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-1 section-16

Which of the following should be balanced the foreign trade of a country?

A) Balance of trade B) Balance of payment C) Balance of current account D) None of these

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Answer & Solution

Answer: Option B

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Which one is not the characteristics of oligopoly firm?

A) Conflicting attitude of firms B) Advertising and sales promotion C) One firm D) Few sellers

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Answer & Solution

Answer: Option C

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A market

A) necessarily refers to a meeting place between buyers and sellers where goods are bought and sold B) does not necessarily refer to a meeting place between buyers and sellers C) extends over the entire nation D) extends over a city

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Answer & Solution

Answer: Option A

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Bilateral monopoly refers to the market situation of

A) two sellers B) two buyers C) one seller and two buyers D) None of the above

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Answer & Solution

Answer: Option D

Solution:

Bilateral monopoly refers to a market situation where there is one seller and one buyer. It occurs when a single supplier (a monopolist) faces a single buyer (a monopsonist). In such a case, both the seller and buyer have significant market power, leading to negotiations or bargaining to determine the price and quantity exchanged.

The extent of the change of demand for a commodity to a given change in . . . . . . . ., other demand determinants remaining constant, is termed as the . . . . . . . . of demand.

A) price, price elasticity B) price, cross elasticity C) income, price D) None of these

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Answer & Solution

Answer: Option A

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The difference in return between a chosen investment and a necessary one passed up in the law of variable proportion indicates:

A) Increasing returns B) Constant returns C) Diminishing returns D) Negative returns

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Answer & Solution

Answer: Option D

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For a commodity giving large consumer's surplus, the demand will be

A) Less elastic B) Unit elastic C) More elastic D) Perfectly elastic

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Answer & Solution

Answer: Option A

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Put these concepts in chronological order of their development.
1. Law of demand
2. Law of indifference
3. Law of DMU
4. Revealed preference theory
5. Indifference curve

A) 1, 3, 2, 4, 5 B) 1, 2, 3, 4, 5 C) 1, 3, 2, 5, 4 D) 1, 5, 2, 4, 3

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Answer & Solution

Answer: Option C

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In a market economy, the allocation of resources between different productive activities is determined mainly by:

A) The decision of the government B) The wealth of entrepreneurs C) The pattern of consumer expenditure D) The supply of factors of production

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Answer & Solution

Answer: Option C

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The central statistical organization was

A) On 15^th March, 1949 B) On 12^th March, 1950 C) On 2^nd March, 1948 D) On 2^nd May, 1951

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Answer & Solution

Answer: Option D

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