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-14

The demand has the elements of quantity, price and time.

A) The desire, ability, and willingness of an individual to purchase goods and services at any given price per unit B) The desire and willingness of the individual for all the goods and service for his standard of living C) The ability of society to purchase all that is on the market at a given period D) None of the above

Discuss

Answer & Solution

Answer: Option A

No explanation is given for this question. Let's Discuss on Board

When the price-elasticity of demand is unity, the marginal revenue would be

A) Less than zero B) Equal to zero C) Equal to one D) Greater than one

Discuss

Answer & Solution

Answer: Option B

No explanation is given for this question. Let's Discuss on Board

Cobb Douglas production function as X = b₀, Ib₁, Kb₂ which of the following is correct?

A) The substituent elasticity is equal to the unit B) The instrument measures the concentration by the ratio b₁/b₂ C) Organization and entrepreneurship are measured by efficiency D) All of these

Discuss

Answer & Solution

Answer: Option D

No explanation is given for this question. Let's Discuss on Board

The relationship between rate of inputs of productive services and the rate of output is known as:

A) Production function B) Utility function C) Supply function D) None of these

Discuss

Answer & Solution

Answer: Option A

No explanation is given for this question. Let's Discuss on Board

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

List-I	List-II
a. Offer curve	1. Market segmentation
b. Laffer curve	2. Sticky price
c. Lorenz curve	3. Reciprocal demand
d. Kinked curve	4. Inequalities
	5. Public revenue

A) a-1, b-4, c-5, d-3 B) a-3, b-5, c-4, d-2 C) a-1, b-5, c-3, d-2 D) a-4, b-2, c-3, d-1

Discuss

Answer & Solution

Answer: Option B

No explanation is given for this question. Let's Discuss on Board

The total effect of a price change of a commodity is

A) Substitution effect + price effect B) Substitution effect - income effect C) Substitution effect + income effect D) Substitution effect - price effect

Discuss

Answer & Solution

Answer: Option C

No explanation is given for this question. Let's Discuss on Board

Malthusian theory of population is based on:

A) law of demand as applied to population B) law of diminishing return as applied to agriculture C) law of marginal utility as applied to agriculture D) law of marginal return as applied to population

Discuss

Answer & Solution

Answer: Option B

No explanation is given for this question. Let's Discuss on Board

Income elasticity of demand for good 'X' is greater than zero but less than 1, so commodity 'X' is

A) An essential good B) A luxury good C) Inferior good D) A Giffen good

Discuss

Answer & Solution

Answer: Option A

No explanation is given for this question. Let's Discuss on Board

Business Economics is a subject which

A) studies economic relationships B) studies economic activities at the aggregate level C) deals with the tools of economics used for decision making in business D) studies optimum allocation of limited resources

Discuss

Answer & Solution

Answer: Option C

No explanation is given for this question. Let's Discuss on Board

At a point of satiety for a commodity, the marginal utility is

A) Negative B) Positive C) Zero D) Highly positive

Discuss

Answer & Solution

Answer: Option C

No explanation is given for this question. Let's Discuss on Board