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

31.
Elasticity is commonly stated in the form of

A. 1% change

B. 5% change

C. 9% change

D. All of the above

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32.
Total utility is maximum when

A. MU is zero

B. AU is the highest

C. MU is the highest

D. MU is equal to AU

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33.
Differential monopoly is possible only when there are two markets

A. Different elasticity of demand

B. Same elasticity of demand

C. Demand inelastic

D. None of these

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34.
According to law of demand,

A. price of commodity is an independent variable

B. quantity demanded is a dependent variable

C. reciprocal relationship is found between price and quantity demanded

D. All of the above

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35.
Match List-I with List-II

List-I List-II

a. Size of market 1. Globalization of business

b. Demographic environment 2. Foreign trade policy

c. Export oriented units 3. Macro economic environment

d. Multinational corporations 4. Non-economic environment

Choose the correct option from those given below

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

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

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

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

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36.
Income elasticity of demand is

A. Positive

B. Negative

C. Both positive and negative

D. None of these

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37.
The responsiveness of changes in quantity demanded to change in price is known as

A. price elasticity of demand

B. income elasticity of demand

C. cross elasticity of demand

D. None of the above

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38.
When the aggregate supply of food grains increases, the total income of the farmer falls. On this basis, state what will be the demand curve for food grains

A. Elastic

B. Inelastic

C. Unit elastic

D. Perfectly elastic

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39.
Micro-economics deals primarily with

A. comparative statics, general equilibrium and positive economics

B. comparative statics, partial equilibrium and normative economics

C. dynamic, partial equilibrium and positive economics

D. comparative statics, partial equilibrium and positive economics

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40.
With reference to inflation, which of the following statement is/are correct?
1. Expansion of credit increase inflation
2. Inflation leads favourable trade surplus
Select the correct answer

A. Only 1

B. Only 2

C. Both 1 and 2

D. Neither 1 nor 2

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1 2 3 4 5 6 7 8 9 10

List-I	List-II
a. Size of market	1. Globalization of business
b. Demographic environment	2. Foreign trade policy
c. Export oriented units	3. Macro economic environment
d. Multinational corporations	4. Non-economic environment

Economics MCQ Questions and Solutions with Explanations | Commerce

31. Elasticity is commonly stated in the form of

Answer & Solution

32. Total utility is maximum when

Answer & Solution

33. Differential monopoly is possible only when there are two markets

Answer & Solution

34. According to law of demand,

Answer & Solution

Answer & Solution

36. Income elasticity of demand is

Answer & Solution

37. The responsiveness of changes in quantity demanded to change in price is known as

Answer & Solution

38. When the aggregate supply of food grains increases, the total income of the farmer falls. On this basis, state what will be the demand curve for food grains

Answer & Solution

39. Micro-economics deals primarily with

Answer & Solution

40. With reference to inflation, which of the following statement is/are correct? 1. Expansion of credit increase inflation 2. Inflation leads favourable trade surplus Select the correct answer

Answer & Solution

Read More Section(Economics)

31.
Elasticity is commonly stated in the form of

32.
Total utility is maximum when

33.
Differential monopoly is possible only when there are two markets

34.
According to law of demand,

36.
Income elasticity of demand is

37.
The responsiveness of changes in quantity demanded to change in price is known as

38.
When the aggregate supply of food grains increases, the total income of the farmer falls. On this basis, state what will be the demand curve for food grains

39.
Micro-economics deals primarily with

40.
With reference to inflation, which of the following statement is/are correct?
1. Expansion of credit increase inflation
2. Inflation leads favourable trade surplus
Select the correct answer