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

91.
Perfect competition is a market situation in which a number of firm sell similar goods and none of these firms is in a position to influence the market price.

A. Mrs. Robinson

B. Prof. Leftwitch

C. Prof. Adam Smith

D. Prof. Marshall

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92.
$$\frac{{\% {\text{ Change in quantity demanded of good }}x}}{{\% {\text{ Change in the price of good }}y{\text{ }}}}$$
This formula indicates to

A. cross price elasticity of demand

B. income elasticity of demand

C. price elasticity of supply

D. cost elasticity of supply

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93.
Match the following.

List-I (Concepts) List-II (Features)

a. Utility 1. MU tends to decline as consumption of the commodity increases

b. Total utility 2. It is a want satisfying power of a good

c. Marginal utility 3. Sum total of utility derived from the consumption of all the units of a commodity

d. Law of diminishing marginal utility 4. Additional utility an account of the consumption of an additional unit of a commodity

A. a-4, b-1, c-2, d-3

B. a-2, b-4, c-1, d-3

C. a-2, b-3, c-4, d-1

D. a-1, b-2, c-3, d-4

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94.
Goods 'A' and 'B' are complementary goods. The cost of resources used in the production of A decreases. As a result,

A. The equilibrium price of B will fall and the equilibrium price of A will rise

B. The equilibrium price of both A and B will rise

C. The equilibrium price of B will rise and the equilibrium price of A will fall

D. The equilibrium prices of both A and B will fall

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95.
A fall in the price of a commodity leads to

A. a shift in demand

B. a fall in demand

C. a rise in consumers real income

D. a fall in the consumers real income

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96.
Which of the following shapes of demand curve shows elasticity equal to unity at all points?

A. a rectangular hyperbola

B. a perpendicular

C. a parabola

D. a straight line

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97.
Which of the following best expresses the law of diminishing marginal utility?

A. The more a person consumes a product, the smaller becomes the utility, which he receives from its consumption

B. The more a person consumes a, product, the smaller becomes the additional utility, which he receives as a result of consuming an additional unit of the product

C. The less a person consumes a product, the smaller becomes the utility, which he receives from its consumption

D. The less a person consumes a product, the smaller becomes the additional utility which he receives as a result of consuming an additional unit of the product

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98.
What is the increase in total cost due to production of the last unit of production called?

A. Total cost

B. Average cost

C. Differential cost

D. Marginal cost

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99.
When the income elasticity of demand is greater than unity, the commodity is

A. a necessity

B. a luxury

C. an inferior good

D. a non-related good

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100.
In perfect competition in the long run there will be no

A. normal profits

B. super normal profits

C. production

D. costs

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1 2 3 4 5 6 7 8 9 10

List-I (Concepts)	List-II (Features)
a. Utility	1. MU tends to decline as consumption of the commodity increases
b. Total utility	2. It is a want satisfying power of a good
c. Marginal utility	3. Sum total of utility derived from the consumption of all the units of a commodity
d. Law of diminishing marginal utility	4. Additional utility an account of the consumption of an additional unit of a commodity

Economics MCQ Questions and Solutions with Explanations | Commerce

91. Perfect competition is a market situation in which a number of firm sell similar goods and none of these firms is in a position to influence the market price.

Answer & Solution

92. $$\frac{{\% {\text{ Change in quantity demanded of good }}x}}{{\% {\text{ Change in the price of good }}y{\text{ }}}}$$ This formula indicates to

Answer & Solution

Answer & Solution

94. Goods 'A' and 'B' are complementary goods. The cost of resources used in the production of A decreases. As a result,

Answer & Solution

95. A fall in the price of a commodity leads to

Answer & Solution

96. Which of the following shapes of demand curve shows elasticity equal to unity at all points?

Answer & Solution

97. Which of the following best expresses the law of diminishing marginal utility?

Answer & Solution

98. What is the increase in total cost due to production of the last unit of production called?

Answer & Solution

99. When the income elasticity of demand is greater than unity, the commodity is

Answer & Solution

100. In perfect competition in the long run there will be no

Answer & Solution

Read More Section(Economics)

91.
Perfect competition is a market situation in which a number of firm sell similar goods and none of these firms is in a position to influence the market price.

92.
$$\frac{{\% {\text{ Change in quantity demanded of good }}x}}{{\% {\text{ Change in the price of good }}y{\text{ }}}}$$
This formula indicates to

94.
Goods 'A' and 'B' are complementary goods. The cost of resources used in the production of A decreases. As a result,

95.
A fall in the price of a commodity leads to

96.
Which of the following shapes of demand curve shows elasticity equal to unity at all points?

97.
Which of the following best expresses the law of diminishing marginal utility?

98.
What is the increase in total cost due to production of the last unit of production called?

99.
When the income elasticity of demand is greater than unity, the commodity is

100.
In perfect competition in the long run there will be no