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

111.
If the price of 'X' rises by 10 percent and the quantity demanded falls by 10 percent, 'X' has

A. Inelastic demand

B. Unitarily elastic demand

C. Zero elastic demand

D. Elastic demand

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112.
Demand for intermediate consumption arises in

A. Household sector only

B. Government sector only

C. Corporate sector only

D. All producing sectors of the economy

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113.
The second glass of lemonade gives lesser satisfaction to a thirsty biy, this is a clear case of

A. Law of demand

B. Law of diminishing returns

C. Law of diminishing marginal utility

D. Law of supply

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114.
The kinked demand curve model of oligopoly assumes that

A. Response to a price increase is less than the response to a price decrease

B. Response to a price increase is more than the response to a price decrease

C. Elassticity of demand is constant regardless of whether price increases or decreases

D. Elasticity of demand is perfectly elastic if price increases and perfectly inelastic if price decreases

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115.
Agricultural goods market depicts characteristics close to

A. Perfect competition

B. Oligopoly

C. Monopoly

D. Monopolistic competition

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116.
A firm's average total cost of production is Rs.300 at 5 units of output and Rs.320 at 6 units of output. The marginal cost of producing the 6th unit is

A. Rs.20

B. Rs.120

C. Rs.320

D. Rs.420

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117.
The various combination of goods that can be produced in any economy when it uses its available resources and technology efficiency are depicted by

A. Demand curve

B. Production curve

C. Supply curve

D. Production possibility curve

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118.
Rational decision making requires that

A. One's choices be arrived at logically and without errors

B. One's choices be consistent with one's goals

C. One's choices never vary

D. One makes choices that do not involve trade offs

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119.
If the demand for a good is inelastic, an increase in the price of the good will cause the total expenditure of the consumers of the good to

A. Remain the same

B. Increase

C. Decrease

D. Any of the above

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120.
All of the following are determinants of demand except

A. Tastes and preferences

B. Quantity supplied

C. Income

D. Price of related goods

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Economics MCQ Questions and Solutions with Explanations | Commerce

111. If the price of 'X' rises by 10 percent and the quantity demanded falls by 10 percent, 'X' has

Answer & Solution

112. Demand for intermediate consumption arises in

Answer & Solution

113. The second glass of lemonade gives lesser satisfaction to a thirsty biy, this is a clear case of

Answer & Solution

114. The kinked demand curve model of oligopoly assumes that

Answer & Solution

115. Agricultural goods market depicts characteristics close to

Answer & Solution

116. A firm's average total cost of production is Rs.300 at 5 units of output and Rs.320 at 6 units of output. The marginal cost of producing the 6th unit is

Answer & Solution

117. The various combination of goods that can be produced in any economy when it uses its available resources and technology efficiency are depicted by

Answer & Solution

118. Rational decision making requires that

Answer & Solution

119. If the demand for a good is inelastic, an increase in the price of the good will cause the total expenditure of the consumers of the good to

Answer & Solution

120. All of the following are determinants of demand except

Answer & Solution

Read More Section(Economics)

111.
If the price of 'X' rises by 10 percent and the quantity demanded falls by 10 percent, 'X' has

112.
Demand for intermediate consumption arises in

113.
The second glass of lemonade gives lesser satisfaction to a thirsty biy, this is a clear case of

114.
The kinked demand curve model of oligopoly assumes that

115.
Agricultural goods market depicts characteristics close to

116.
A firm's average total cost of production is Rs.300 at 5 units of output and Rs.320 at 6 units of output. The marginal cost of producing the 6th unit is

117.
The various combination of goods that can be produced in any economy when it uses its available resources and technology efficiency are depicted by

118.
Rational decision making requires that

119.
If the demand for a good is inelastic, an increase in the price of the good will cause the total expenditure of the consumers of the good to

120.
All of the following are determinants of demand except