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-15

Assertion (A): The demand for a commodity refers to the quantity of the commodity in demand at a certain price during any particular period.
Reason (R): The contraction of demand is the result of an increase in the price of the good concerned.

A) Both (A) and (R) are true B) Both (A) and (R) are incorrect C) (A) is correct but (R) is incorrect D) (A) is incorrect but (R) is correct

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Answer & Solution

Answer: Option A

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Lack of capital, exessive dependence on agriculture and inequalities of income and assets are some of the important features of a

A) Capitalist economy B) Socialist economy C) Developing economy D) Developed economy

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Answer: Option C

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Which one of the following agencies is responsible for the computation of national income in India

A) N.C.A.E.R. B) C.S.O. C) N.S.S. D) R.D.I.

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Answer & Solution

Answer: Option B

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The economic cost of input includes

A) Only explicit cost B) Both, implicit and explicit cost C) Only implicit cost D) None of the above

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Answer: Option B

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Find the marginal revenue of a firm that sells a product at a price of Rs. 10 and the price elasticity of demand for the product is (-) 2.

A) Rs. 5 B) Rs. 10 C) Rs. 30 D) Rs. 15

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Answer & Solution

Answer: Option A

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Which of the following refers to perfect competition?
1. There are restrictions on buyers and sellers.
2. There are no restrictions on movement of goods.
3. There are no restrictions on factors of production.
Select the correct answer

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

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Answer & Solution

Answer: Option B

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Merger of two companies under the Board for Industrial and Finacial Reconstruction (BIFR) supervision is known as

A) Reverse merger B) Negotiated merger C) Offer for sale D) Arranged merger

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Answer: Option D

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In the case of Giffen good like bajra, a fall in its price tends to-

A) make the demand remain constant B) reduce the demand C) increase the demand D) change demand in an abnormal way

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Answer & Solution

Answer: Option B

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If an increase of 50% in the price of a commodity causes a decrease in its demand by only 10% then such demand will be

A) Inelastic demand B) Perfectly elastic demand C) Perfectly inelastic demand D) Highly elastic demand

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Answer & Solution

Answer: Option A

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Statement I The important difference between our assumptions for monopolistic competition and those for perfect competition is that monopolistic competitors sell similar, but not identical products.
Statement II In monopolistic competition, we have many firms selling a differentiated product.

A) Both statements are correct B) Both statements are incorrect C) Statement I is correct, but Statement II is incorrect D) Statement I is incorrect, but Statement II is correct

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Answer & Solution

Answer: Option A

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