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

51.
An inferior commodity is one which is consumed in smaller quantities when the income of consumer

A. Becomes nil

B. Remains the same

C. Falls

D. Rises

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52.
In long run equilibrium, the pure monopolist can make pure profits because of

A. Blocked entry

B. The high price he charges

C. The low LAC costs

D. Advertising

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53.
Positive income elasticity implies that as income rises, demand for the commodity

A. Rises

B. Falls

C. Remains unchanged

D. Becomes Zero

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54.
A firm under perfect competition will be making minimum losses (in the short run) at a point where

A. MC>MR

B. MR>MC

C. MC=MR

D. AC=AR

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55.
Which of the following is not a feature of perfect competition?

A. Large number of buyers and sellers

B. Small number of buyers and sellers

C. Free entry and exit

D. Goods is homogeneous

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56.
If firm's average cost curve is falling then marginal curve must be

A. Falling

B. Rising

C. Below average cost curve

D. None of the above

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57.
Which of the following is a cause of an economic problem?

A. Scarcity of resources

B. Alternative uses

C. Unlimited wants

D. All of the above

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58.
Calculate income elasticity for the household when the income of a household rises by 10% and the demand for Rice rises by 5%.

A. -0.5

B. 0.5

C. -2

D. 2

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59.
When two goods are perfect substitutes of each other, then

A. MRS is falling

B. MRS is rising

C. MRS is constant

D. None of the above

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60.
In the long run, normal profits are included in the _____ curve

A. LAC

B. LMC

C. AFC

D. SAC

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Economics MCQ Questions and Solutions with Explanations | Commerce

51. An inferior commodity is one which is consumed in smaller quantities when the income of consumer

Answer & Solution

52. In long run equilibrium, the pure monopolist can make pure profits because of

Answer & Solution

53. Positive income elasticity implies that as income rises, demand for the commodity

Answer & Solution

54. A firm under perfect competition will be making minimum losses (in the short run) at a point where

Answer & Solution

55. Which of the following is not a feature of perfect competition?

Answer & Solution

56. If firm's average cost curve is falling then marginal curve must be

Answer & Solution

57. Which of the following is a cause of an economic problem?

Answer & Solution

58. Calculate income elasticity for the household when the income of a household rises by 10% and the demand for Rice rises by 5%.

Answer & Solution

59. When two goods are perfect substitutes of each other, then

Answer & Solution

60. In the long run, normal profits are included in the _____ curve

Answer & Solution

Read More Section(Economics)

51.
An inferior commodity is one which is consumed in smaller quantities when the income of consumer

52.
In long run equilibrium, the pure monopolist can make pure profits because of

53.
Positive income elasticity implies that as income rises, demand for the commodity

54.
A firm under perfect competition will be making minimum losses (in the short run) at a point where

55.
Which of the following is not a feature of perfect competition?

56.
If firm's average cost curve is falling then marginal curve must be

57.
Which of the following is a cause of an economic problem?

58.
Calculate income elasticity for the household when the income of a household rises by 10% and the demand for Rice rises by 5%.

59.
When two goods are perfect substitutes of each other, then

60.
In the long run, normal profits are included in the _____ curve