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-16

Consumers are likely to get maximum variety of goods under

A) monopolistic competition B) monopoly C) perfect competition D) oligopoly

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Answer & Solution

Answer: Option A

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When the law of demand is in operation, then

A) The demand curve is going up B) The demand curve is a lying line C) The demand curve is a downward curve D) The demand curve is a vertical line

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Answer & Solution

Answer: Option C

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Thought of consumer saving was propounded by

A) Duepit B) Marshall C) Hicks D) None of these

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Answer & Solution

Answer: Option B

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The types of law of origin are-

A) Law of increasing return B) Law of origin parity C) Law of decreasing return D) All of these

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Answer & Solution

Answer: Option D

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The breakeven-point is defined as occurring at an output rate at which

A) Total revenue equals the total opportunity cost B) Economic profit is maximized C) Total cost is minimized D) Marginal revenue equals marginal cost

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Answer & Solution

Answer: Option C

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Consider the following statements-
1. The increasing returns to scale imply that the marginal product of a variable factor will always increase.
2. The constant returns to scale imply that the marginal product of a variable factor will always diminish
3. Managerial diseconomies constitute an important cause of decreasing returns to scale
Which of these statements is/are correct?

A) 1, 2 and 3 B) 1 and 3 C) 2 only D) 2 and 3

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Answer & Solution

Answer: Option B

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The backward-bending supply curve for labour exists

A) only in inflationary conditions B) wherever income effect overcomes substitution effect C) only in labour intensive industry D) only in a high cost industry

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Answer & Solution

Answer: Option B

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Market demand is

A) the sum of all individual demands B) demand at prevailing average prices C) ability to pay the price asked D) demand in a perfectly free market

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Answer & Solution

Answer: Option A

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If a demand for a product is said to be 'elastic', the value of the elasticity coefficient is

A) zero B) greater than one C) equal to one D) less than one

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Answer & Solution

Answer: Option B

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Match the following.

List-I	List-II
a. Science of wealth	1. Marshall
b. Science of welfare	2. Samuelson
c. Science dealing with scarcity	3. Robbins
d. Science of growth	4. Smith

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

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Answer & Solution

Answer: Option C

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