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

131.
Which cost increases continuously with the increase in production?

A. Avearge cost

B. Marginal cost

C. Fixed cost

D. Variable cost

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132.
A factor of production, whose supply is fixed in the short run, may get additional earnings. These earnings are generally referred to as

A. Surplus value

B. Quasi-rent

C. Transfer earnings

D. Super normal profits

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133.
A factor of production, whose supply is fixed in the short tun, may get additional earnings. These earnings are generally referred to as

A. Surplus value

B. Quasi-rent

C. Transfer earnings

D. Super normal profits

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134.
The necessary condition for equilibrium position of a firm is

A. MR>MC

B. MC>Price

C. MC=MR

D. MC=AC

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135.
In May 2013, firm was supplying 500kg of sugar at market price of Rs.30/- per kg. During June 2013, firm's supply of sugar had decreased to 450kg at price of Rs.20/- per kg. These changes show that supply of sugar is

A. Oerfectly elastic

B. Perfectly inelastic

C. Less elastic

D. More elastic

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136.
Which of the following cost curves is never U-shaped?

A. Average cost curve

B. Marginal cost curve

C. Average variable cost curve

D. Average fixed cost curve

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137.
The classical theory explained interest as a reward for

A. Parting with liquidity

B. Abstinence

C. Saving

D. Inconvenience

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138.
When a competitive firm achieves long run equilibrium, then,

A. P=MC

B. MR=MC

C. P=ATC

D. All of the above

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139.
What best explains a shift in market supply curve to the right?

A. An advertising campaign is successful in promoting the good

B. A new technique makes it cheaper to produce the good

C. The government introduces a tax on the good

D. The price of raw materials increases

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140.
Total costs in the short-term are classified into fixed costs and variable costs. Which one of the following is a variable cost?

A. Cost of raw material

B. Cost of equipment

C. Interest payment on past borrowing

D. Payment of rent on buildings

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Economics MCQ Questions and Solutions with Explanations | Commerce

131. Which cost increases continuously with the increase in production?

Answer & Solution

132. A factor of production, whose supply is fixed in the short run, may get additional earnings. These earnings are generally referred to as

Answer & Solution

133. A factor of production, whose supply is fixed in the short tun, may get additional earnings. These earnings are generally referred to as

Answer & Solution

134. The necessary condition for equilibrium position of a firm is

Answer & Solution

135. In May 2013, firm was supplying 500kg of sugar at market price of Rs.30/- per kg. During June 2013, firm's supply of sugar had decreased to 450kg at price of Rs.20/- per kg. These changes show that supply of sugar is

Answer & Solution

136. Which of the following cost curves is never U-shaped?

Answer & Solution

137. The classical theory explained interest as a reward for

Answer & Solution

138. When a competitive firm achieves long run equilibrium, then,

Answer & Solution

139. What best explains a shift in market supply curve to the right?

Answer & Solution

140. Total costs in the short-term are classified into fixed costs and variable costs. Which one of the following is a variable cost?

Answer & Solution

Read More Section(Economics)

131.
Which cost increases continuously with the increase in production?

132.
A factor of production, whose supply is fixed in the short run, may get additional earnings. These earnings are generally referred to as

133.
A factor of production, whose supply is fixed in the short tun, may get additional earnings. These earnings are generally referred to as

134.
The necessary condition for equilibrium position of a firm is

135.
In May 2013, firm was supplying 500kg of sugar at market price of Rs.30/- per kg. During June 2013, firm's supply of sugar had decreased to 450kg at price of Rs.20/- per kg. These changes show that supply of sugar is

136.
Which of the following cost curves is never U-shaped?

137.
The classical theory explained interest as a reward for

138.
When a competitive firm achieves long run equilibrium, then,

139.
What best explains a shift in market supply curve to the right?

140.
Total costs in the short-term are classified into fixed costs and variable costs. Which one of the following is a variable cost?