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

51.
Match the items of List I with items of List II and indicate the correct matching.

List-I List-II

a. Non-price quantity relationships of demand 1. Extension and contraction of demand

b. Income effect of a price rise greater than its substitution effect 2. Ordinal utility approach

c. Transitivity and consistency of choices 3. Increase and decrease in demand

d. Price quantity relationships of demand 4. Giffen goods

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

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

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

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

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52.
When does the problem of adverse balance of payments arise?

A. When imports fall

B. When imports are more than exports

C. When exports fall

D. When exports increase

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53.
The Kinked demand curve model of oligopoly was developed by

A. Augustin Cournot

B. Stackelberg

C. Edgeworth

D. Sweezy

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54.
Which of the following factor is not directly responsible for slowing down the growth of infrastructure?

A. High level of perceived political risk

B. High level of sunk cost

C. High probability of time and cost over-run

D. Introduction of competition in all sectors

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55.
If the prices increase by 100% over the previous year and GNP is constant, it means that

A. production is constant

B. this year the production has halved

C. the production has doubled this year

D. None of the above

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56.
Oligopoly Competition is charecterised by

A. A few dominant firms and substantial barriers to entry

B. A few large firms and no entry barriers

C. A large number of small firms and no entry barriers

D. One dominant firm and low entry barriers

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57.
If the income elasticity of demand is more than one unit, then the good is a

A. Inferior goods

B. Luxury

C. Imperative

D. Unrelated object

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58.
What is the objective while setting up a public sector undertaking?

A. Social welfare

B. National interest

C. Labour welfare

D. All of the above

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59.
In a diagram below is shown the total product curve OA of labour. For it which of the following statements is true-

A. the MP of labour always rises

B. first rises and then falls

C. always declines

D. first falls and then rises

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60.
Which of the following is a characteristic of pure monopoly?

A. One seller of the product

B. Low barriers to entry

C. Close substitute products

D. Perfect information

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List-I	List-II
a. Non-price quantity relationships of demand	1. Extension and contraction of demand
b. Income effect of a price rise greater than its substitution effect	2. Ordinal utility approach
c. Transitivity and consistency of choices	3. Increase and decrease in demand
d. Price quantity relationships of demand	4. Giffen goods

Economics MCQ Questions and Solutions with Explanations | Commerce

Answer & Solution

52. When does the problem of adverse balance of payments arise?

Answer & Solution

53. The Kinked demand curve model of oligopoly was developed by

Answer & Solution

54. Which of the following factor is not directly responsible for slowing down the growth of infrastructure?

Answer & Solution

55. If the prices increase by 100% over the previous year and GNP is constant, it means that

Answer & Solution

56. Oligopoly Competition is charecterised by

Answer & Solution

57. If the income elasticity of demand is more than one unit, then the good is a

Answer & Solution

58. What is the objective while setting up a public sector undertaking?

Answer & Solution

59. In a diagram below is shown the total product curve OA of labour. For it which of the following statements is true-

Answer & Solution

60. Which of the following is a characteristic of pure monopoly?

Answer & Solution

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52.
When does the problem of adverse balance of payments arise?

53.
The Kinked demand curve model of oligopoly was developed by

54.
Which of the following factor is not directly responsible for slowing down the growth of infrastructure?

55.
If the prices increase by 100% over the previous year and GNP is constant, it means that

56.
Oligopoly Competition is charecterised by

57.
If the income elasticity of demand is more than one unit, then the good is a

58.
What is the objective while setting up a public sector undertaking?

59.
In a diagram below is shown the total product curve OA of labour. For it which of the following statements is true-

60.
Which of the following is a characteristic of pure monopoly?