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

11.
The point of inflexion refers to that point on the total physical product curve from where onwards the . . . . . . . . of the total physical product changes.

A. Curvature

B. Design

C. Patterns

D. None of the above

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12.
The indifference curve cannot intersect each other due to the

A. Transitivity rule

B. Optimal rule

C. Non-satiety rule

D. Preference rule

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13.
The marginal utility at the point of satiety will be

A. Negative

B. Positive

C. Maximum

D. Zero

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14.
If the capital production ratio in an economy is 5.2, what be the savings income ratio to increase the national income by 6.2%?

A. 1.00%

B. 32.24%

C. 11.4%

D. 1..19%

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15.
Match the following.

List-I List-II

a. Indifference curve 1. Slopes downward to the right

b. Demand curve 2. P = AR = MR = d

c. Perfect competition 3. Oligopoly

d. Price leadership 4. Convex to the origin

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

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

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

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

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16.
A firm sells its product at a price lower than the opportunity cost of the inputs used to produce it. Which is true?

A. The firm will earn accounting and economic profits

B. The firm will face accounting and economic losses

C. The firm will face an accounting loss but earn economic profits

D. The firm may earn accounting profits but will face economic losses

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17.
By total consumer surplus, economists mean (in P-Q space)

A. the area of the triangle formed by the demand curve, the price axis and the equilibrium price line

B. the area between the average revenue and marginal revenue curves

C. the difference between the maximum price the consumer is willing to pay for a good (vertical intercept of demand curve) and the minimum price the producer is willing to sell at (vertical intercept of supply curve)

D. Both A and C

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18.
How is the revenue marginal productivity calculated under marginal productivity theory?

A. By computing the total physical output

B. Finding the total revenue

C. By computing marginal physical productivity

D. Marginal physical productivity multiplied by the value of the commodity i.e., price

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19.
Match the following.

List-I List-II

a. Economic profit 1. Total revenue explicit cost

b. Accounting profit 2. Buyers and sellers exchanging

c. Collusion/Cartel 3. Total revenue - Total cost

d. Market 4. Oligopoly

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

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

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

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

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20.
For a perfectly competitive firm

A. total revenue is a straight line

B. price is greater than marginal revenue

C. price equals total revenue

D. price equals total cost

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1 2 3 4 5 6 7 8 9 10

List-I	List-II
a. Indifference curve	1. Slopes downward to the right
b. Demand curve	2. P = AR = MR = d
c. Perfect competition	3. Oligopoly
d. Price leadership	4. Convex to the origin

List-I	List-II
a. Economic profit	1. Total revenue explicit cost
b. Accounting profit	2. Buyers and sellers exchanging
c. Collusion/Cartel	3. Total revenue - Total cost
d. Market	4. Oligopoly

Economics MCQ Questions and Solutions with Explanations | Commerce

11. The point of inflexion refers to that point on the total physical product curve from where onwards the . . . . . . . . of the total physical product changes.

Answer & Solution

12. The indifference curve cannot intersect each other due to the

Answer & Solution

13. The marginal utility at the point of satiety will be

Answer & Solution

14. If the capital production ratio in an economy is 5.2, what be the savings income ratio to increase the national income by 6.2%?

Answer & Solution

15. Match the following. List-I List-II a. Indifference curve 1. Slopes downward to the right b. Demand curve 2. P = AR = MR = d c. Perfect competition 3. Oligopoly d. Price leadership 4. Convex to the origin

Answer & Solution

16. A firm sells its product at a price lower than the opportunity cost of the inputs used to produce it. Which is true?

Answer & Solution

17. By total consumer surplus, economists mean (in P-Q space)

Answer & Solution

18. How is the revenue marginal productivity calculated under marginal productivity theory?

Answer & Solution

19. Match the following. List-I List-II a. Economic profit 1. Total revenue explicit cost b. Accounting profit 2. Buyers and sellers exchanging c. Collusion/Cartel 3. Total revenue - Total cost d. Market 4. Oligopoly

Answer & Solution

20. For a perfectly competitive firm

Answer & Solution

Read More Section(Economics)

11.
The point of inflexion refers to that point on the total physical product curve from where onwards the . . . . . . . . of the total physical product changes.

12.
The indifference curve cannot intersect each other due to the

13.
The marginal utility at the point of satiety will be

14.
If the capital production ratio in an economy is 5.2, what be the savings income ratio to increase the national income by 6.2%?

15.
Match the following.

List-I List-II

a. Indifference curve 1. Slopes downward to the right

b. Demand curve 2. P = AR = MR = d

c. Perfect competition 3. Oligopoly

d. Price leadership 4. Convex to the origin

16.
A firm sells its product at a price lower than the opportunity cost of the inputs used to produce it. Which is true?

17.
By total consumer surplus, economists mean (in P-Q space)

18.
How is the revenue marginal productivity calculated under marginal productivity theory?

19.
Match the following.

List-I List-II

a. Economic profit 1. Total revenue explicit cost

b. Accounting profit 2. Buyers and sellers exchanging

c. Collusion/Cartel 3. Total revenue - Total cost

d. Market 4. Oligopoly

20.
For a perfectly competitive firm