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.
For ____ goods, increase in income leads to increase in demand.

A. Abnormal

B. Normal

C. Inferior

D. Superior

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2.
In the case of a Giffen good, the demand curve will be

A. Horizontal

B. Downward to the right

C. Upward to the right

D. Vertical

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3.
The law of consumer surplus is based on

A. Indifference curve analysis

B. Revealed preference theory

C. Law of substitution

D. The law of diminishing marginal utility

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4.
An isoquant slopes

A. Downward to the left

B. Downward to the right

C. Upward to the right

D. Upward to the left

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5.
Demand for final consumption arises in

A. Household sector only

B. Government sector only

C. Both household and government sector

D. Neither household nor government sector

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6.
When as a result of decrease in price of good, the total expenditure made on it decreases we say that price elasticity of demand is

A. Less than unity

B. Unity

C. Zero

D. Greater than Unity

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7.
The structure of the cold drink industry in India is best described as

A. Perfectly competitive

B. Monopoly

C. Oligopoly

D. Monopolistically competitive

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8.
Under which market structure, average revenue of a firm is equal to its marginal revenue

A. Oligopoly

B. Monopoly

C. Perfect competition

D. Monopolistic competition

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9.
In economics, what a consumer is ready to pay minus what he actually pays, is termed as

A. Consumer's equilibrium

B. Consumer's surplus

C. Consumer's expenditure

D. None of the above

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10.
The producer is in equilibrium at a point where the cost line is

A. Above the isoquant

B. Below the isoquant

C. Cutting the isoquant

D. Tangent to isoquant

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Economics MCQ Questions and Solutions with Explanations | Commerce

1. For ____ goods, increase in income leads to increase in demand.

Answer & Solution

2. In the case of a Giffen good, the demand curve will be

Answer & Solution

3. The law of consumer surplus is based on

Answer & Solution

4. An isoquant slopes

Answer & Solution

5. Demand for final consumption arises in

Answer & Solution

6. When as a result of decrease in price of good, the total expenditure made on it decreases we say that price elasticity of demand is

Answer & Solution

7. The structure of the cold drink industry in India is best described as

Answer & Solution

8. Under which market structure, average revenue of a firm is equal to its marginal revenue

Answer & Solution

9. In economics, what a consumer is ready to pay minus what he actually pays, is termed as

Answer & Solution

10. The producer is in equilibrium at a point where the cost line is

Answer & Solution

Read More Section(Economics)

1.
For ____ goods, increase in income leads to increase in demand.

2.
In the case of a Giffen good, the demand curve will be

3.
The law of consumer surplus is based on

4.
An isoquant slopes

5.
Demand for final consumption arises in

6.
When as a result of decrease in price of good, the total expenditure made on it decreases we say that price elasticity of demand is

7.
The structure of the cold drink industry in India is best described as

8.
Under which market structure, average revenue of a firm is equal to its marginal revenue

9.
In economics, what a consumer is ready to pay minus what he actually pays, is termed as

10.
The producer is in equilibrium at a point where the cost line is