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.
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

Answer & Solution Discuss in Board Save for Later

2.
Average variable cost curve under the modern theory of costs

A. U-shaped

B. Plate like shape

C. L-shape

D. Inverted J-shaped

Answer & Solution Discuss in Board Save for Later

3.
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

Answer & Solution Discuss in Board Save for Later

4.
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

Answer & Solution Discuss in Board Save for Later

5.
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

Answer & Solution Discuss in Board Save for Later

6.
When the cross-elasticity of demand between two goods is zero, the goods are-

A. complementary

B. independent

C. substitutes

D. luxuries

Answer & Solution Discuss in Board Save for Later

7.
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< strong> 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

Answer & Solution Discuss in Board Save for Later

Answer & Solution

Answer: Option A

No explanation is given for this question Let's Discuss on Board

8.
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

Answer & Solution Discuss in Board Save for Later

Answer & Solution

Answer: Option A

No explanation is given for this question Let's Discuss on Board

9.
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

Answer & Solution Discuss in Board Save for Later

Answer & Solution

Answer: Option C

No explanation is given for this question Let's Discuss on Board

10.
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

Answer & Solution Discuss in Board Save for Later

Answer & Solution

Answer: Option D

No explanation is given for this question Let's Discuss on Board

1 2 3 4 5 6 7 8 9 10

Read More Section(Economics)

Each Section contains maximum 100 MCQs question on Economics. To get more questions visit other sections.

Economics - Section 1

Economics - Section 2

Economics - Section 3

Economics - Section 4

Economics - Section 5

Economics - Section 6

Economics - Section 7

Economics - Section 8

Economics - Section 10

Economics - Section 11

Economics - Section 12

Economics - Section 13

Economics - Section 14

Economics - Section 15

Economics - Section 16

Economics MCQ Questions and Solutions with Explanations | Commerce

1. One of the problems of India's Foreign Trade is

Answer & Solution

2. Average variable cost curve under the modern theory of costs

Answer & Solution

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

Answer & Solution

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

Answer & Solution

5. One of the essential conditions of perfect competition is:

Answer & Solution

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

Answer & Solution

Answer & Solution

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

Answer & Solution

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

Answer & Solution

10. Elasticity of demand for money:

Answer & Solution

Read More Section(Economics)

1.
One of the problems of India's Foreign Trade is

2.
Average variable cost curve under the modern theory of costs

3.
The tangible goods for which a consumer wants to compare quality, price and perhaps style in several stores before making a purchase are called:

4.
When an individual's income falls (while everything else remains the same), his demand for an inferior goods

5.
One of the essential conditions of perfect competition is:

6.
When the cross-elasticity of demand between two goods is zero, the goods are-

8.
Optimal input combination to minimise the cost for a given output will be at the point where

9.
Economics may be divided into macro-economics and micro-economics. Among the subject matter of micro-economics may be found

10.
Elasticity of demand for money: