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.
Normal profit is called normal because

A. It is neither very high nor very low

B. It is minimum acceptable to the producer

C. It is minimum which buyer wants to pay

D. It is the maximum allowed by government

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22.
Supply curve is

A. Vertical in long run

B. Flatter in long run

C. Same in long and short run

D. Horizontal in both short and long run

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23.
A vertical supply curve parallel to the price axis implies that the elasticity of supply is

A. Zero

B. Infinity

C. Equal to one

D. Greater than zero but less than infinity

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24.
With which of the theories of wages, is the name of John Stuart Mill associated?

A. Marginal productivity theory of wages

B. Wages-fund theory

C. Subsistence theory of wages

D. Iron aw of wages

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25.
If a firm shuts down temporarily, it will incur loss equal to

A. AFC

B. AVC

C. TFC

D. TVC

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26.
During a particular year, farmers experienced a dry weather. If all the other factors remain constant, farmers supply curve for wheat will shift

A. Rightward

B. Leftward

C. Upward

D. None of the above

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27.
The supply of a commodity refers to

A. Actual production of the commodity

B. Total existing stock of the commodity

C. Stock available for sale

D. Amount of the commodity offered for sale at a particular price per unit of time

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28.
Economic rent can accrue to

A. Land only

B. Capital only

C. Specialized technical personnel only

D. Any of the factors of production

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29.
Under perfect competition

A. AC=AVC

B. AR=AC

C. AR=MC

D. AR=MR

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30.
When supply of a commodity increases without change in price, it is called

A. Fall in supply

B. Expansion in supply

C. Contraction in supply

D. Rise in supply

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Economics MCQ Questions and Solutions with Explanations | Commerce

21. Normal profit is called normal because

Answer & Solution

22. Supply curve is

Answer & Solution

23. A vertical supply curve parallel to the price axis implies that the elasticity of supply is

Answer & Solution

24. With which of the theories of wages, is the name of John Stuart Mill associated?

Answer & Solution

25. If a firm shuts down temporarily, it will incur loss equal to

Answer & Solution

26. During a particular year, farmers experienced a dry weather. If all the other factors remain constant, farmers supply curve for wheat will shift

Answer & Solution

27. The supply of a commodity refers to

Answer & Solution

28. Economic rent can accrue to

Answer & Solution

29. Under perfect competition

Answer & Solution

30. When supply of a commodity increases without change in price, it is called

Answer & Solution

Read More Section(Economics)

21.
Normal profit is called normal because

22.
Supply curve is

23.
A vertical supply curve parallel to the price axis implies that the elasticity of supply is

24.
With which of the theories of wages, is the name of John Stuart Mill associated?

25.
If a firm shuts down temporarily, it will incur loss equal to

26.
During a particular year, farmers experienced a dry weather. If all the other factors remain constant, farmers supply curve for wheat will shift

27.
The supply of a commodity refers to

28.
Economic rent can accrue to

29.
Under perfect competition

30.
When supply of a commodity increases without change in price, it is called