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

81.
Monopoly is based on-

A. control over demand

B. control over supply

C. control over population

D. control over price level

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82.
The study of ups and down in economics is

A. Monetary policy

B. Fiscal policy

C. Business cycles

D. None

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83.
A monopoly may determine

A. Price

B. Production

C. Either price or production

D. None

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84.
The best measure of economic development will be

A. Increase/growth in gross national income

B. Poverty ratio

C. Increase in per capita real gross national product

D. Accelerated capital formation

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85.
Which of the following is correct?
(i) National income = gross national product - Depreciation
(ii) National income = Rent + Wages + Salary + interest + profit
(iii) Variable cost Average variable cost = $$\frac{{{\text{Variable cost}}}}{{{\text{Production}}}}$$
Select your answer

A. (i), (ii)

B. (i), (iii)

C. (ii), (iii)

D. (i), (ii), (iii)

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86.
According to the Kaldor-Hicks compensation criterion, a change in economic policy leads to an improvement in social welfare, if

A. the gainers can just compensate the losers

B. the losers can profitably bribe the gainers to induce them to stay in the old position

C. the gainers can compensate the losers for their loss and still remain better-off themselves than before

D. The losers do not oppose the change

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87.
In the case consumers equilibrium to be explained through an ordinal approach, when there are two commodities with their prices given and with limited income of the consumer, the following information is required:
I. Price line/budget line
II. Indifference map
III. Point of tangency between IC and budget line
IV. Equality of the slopes of IC and budget line
Arrange the information required in the correct sequence and choose the right option from those below

A. II, IV, I, III

B. II, I, IV, III

C. I, IV, II, III

D. I, II, III, IV

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88.
In a perfectly competitive market, a firm in the long run operates at the level of output where:

A. AC = MC when MC is lowest

B. MC = AR = MR when MC is lowest

C. MR = MC

D. AR = MR = AC = MC

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89.
In case, law of constant returns is applicable,

A. marginal product will be more than average product

B. marginal product will be lesser than average product

C. marginal and average product will be equal

D. total, marginal and average product will be equal

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90.
Consider the following statements.
1. TV increases so long as MU is positive.
2. TU = $$\sum $$AU
3. When MU is negative, TV starts increasing.
Which of the statement(s) given above is/are correct?

A. Only 1

B. Both 1 and 3

C. Both 2 and 3

D. None of these

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Economics MCQ Questions and Solutions with Explanations | Commerce

81. Monopoly is based on-

Answer & Solution

82. The study of ups and down in economics is

Answer & Solution

83. A monopoly may determine

Answer & Solution

84. The best measure of economic development will be

Answer & Solution

85. Which of the following is correct? (i) National income = gross national product - Depreciation (ii) National income = Rent + Wages + Salary + interest + profit (iii) Variable cost Average variable cost = $$\frac{{{\text{Variable cost}}}}{{{\text{Production}}}}$$ Select your answer

Answer & Solution

86. According to the Kaldor-Hicks compensation criterion, a change in economic policy leads to an improvement in social welfare, if

Answer & Solution

Answer & Solution

88. In a perfectly competitive market, a firm in the long run operates at the level of output where:

Answer & Solution

89. In case, law of constant returns is applicable,

Answer & Solution

90. Consider the following statements. 1. TV increases so long as MU is positive. 2. TU = $$\sum $$AU 3. When MU is negative, TV starts increasing. Which of the statement(s) given above is/are correct?

Answer & Solution

Read More Section(Economics)

81.
Monopoly is based on-

82.
The study of ups and down in economics is

83.
A monopoly may determine

84.
The best measure of economic development will be

85.
Which of the following is correct?
(i) National income = gross national product - Depreciation
(ii) National income = Rent + Wages + Salary + interest + profit
(iii) Variable cost Average variable cost = $$\frac{{{\text{Variable cost}}}}{{{\text{Production}}}}$$
Select your answer

86.
According to the Kaldor-Hicks compensation criterion, a change in economic policy leads to an improvement in social welfare, if

88.
In a perfectly competitive market, a firm in the long run operates at the level of output where:

89.
In case, law of constant returns is applicable,

90.
Consider the following statements.
1. TV increases so long as MU is positive.
2. TU = $$\sum $$AU
3. When MU is negative, TV starts increasing.
Which of the statement(s) given above is/are correct?