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-7

Under perfect competition a firm may earn supernormal profit in

A) Short run B) Long run C) Never D) Always

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Answer & Solution

Answer: Option A

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In a planned economy the economic problem of what shall be produced is determined primarily by

A) computers deciding what consumers want B) direction by the Government C) the pattern of consumer's spending D) the independent decisions of entre-preneurs

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Answer & Solution

Answer: Option B

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The market demand curve for a perfectly competitive industry is QD = 12 - 2P; the market supply curve is QS = 3 + P. The market will be in equilibrium if

A) P = 6 and Q = 9 B) P = 5 and Q = 2 C) P = 4 and Q = 4 D) P = 3 and Q = 6

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Answer & Solution

Answer: Option D

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Demand for electricity is elastic because

A) it is very expensive B) it has alternative uses C) it has a number of close substitutes D) None of the above

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Answer & Solution

Answer: Option B

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"Economics remains neutral to objectives". This is the statement

A) Adam Smith B) Marshall C) R. C. Devis D) Harold Smidy

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Answer & Solution

Answer: Option B

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The price of compact disc players fell over the past decade due to the combination of improving technology and rising incomes. The falling prices of a compact disc caused the

A) Demand curve for compact disc players to shift rightward faster than the supply curve of compact disc players shifted rightward B) Supply curve of compact disc players to shift rightward faster than the demand curve for compact disc players shifted rightward C) Demand curve for compact disc players to shift leftward and supply curve of compact disc players to shift leftward D) Supply curve of compact disc players to shift rightward and the demand curve for compact disc players to shift leftward

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Answer & Solution

Answer: Option B

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Production function depends on

A) The technology of the firm B) The quantum of falls C) The type of leaves D) All of these

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Answer & Solution

Answer: Option D

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Manufacturing of T.V. sets and refrigerators and their pricing in India belong to which one of the following market structures?

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

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Answer & Solution

Answer: Option A

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In a monopoly, when abnormal profits are made

A) The price set is greater than the average cost B) The price is less than the marginal cost C) The average revenue equals the marginal cost D) Revenue equals total cost

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Answer & Solution

Answer: Option A

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An unusually warm winter will

A) Shift the supply curve of gloves leftward B) Shift the demand curve for gloves rightward C) Shift the demand curve for gloves leftward D) Shift the supply curve of gloves rightward

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Answer & Solution

Answer: Option C

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