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

81.
Which of the following markets comes closest to perfect market?

A. Wheat market

B. Cigarette market

C. Cold drinks market

D. Stock market

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82.
Mr. Raees Ahamd bought 50 litres of petrol when his monthly income was Rs.25000. Now his monthly income has risen to Rs.50,000 and he purchases 100 litres of petrol. His income elasticity of demand for petrol is

A. 1

B. 100%

C. Less than 1

D. More than 1

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83.
Total utility is maximum when

A. Marginal utility is zero

B. Marginal utility is at its highest point

C. Marginal utility is equal to average

D. Average utility is maximum

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84.
Under which of the following forms of market structure does a firm have no control over the price of its product?

A. Monopoly

B. Monopolistic competition

C. Oligopoly

D. Perfect competition

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85.
Which is a condition for existence of monopoly?

A. Big size

B. Identical product

C. Absence of government taxes

D. No close substitute

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86.
When price elasticity of demand for normal goods is calculated, the value is always

A. Positive

B. Negative

C. Constant

D. Greater than 1

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87.
If the demand for a commodity is inelastic, an increase in its pice will cause the total expenditure of the consumers of the commodity to

A. Remain the same

B. Increase

C. Decrease

D. Any of the above

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88.
Which one of the following is the condition of equilibrium for the monopolist?

A. MR=MC

B. MC=AR

C. MR=MC=Price

D. AC=AR

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89.
In case of monopoly

A. Marginal revenue curve always slopes upward

B. Total revenue curve always slopes upward

C. Marginal revenue is always equal to average revenue

D. Marginal revenue is always less than average revenue

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90.
Income elasticity of demand for normal goods is always

A. 1

B. Negative

C. More than 1

D. Positive

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Economics MCQ Questions and Solutions with Explanations | Commerce

81. Which of the following markets comes closest to perfect market?

Answer & Solution

82. Mr. Raees Ahamd bought 50 litres of petrol when his monthly income was Rs.25000. Now his monthly income has risen to Rs.50,000 and he purchases 100 litres of petrol. His income elasticity of demand for petrol is

Answer & Solution

83. Total utility is maximum when

Answer & Solution

84. Under which of the following forms of market structure does a firm have no control over the price of its product?

Answer & Solution

85. Which is a condition for existence of monopoly?

Answer & Solution

86. When price elasticity of demand for normal goods is calculated, the value is always

Answer & Solution

87. If the demand for a commodity is inelastic, an increase in its pice will cause the total expenditure of the consumers of the commodity to

Answer & Solution

88. Which one of the following is the condition of equilibrium for the monopolist?

Answer & Solution

89. In case of monopoly

Answer & Solution

90. Income elasticity of demand for normal goods is always

Answer & Solution

Read More Section(Economics)

81.
Which of the following markets comes closest to perfect market?

82.
Mr. Raees Ahamd bought 50 litres of petrol when his monthly income was Rs.25000. Now his monthly income has risen to Rs.50,000 and he purchases 100 litres of petrol. His income elasticity of demand for petrol is

83.
Total utility is maximum when

84.
Under which of the following forms of market structure does a firm have no control over the price of its product?

85.
Which is a condition for existence of monopoly?

86.
When price elasticity of demand for normal goods is calculated, the value is always

87.
If the demand for a commodity is inelastic, an increase in its pice will cause the total expenditure of the consumers of the commodity to

88.
Which one of the following is the condition of equilibrium for the monopolist?

89.
In case of monopoly

90.
Income elasticity of demand for normal goods is always