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

91.
If two goods are complements, this means that a rise in the price of one commodity will induce

A. An upward shift in demand for the other commodity

B. A rise in the price of the other commodity

C. A downward shift in demand for the other commodity

D. No shift in the demand for the other commodity

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92.
In the short run if a perfectly competitive firm finds itself operating at a loss, it will

A. Reduce the size of its plant to lower fixed costs

B. Raise the price of its product

C. Shut down

D. Continue to operate as long as it covers its variable cost

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93.
A competitive firm maximizes profit at the output level where

A. Price equals marginal cost

B. The slope of the firm's profit function is equal to zero

C. Marginal revenue equals marginal cost

D. All of the above

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94.
A necessity is defined as a good having

A. A positive income elasticity of demand

B. A negative income elasticity of demand

C. An income elasticity of demand between zero and 1

D. An income elasticity of more than 1

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95.
In the long run, any firm will eventually leave the industry if

A. Price does not at least cover average total cost

B. Price does not equal marginal cost

C. Economies of sale are being reaped

D. Price is greater than long run average cost

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96.
If a firm's average variable cost curve is rising, its marginal cost curve must be

A. Constant

B. Above the total cost curve

C. Above the average variable cost curve

D. All of the above

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97.
When a market is in equilibrium

A. No shortage exists

B. Quantity demanded equals quantity supplied

C. A price is established that clears the market

D. All of the above are correct

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98.
A market structure in which many firms sell products that are similar but not identical is known as

A. Monopolistic competition

B. Monopoly

C. Perfect competition

D. Oligopoly

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99.
Economics is the study of

A. how society manages its unlimited resources

B. how to reduce our wants until we are satisfied

C. how society manages its scarce resources

D. how to fully satisfy our unlimited wants

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100.
If there are implicit costs of production

A. Economic profit will be equal to accounting profit

B. Economic profit will be less than accounting profit

C. Economic profits will be zero

D. Economic profit will be more than accounting profit.

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Economics MCQ Questions and Solutions with Explanations | Commerce

91. If two goods are complements, this means that a rise in the price of one commodity will induce

Answer & Solution

92. In the short run if a perfectly competitive firm finds itself operating at a loss, it will

Answer & Solution

93. A competitive firm maximizes profit at the output level where

Answer & Solution

94. A necessity is defined as a good having

Answer & Solution

95. In the long run, any firm will eventually leave the industry if

Answer & Solution

96. If a firm's average variable cost curve is rising, its marginal cost curve must be

Answer & Solution

97. When a market is in equilibrium

Answer & Solution

98. A market structure in which many firms sell products that are similar but not identical is known as

Answer & Solution

99. Economics is the study of

Answer & Solution

100. If there are implicit costs of production

Answer & Solution

Read More Section(Economics)

91.
If two goods are complements, this means that a rise in the price of one commodity will induce

92.
In the short run if a perfectly competitive firm finds itself operating at a loss, it will

93.
A competitive firm maximizes profit at the output level where

94.
A necessity is defined as a good having

95.
In the long run, any firm will eventually leave the industry if

96.
If a firm's average variable cost curve is rising, its marginal cost curve must be

97.
When a market is in equilibrium

98.
A market structure in which many firms sell products that are similar but not identical is known as

99.
Economics is the study of

100.
If there are implicit costs of production