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-5

Presented the idea of imperfect competition

A) Calder B) Chamberlin C) Samuelson D) Mrs. John Robinson

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Answer & Solution

Answer: Option D

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Assume that a PPC for wheat and rice is drawn so that it is a straight line. This means that

A) the cost of producing rice in terms of wheat falls as more rice is produced B) the cost of producing rice in terms of wheat does not change as more rice is produced C) the fixed costs of rice and wheat are equal D) the average cost of population of rice and wheat are at their optimum level

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Answer & Solution

Answer: Option B

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The first clear and satisfactory explanation of rent was given by

A) Adam Smith B) Marshall C) Ricardo D) J. H. Mill

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Answer & Solution

Answer: Option C

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The magnitude of the slope of an indifference curve is the

A) Marginal rate of substitution B) Rate of increasing opportunity cost C) Marginal rate of utility of income D) Rate of relative price

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Answer & Solution

Answer: Option A

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At present the base year for measuring national income at constant prices is

A) 2002-03 B) 2001-02 C) 1995-96 D) 1993-94

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Answer & Solution

Answer: Option D

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For the following statement of Assertion (A) and Reasoning (R) select the correct answer:
Assertion (A): Price reduction normally leads to an increase in the demand for a commodity.
Reason (R): Price reduction leads to the entry of new buyers of the commodity in the market.

A) (A) is correct but (R) is not correct B) (A) is not correct but (R) is correct C) Both (A) and (R) are correct and offers a full explanation of (A) D) Both (A) and (R) are correct but (R) does not offer a full explanation of (A)

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Answer & Solution

Answer: Option D

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Which of the following is not known as the 'law of equi-marginal utility'?

A) Law of substitution B) Gossen's first law C) Gossen's second law D) Law of indifference

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Answer & Solution

Answer: Option B

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If ∆I = Rs. 100 and marginal production cost Rs. 9 then National income will increase

A) Rs. 9000 B) Rs. 900 C) Rs. 100 D) Rs. 1000

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Answer & Solution

Answer: Option B

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When there is a very small change in the price of a commodity and there is a great change in the demand, when the demand for such will be

A) Completely inelastic B) Perfectly elastic C) Elastic D) Highly elastic

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Answer & Solution

Answer: Option D

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The method of finding NNP is-

A) NNP = GNP - Depreciation B) NNP = GNP + Depreciation C) NNP = GNP + Direct Tax D) NNP = GNP + Indirect Tax

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Answer & Solution

Answer: Option A

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