Economics MCQ Questions and Solutions with Explanations

Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Section 7 Section 8 Section 9 Section 10 Section 11 Section 12 Section 13 Section 14 Section 15 Section 16

1.
The capital that is consumed by an economy or a firm in the production process is known as

A. Capital loss

B. Production cost

C. Dead-weight loss

D. Depreciation

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2.
Who propounded the opportunity cost theory of international trade?

A. Ricardo

B. Marshall

C. Heckscher & Ohlin

D. Haberler

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3.
Which among the following statement is INCORRECT?

A. On a linear demand curve, all the five forms of elasticity can be depicted

B. If two demand curves are linear and intersecting each other, then, coefficient of elasticity would be same on different demand curves at the point of intersection.

C. If two demand curves are linear and parallel to each other, then, at a particular price, the coefficient of elasticity would be different on different demand curves.

D. The price elasticity of demand is expressed in terms of relaive not absolute changes in Price and Quantity demanded.

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4.
If the demand for a good is inelastic, an increase in its price will cause the total expenditure of the consumers of the good to

A. Increase

B. Decrease

C. Remain the same

D. Become zero

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5.
The horizontal demand curve parallel to x-axis implies that the elasticity of demand is

A. Zero

B. Infinite

C. Equal to 1

D. Greater than zero but less than infinity

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6.
An individual demand curve slopes downward to the right because of the

A. Working of the law of diminishing marginal utility

B. Substitution effect of decrease in price

C. Income effect of fall in price

D. All of the above

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7.
Income elasticity of demand is defined as the responsiveness of

A. Quantity demanded to a change in income

B. Quantity demanded to a change in price

C. Price to a change in income

D. Income to a change in quantity demanded

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8.
The supply of a good refers to

A. Stock available for sale

B. Total stock in the warehouse

C. Actual production of the good

D. Quantity of the good offered for sale at a particular price per unit of time

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9.
The cost of one thing in terms of the alternative given up is called

A. Real cost

B. Production cost

C. Physical cost

D. Opportunity cost

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10.
Assume that consumer's income and the number of sellers in the market for good X both falls. Based on this information, we can conclude with certaintty that the equilibrium

A. Price will decrease

B. Price will increase

C. Quantity will decrease

D. Quantity will increase

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Economics MCQ Questions and Solutions with Explanations | Commerce

1. The capital that is consumed by an economy or a firm in the production process is known as

Answer & Solution

2. Who propounded the opportunity cost theory of international trade?

Answer & Solution

3. Which among the following statement is INCORRECT?

Answer & Solution

4. If the demand for a good is inelastic, an increase in its price will cause the total expenditure of the consumers of the good to

Answer & Solution

5. The horizontal demand curve parallel to x-axis implies that the elasticity of demand is

Answer & Solution

6. An individual demand curve slopes downward to the right because of the

Answer & Solution

7. Income elasticity of demand is defined as the responsiveness of

Answer & Solution

8. The supply of a good refers to

Answer & Solution

9. The cost of one thing in terms of the alternative given up is called

Answer & Solution

10. Assume that consumer's income and the number of sellers in the market for good X both falls. Based on this information, we can conclude with certaintty that the equilibrium

Answer & Solution

Read More Section(Economics)

1.
The capital that is consumed by an economy or a firm in the production process is known as

2.
Who propounded the opportunity cost theory of international trade?

3.
Which among the following statement is INCORRECT?

4.
If the demand for a good is inelastic, an increase in its price will cause the total expenditure of the consumers of the good to

5.
The horizontal demand curve parallel to x-axis implies that the elasticity of demand is

6.
An individual demand curve slopes downward to the right because of the

7.
Income elasticity of demand is defined as the responsiveness of

8.
The supply of a good refers to

9.
The cost of one thing in terms of the alternative given up is called

10.
Assume that consumer's income and the number of sellers in the market for good X both falls. Based on this information, we can conclude with certaintty that the equilibrium