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

21.
Match the following.

List-I List-II

a. Consumer surplus 1. Loniet

b. Concept of compensating variation 2. Newman Morgensterm

c. Utility index number 3. Hick

d. Input-output model 4. Marshall

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

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

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

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

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22.
Which of the following statement(s) is/are incorrect?

A. Elastic demand curve is shown by letter demand curve

B. Perfectly inelastic demand curve will be a horizontal straight line

C. Both A and B

D. None of the above

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23.
With reference to angle of incidence, which of the following statements is correct?
1. It shows the profit earning capacity of business.
2. It represents the angle between sales line and total cost line.
Select the correct answer

A. Only 1

B. Only 2

C. Both 1 and 2

D. Neither 1 nor 2

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24.
In the context of cost minimisation by a competitive producer, which one of the following is NOT correct?

A. Marginal rate of technical substitution of the factors equals relative factor price ratio

B. Ratio of marginal physical productivities of the factors equals the ratio of factor prices

C. Slope of the isoquant in question equals slope of the budget line

D. Marginal rate of technical substitution of factors of production divided by relative factor price ratio is zero

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25.
Which of the following pair(s) is/are incorrectly matched?

A. Demand curve is indeterminate ⇔ Oligopoly

B. Ed = ∞ ⇔ Monopoly

C. Demand curve is relatively more elastic ⇔ Monopolistic competition

D. All of the above

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26.
Which of the following is not a condition for successful price discrimination?

A. Different elasticity of demand for different consumers

B. Sellers should be an MNC

C. Location of markets at distant places

D. Consumers ignorance and prejudices

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27.
Who among the following is called a business economist?

A. Company secretary

B. Liaison officer

C. Economic adviser

D. Controller of accounts

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28.
In zero base budget planning

A. There is no context of previous budget

B. Working plans are prepared

C. Operating budget is not prepared

D. No target is fixed

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29.
Which would be an implicit cost for a firm? The cost

A. Of worker wages and salaries for the firm

B. Paid for leasing a building for the firm

C. Paid for production supplies for the firm

D. Of wages foregone by the owner of the firm

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30.
The L-shaped isoquant implies that production requires that the input

A. Cannot be used together

B. Must be used together in a certain proportion

C. Are imperfect substitutes

D. Are perfect substitutes

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1 2 3 4 5 6 7 8 9 10

List-I	List-II
a. Consumer surplus	1. Loniet
b. Concept of compensating variation	2. Newman Morgensterm
c. Utility index number	3. Hick
d. Input-output model	4. Marshall

Economics MCQ Questions and Solutions with Explanations | Commerce

21. Match the following. List-I List-II a. Consumer surplus 1. Loniet b. Concept of compensating variation 2. Newman Morgensterm c. Utility index number 3. Hick d. Input-output model 4. Marshall

Answer & Solution

22. Which of the following statement(s) is/are incorrect?

Answer & Solution

23. With reference to angle of incidence, which of the following statements is correct? 1. It shows the profit earning capacity of business. 2. It represents the angle between sales line and total cost line. Select the correct answer

Answer & Solution

24. In the context of cost minimisation by a competitive producer, which one of the following is NOT correct?

Answer & Solution

25. Which of the following pair(s) is/are incorrectly matched?

Answer & Solution

26. Which of the following is not a condition for successful price discrimination?

Answer & Solution

27. Who among the following is called a business economist?

Answer & Solution

28. In zero base budget planning

Answer & Solution

29. Which would be an implicit cost for a firm? The cost

Answer & Solution

30. The L-shaped isoquant implies that production requires that the input

Answer & Solution

Read More Section(Economics)

21.
Match the following.

List-I List-II

a. Consumer surplus 1. Loniet

b. Concept of compensating variation 2. Newman Morgensterm

c. Utility index number 3. Hick

d. Input-output model 4. Marshall

22.
Which of the following statement(s) is/are incorrect?

23.
With reference to angle of incidence, which of the following statements is correct?
1. It shows the profit earning capacity of business.
2. It represents the angle between sales line and total cost line.
Select the correct answer

24.
In the context of cost minimisation by a competitive producer, which one of the following is NOT correct?

25.
Which of the following pair(s) is/are incorrectly matched?

26.
Which of the following is not a condition for successful price discrimination?

27.
Who among the following is called a business economist?

28.
In zero base budget planning

29.
Which would be an implicit cost for a firm? The cost

30.
The L-shaped isoquant implies that production requires that the input