Economics MCQ Questions and Solutions with Explanations | Commerce

A consumer is in equilibrium when marginal utilities are equal. A consumer is in equilibrium when he derives maximum satisfaction from the goods and is in no position to rearrange his purchases.

TC curve rises continously. Total cost (TC) is the total economic cost of production and is made up of variable cost, which varies according to the quantity of a good produced and includes inputs such as labour and raw materials, plus fixed cost, which is independent of the quantity of a good produced and includes inputs that cannot be varied in the short term: fixed costs such as buildings and machinery, including sunk costs if any. Since cost is measured per unit of time, it is a flow variable.

The first of three volumes of Das Kapital was published on 14 September 1867, dedicated to Wilhelm Wolff and was the sole volume published in Marx's lifetime.

According to Keynes, interest is a payment for Liquidity preference. The Liquidity Preference Theory says that the demand for money is not to borrow money but the desire to remain liquid. In other words, the interest rate is the 'price' for money.

According to Keynes, interest is a payment for Liquidity preference. The Liquidity Preference Theory says that the demand for money is not to borrow money but the desire to remain liquid. In other words, the interest rate is the 'price' for money.

When marginal is negative, it must be true that the total is decreasing. Marginal utility may decrease into negative utility, as it may become entirely unfavorable to consume another unit of any product.

All the following curves are U-shaped except AFC. The AFC curve is a rectangular hyperbola in the sense that all rectangles formed by AFC are of equal sizes. The AFC curve is asymptotic to both the axes. This means that it touches neither the horizontal axis nor the vertical axis.

The Critique of Political Economy, the first fruits of Karl Marx's long painstaking research at the British Museum, appeared in 1859.

Interest is paid because Capital is scarce. The borrower can get additional income from borrowed capital and in easily afford to pay interest. Hence it is scarcity.

The term 'marginal' in economics means Additional. In economics, the term marginal is used to indicate the change in some benefit or cost. when an additional unit is produced. For instance, the marginal revenue is the change in. total revenue when an additional unit is produced.