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.
The production function X = AL^3/5

A. greater than 1

B. 1

C. less than 1

D. zero

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22.
'Ceteris paribus' clause in the law of Demand does not mean

A. the price of the commodity does not change

B. the price of its substitutes does not change

C. the income of the consumer does not change

D. the price of complementary goods does not change

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23.
If a demand curve shifts to the right, it means-

A. price of the commodity has gone down

B. demand function has improved

C. the supply function has improved

D. the real income of the consumer has gone down

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24.
In which of the following form of the market the producer is isolated and selling costs is incurred

A. Perfect competition

B. Monopoly

C. Monopolistic competition

D. None of these

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25.
Sources of long term finance will be

A. Equity Share Capital

B. Debenture

C. Preference Share Capital

D. All of the above

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26.
Statement I The isoquant curves are drawn convex to the origin due to diminishing technical rate of substitution.
Statement II The lesser the convexity of the isoquant curve, the greater the possibility of the complementarity of the two inputs.

A. Both statements are true

B. Statement I is true, but Statement II is false

C. Statement I is false, but Statement II is true

D. Both statements are false

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27.
Consider the following statements.
1. Point of inflexion exists where I^st stage of law of variable proportions ends.
2. TP increases even when MP is decreasing.
3. Producer will stop only at II^nd stage of variable proportions.
Which of the statement(s) given above is/are correct?

A. Both 1 and 2

B. 1, 2 and 3

C. Only 1

D. None of the above

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28.
Match the following.

List-I List-II

a. Prof. Robin 1. Security profit

b. Prof. Milton Kafoglis 2. Marris growth maximisation

c. Prof. Rothschild 3. Output maximisation

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

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

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

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

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29.
Match the following.

List-I List-II

a. Law of demand is fully applicable 1. Giffen goods not applicable

b. Law of demand is not applicable at all 2. Veblon goods partly applicable

c. Law of demand is partly applicable 3. Normal goods fully applicable

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

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

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

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

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30.
The subject which is related to the income and expenditure of the government is called

A. National income

B. Gross Domestic Product (GDP)

C. Revenue

D. Economic system

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1 2 3 4 5 6 7 8 9 10

List-I	List-II
a. Prof. Robin	1. Security profit
b. Prof. Milton Kafoglis	2. Marris growth maximisation
c. Prof. Rothschild	3. Output maximisation

List-I	List-II
a. Law of demand is fully applicable	1. Giffen goods not applicable
b. Law of demand is not applicable at all	2. Veblon goods partly applicable
c. Law of demand is partly applicable	3. Normal goods fully applicable

Economics MCQ Questions and Solutions with Explanations | Commerce

21. The production function X = AL3/5

Answer & Solution

22. 'Ceteris paribus' clause in the law of Demand does not mean

Answer & Solution

23. If a demand curve shifts to the right, it means-

Answer & Solution

24. In which of the following form of the market the producer is isolated and selling costs is incurred

Answer & Solution

25. Sources of long term finance will be

Answer & Solution

26. Statement I The isoquant curves are drawn convex to the origin due to diminishing technical rate of substitution. Statement II The lesser the convexity of the isoquant curve, the greater the possibility of the complementarity of the two inputs.

Answer & Solution

27. Consider the following statements. 1. Point of inflexion exists where Ist stage of law of variable proportions ends. 2. TP increases even when MP is decreasing. 3. Producer will stop only at IInd stage of variable proportions. Which of the statement(s) given above is/are correct?

Answer & Solution

28. Match the following. List-I List-II a. Prof. Robin 1. Security profit b. Prof. Milton Kafoglis 2. Marris growth maximisation c. Prof. Rothschild 3. Output maximisation

Answer & Solution

29. Match the following. List-I List-II a. Law of demand is fully applicable 1. Giffen goods not applicable b. Law of demand is not applicable at all 2. Veblon goods partly applicable c. Law of demand is partly applicable 3. Normal goods fully applicable

Answer & Solution

30. The subject which is related to the income and expenditure of the government is called

Answer & Solution

Read More Section(Economics)

21.
The production function X = AL^3/5

22.
'Ceteris paribus' clause in the law of Demand does not mean

23.
If a demand curve shifts to the right, it means-

24.
In which of the following form of the market the producer is isolated and selling costs is incurred

25.
Sources of long term finance will be

26.
Statement I The isoquant curves are drawn convex to the origin due to diminishing technical rate of substitution.
Statement II The lesser the convexity of the isoquant curve, the greater the possibility of the complementarity of the two inputs.

27.
Consider the following statements.
1. Point of inflexion exists where I^st stage of law of variable proportions ends.
2. TP increases even when MP is decreasing.
3. Producer will stop only at II^nd stage of variable proportions.
Which of the statement(s) given above is/are correct?

28.
Match the following.

List-I List-II

a. Prof. Robin 1. Security profit

b. Prof. Milton Kafoglis 2. Marris growth maximisation

c. Prof. Rothschild 3. Output maximisation

29.
Match the following.

List-I List-II

a. Law of demand is fully applicable 1. Giffen goods not applicable

b. Law of demand is not applicable at all 2. Veblon goods partly applicable

c. Law of demand is partly applicable 3. Normal goods fully applicable

30.
The subject which is related to the income and expenditure of the government is called