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.
A theory is-

A. an assumption

B. an "if-then" proposition

C. a hypothesis

D. a validated hypothesis

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22.
Which of the following is termed as the remuneration for the organization?

A. Rent

B. Wages

C. Internet

D. Profit

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23.
Statement I The least-cost or optimal input combination of labour capital requires that the marginal revenue productivity ratio of the two inputs should be equal to their price ration.
Statement II In a hypothetical production function of the following from Q = L³ + 15L² + 10
Where Q = Quantity of the product and L = No. of variable input (labour) the marginal physical productivity of labour is L² + 15L + 10

A. Both, statements are true

B. Both, statements are false

C. Statement I is true while Statement II is false

D. Statement I is false, while Statement II is true

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24.
By what name, the modern theory of interest is known?

A. Keynes theory of interest

B. New established theory of interest

C. Hicks Henson's theory of interest

D. Marginal productivity theory

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25.
Match the following.

List-I (Production functions) List-II (Name of the shapes of returns to scale)

a. Q = 10.2K^0.19 L^0.88 1. Constant returns to scale

b. Q = 1.01L^0.75 K^0.25 2. Diminishing returns to scale

c. Q = 0.84L^0.63 K^0.3 3. Increasing returns to scale

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

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

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

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

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26.
Which of the following is a barrier to entry that typically results in a monopoly?

A. The firm controls the entire supply of raw material

B. Production of the industry's product is subject to economies of scale over a broad range of output

C. Production of the industry's product requires a large initial capital investment

D. The firm holds an exclusive government franchise

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27.
If a firm triples input and produces twice the output, then there are

A. Increasing returns to scale

B. Constant returns to scale

C. Decreasing returns to scale

D. Diminishing returns to scale

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28.
In a demand schedule, quantity demanded

A. varies directly with price

B. varies inversely with price

C. varies proportionately with price

D. None of the above

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29.
If in a year, the gross fiscal deficit of a Government is Rs. 3,00,000 crore, revenue deficit is Rs. 1,50,000 crore and interest payment are Rs. 80,000 crore, then the primary deficit of the Government in the year is:

A. Rs. 23,000 crore

B. Rs. 45,000 crore

C. Rs. 70,000 crore

D. Rs. 2,20,000 crore

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30.
Elasticity of demand measures the

A. responsiveness of sales to change in advertisement expenditure

B. responsiveness of demand to change in supply of goods

C. change in price due to change in demand

D. change in demand due to change in tastes of consumer

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1 2 3 4 5 6 7 8 9 10

List-I (Production functions)	List-II (Name of the shapes of returns to scale)
a. Q = 10.2K^0.19 L^0.88	1. Constant returns to scale
b. Q = 1.01L^0.75 K^0.25	2. Diminishing returns to scale
c. Q = 0.84L^0.63 K^0.3	3. Increasing returns to scale

Economics MCQ Questions and Solutions with Explanations | Commerce

21. A theory is-

Answer & Solution

22. Which of the following is termed as the remuneration for the organization?

Answer & Solution

Answer & Solution

24. By what name, the modern theory of interest is known?

Answer & Solution

25. Match the following. List-I (Production functions) List-II (Name of the shapes of returns to scale) a. Q = 10.2K0.19 L0.88 1. Constant returns to scale b. Q = 1.01L0.75 K0.25 2. Diminishing returns to scale c. Q = 0.84L0.63 K0.3 3. Increasing returns to scale

Answer & Solution

26. Which of the following is a barrier to entry that typically results in a monopoly?

Answer & Solution

27. If a firm triples input and produces twice the output, then there are

Answer & Solution

28. In a demand schedule, quantity demanded

Answer & Solution

29. If in a year, the gross fiscal deficit of a Government is Rs. 3,00,000 crore, revenue deficit is Rs. 1,50,000 crore and interest payment are Rs. 80,000 crore, then the primary deficit of the Government in the year is:

Answer & Solution

30. Elasticity of demand measures the

Answer & Solution

Read More Section(Economics)

21.
A theory is-

22.
Which of the following is termed as the remuneration for the organization?

24.
By what name, the modern theory of interest is known?

25.
Match the following.

List-I (Production functions) List-II (Name of the shapes of returns to scale)

a. Q = 10.2K^0.19 L^0.88 1. Constant returns to scale

b. Q = 1.01L^0.75 K^0.25 2. Diminishing returns to scale

c. Q = 0.84L^0.63 K^0.3 3. Increasing returns to scale

26.
Which of the following is a barrier to entry that typically results in a monopoly?

27.
If a firm triples input and produces twice the output, then there are

28.
In a demand schedule, quantity demanded

29.
If in a year, the gross fiscal deficit of a Government is Rs. 3,00,000 crore, revenue deficit is Rs. 1,50,000 crore and interest payment are Rs. 80,000 crore, then the primary deficit of the Government in the year is:

30.
Elasticity of demand measures the