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

61.
Using Gabriel's budget line, and his indifference curves between horseback riding lesson and baseball lessons, and then changing of each activity holding his income constant, which of the following can be derived?

A. Gabriel's supply curve for each activity

B. Gabriel's net gain for each activity

C. Gabriel's demand curve for each activity

D. Gabriel's marginal benefit for each activity

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62.
According to Malthus population theory, which one of the following statement are not correct?

A. Population shows a tendency to grow faster than the means of subsistence

B. There is a direct relationship between standard of living and population

C. Increasing populations can be stopped only by natural barriers

D. Natural restrictions are those restrictions which are imposed by nature to stop population growth

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63.
A particular price level, there are no forces tending to move it either up or down, it means
1. the firm is in equilibrium.
2. the price is in equilibrium.
3. the equilibrium price of the firm.
4. the equilibrium price and quantity of a firm.
Select the correct answer

A. Both 1 and 4

B. 1, 2 and 4

C. Both 1 and 3

D. Only 4

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64.
The Bergson criteria are related to

A. Labour Economics

B. Industrial Economics

C. Welfare Economics

D. Agricultural Economics

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65.
The economic environment of a business includes

A. Economic system

B. Economic policies

C. Economic conditions

D. All of the above

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66.
If the price was fixed below the equilibrium price there would be

A. excess supply

B. excess demand

C. equilibrium

D. downward pressure on prices

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67.
A perfectly competitive firm should reduce output or shut down in the short run if market price is equal to marginal cost, and the price is

A. Greater than average total cost

B. Less than average total cost

C. Greater than average variable cost

D. Less than average variable cost

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68.
In which of the following commodities, when a consumer spends so much that negative income effect overwhelms the positive substitution effect so as the underlying demand curve is positively sloped?

A. Inferior goods

B. Superior goods

C. Giffen goods

D. Normal goods

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69.
If the average cost is falling then:

A. Marginal cost will increase

B. Marginal cost will decrease

C. Marginal cost will be equal to the average cost

D. It is impossible to say whether marginal cost is rising or falling

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70.
The concept of price elasticity of demand measures

A. the slope of the demand curve

B. the number of buyers in a market

C. the extent to which the demand curve shifts as the result of a price decline

D. the sensitivity of consumers to price change

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Economics MCQ Questions and Solutions with Explanations | Commerce

61. Using Gabriel's budget line, and his indifference curves between horseback riding lesson and baseball lessons, and then changing of each activity holding his income constant, which of the following can be derived?

Answer & Solution

62. According to Malthus population theory, which one of the following statement are not correct?

Answer & Solution

63. A particular price level, there are no forces tending to move it either up or down, it means 1. the firm is in equilibrium. 2. the price is in equilibrium. 3. the equilibrium price of the firm. 4. the equilibrium price and quantity of a firm. Select the correct answer

Answer & Solution

64. The Bergson criteria are related to

Answer & Solution

65. The economic environment of a business includes

Answer & Solution

66. If the price was fixed below the equilibrium price there would be

Answer & Solution

67. A perfectly competitive firm should reduce output or shut down in the short run if market price is equal to marginal cost, and the price is

Answer & Solution

68. In which of the following commodities, when a consumer spends so much that negative income effect overwhelms the positive substitution effect so as the underlying demand curve is positively sloped?

Answer & Solution

69. If the average cost is falling then:

Answer & Solution

70. The concept of price elasticity of demand measures

Answer & Solution

Read More Section(Economics)

61.
Using Gabriel's budget line, and his indifference curves between horseback riding lesson and baseball lessons, and then changing of each activity holding his income constant, which of the following can be derived?

62.
According to Malthus population theory, which one of the following statement are not correct?

63.
A particular price level, there are no forces tending to move it either up or down, it means
1. the firm is in equilibrium.
2. the price is in equilibrium.
3. the equilibrium price of the firm.
4. the equilibrium price and quantity of a firm.
Select the correct answer

64.
The Bergson criteria are related to

65.
The economic environment of a business includes

66.
If the price was fixed below the equilibrium price there would be

67.
A perfectly competitive firm should reduce output or shut down in the short run if market price is equal to marginal cost, and the price is

68.
In which of the following commodities, when a consumer spends so much that negative income effect overwhelms the positive substitution effect so as the underlying demand curve is positively sloped?

69.
If the average cost is falling then:

70.
The concept of price elasticity of demand measures