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

31.
The nature of unemployment in agriculture sector is

A. Complete unemployment

B. Partial unemployment

C. Disguised unemployment

D. None of these

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32.
Short-run demand and total cost functions for a monopoly firm are as under:
Demand function : Q = 100 - 0.2 P
Price function : P = 500 - 5 Q
Cost function : TC = 50 + 20 Q + Q² Where Q = Total quantity of the product in physical units.
P = Price of the product per unit
TC = Total cost
What is the profit maximizing output of the pure monopoly firm?

A. 20

B. 35

C. 40

D. 50

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33.
Which of the following statement(s) is/are not correct?

A. As per law of Diminishing Marginal Utility, MU tends to decline as consumption of the commodity increase

B. As per law of diminishing returns to a factor, when MP is decreasing, TP is increasing at diminishing rate

C. Both A and B

D. None of the above

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34.
In all forms of imperfect competition, the average revenue curve facing the individual slopes

A. upward

B. downward

C. parallel to X-axis

D. vertically

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35.
A straight line, downward-sloping demand curve implies that, as price falls, the elasticity of demand

A. increases

B. decreases

C. remains the same

D. is zero

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36.
"Economics is what Economists do" was stated by

A. Adam Smith

B. Alfred Marshall

C. R. W. Souter

D. Jacob Viner

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37.
Assuming that a firm's total revenue curve takes the form of a straight line which passes through the origin, we may deduce that

A. Price and marginal revenue are equal

B. Price exceeds MR

C. TC equals MR

D. Elasticity of demand is unity

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38.
Which one is not a type of demand?

A. Price demand

B. Derived demand

C. Joint demand

D. All of these

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39.
A commodity, the price of which has risen but is expected to become scarce, will present a demand curve

A. regressive at the lower end

B. regressive at the upper end

C. kinked in the middle

D. downward sloping to the right

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40.
Giffen goods may be defined as those goods whose price effect is . . . . . . . . and income effect is . . . . . . . .

A. positive, negative

B. negative, positive

C. positive, elastic

D. negative, elastic

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Economics MCQ Questions and Solutions with Explanations | Commerce

31. The nature of unemployment in agriculture sector is

Answer & Solution

Answer & Solution

33. Which of the following statement(s) is/are not correct?

Answer & Solution

34. In all forms of imperfect competition, the average revenue curve facing the individual slopes

Answer & Solution

35. A straight line, downward-sloping demand curve implies that, as price falls, the elasticity of demand

Answer & Solution

36. "Economics is what Economists do" was stated by

Answer & Solution

37. Assuming that a firm's total revenue curve takes the form of a straight line which passes through the origin, we may deduce that

Answer & Solution

38. Which one is not a type of demand?

Answer & Solution

39. A commodity, the price of which has risen but is expected to become scarce, will present a demand curve

Answer & Solution

40. Giffen goods may be defined as those goods whose price effect is . . . . . . . . and income effect is . . . . . . . .

Answer & Solution

Read More Section(Economics)

31.
The nature of unemployment in agriculture sector is

33.
Which of the following statement(s) is/are not correct?

34.
In all forms of imperfect competition, the average revenue curve facing the individual slopes

35.
A straight line, downward-sloping demand curve implies that, as price falls, the elasticity of demand

36.
"Economics is what Economists do" was stated by

37.
Assuming that a firm's total revenue curve takes the form of a straight line which passes through the origin, we may deduce that

38.
Which one is not a type of demand?

39.
A commodity, the price of which has risen but is expected to become scarce, will present a demand curve

40.
Giffen goods may be defined as those goods whose price effect is . . . . . . . . and income effect is . . . . . . . .