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.
When gross investment becomes zero, which of the following prevents national income from becoming zero?

A. Consumption

B. Multiplier

C. Accelerator

D. None of these

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82.
On the maximum level of satisfaction of good X, the marginal utility of good X will be-

A. positive

B. negative

C. zero

D. infinity

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83.
Billoo currently spends Rs. 200 per month on long-distance telephone calls. If the telephone company decides to reduce the rate from Rs. 10 a minute to Rs. 5 a minute, then

A. Whether she spends more or less than Rs. 200 per month depends on whether long-distance telephone calls are a normal good or an inferior good

B. She will spend less than Rs. 200 per month on long-distance telephone call as the new price is an effective price floor

C. Whether she spends more or less than Rs. 200 per month on long-distance telephone calls depends on whether her demand is elastic or inelastic

D. She will spend more than Rs. 200 per month on long-distance telephone calls as her demand has shifted out

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84.
A firm producing a large number of products will follow the pricing strategy known as

A. Cost-plus pricing

B. Product-line pricing

C. Differential pricing

D. Price leadership

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85.
What is the full form of PDS?

A. Physical Distribution System

B. Public Distribution System

C. Peoples Distribution System

D. Purposive Distribution System

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86.
The behaviour of Average total cost curve is jointly determined by:

A. Average Fixed Cost and Average Variable Cost

B. Total Fixed Cost and Average Variable Cost

C. Average Fixed Cost and Total Variable Cost

D. Total Fixed Cost and Total Variable Cost

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87.
Match the following.

List-I List-II

a. Utilitarian approach 1. Marginal rate of substitution

b. Ordinal approach 2. Budget line and indifference curve

c. Price consumption curve 3. U = f(x, y)

d. Consumer equilibrium 4. MRS_xy = MRs_yx

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

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

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

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

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88.
In economics, distribution means

A. Distribution of labour

B. Distribution of Income among factors of production

C. Distribution of capital among the three sectors of economy

D. Distribution of goods among consumers

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89.
Which of the following is correct?

A. Fair wage is higher than living wage

B. Living wage is higher than fair wage

C. Fair wages, living wages and minimum wages are the same

D. None of the these

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90.
Match the following.

List-I List-II

a. Decrease in own price 1. Contraction in demand

b. Unfavourable change in taste 2. Extension in demand

c. Increase in own price 3. Decrease in demand

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

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

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

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

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1 2 3 4 5 6 7 8 9 10

List-I	List-II
a. Utilitarian approach	1. Marginal rate of substitution
b. Ordinal approach	2. Budget line and indifference curve
c. Price consumption curve	3. U = f(x, y)
d. Consumer equilibrium	4. MRS_xy = MRs_yx

List-I	List-II
a. Decrease in own price	1. Contraction in demand
b. Unfavourable change in taste	2. Extension in demand
c. Increase in own price	3. Decrease in demand

Economics MCQ Questions and Solutions with Explanations | Commerce

81. When gross investment becomes zero, which of the following prevents national income from becoming zero?

Answer & Solution

82. On the maximum level of satisfaction of good X, the marginal utility of good X will be-

Answer & Solution

83. Billoo currently spends Rs. 200 per month on long-distance telephone calls. If the telephone company decides to reduce the rate from Rs. 10 a minute to Rs. 5 a minute, then

Answer & Solution

84. A firm producing a large number of products will follow the pricing strategy known as

Answer & Solution

85. What is the full form of PDS?

Answer & Solution

86. The behaviour of Average total cost curve is jointly determined by:

Answer & Solution

87. Match the following. List-I List-II a. Utilitarian approach 1. Marginal rate of substitution b. Ordinal approach 2. Budget line and indifference curve c. Price consumption curve 3. U = f(x, y) d. Consumer equilibrium 4. MRSxy = MRsyx

Answer & Solution

88. In economics, distribution means

Answer & Solution

89. Which of the following is correct?

Answer & Solution

90. Match the following. List-I List-II a. Decrease in own price 1. Contraction in demand b. Unfavourable change in taste 2. Extension in demand c. Increase in own price 3. Decrease in demand

Answer & Solution

Read More Section(Economics)

81.
When gross investment becomes zero, which of the following prevents national income from becoming zero?

82.
On the maximum level of satisfaction of good X, the marginal utility of good X will be-

83.
Billoo currently spends Rs. 200 per month on long-distance telephone calls. If the telephone company decides to reduce the rate from Rs. 10 a minute to Rs. 5 a minute, then

84.
A firm producing a large number of products will follow the pricing strategy known as

85.
What is the full form of PDS?

86.
The behaviour of Average total cost curve is jointly determined by:

87.
Match the following.

List-I List-II

a. Utilitarian approach 1. Marginal rate of substitution

b. Ordinal approach 2. Budget line and indifference curve

c. Price consumption curve 3. U = f(x, y)

d. Consumer equilibrium 4. MRS_xy = MRs_yx

88.
In economics, distribution means

89.
Which of the following is correct?

90.
Match the following.

List-I List-II

a. Decrease in own price 1. Contraction in demand

b. Unfavourable change in taste 2. Extension in demand

c. Increase in own price 3. Decrease in demand