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

41.
An economic theory is

A. An axiom

B. A proposition

C. A hypothesis

D. A tested hypothesis

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42.
What is the shape of the average fixed cost (AFC) curve?

A. U-shape

B. Horizontal up to a point and then rising

C. Sloping down towards the right

D. Rectangular hyperbola

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43.
A decrease in demand causes the equilibrium price to

A. Rise

B. Fall

C. Remain constant

D. Indeterminate

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44.
Price of a product falls by 10% and its demand rises by 30%. The elasticity of demand is

A. 10%

B. 30%

C. 3

D. 1

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45.
Identify the aspect of taxation which is related to normative economics

A. Incidence of tax

B. Effect of tax on the capacity willingness to work

C. Equity of tax

D. None of the above

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46.
If elasticity of demand is very low, it shows that the commodity is

A. A necessity

B. A luxury

C. Has little importance in total budget

D. a' and 'c' above

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47.
An increase in the supply of a commodity is caused by

A. Improvements in technology

B. Fall in the prices of other commodities

C. Fall in the prices of factors of production

D. All of the above

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48.
When price is below equilibrium level, there will be

A. Surplus commodity in the market

B. Shortage of commodity in the market

C. Supply curve will shift

D. Demand curve will shift

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49.
The following are causes of shift in demand EXCEPT

A. Change in income

B. Change in price

C. Change in fashion

D. Change in prices of substitutes

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50.
Demand for a commodity refers to a

A. Desire for the commodity

B. Need for the commodity

C. Quantity demanded of that commodity

D. Quantity of the commodity demanded at a certain price during any particular period of time

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Economics MCQ Questions and Solutions with Explanations | Commerce

41. An economic theory is

Answer & Solution

42. What is the shape of the average fixed cost (AFC) curve?

Answer & Solution

43. A decrease in demand causes the equilibrium price to

Answer & Solution

44. Price of a product falls by 10% and its demand rises by 30%. The elasticity of demand is

Answer & Solution

45. Identify the aspect of taxation which is related to normative economics

Answer & Solution

46. If elasticity of demand is very low, it shows that the commodity is

Answer & Solution

47. An increase in the supply of a commodity is caused by

Answer & Solution

48. When price is below equilibrium level, there will be

Answer & Solution

49. The following are causes of shift in demand EXCEPT

Answer & Solution

50. Demand for a commodity refers to a

Answer & Solution

Read More Section(Economics)

41.
An economic theory is

42.
What is the shape of the average fixed cost (AFC) curve?

43.
A decrease in demand causes the equilibrium price to

44.
Price of a product falls by 10% and its demand rises by 30%. The elasticity of demand is

45.
Identify the aspect of taxation which is related to normative economics

46.
If elasticity of demand is very low, it shows that the commodity is

47.
An increase in the supply of a commodity is caused by

48.
When price is below equilibrium level, there will be

49.
The following are causes of shift in demand EXCEPT

50.
Demand for a commodity refers to a