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-12

Whose view is that, "Economics is neutral between ends."

A) Adam Smith B) Robbins C) Marshall D) Pigou

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Answer & Solution

Answer: Option B

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GNP at market prices-Indirect taxes + subsidies is referred to as:

A) GNP at factor cost B) GDP at factor cost C) NNP at factor cost D) NDP at factor cost

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Answer & Solution

Answer: Option A

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A cost that remains constant per unit but changes with the volume of output is called

A) Fixed cost B) Semi-variable cost C) Variable cost D) Absorption cost

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Answer & Solution

Answer: Option C

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In international trade which of the following is a non-tariff trade barrier?

A) Quotas B) Import bans C) Export controls D) Anti dumping laws

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Answer & Solution

Answer: Option B

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The essence of the law of diminishing returns is

A) Inelastic production B) Negative marginal production C) Declining total production D) Declining average production

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Answer & Solution

Answer: Option B

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In . . . . . . . . market condition, the demand of commodity is completely elastic.

A) Perfect competiton B) Monopoly C) Imperfect competitor D) Oligopoly

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Answer & Solution

Answer: Option A

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The term opportunity cost refers to

A) Cost related to an optimum level of production B) Variable cost C) Short-run cost D) Cost of one product in term of production of others forgone

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Answer & Solution

Answer: Option D

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Moving along an indifference curve, if a consumer requires a small amount of the good measured along the Y-axis to make up one unit less of the good measured on the X-axis, then

A) The marginal rate of substitution is high and the indifference curve is steep B) Total utility is increasing C) The marginal rate of substitution is high and the indifference curve is shallow D) The marginal rate of substitution is low and the indifference curve is shallow

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Answer & Solution

Answer: Option D

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The production function expresses the relationship between which of the following?

A) Cost and benefit B) Stock and flow variables C) Demand and supply D) Input and output

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Answer & Solution

Answer: Option D

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'Extension of demand' means

A) more quantity demanded at a lower price B) more quantity demanded at a higher price C) more quantity demanded at the same price D) none of these

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Answer & Solution

Answer: Option A

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