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

91.
Operation generated forecasts often not to do with

A. Inventory requirements

B. Resources needs

C. Time requirements

D. Sale

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92.
When total utility is maximum, then marginal utility is

A. Zero

B. Less than average utility

C. Equal to average utility

D. Above average utility

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93.
A perfectly competitive firm maximizes its profit by producing output at which its marginal cost equals its

A. Marginal revenue

B. Average revenue

C. Average variable cost

D. Average fixed cost

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94.
When labour is plotted on X-axis and capital is plotted on Y-axis and an isoquant is prepared, then which of the following statement(s) is/are false?
1. Marginal rate of technical substitution of labour for capital is equal to the slope of the iso-quant.
2. Marginal rate of technical substitution of labour for capital is equal to change in the units of capital divided by the change in the units of labour.
3. Marginal rate of technical substitution of labour for capital is the ratio of marginal productivity of capital to marginal productivity of labour.

A. Both 1 and 2

B. Only 3

C. Only 1

D. Only 2

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95.
Match the items of List-I with those of List-II

List-I List-II

a. Substitute goods 1. Negative cross elasticity

b. Complementary goods 2. Low price elasticity

c. Giffen goods 3. Positive cross elasticity

d. High-income group 4. Positive price elasticity

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

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

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

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

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96.
Globalization is the term used to describe process of removal of restriction on which one of the following?

A. Foreign trade

B. Investment

C. Both A and B

D. None of the above

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97.
In the long run, the cost and output relationship depends on:

A. Return to scale

B. Fixed proportion of the variables

C. Return to the variable factors

D. Return to the fixed factors

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98.
The basic characteristic of a capitalistic economy is

A. full employment

B. the private ownership of the means of production

C. an absence of monopoly

D. large-scale production in primary industries

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99.
The production function Y = LK is

A. homogeneous of degree 2

B. homogeneous of degree 1

C. homogeneous of degree zero

D. non-homogeneous

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100.
Demand must have the elements

A. Desire

B. Want

C. Quantity, Price and Time

D. All of the above

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1 2 3 4 5 6 7 8 9 10

List-I	List-II
a. Substitute goods	1. Negative cross elasticity
b. Complementary goods	2. Low price elasticity
c. Giffen goods	3. Positive cross elasticity
d. High-income group	4. Positive price elasticity

Economics MCQ Questions and Solutions with Explanations | Commerce

91. Operation generated forecasts often not to do with

Answer & Solution

92. When total utility is maximum, then marginal utility is

Answer & Solution

93. A perfectly competitive firm maximizes its profit by producing output at which its marginal cost equals its

Answer & Solution

Answer & Solution

95. Match the items of List-I with those of List-II List-I List-II a. Substitute goods 1. Negative cross elasticity b. Complementary goods 2. Low price elasticity c. Giffen goods 3. Positive cross elasticity d. High-income group 4. Positive price elasticity

Answer & Solution

96. Globalization is the term used to describe process of removal of restriction on which one of the following?

Answer & Solution

97. In the long run, the cost and output relationship depends on:

Answer & Solution

98. The basic characteristic of a capitalistic economy is

Answer & Solution

99. The production function Y = LK is

Answer & Solution

100. Demand must have the elements

Answer & Solution

Read More Section(Economics)

91.
Operation generated forecasts often not to do with

92.
When total utility is maximum, then marginal utility is

93.
A perfectly competitive firm maximizes its profit by producing output at which its marginal cost equals its

95.
Match the items of List-I with those of List-II

List-I List-II

a. Substitute goods 1. Negative cross elasticity

b. Complementary goods 2. Low price elasticity

c. Giffen goods 3. Positive cross elasticity

d. High-income group 4. Positive price elasticity

96.
Globalization is the term used to describe process of removal of restriction on which one of the following?

97.
In the long run, the cost and output relationship depends on:

98.
The basic characteristic of a capitalistic economy is

99.
The production function Y = LK is

100.
Demand must have the elements