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-9

One of the problems of India's Foreign Trade is

A) Payment of imports in rupees B) Increasing quantity of exports C) Unfavorable terms of trade D) None of the above

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Answer & Solution

Answer: Option C

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Average variable cost curve under the modern theory of costs

A) U-shaped B) Plate like shape C) L-shape D) Inverted J-shaped

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Answer: Option A

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The tangible goods for which a consumer wants to compare quality, price and perhaps style in several stores before making a purchase are called:

A) Convenience Goods B) Shopping Goods C) Speciality Goods D) Unsought Goods

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Answer: Option B

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When an individual's income falls (while everything else remains the same), his demand for an inferior goods

A) increases B) decreases C) remains unchanged D) we cannot say without additional information

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Answer: Option B

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One of the essential conditions of perfect competition is:

A) only on price for identical goods at any time B) product differentiation C) multiplicity of prices for identical product at any time D) many sellers and few buyers

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Answer: Option A

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When the cross-elasticity of demand between two goods is zero, the goods are-

A) complementary B) independent C) substitutes D) luxuries

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Answer: Option A

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Statement I Point price elasticity of demand in terms of marginal and average revenues can be measured with the following formula $$\frac{{AR}}{{AR - MR}}.$$
Statement II The point price elasticity of demand is the product of the slope of the demand function and the ratio between corresponding price and quantity.

A) Both the statements are correct B) Both the statements are incorrect C) Statement I is correct, while Statement II is incorrect D) Statement I is incorrect, while Statement II is correct

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Answer: Option A

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Optimal input combination to minimise the cost for a given output will be at the point where

A) Isocost is tangent to isoquant B) MRTS between inputs is equal C) Any movement from optimum point will lead to low level of output D) All of the above conditions are fulfilled

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Answer: Option A

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Economics may be divided into macro-economics and micro-economics. Among the subject matter of micro-economics may be found

A) the nature of value in exchange B) the size of a country's national income C) the allocation of resources among competing uses D) the relative prices of specific services

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Answer: Option C

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Elasticity of demand for money:

A) Can be unit B) May exceed the unit C) Can be less than the unit D) All of these

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Answer: Option D

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