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-8

A monopolized market is in long-run equilibrium when

A) Zero economic profit is earned by the monopolist B) Production takes place where the price is equal to long-run marginal cost and long-run average cost C) Production takes place where long-run marginal cost is equal to marginal revenue, and the price is not below the long-run average cost D) All of the above

Discuss

Answer & Solution

Answer: Option C

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

Match the following.

List-I (Consumer Goods)	List-II (Effect on Sale)
a. Essential goods	1. Less than proportionate change in sale
b. Comforts	2. Almost proportionate change in sale
c. Luxuries	3. More than proportionate increase in sale
d. Prestige goods	4. Increase in sale

A) a-1, b-2, c-3, d-4 B) a-2, b-1, c-3, d-4 C) a-2, b-4, c-1, d-3 D) a-3, b-1, c-2, d-4

Discuss

Answer & Solution

Answer: Option A

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

If price of any commodity decreases by 20% and the demand for that commodity increases by 40%, then elasticity of demand would be

A) perfectly elastic B) perfectly inelastic C) unit elastic D) highly elastic

Discuss

Answer & Solution

Answer: Option D

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

In the figure given below is shown the determination of price in the
Economics mcq question image

A) short run B) market period C) long run D) secular run

Discuss

Answer & Solution

Answer: Option B

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

A consumer attains equilibrium at a point on the indifference curve where

A) $$MR{S_{xy}} = \frac{{{P_x}}}{{{P_y}}}$$ B) $$MR{S_{xy}} > \frac{{{P_x}}}{{{P_y}}}$$ C) $$MR{S_{xy}} < \frac{{{P_x}}}{{{P_y}}}$$ D) $$MR{S_{xy}} = {P_x}{P_y}$$

Discuss

Answer & Solution

Answer: Option A

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

Application of the 'Marginal-Cost pricing' principle in a decreasing cost industry would lead to

A) surpluses B) losses needing subsidies C) neither surpluses nor losses D) a decline in output

Discuss

Answer & Solution

Answer: Option A

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

Which of the following statements is most closely associated with general equilibrium analysis?

A) everything depends on everything else B) ceteris paribus C) the equilibrium price of a goods or service depends on the balancing of the forces of demand and supply for that goods or services D) the equilibrium price of a factor depends on the balancing of the forces of demand and supply for that factor

Discuss

Answer & Solution

Answer: Option A

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

Market demand for any goods is a function of the
1. price per unit of the goods
2. price per unit of other goods
3. incomes of consumers
4. tastes of consumers
Select the correct answer

A) Only 1 B) Both 1 and 3 C) Both 3 and 4 D) All of the above

Discuss

Answer & Solution

Answer: Option D

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

If a firm sells its output in a market characterized by a few sellers and many buyers, and limited long-run resource mobility, then the firm is

A) Monopolist B) Oligopolist C) Perfect competitor D) Monopolistic competitor

Discuss

Answer & Solution

Answer: Option B

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

The payment made for good manufactured and exported in India is called

A) Cash assistance B) Marginal value C) Deferred payment D) Duty drawback

Discuss

Answer & Solution

Answer: Option A

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