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.
A horizontal supply curve parallel to the quantity axis implies that the elasticity of supply is

A. Zero

B. Infinite

C. Equal to 1

D. Greater than 0 but less than 1

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62.
When ______, we know that the firms are earning just normal profits.

A. AC = AR

B. MC = MR

C. MC = AC

D. AR = MR

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63.
The economic analysis expects the consumer to behave in a manner which is

A. Rational

B. Irrational

C. Emotional

D. Indifferent

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64.
Consumer surplus is highest in case of

A. Necessities

B. Luxuries

C. Comforts

D. Conventional necessities

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65.
The vertical difference between TVC and TC is equal to

A. MC

B. AVC

C. TFC

D. None of the above

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66.
The AR curve and industry demand curve are same in case of

A. Monopoly

B. Oligopoly

C. Perfect competition

D. None of the above

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67.
When the price of a substitute of X commodity falls, the demand for X

A. Rises

B. Falls

C. Remains unchanged

D. Any of the above

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68.
The law of variable proportions come into being when

A. There are only two variable factors

B. There is a fixed factor and a variable factor

C. All factors are variable

D. Variable factors yield less

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69.
_____ is an implicit cost of production

A. Wages of the labour

B. Charges for electricity

C. Interest on owned money capital

D. Payment for raw material

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70.
Excess capacity is not found under

A. Monopoly

B. Monopolistic competition

C. Perfect competition

D. Oligopoly

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Economics MCQ Questions and Solutions with Explanations | Commerce

61. A horizontal supply curve parallel to the quantity axis implies that the elasticity of supply is

Answer & Solution

62. When ______, we know that the firms are earning just normal profits.

Answer & Solution

63. The economic analysis expects the consumer to behave in a manner which is

Answer & Solution

64. Consumer surplus is highest in case of

Answer & Solution

65. The vertical difference between TVC and TC is equal to

Answer & Solution

66. The AR curve and industry demand curve are same in case of

Answer & Solution

67. When the price of a substitute of X commodity falls, the demand for X

Answer & Solution

68. The law of variable proportions come into being when

Answer & Solution

69. _____ is an implicit cost of production

Answer & Solution

70. Excess capacity is not found under

Answer & Solution

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61.
A horizontal supply curve parallel to the quantity axis implies that the elasticity of supply is

62.
When ______, we know that the firms are earning just normal profits.

63.
The economic analysis expects the consumer to behave in a manner which is

64.
Consumer surplus is highest in case of

65.
The vertical difference between TVC and TC is equal to

66.
The AR curve and industry demand curve are same in case of

67.
When the price of a substitute of X commodity falls, the demand for X

68.
The law of variable proportions come into being when

69.
_____ is an implicit cost of production

70.
Excess capacity is not found under