Economics MCQ Questions and Solutions with Explanations | Commerce

A. to lower the cost of production

B. to increase sales and profits

C. to compete successful with the rival firms

D. because it cannot raise the price

A. Utility maximization

B. Budget constraints

C. Demand curve

D. Marginal utility

A. $$\frac{{{\text{Change}}\,{\text{in X commodity}}}}{{{\text{Marginal utility}}\,{\text{of Y commodity}}}}$$

B. $$\frac{{{\text{Change}}\,{\text{in Y commodity}}}}{{{\text{Marginal utility}}\,{\text{of X commodity}}}}$$

C. $$\frac{{{\text{Change}}\,{\text{in X commodity}}}}{{{\text{Change}}\,{\text{in Y commodity}}}}$$

D. $$\frac{{{\text{Change}}\,{\text{in Y commodity}}}}{{{\text{Change}}\,{\text{in X commodity}}}}$$

A. allows some products to be produced that would otherwise not be produced in the economy due to the fear of making losses

B. opens consumption possibilities to consumers that would otherwise not be inaccessible (or unaffordable), if a single price prevailed in the market

C. allows firms to make supernormal profits, which in turn allows them to sustain price wars when breaking into new markets

D. All of the above

A. UNDP

B. UNICEF

C. IMF

D. World Bank

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

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

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

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

A. The best affordable point

B. The least affordable point

C. On the lowest attainable indifference curve

D. Both B and C are correct

A. IDBI

B. EXIM BANK

C. SIDBI

D. None of the above

A. Unemployment

B. Employment

C. Dishonesty

D. Corruption

A. minimum point of LAC

B. highest point of LAC

C. minimum point of SAC

D. highest point of SAC