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-11

The demand for a product would be more inelastic

A) the greater is the time under consideration B) the greater is the number of substitutes available to buyers C) the less expensive is the product in relation to incomes D) All of the above

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Answer & Solution

Answer: Option C

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Indifference curves are usually:

A) Convex B) Concave C) L-shaped D) Vertical

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Answer: Option A

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The competitive equilibrium leads to

A) the firms producing with excess capacity B) the firms producing at their minimum cost C) the firms producing at a cost higher than the minimum D) some firms produce under low cost and others under high cost

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Answer: Option B

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Which is the assumption of utility analysis?

A) Utility is measurable in terms of money B) Utility is a price C) There are substitute D) None of the above

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Answer: Option A

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For profit maximisation of a firm following conditions should be fulfilled.
1. MC = MR.
2. Marginal cost curve cuts the average cost curve from below.
Which of the above said condition(s) is/are correct?

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

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Answer: Option C

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When the production decreases gradually due to continuous use of units of production factors

A) Law of origin B) Law of increasing return C) Law of diminishing return D) None of these

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Answer: Option C

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A concept, which has importance in the equilibrium analysis and thus economic analysis is

A) opportunity cost B) average variable cost C) marginal cost D) total cost

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Answer: Option C

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Degree of monopoly power, according to Learner is

A) $$\frac{P}{e}$$ B) $$\frac{{P - MC}}{P}$$ C) $$\frac{{AR - MR}}{P}$$ D) $$\frac{{MC - P}}{P}$$

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Answer: Option B

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Match the following.

List-I	List-II
a. Equilibrium price is the price where the	1. Complimentary goods
b. Excess supply can be defined as	2. Quantity demanded = Quantity supplied
c. Tea and sugar	3. Quantity demanded - Quantity supplied
d. Excess demand can be defined as	4. Quantity supplied - Quantity demanded

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

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Answer: Option A

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"Profits is the reward of risk" is the statement

A) Henry Ford B) Prof. Tomas C) Prof. Terry D) Prof. Dixie

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Answer: Option B

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