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-13

Using Gabriel's budget line, and his indifference curves between horseback riding lesson and baseball lessons, and then changing of each activity holding his income constant, which of the following can be derived?

A) Gabriel's supply curve for each activity B) Gabriel's net gain for each activity C) Gabriel's demand curve for each activity D) Gabriel's marginal benefit for each activity

Discuss

Answer & Solution

Answer: Option C

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

According to Malthus population theory, which one of the following statement are not correct?

A) Population shows a tendency to grow faster than the means of subsistence B) There is a direct relationship between standard of living and population C) Increasing populations can be stopped only by natural barriers D) Natural restrictions are those restrictions which are imposed by nature to stop population growth

Discuss

Answer & Solution

Answer: Option C

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

A particular price level, there are no forces tending to move it either up or down, it means
1. the firm is in equilibrium.
2. the price is in equilibrium.
3. the equilibrium price of the firm.
4. the equilibrium price and quantity of a firm.
Select the correct answer

A) Both 1 and 4 B) 1, 2 and 4 C) Both 1 and 3 D) Only 4

Discuss

Answer & Solution

Answer: Option B

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

The Bergson criteria are related to

A) Labour Economics B) Industrial Economics C) Welfare Economics D) Agricultural Economics

Discuss

Answer & Solution

Answer: Option C

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

The economic environment of a business includes

A) Economic system B) Economic policies C) Economic conditions D) All of the above

Discuss

Answer & Solution

Answer: Option D

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

If the price was fixed below the equilibrium price there would be

A) excess supply B) excess demand C) equilibrium D) downward pressure on prices

Discuss

Answer & Solution

Answer: Option B

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

A perfectly competitive firm should reduce output or shut down in the short run if market price is equal to marginal cost, and the price is

A) Greater than average total cost B) Less than average total cost C) Greater than average variable cost D) Less than average variable cost

Discuss

Answer & Solution

Answer: Option D

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

In which of the following commodities, when a consumer spends so much that negative income effect overwhelms the positive substitution effect so as the underlying demand curve is positively sloped?

A) Inferior goods B) Superior goods C) Giffen goods D) Normal goods

Discuss

Answer & Solution

Answer: Option C

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

If the average cost is falling then:

A) Marginal cost will increase B) Marginal cost will decrease C) Marginal cost will be equal to the average cost D) It is impossible to say whether marginal cost is rising or falling

Discuss

Answer & Solution

Answer: Option D

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

The concept of price elasticity of demand measures

A) the slope of the demand curve B) the number of buyers in a market C) the extent to which the demand curve shifts as the result of a price decline D) the sensitivity of consumers to price change

Discuss

Answer & Solution

Answer: Option D

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