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-4

Suppose the short run cost function can be written as TC=250 + 10Q. Average fixed cost equals

A) 250/Q B) 250 C) 10 D) 250/Q + 10

Discuss

Answer & Solution

Answer: Option A

Solution:

If the short run cost function can be written as TC=250 + 10Q. Average fixed cost equals 250/Q.

Price discrimination often favours public interest because it

A) Allows production of some products that would have been otherwise difficult in the economy due to the fear of making losses B) Opens consumption possibilities to the consumer that would otherwise not be inaccessible if a single price prevailed in the market C) Allows firms to make supernormal profits, which in turn, allows them to sustain price wars when breaking into new markets D) All of the above

Discuss

Answer & Solution

Answer: Option A

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

In perfect competition, the demand curve of a firm is:

A) Vertical B) horizontal C) positively sloped D) negatively sloped

Discuss

Answer & Solution

Answer: Option B

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

Match the following.

List-I (Elasticity Coefficient)	List-II (Change in Total Revenue)
a. e = 0	1. Increase
b. e < 1	2. Decrease
c. e = 1	3. No change
d. e = ∞	4. Decrease to zero

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

Discuss

Answer & Solution

Answer: Option A

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

The elasticity of demand describes-

A) the distinction between changes in demand and changes in amount demanded B) a change in the incomes of the buyers in response to change in the prices of products they sell C) the slope of the demand curve D) the responsiveness of price to changes in the quantity demanded

Discuss

Answer & Solution

Answer: Option C

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

The phrase 'Payment by results' is more close to

A) Time rate wages B) Incentives C) Productivity linked wages D) All are correct

Discuss

Answer & Solution

Answer: Option C

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

If total production increases with the increases in variable factor, it is called

A) Law of constant return B) Law of diminishing return C) Law of increasing return D) Law of supply of production

Discuss

Answer & Solution

Answer: Option C

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

The price elasticity of demand for any product in the long run

A) Is more than its short-run value B) Is less than its short-run value C) Is same as its short-run value D) None of the above

Discuss

Answer & Solution

Answer: Option A

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

Under perfect competition, a firm will be in equilibrium, when its AC is

A) at minimum level B) equal to AR C) covering only prime cost of production D) None of the above

Discuss

Answer & Solution

Answer: Option A

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

Which of the following is the largest source of income of the government of India?

A) Direct tax B) Indirect tax C) Progressive tax D) Specific tax

Discuss

Answer & Solution

Answer: Option A

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