve B) in the declining segment of the long-run average cost curve C) in the rising segment of the long-run average cost curve D) when the price is equal to marginal cost

Discuss

Answer & Solution

Answer: Option B

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