Economics MCQ Questions and Solutions with Explanations | Commerce

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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

41.
Match the following.

List-I List-II

a. Cross elasticity is zero 1. Price = AVC

b. Shut down point 2. Two commodities are independent

c. Slutskey theorem 3. Transformation line

d. Production possibility 4. Substitution effect

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

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

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

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

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42.
Which of the following economists has termed fixed cost as complementary cost?

A. Marshall

B. Prof. Ben

C. Prof. Sen

D. None of these

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43.
In the kinked demand curve model, if one firm reduces its price

A. other firms will also reduce their price

B. other firms will compete on a non-price basis

C. other firms will raise their price

D. All of the above

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44.
If the marginal product of labour is below the average product of labour, it must be true that

A. The marginal product of labour is negative

B. The marginal product of labour is zero

C. The average product of labour is falling

D. The average product of labour is negative

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45.
When both the price of a substitute and the price of a complement of commodity X rise, the demand for X-

A. rises

B. falls

C. remains unchanged

D. all of the above are possible

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46.
If you know that with 8 units of output, the average fixed cost is Rs. 12.50 and the average variable cost is Rs. 81.25, then total cost at this output level is

A. Rs. 93.75

B. Rs. 97.78

C. Rs. 750

D. Rs. 880

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47.
If the demand curve is a rectangular hyperbola, elasticity is

A. 1

B. 0

C. ∞

D. less than 1

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48.
Which of the following is a differentiated product?

A. A hamburger

B. A shirt

C. An automobile

D. All of the above

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49.
Which one of the following is not a characteristics of monopolistic competition?

A. Relatively small number of producers

B. Rigidity of pricing policy

C. Product differentiation

D. Price equilibrium where MR = MC

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50.
Hidden disquieted employment is the specialty of which sector?

A. Industry

B. Trade

C. Agriculture

D. Transportation

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1 2 3 4 5 6 7 8 9 10

List-I	List-II
a. Cross elasticity is zero	1. Price = AVC
b. Shut down point	2. Two commodities are independent
c. Slutskey theorem	3. Transformation line
d. Production possibility	4. Substitution effect

Economics MCQ Questions and Solutions with Explanations | Commerce

41. Match the following. List-I List-II a. Cross elasticity is zero 1. Price = AVC b. Shut down point 2. Two commodities are independent c. Slutskey theorem 3. Transformation line d. Production possibility 4. Substitution effect

Answer & Solution

42. Which of the following economists has termed fixed cost as complementary cost?

Answer & Solution

43. In the kinked demand curve model, if one firm reduces its price

Answer & Solution

44. If the marginal product of labour is below the average product of labour, it must be true that

Answer & Solution

45. When both the price of a substitute and the price of a complement of commodity X rise, the demand for X-

Answer & Solution

46. If you know that with 8 units of output, the average fixed cost is Rs. 12.50 and the average variable cost is Rs. 81.25, then total cost at this output level is

Answer & Solution

47. If the demand curve is a rectangular hyperbola, elasticity is

Answer & Solution

48. Which of the following is a differentiated product?

Answer & Solution

49. Which one of the following is not a characteristics of monopolistic competition?

Answer & Solution

50. Hidden disquieted employment is the specialty of which sector?

Answer & Solution

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41.
Match the following.

List-I List-II

a. Cross elasticity is zero 1. Price = AVC

b. Shut down point 2. Two commodities are independent

c. Slutskey theorem 3. Transformation line

d. Production possibility 4. Substitution effect

42.
Which of the following economists has termed fixed cost as complementary cost?

43.
In the kinked demand curve model, if one firm reduces its price

44.
If the marginal product of labour is below the average product of labour, it must be true that

45.
When both the price of a substitute and the price of a complement of commodity X rise, the demand for X-

46.
If you know that with 8 units of output, the average fixed cost is Rs. 12.50 and the average variable cost is Rs. 81.25, then total cost at this output level is

47.
If the demand curve is a rectangular hyperbola, elasticity is

48.
Which of the following is a differentiated product?

49.
Which one of the following is not a characteristics of monopolistic competition?

50.
Hidden disquieted employment is the specialty of which sector?