Economics MCQ Questions and Solutions with Explanations | Commerce

A. The desire, ability, and willingness of an individual to purchase goods and services at any given price per unit

B. The desire and willingness of the individual for all the goods and service for his standard of living

C. The ability of society to purchase all that is on the market at a given period

D. None of the above

A. Less than zero

B. Equal to zero

C. Equal to one

D. Greater than one

A. The substituent elasticity is equal to the unit

B. The instrument measures the concentration by the ratio b₁/b₂

C. Organization and entrepreneurship are measured by efficiency

D. All of these

A. Production function

B. Utility function

C. Supply function

D. None of these

A. a-1, b-4, c-5, d-3

B. a-3, b-5, c-4, d-2

C. a-1, b-5, c-3, d-2

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

A. Substitution effect + price effect

B. Substitution effect - income effect

C. Substitution effect + income effect

D. Substitution effect - price effect

A. law of demand as applied to population

B. law of diminishing return as applied to agriculture

C. law of marginal utility as applied to agriculture

D. law of marginal return as applied to population

A. An essential good

B. A luxury good

C. Inferior good

D. A Giffen good

A. studies economic relationships

B. studies economic activities at the aggregate level

C. deals with the tools of economics used for decision making in business

D. studies optimum allocation of limited resources

A. Negative

B. Positive

C. Zero

D. Highly positive