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.
The point at which the total product stops increasing at increasing rate and starts increasing at decreasing rate is called

A. break even point

B. shutdown point

C. inflexion point

D. None of these

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82.
In the following figure, marginal product reaches its maximum at a level of labour, which as compared to that for average product is

A. higher

B. lower

C. same

D. not comparable

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83.
The idea of commodity differentiation is related to which market?

A. Perfect competition

B. Bilateral monopoly

C. Monopolistic competition

D. Monopoly

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84.
Which of the following is not included in the gross national production (GNP at market price) at market price?

A. Wages and salaries

B. Indirect tax

C. Capital depreciation

D. Pension and fund receipts

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85.
The firm under perfect competition will be in short run equilibrium when

A. rising marginal cost is equal to the minimum average cost

B. marginal revenue is equal to rising marginal cost

C. average revenue is equal to average cost

D. marginal revenue is equal to the falling marginal cost

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86.
Which one of the following statement is incorrect?

A. Economic Profit = Total Revenue - Total Cost, including both explicit and implicit cost

B. Accounting Profit = Total Revenue - Total Explicit Cost

C. Marginal Product - The increase in output that arises from an additional unit of input

D. Marginal Product - The decrease in output that arises from an additional unit of input

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87.
Which kind of economics explains the phenomenon of cause and effect relationship?

A. Normative

B. Positive

C. Micro

D. Macro

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88.
Which of the following is not an attribute of production function?

A. Flow concept

B. State of technology

C. Quantity of inputs

D. State of inputs

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89.
What should be price elasticity of demand by proportionate method if Q₁ = 20000, Q₂ = 25000; P₁ = Rs. 10; P₂ = Rs. 8?

A. 1.25

B. 1.50

C. 1.20

D. 1.00

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90.
If total consumer expenditure on a good falls as its price falls, this indicates that

A. e < 1

B. inferior goods

C. taste for it is declining

D. it is being produced under conditions of decreasing cost

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Economics MCQ Questions and Solutions with Explanations | Commerce

81. The point at which the total product stops increasing at increasing rate and starts increasing at decreasing rate is called

Answer & Solution

82. In the following figure, marginal product reaches its maximum at a level of labour, which as compared to that for average product is

Answer & Solution

83. The idea of commodity differentiation is related to which market?

Answer & Solution

84. Which of the following is not included in the gross national production (GNP at market price) at market price?

Answer & Solution

85. The firm under perfect competition will be in short run equilibrium when

Answer & Solution

86. Which one of the following statement is incorrect?

Answer & Solution

87. Which kind of economics explains the phenomenon of cause and effect relationship?

Answer & Solution

88. Which of the following is not an attribute of production function?

Answer & Solution

89. What should be price elasticity of demand by proportionate method if Q1 = 20000, Q2 = 25000; P1 = Rs. 10; P2 = Rs. 8?

Answer & Solution

90. If total consumer expenditure on a good falls as its price falls, this indicates that

Answer & Solution

Read More Section(Economics)

81.
The point at which the total product stops increasing at increasing rate and starts increasing at decreasing rate is called

82.
In the following figure, marginal product reaches its maximum at a level of labour, which as compared to that for average product is

83.
The idea of commodity differentiation is related to which market?

84.
Which of the following is not included in the gross national production (GNP at market price) at market price?

85.
The firm under perfect competition will be in short run equilibrium when

86.
Which one of the following statement is incorrect?

87.
Which kind of economics explains the phenomenon of cause and effect relationship?

88.
Which of the following is not an attribute of production function?

89.
What should be price elasticity of demand by proportionate method if Q₁ = 20000, Q₂ = 25000; P₁ = Rs. 10; P₂ = Rs. 8?

90.
If total consumer expenditure on a good falls as its price falls, this indicates that