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.
When the demand curve is a rectangular hyperbola, it represents

A. unitary elastic demand

B. perfectly elastic demand

C. perfectly inelastic demand

D. relatively elastic demand

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2.
Which of the following curve is not of U shape?

A. AVC curve

B. AC curve

C. FC curve

D. MC curve

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3.
If carrots and a good Y are substitutes, the relationship between the price of good Y and the quantity demand of carrots will be shown by a curve that will

A. slope upwards

B. slope downwards

C. be a straight line parallel to x-axis

D. be a straight line parallel to y-axis

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4.
Marginal cost is equal to marginal revenue, average cost is equal to average revenue, average revenue is equal to marginal revenue and average cost is equal to marginal cost. This is the condition of
1. long period equilibrium for a firm under monopoly
2. short period equilibrium for a firm under oligopoly
3. long period equilibrium
4. long period equilibrium for a firm under perfect competitions
Select the correct answer

A. Both 1 and 4

B. Both 3 and 4

C. Both 3 and 1

D. Only 1

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5.
If the demand is absolutely/perfectly inelastic, then the demand for the good increases by 15% in the price

A. Will increase by 15%

B. Will decrease by 15%

C. Will decrease by 7.5%

D. No increase or decrease

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6.
In economics, 'the central economic problem' means that:

A. Consumers do not have as much money as they would wish

B. There will always be a certain level of unemployment

C. Resources are not always allocated in an optimum way

D. Output is restricted to limited availability in an optimum way

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7.
Which one of the following is a part of short term loan?

A. Debenture

B. Bank overdraft

C. Mortgage loan

D. None of these

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8.
Maximization of firm's growth rate subject to managerial and financial constraints' as one of the important alternative objectives of especially large business corporation was pleaded by:

A. Milton Friedman

B. Robin Marris

C. Cyert and March

D. H. A. Simon

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9.
With reference to nominal wages, which of the following statement is/are correct?
1. It is received in money form
2. It is not received in money form
Select the correct answer

A. Only 1

B. Only 2

C. Both 1 and 2

D. Neither 1 nor 2

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10.
In the linearly homogeneous Cobb-Douglas production function with two inputs, the elasticity of substitution between the inputs is

A. zero

B. greater than one

C. one

D. less than one

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Economics MCQ Questions and Solutions with Explanations | Commerce

1. When the demand curve is a rectangular hyperbola, it represents

Answer & Solution

2. Which of the following curve is not of U shape?

Answer & Solution

3. If carrots and a good Y are substitutes, the relationship between the price of good Y and the quantity demand of carrots will be shown by a curve that will

Answer & Solution

Answer & Solution

5. If the demand is absolutely/perfectly inelastic, then the demand for the good increases by 15% in the price

Answer & Solution

6. In economics, 'the central economic problem' means that:

Answer & Solution

7. Which one of the following is a part of short term loan?

Answer & Solution

8. Maximization of firm's growth rate subject to managerial and financial constraints' as one of the important alternative objectives of especially large business corporation was pleaded by:

Answer & Solution

9. With reference to nominal wages, which of the following statement is/are correct? 1. It is received in money form 2. It is not received in money form Select the correct answer

Answer & Solution

10. In the linearly homogeneous Cobb-Douglas production function with two inputs, the elasticity of substitution between the inputs is

Answer & Solution

Read More Section(Economics)

1.
When the demand curve is a rectangular hyperbola, it represents

2.
Which of the following curve is not of U shape?

3.
If carrots and a good Y are substitutes, the relationship between the price of good Y and the quantity demand of carrots will be shown by a curve that will

5.
If the demand is absolutely/perfectly inelastic, then the demand for the good increases by 15% in the price

6.
In economics, 'the central economic problem' means that:

7.
Which one of the following is a part of short term loan?

8.
Maximization of firm's growth rate subject to managerial and financial constraints' as one of the important alternative objectives of especially large business corporation was pleaded by:

9.
With reference to nominal wages, which of the following statement is/are correct?
1. It is received in money form
2. It is not received in money form
Select the correct answer

10.
In the linearly homogeneous Cobb-Douglas production function with two inputs, the elasticity of substitution between the inputs is