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

31.
The law of demand states that if other things remain same

A. There is always a direct relationship between the price and demand

B. There is always an inverse relationship between price and demand

C. There is always a direct relationship between desire and demand

D. There is no relationship between price and demand

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32.
Average revenue curve will not touch X axis because it cannot be

A. Positive

B. Zero

C. Negative

D. None of these

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33.
Who was the author of 'Value and Capital'?

A. R. G. D. Allen

B. Edwin Cannon

C. Irving Fisher

D. J. R. Hicks

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34.
Firms in perfect competition face a

A. perfectly elastic demand curve

B. perfectly inelastic demand curve

C. perfectly elastic supply curve

D. perfectly inelastic supply curve

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35.
When a firm produces 400 units, its total cost is Rs. 6,000 and the total cost of producing 410 units is Rs. 7,500. If so, then its marginal cost will be

A. Rs. 1,500

B. Rs. 3,750

C. Rs. 150

D. None of these

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36.
When a monopolist is able to sell each separate unit of the output at a different price according to the pocket of the customer, he is applying

A. First-degree price discrimination

B. Second-degree price discrimination

C. Third-degree price discrimination

D. None of the above

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37.
Which of the following describes what happens to a consumer's budget line if the consumer's budget increases? The budget line

A. Become steeper

B. Shifts farther away from the origin of the graph

C. Does not change

D. Becomes horizontal

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38.
Match the following.

List-I List-II

a. Cross demand is the change in the quantity demanded of a given commodity in response to the 1. Relationship between the price of a commodity and the quantity demanded

b. The elasticity of demand for product will be higher 2. Change in the price of another commodity

c. The law of demand indicates 3. When price falls demand rises

d. The law of demand states 4. The more available are substitutes for that product

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

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

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

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

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39.
When the cross elasticity of price of demand between two goods is zero, then such goods are said to be

A. Independent goods

B. Luxury goods

C. Substitute goods

D. Complementary goods

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40.
The responsiveness of demand to a change in price is measured by

A. The Law of Demand

B. The Law of Supply

C. Equilibrium Price

D. Elasticity of Demand

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1 2 3 4 5 6 7 8 9 10

List-I	List-II
a. Cross demand is the change in the quantity demanded of a given commodity in response to the	1. Relationship between the price of a commodity and the quantity demanded
b. The elasticity of demand for product will be higher	2. Change in the price of another commodity
c. The law of demand indicates	3. When price falls demand rises
d. The law of demand states	4. The more available are substitutes for that product

Economics MCQ Questions and Solutions with Explanations | Commerce

31. The law of demand states that if other things remain same

Answer & Solution

32. Average revenue curve will not touch X axis because it cannot be

Answer & Solution

33. Who was the author of 'Value and Capital'?

Answer & Solution

34. Firms in perfect competition face a

Answer & Solution

35. When a firm produces 400 units, its total cost is Rs. 6,000 and the total cost of producing 410 units is Rs. 7,500. If so, then its marginal cost will be

Answer & Solution

36. When a monopolist is able to sell each separate unit of the output at a different price according to the pocket of the customer, he is applying

Answer & Solution

37. Which of the following describes what happens to a consumer's budget line if the consumer's budget increases? The budget line

Answer & Solution

Answer & Solution

39. When the cross elasticity of price of demand between two goods is zero, then such goods are said to be

Answer & Solution

40. The responsiveness of demand to a change in price is measured by

Answer & Solution

Read More Section(Economics)

31.
The law of demand states that if other things remain same

32.
Average revenue curve will not touch X axis because it cannot be

33.
Who was the author of 'Value and Capital'?

34.
Firms in perfect competition face a

35.
When a firm produces 400 units, its total cost is Rs. 6,000 and the total cost of producing 410 units is Rs. 7,500. If so, then its marginal cost will be

36.
When a monopolist is able to sell each separate unit of the output at a different price according to the pocket of the customer, he is applying

37.
Which of the following describes what happens to a consumer's budget line if the consumer's budget increases? The budget line

39.
When the cross elasticity of price of demand between two goods is zero, then such goods are said to be

40.
The responsiveness of demand to a change in price is measured by