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

21.
Returns to scale involve variations in the quantities of the various factors of production
1. Simultaneously
2. Proportionately

A. Both 1 and 2 are correct

B. 1 is correct, but 2 is incorrect

C. 1 is incorrect, but 2 is correct

D. Neither 1 nor 2

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22.
Income inequalities in a country can be measured by

A. Lorenz curve

B. Gini coefficient

C. Proportion of income received by different size groups

D. All of the above

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23.
A total cost schedule can be derived from one information given in

A. an Engle curve

B. a price consumption curve

C. an expansion path

D. an isocost curve

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24.
"The law of diminishing return is merely a matter of logical necessity but the law of increasing return is a matter of empirical fact." The statement comes from

A. George Stigler

B. Samuelson

C. Joan Robinson

D. Alfred Marshall

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25.
Which of the following equation is correct?

A. Price effect = Income effect × Substitution effect

B. Price effect = Substitution effect - Income effect

C. Price effect = Income effect + Substitution effect

D. Price effect = Income effect - Substitution effect

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26.
If the marginal output is positive, total output will

A. increase

B. decrease

C. be constant

D. be zero

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27.
Match the following.

List-I List-II

a. Responsiveness of demand to change in price 1. Income elasticity of demand

b. Responsiveness of demand to change in tastes 2. Price elasticity of demand

c. Responsiveness of demand to change in income 3. Cross elasticity of demand

d. Responsiveness of demand to change in price of related goods 4. Taste elasticity of demand

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

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

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

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

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28.
Budget is not related to

A. Planned events

B. Covered by the management

C. Planned practice

D. Possible events

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29.
After independence, who was appointed by the government of India as the first chairman of the 'national income committee'?

A. Prof. Mahalanbis

B. Prof. Cirrus

C. Prof. Ghosh

D. Prof. Shah

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30.
The normal LAC curve is influenced by

A. principle of constant returns to scale

B. economies and diseconomies of large scale production

C. principle of diminishing returns

D. All of the above

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1 2 3 4 5 6 7 8 9 10

List-I	List-II
a. Responsiveness of demand to change in price	1. Income elasticity of demand
b. Responsiveness of demand to change in tastes	2. Price elasticity of demand
c. Responsiveness of demand to change in income	3. Cross elasticity of demand
d. Responsiveness of demand to change in price of related goods	4. Taste elasticity of demand

Economics MCQ Questions and Solutions with Explanations | Commerce

21. Returns to scale involve variations in the quantities of the various factors of production 1. Simultaneously 2. Proportionately

Answer & Solution

22. Income inequalities in a country can be measured by

Answer & Solution

23. A total cost schedule can be derived from one information given in

Answer & Solution

24. "The law of diminishing return is merely a matter of logical necessity but the law of increasing return is a matter of empirical fact." The statement comes from

Answer & Solution

25. Which of the following equation is correct?

Answer & Solution

26. If the marginal output is positive, total output will

Answer & Solution

Answer & Solution

28. Budget is not related to

Answer & Solution

29. After independence, who was appointed by the government of India as the first chairman of the 'national income committee'?

Answer & Solution

30. The normal LAC curve is influenced by

Answer & Solution

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21.
Returns to scale involve variations in the quantities of the various factors of production
1. Simultaneously
2. Proportionately

22.
Income inequalities in a country can be measured by

23.
A total cost schedule can be derived from one information given in

24.
"The law of diminishing return is merely a matter of logical necessity but the law of increasing return is a matter of empirical fact." The statement comes from

25.
Which of the following equation is correct?

26.
If the marginal output is positive, total output will

28.
Budget is not related to

29.
After independence, who was appointed by the government of India as the first chairman of the 'national income committee'?

30.
The normal LAC curve is influenced by