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

61.
In the short run, a monopolist will shut down if it is producing a level of output where marginal revenue is equal to the short-run marginal cost and price is

A. Greater than average total cost

B. Less than average total cost

C. Greater than average variable cost

D. Less than average variable cost

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62.
Match the following.

List-I List-II

a. Monopoly 1. Price taker

b. Monopolistic competition 2. Homogeneous product's price maker

c. Perfect competition 3. Heterogeneous product

d. Oligopoly 4. Price rigidity

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

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

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

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

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63.
Baumol has suggested as an alternative objective for profit maximisation, the maximisation of

A. sales

B. profit

C. income

D. None of these

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64.
Consider the following statements-
If all the factors of production are paid according to their respective marginal products, the total product would be
1. exhausted under constant returns to scale.
2. more than exhausted under increasing returns to scale
3. less than exhausted under decreasing return to scale
Which of these statements is/are correct?

A. 1 only

B. 1 and 2

C. 2 and 3

D. 1, 2 and 3

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65.
In which form of market structure a firm has a very large degree of control over price fixation of a product

A. Monopoly

B. Perfect competition

C. Monopolistic competition

D. Oligopoly

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66.
Gross fiscal deficit is always . . . . . . . . than revenue deficit.

A. Decreases

B. More

C. Equal

D. Sometimes more and sometimes less

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67.
The substitution effect of a price change on demand of competitive goods generally is

A. unity

B. zero

C. in the opposite direction

D. in the same direction

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68.
According to the Malthusian theory of population

A. Population increases arithmetically

B. Food production increases geometrically

C. Population increases geometrically

D. Both A and B

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69.
Variable costs are

A. Sunk costs

B. Multiplied by fixed costs

C. Costs that change with the level of production

D. Defined as the change in total cost resulting from the production of an additional unit of output

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70.
Which of the following goods would you expect to have the largest income elasticity of demand?

A. Rice

B. Toothpaste

C. Stereo equipment

D. Newspaper

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1 2 3 4 5 6 7 8 9 10

List-I	List-II
a. Monopoly	1. Price taker
b. Monopolistic competition	2. Homogeneous product's price maker
c. Perfect competition	3. Heterogeneous product
d. Oligopoly	4. Price rigidity

Economics MCQ Questions and Solutions with Explanations | Commerce

61. In the short run, a monopolist will shut down if it is producing a level of output where marginal revenue is equal to the short-run marginal cost and price is

Answer & Solution

62. Match the following. List-I List-II a. Monopoly 1. Price taker b. Monopolistic competition 2. Homogeneous product's price maker c. Perfect competition 3. Heterogeneous product d. Oligopoly 4. Price rigidity

Answer & Solution

63. Baumol has suggested as an alternative objective for profit maximisation, the maximisation of

Answer & Solution

Answer & Solution

65. In which form of market structure a firm has a very large degree of control over price fixation of a product

Answer & Solution

66. Gross fiscal deficit is always . . . . . . . . than revenue deficit.

Answer & Solution

67. The substitution effect of a price change on demand of competitive goods generally is

Answer & Solution

68. According to the Malthusian theory of population

Answer & Solution

69. Variable costs are

Answer & Solution

70. Which of the following goods would you expect to have the largest income elasticity of demand?

Answer & Solution

Read More Section(Economics)

61.
In the short run, a monopolist will shut down if it is producing a level of output where marginal revenue is equal to the short-run marginal cost and price is

62.
Match the following.

List-I List-II

a. Monopoly 1. Price taker

b. Monopolistic competition 2. Homogeneous product's price maker

c. Perfect competition 3. Heterogeneous product

d. Oligopoly 4. Price rigidity

63.
Baumol has suggested as an alternative objective for profit maximisation, the maximisation of

65.
In which form of market structure a firm has a very large degree of control over price fixation of a product

66.
Gross fiscal deficit is always . . . . . . . . than revenue deficit.

67.
The substitution effect of a price change on demand of competitive goods generally is

68.
According to the Malthusian theory of population

69.
Variable costs are

70.
Which of the following goods would you expect to have the largest income elasticity of demand?