Economics MCQ Questions and Solutions with Explanations

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71.
In the case of a straight-line demand curve meeting the two axes, the price-elasticity of demand at the mid-point of the line would be

A. 0

B. 1

C. 1.5

D. 2

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72.
Which is the first-order condition for the profit of a firm to be maximum?

A. AC=MR

B. MC=MR

C. MR=AR

D. AC=AR

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73.
Which of the following is one of the assumptions of perfect competition?

A. Few buyers and few sellers

B. Many buyers and few sellers

C. Many buyers and many sellers

D. All sellers and buyers are honest

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74.
Price and demand are positively correlated in case of

A. Normal goods

B. Comforts

C. Giffen goods

D. Luxuries

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75.
Identify the coefficient of price-elasticity of demand when the percentage increase in the quantity of a commodity demanded is smaller than the percentage fall in its price

A. Equal to one

B. Greater than one

C. Small than one

D. Zero

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76.
In which form of the market structure is the degree of control over the price of its product by a firm very large?

A. Monopoly

B. Imperfect condition

C. Oligopoly

D. Perfect competition

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77.
A firm under perfect competition is

A. Price maker

B. Price breaker

C. Price taker

D. Price shaker

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78.
The elasticity of demand of durable goods is

A. Less than unity

B. Greater than unity

C. Equal to unity

D. Zero

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79.
In the case of an inferior good, the income elasticity of demand is

A. Positive

B. Zero

C. Negative

D. Infinite

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80.
Which is the other name that is given to the average revenue curve?

A. Profit curve

B. Demand curve

C. Average cost curve

D. Indifference curve

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Economics MCQ Questions and Solutions with Explanations | Commerce

71. In the case of a straight-line demand curve meeting the two axes, the price-elasticity of demand at the mid-point of the line would be

Answer & Solution

72. Which is the first-order condition for the profit of a firm to be maximum?

Answer & Solution

73. Which of the following is one of the assumptions of perfect competition?

Answer & Solution

74. Price and demand are positively correlated in case of

Answer & Solution

75. Identify the coefficient of price-elasticity of demand when the percentage increase in the quantity of a commodity demanded is smaller than the percentage fall in its price

Answer & Solution

76. In which form of the market structure is the degree of control over the price of its product by a firm very large?

Answer & Solution

77. A firm under perfect competition is

Answer & Solution

78. The elasticity of demand of durable goods is

Answer & Solution

79. In the case of an inferior good, the income elasticity of demand is

Answer & Solution

80. Which is the other name that is given to the average revenue curve?

Answer & Solution

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71.
In the case of a straight-line demand curve meeting the two axes, the price-elasticity of demand at the mid-point of the line would be

72.
Which is the first-order condition for the profit of a firm to be maximum?

73.
Which of the following is one of the assumptions of perfect competition?

74.
Price and demand are positively correlated in case of

75.
Identify the coefficient of price-elasticity of demand when the percentage increase in the quantity of a commodity demanded is smaller than the percentage fall in its price

76.
In which form of the market structure is the degree of control over the price of its product by a firm very large?

77.
A firm under perfect competition is

78.
The elasticity of demand of durable goods is

79.
In the case of an inferior good, the income elasticity of demand is

80.
Which is the other name that is given to the average revenue curve?