Economics MCQ Questions and Solutions with Explanations | Commerce

A. The incidence of the tax

B. The effect of the tax on incentives to work

C. The "fairness" of the tax

D. All of the above

A. Lower price in Mumbai and higher price in Delhi

B. Lower price in Mumbai and higher price in Paris

C. Higher price in Mumbai and lower price in Paris

D. Higher price in Paris and lower price in Mumbai

A. Only (i) and (ii)

B. Only (ii), (iii) and (iv)

C. Only (i), (ii) and (iii)

D. Only (iii) and (iv)

A. Both 1 and 2

B. Both 2 and 3

C. Both 1 and 4

D. Both 2 and 4

A. A consumer has only one indifference curve

B. A consumer possesses a preference map

C. The marginal rate of substitution is equal to the magnitude of the slope of the indifference curve

D. The diminishing marginal rate of substitution means that the marginal rate of substitution decreases as more of the good is consumed

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

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

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

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

A. More demand due to inflation

B. Aggregate demand for goods

C. More demand due to higher income

D. Demand for a factor of production

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

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

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

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

A. ratio of the percentage change in quantity demanded to the percentage change in price

B. ratio of the change in price to the change in quantity demanded

C. ratio of the change in quantity demanded to the change in price

D. ratio of the percentage change in price to the percentage change in quantity demanded

A. parabola

B. circle

C. straight line

D. rectangular hyperbola