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

121.
A firm's average fixed cost is Rs.20 at 6 units of output. What will it be at 4 units of output?

A. Rs.60

B. Rs.30

C. Rs.40

D. Rs.20

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122.
If the price of good A increases relative to the price of substitutes B and C, the demand for

A. B will increase

B. C will increase

C. Both B and C will increase

D. B and C will decrease

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123.
If income elasticity for a good is 2, then it is a

A. Necessity item

B. Inferior good

C. Luxury item

D. Comfortable item

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124.
Lesser production of ____ would lead to lesser production in future.

A. Public goods

B. Consumer goods

C. Capital goods

D. Agricultural goods

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125.
In perfect competition, the firm's _____ above AVC has the identical shape of the firm's supply curve

A. Marginal revenue curve

B. Marginal cost curve

C. Average cost curve

D. None of the above

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126.
Suppose the total cost of producing commodity X is Rs.125000. Out of this cost, implicit cost is Rs.35000 and normal profit is Rs.25000. What will be the explicit cost of commodity X?

A. Rs.90000

B. Rs.65000

C. Rs.60000

D. Rs.100000

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127.
When indifference curve is L shaped, then two goods will be

A. Perfect substitute goods

B. Substitute goods

C. Perfect complementary goods

D. Complementary goods

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128.
One characteristic not typical of oligopolistic industry is

A. Too much importance to non-price competition

B. Price leadership

C. Horizontal demand curve

D. A small number of firms in the industry

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129.
In case of inferior goods, the income elasticity is

A. Zero

B. Positive

C. Negative

D. None

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130.
If all inputs are trebled and the resultant output is doubled, this is a case of

A. Constant returns to scale

B. Increasing returns to scale

C. Diminishing returns to scale

D. Negative returns to scale

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Economics MCQ Questions and Solutions with Explanations | Commerce

121. A firm's average fixed cost is Rs.20 at 6 units of output. What will it be at 4 units of output?

Answer & Solution

122. If the price of good A increases relative to the price of substitutes B and C, the demand for

Answer & Solution

123. If income elasticity for a good is 2, then it is a

Answer & Solution

124. Lesser production of ____ would lead to lesser production in future.

Answer & Solution

125. In perfect competition, the firm's _____ above AVC has the identical shape of the firm's supply curve

Answer & Solution

126. Suppose the total cost of producing commodity X is Rs.125000. Out of this cost, implicit cost is Rs.35000 and normal profit is Rs.25000. What will be the explicit cost of commodity X?

Answer & Solution

127. When indifference curve is L shaped, then two goods will be

Answer & Solution

128. One characteristic not typical of oligopolistic industry is

Answer & Solution

129. In case of inferior goods, the income elasticity is

Answer & Solution

130. If all inputs are trebled and the resultant output is doubled, this is a case of

Answer & Solution

Read More Section(Economics)

121.
A firm's average fixed cost is Rs.20 at 6 units of output. What will it be at 4 units of output?

122.
If the price of good A increases relative to the price of substitutes B and C, the demand for

123.
If income elasticity for a good is 2, then it is a

124.
Lesser production of ____ would lead to lesser production in future.

125.
In perfect competition, the firm's _____ above AVC has the identical shape of the firm's supply curve

126.
Suppose the total cost of producing commodity X is Rs.125000. Out of this cost, implicit cost is Rs.35000 and normal profit is Rs.25000. What will be the explicit cost of commodity X?

127.
When indifference curve is L shaped, then two goods will be

128.
One characteristic not typical of oligopolistic industry is

129.
In case of inferior goods, the income elasticity is

130.
If all inputs are trebled and the resultant output is doubled, this is a case of