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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-3

Each section contains 100 MCQs on Economics .
1
Productivity of land can be raised by
Discuss
Answer & Solution
Answer: Option B
Solution:
Productivity of land can be raised by Intensive cultivation. Intensive Farming is a farming method that uses higher inputs and advanced agricultural techniques to increase the overall yield.
2
Land only
Discuss
Answer & Solution
Answer: Option D
Solution:
Land only Is a free gift of nature and it lacks geographical mobility.
3
Profits
Discuss
Answer & Solution
Answer: Option D
Solution:
Profits are lower in the long run than in the short run, it can be negative and are less in perfect competition than in monopoly.
4
When Marginal Utility is zero, Total Utility is
Discuss
Answer & Solution
Answer: Option B
Solution:
When Marginal Utility is zero, Total Utility is maximum. It is based in the law of diminishing marginal utility which says 'as more and more units of a good are consumed, MU i.e level of satisfaction derived from each successive unit goes on falling because desire for that commodity tend to fall.
5
Which of the following is NOT an input?
Discuss
Answer & Solution
Answer: Option D
Solution:
Production is not an input. It is an output. Production is the method of turning raw materials or inputs into finished goods or products in a manufacturing process.
6
Which of the following input factor takes risk, innovates and coordinates
Discuss
Answer & Solution
Answer: Option D
Solution:
Entrepreneur input factor takes risk, innovates and coordinates. An entrepreneur is an individual who creates a new business, bearing most of the risks and enjoying most of the rewards. The entrepreneur is commonly seen as an innovator, a source of new ideas, goods, services, and business/or procedures.
7
Some economists say that profit earner is a kind of
Discuss
Answer & Solution
Answer: Option C
Solution:
Some economists say that profit earner is a kind of Wage earner. Wage earner is a person who works for wages or salary.
8
Quality of a commodity that satisfies some human want or need is called
Discuss
Answer & Solution
Answer: Option C
Solution:
Quality of a commodity that satisfies some human want or need is called Utility. Within economics the concept of utility is used to model worth or value, but its usage has evolved significantly over time. The term was introduced initially as a measure of pleasure or satisfaction within the theory of utilitarianism by moral philosophers such as Jeremy Bentham and John Stuart Mill.
9
Which of the following is CORRECT with respect to resources?
Discuss
Answer & Solution
Answer: Option B
Solution:
Human skills are a labour input is correct with respect to resources. The human or the interpersonal skills are the skills that present the managers' ability to interact, work or relate effectively with people. These skills enable the managers to make use of human potential in the company and motivate the employees for better results.
10
The transformation of resources into economic goods and services is called
Discuss
Answer & Solution
Answer: Option C
Solution:
The transformation of resources into economic goods and services is called Production. Production is the method of turning raw materials or inputs into finished goods or products in a manufacturing process.