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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-2

Each section contains 100 MCQs on Economics .
81
The cost which a firm incurs for purchasing or hiring factors is called
Discuss
Answer & Solution
Answer: Option B
No explanation is given for this question. Let's Discuss on Board
82
The Communist Manifesto, written jointly by Marx and Engels's was published in
Discuss
Answer & Solution
Answer: Option B
Solution:
The Communist Manifesto, written jointly by Marx and Engels's was published in 1848.
83
Every factor of production gets rewarded equal to its
Discuss
Answer & Solution
Answer: Option B
Solution:
Every factor of production gets rewarded equal to its Marginal product. No single firm can influence the market price of a factor of production. Therefore, in order to get the equilibrium position, a firm will employ labourers up to a point where their respective marginal revenue productivity is equal to their wage rate.
84
Utility is more closely related to the term
Discuss
Answer & Solution
Answer: Option D
Solution:
Utility is more closely related to the term Satisfaction. The term was introduced initially as a measure of pleasure or satisfaction within the theory of utilitarianism by moral philosophers such as Jeremy Bentham and John Stuart Mill.
85
The short run
Discuss
Answer & Solution
Answer: Option B
Solution:
The short run Requires that at least one input is fixed. The short run is a concept that states that, within a certain period in the future, at least one input is fixed while others are variable.
86
Who stated explicitly for the first time, the Law of Comparative Costs?
Discuss
Answer & Solution
Answer: Option A
Solution:
David Ricardo stated explicitly for the first time, the Law of Comparative Costs. Absolute advantage refers to the uncontested superiority of a country to produce a particular good better. Comparative advantage introduces opportunity cost as a factor for analysis in choosing between different options for production.
87
According to Keynes, interest is a payment for
Discuss
Answer & Solution
Answer: Option C
Solution:
According to Keynes, the rate of interest is purely “a monetary phenomenon.” Interest is the price paid for borrowed funds. People like to keep cash with them rather than investing cash in assets. Thus, there is a preference for liquid cash.
88
Demand curve slopes downward because of the law of
Discuss
Answer & Solution
Answer: Option D
Solution:
Demand curve slopes downward because of the law of Diminishing marginal utility. The law of diminishing marginal utility states that with each increasing quantity of the commodity, its marginal utility declines.
89
The long run is a
Discuss
Answer & Solution
Answer: Option B
Solution:
The period is long enough to allow firms to change plant size and capacity. The long run is a period of time in which all factors of production and costs are variable. In the long run, firms are able to adjust all costs.
90
The Purchasing Power Parity Theory' came into prominence in 1916 through the writings of
Discuss
Answer & Solution
Answer: Option C
Solution:
The Purchasing Power Parity Theory' came into prominence in 1916 through the writings of Gustav Cassel.