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.
In the long run in perfect competition

A. AR = MR

B. AR > MR

C. AR < MR

D. None of these

Answer & Solution Discuss in Board Save for Later

2.
Which of the following could provide an example of exceptional demand curves?
1. Demand for "Giffen goods"
2. Demand based on fears of a future rise in prices
3. Demand for second-hand clothes
4. Demand for daily newspapers
Select the right answer:

A. 1 only

B. 1 and 2

C. 2 and 3

D. 1, 2, 3 and 4

Answer & Solution Discuss in Board Save for Later

3.
Assertion (A): Consumer's surplus is the difference between the potential price and the actual price.
Reason (R): There exists an inverse relationship between the price and the consumer's surplus.

A. Both A and R are true and R is the correct explanation of A

B. Both A and R are true, but R is not a correct explanation of A

C. A is true, but R is false

D. A is false, but R is true

Answer & Solution Discuss in Board Save for Later

4.
Which of the following points is not an exception to the law of diminishing marginal utility?

A. Collection of inaccessible and rare items

B. Use of intoxicants

C. Recitation of a melodious poem or song

D. Single requirement

Answer & Solution Discuss in Board Save for Later

5.
If an individual is observed to work less in response to an increase in the wage rate for his services, this implies that

A. for this individual, leisure is a normal good

B. for this individual, leisure is an inferior good

C. the individual is irrational

D. leisure could be a Giffen good

Answer & Solution Discuss in Board Save for Later

6.
Which one of the following growth models includes the population growth function?
I. Classical model
II. Harrod-Domar model
III. Neo-classical model
IV. Schumpeter model

A. I and III

B. I, II and III

C. I and IV

D. II and IV

Answer & Solution Discuss in Board Save for Later

7.
In the compensating variation method of measuring the substitution effect of a rise in price, the consumer is

A. under-compensated

B. over-compensated

C. just-compensated

D. unaffected

Answer & Solution Discuss in Board Save for Later

8.
Match List-I and List-II and select the correct answer:

List-I List-II

a. Risk Bearing Theory of profit 1. Prof. Clark

b. Dynamic Theory of profit 2. Prof. Hawley

c. The innovation theory of profit 3. Prof. Knight

d. Uncertainity theory of profit 4. Prof. Schumpeter

A. a-1, b-3, c-2, d-4

B. a-1, b-2, c-4, d-3

C. a-4, b-1, c-2, d-3

D. a-2, b-1, c-4, d-3

Answer & Solution Discuss in Board Save for Later

9.
Match List-I and List-II

List-I List-II

a. Give strong orders 1. Marshall

b. Cardinal analysis 2. Hicks

c. Ordinal analysis 3. Slasky

d. Compensatory demand curve 4. Samuelson

A. a-4, b-3, c-2, d-1

B. a-4, b-2, c-1, d-3

C. a-4, b-1, c-2, d-3

D. a-3, b-4, c-1, d-2

Answer & Solution Discuss in Board Save for Later

10.
On which of the following assumptions, the theory of consumer behaviour of cardinal utility approach is NOT based?

A. Consumer is rational

B. Limited money income of the consumer

C. Maximization of total satisfaction

D. Diminishing marginal utility of money

Answer & Solution Discuss in Board Save for Later

1 2 3 4 5 6 7 8 9 10

List-I	List-II
a. Risk Bearing Theory of profit	1. Prof. Clark
b. Dynamic Theory of profit	2. Prof. Hawley
c. The innovation theory of profit	3. Prof. Knight
d. Uncertainity theory of profit	4. Prof. Schumpeter

List-I	List-II
a. Give strong orders	1. Marshall
b. Cardinal analysis	2. Hicks
c. Ordinal analysis	3. Slasky
d. Compensatory demand curve	4. Samuelson

Economics MCQ Questions and Solutions with Explanations | Commerce

1. In the long run in perfect competition

Answer & Solution

2. Which of the following could provide an example of exceptional demand curves? 1. Demand for "Giffen goods" 2. Demand based on fears of a future rise in prices 3. Demand for second-hand clothes 4. Demand for daily newspapers Select the right answer:

Answer & Solution

3. Assertion (A): Consumer's surplus is the difference between the potential price and the actual price. Reason (R): There exists an inverse relationship between the price and the consumer's surplus.

Answer & Solution

4. Which of the following points is not an exception to the law of diminishing marginal utility?

Answer & Solution

5. If an individual is observed to work less in response to an increase in the wage rate for his services, this implies that

Answer & Solution

6. Which one of the following growth models includes the population growth function? I. Classical model II. Harrod-Domar model III. Neo-classical model IV. Schumpeter model

Answer & Solution

7. In the compensating variation method of measuring the substitution effect of a rise in price, the consumer is

Answer & Solution

8. Match List-I and List-II and select the correct answer: List-I List-II a. Risk Bearing Theory of profit 1. Prof. Clark b. Dynamic Theory of profit 2. Prof. Hawley c. The innovation theory of profit 3. Prof. Knight d. Uncertainity theory of profit 4. Prof. Schumpeter

Answer & Solution

9. Match List-I and List-II List-I List-II a. Give strong orders 1. Marshall b. Cardinal analysis 2. Hicks c. Ordinal analysis 3. Slasky d. Compensatory demand curve 4. Samuelson

Answer & Solution

10. On which of the following assumptions, the theory of consumer behaviour of cardinal utility approach is NOT based?

Answer & Solution

Read More Section(Economics)

1.
In the long run in perfect competition

2.
Which of the following could provide an example of exceptional demand curves?
1. Demand for "Giffen goods"
2. Demand based on fears of a future rise in prices
3. Demand for second-hand clothes
4. Demand for daily newspapers
Select the right answer:

3.
Assertion (A): Consumer's surplus is the difference between the potential price and the actual price.
Reason (R): There exists an inverse relationship between the price and the consumer's surplus.

4.
Which of the following points is not an exception to the law of diminishing marginal utility?

5.
If an individual is observed to work less in response to an increase in the wage rate for his services, this implies that

6.
Which one of the following growth models includes the population growth function?
I. Classical model
II. Harrod-Domar model
III. Neo-classical model
IV. Schumpeter model

7.
In the compensating variation method of measuring the substitution effect of a rise in price, the consumer is

8.
Match List-I and List-II and select the correct answer:

List-I List-II

a. Risk Bearing Theory of profit 1. Prof. Clark

b. Dynamic Theory of profit 2. Prof. Hawley

c. The innovation theory of profit 3. Prof. Knight

d. Uncertainity theory of profit 4. Prof. Schumpeter

9.
Match List-I and List-II

List-I List-II

a. Give strong orders 1. Marshall

b. Cardinal analysis 2. Hicks

c. Ordinal analysis 3. Slasky

d. Compensatory demand curve 4. Samuelson

10.
On which of the following assumptions, the theory of consumer behaviour of cardinal utility approach is NOT based?