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-12

If a consumer, with a given income and price consumes three commodities x, y and z. His satisfaction will be maximum when:

A) $$\frac{{MUx}}{{MUy}} = \frac{{MUy}}{{MUz}} = \frac{{MUz}}{{MUx}}$$ B) $$\frac{{MUx}}{{MUy}} = \frac{{Px}}{{Py}} = \frac{{MUx}}{{Pz}}$$ C) $$\frac{{MUx}}{{Px}} = \frac{{MUy}}{{Py}} = \frac{{MUz}}{{Pz}}$$ D) $$\frac{{MUx}}{{Py}} = \frac{{MUy}}{{Pz}} = \frac{{MUz}}{{Px}}$$

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Answer: Option C

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Market demand for any good is a function of the

A) price per unit of the good B) price per unit of other goods C) income of consumers D) tastes of consumers E) all of the above

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Answer: Option E

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Price discrimination will always lead to

A) increase in output B) decrease in output C) no change in output D) None of these

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Answer: Option C

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The law of diminishing marginal utility was propounded by

A) Prof. Paul Samuelson and Giffen B) Prof. A. Marshall C) Prof. J. R. Hicks D) Mrs. John Robinson

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Answer: Option B

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Which of the following statement(s) is/are not correctly?

A) Decrease in own price of the commodity means extension of demand B) Increase in own price of the commodity means increase in demand C) Both A and B D) None of the above

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Answer: Option B

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In perfect competition market, the firm will be

A) A valuer B) A price taker C) Obstructing the entry of the other firms D) Producing a commodity different from the competition

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Answer: Option B

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Firms producing and selling a large variety of goods will generally follow:

A) Cost plus pricing B) Marginal pricing C) Skimming pricing D) Product line pricing

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Answer: Option D

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A budget line

A) Has a slope equal to the relative price B) Shows the limit what can be consumed C) Rotates and shifts only when the consumer budget changes D) Both A and B are correct

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Answer: Option D

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In which five year plan, the amount allocated for agriculture was the highest percentage in the total plan expenditure?

A) First plan B) Second plan C) Sixth plan D) Ninth plan

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Answer: Option B

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Match List-I with List-II and select the correct answer:

List-I	List-II
a. Real cost	1. Aggregate of accounting costs and implicit costs
b. Money cost	2. Physical quantities of factors used in production
c. Opportunity Cost	3. Monetary expenditure on inputs
d. Economic cost	4. Sacrifice of alternative use of given resources

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

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Answer: Option B

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