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-8 section-10

The short-run cost function of a firm is as follows:
TC = 200 + 5Q + 2Q²
Where TC = Total Cost, Q = Physical units of the product of the firm
What would be the level of optimum output ?

A) 5 B) 10 C) 12 D) 15

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Answer & Solution

Answer: Option B

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"Money is the pivot around which the economic science clusters." This statement was stated by:

A) Adam Smith B) Alfred Marshall C) J. M. Keynes D) Koutilya

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Answer & Solution

Answer: Option B

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Which one is odd?

A) Economic Policies B) Economic Planning C) Socio-cultural factors D) Macro-economic scenario

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Answer & Solution

Answer: Option C

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In monopolistic competition

A) There are some firms selling differentiated product B) There are many firms selling similar goods C) There are some firms selling same product D) There are many firms selling differentiated product

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Answer & Solution

Answer: Option D

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A firm having least cost combination is-

A) Optimum Firm B) Equilibrium Firm C) Representative Firm D) Marginal Firm

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Answer & Solution

Answer: Option A

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Which of the following prosperity rate is affected by population growth in Harrod model?

A) Real rate B) Natural rate C) Deprieved rate D) None of the above

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Answer & Solution

Answer: Option C

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Under a simple Cournot duopoly model, each duopolist will produce

A) half the output B) one-fourth the output C) one-third the output D) one-fifth the output

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Answer & Solution

Answer: Option C

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With reference to indifference curve, which of the following statement is/are correct?
1. It represents all those combinations of goods which give same satisfaction to consumer.
2. A consumer selects or buy the combination of equilibrium goods that maximise utility.
Select the correct answer

A) Only 1 B) Only 2 C) Both 1 and 2 D) Neither 1 nor 2

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Answer & Solution

Answer: Option A

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Which one of the following formulae based on the given diagram would be appropriate for measuring the elasticity of demand at point R?
Economics mcq question image

A) $$\frac{{RS}}{{SB}} = \frac{{RS}}{{RA}} = \frac{{OU}}{{PU}}$$ B) $$\frac{{RS}}{{RA}} = \frac{{RS}}{{SB}} = \frac{{PU}}{{OU}}$$ C) $$\frac{{RA}}{{RB}} = \frac{{OQ}}{{OB}} = \frac{{PA}}{{PO}}$$ D) $$\frac{{RB}}{{RA}} = \frac{{QB}}{{OQ}} = \frac{{OP}}{{PA}}$$

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Answer & Solution

Answer: Option D

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Arrange the following in chronological order.
1. Diminishing returns
2. Negative returns
3. Increasing returns

A) 1, 2, 3 B) 3, 2, 1 C) 2, 3, 1 D) 3, 1, 2

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Answer & Solution

Answer: Option D

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