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-8

Match the items of List-I with the items of List-II and choose the correct.

List-I	List-II
a. Income elasticity less than unity	1. Competitive goods
b. Cross elasticity less than unity	2. Inferior foods
c. Cross elasticity less than zero	3. Superior goods
d. Income elasticity less than zero	4. Complementary goods

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

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Answer & Solution

Answer: Option C

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The lines ABCD represents which type of a curve?
Economics mcq question image

A) Kinked curve of oligopoly B) Price rigidity curve C) Demand curve for duopoly D) None of the above

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Answer: Option A

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Goods which are paradoxical to the law of demand are

A) giffen goods B) substitute goods C) complementary goods D) None of the above

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Answer: Option A

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The various degrees of price elasticity of demand can be shown on a single demand curve as per which one of the following?

A) Total outlay method B) Proportional method C) Arc method D) Geometrical method

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Answer: Option D

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Which of the following is the best general definition of the study of business economics?

A) The best way to invest in the stock market B) Behaviour of the firm in theory and practices C) Individual choice in the face of scarcity D) Use of economic theories for making business decisions

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Answer: Option D

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The kinked demand curve model of oligopoly assumes that the price elasticity of demand

A) In response to a price increase is more than the elasticity of demand in response to price decrease B) Is constant regardless of whether price increase or decrease C) Is infinite, if price increase and zero, if price decreases D) In response to a price increase is less than the elasticity of demand in response to a price decrease

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Answer: Option B

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Given the production function q = 4L + K, what is the formula for the marginal product of labour?

A) 4 + k B) 4 C) 4k D) Cannot be determined with the information given

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Answer: Option B

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Census is conducted in India, each

A) In 7 years B) In 10 years C) In 15 years D) In 20 years

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Answer: Option B

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Implicit costs are

A) Equal to total fixed costs B) Comprised entirely of variable costs C) Payments for self-employed resources D) Always greater in the short-run than in the long-run

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Answer: Option B

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Consider the following statements.
1. The main purpose of a business firm is to earn profit.
2. Capital management(s) is dealt within business economic.
3. Cost analysis is required for cost control.
Which of the statement(s) given above is/are correct?

A) Only 3 B) Only 2 C) Only 1 D) All of the above

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Answer: Option D

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