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-9 section-11

The point at which the total product stops increasing at increasing rate and starts increasing at decreasing rate is called

A) break even point B) shutdown point C) inflexion point D) None of these

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Answer & Solution

Answer: Option C

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In the following figure, marginal product reaches its maximum at a level of labour, which as compared to that for average product is
Economics mcq question image

A) higher B) lower C) same D) not comparable

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Answer: Option B

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The idea of commodity differentiation is related to which market?

A) Perfect competition B) Bilateral monopoly C) Monopolistic competition D) Monopoly

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Answer: Option C

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Which of the following is not included in the gross national production (GNP at market price) at market price?

A) Wages and salaries B) Indirect tax C) Capital depreciation D) Pension and fund receipts

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Answer: Option D

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The firm under perfect competition will be in short run equilibrium when

A) rising marginal cost is equal to the minimum average cost B) marginal revenue is equal to rising marginal cost C) average revenue is equal to average cost D) marginal revenue is equal to the falling marginal cost

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Answer & Solution

Answer: Option B

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Which one of the following statement is incorrect?

A) Economic Profit = Total Revenue - Total Cost, including both explicit and implicit cost B) Accounting Profit = Total Revenue - Total Explicit Cost C) Marginal Product - The increase in output that arises from an additional unit of input D) Marginal Product - The decrease in output that arises from an additional unit of input

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Answer & Solution

Answer: Option D

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Which kind of economics explains the phenomenon of cause and effect relationship?

A) Normative B) Positive C) Micro D) Macro

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Answer: Option B

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Which of the following is not an attribute of production function?

A) Flow concept B) State of technology C) Quantity of inputs D) State of inputs

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Answer: Option C

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What should be price elasticity of demand by proportionate method if Q₁ = 20000, Q₂ = 25000; P₁ = Rs. 10; P₂ = Rs. 8?

A) 1.25 B) 1.50 C) 1.20 D) 1.00

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Answer: Option A

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If total consumer expenditure on a good falls as its price falls, this indicates that

A) e < 1 B) inferior goods C) taste for it is declining D) it is being produced under conditions of decreasing cost

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Answer: Option A

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