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

71.
The average profit is the difference between

A. AC and TC

B. AC and VC

C. AC and AR

D. AC and TR

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72.
At the point of inflexion, the marginal product is

A. Increasing

B. Decreasing

C. Maximum

D. Negative

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73.
Marginal revenue will be negative if elasticity of demand is

A. Less than unity

B. More than 1

C. Equal to 1

D. Equal to zero

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74.
If lowering of fares reduces railway's revenues and increasing of fares increases, then the demand for rail travel has a price elasticity of

A. Zero

B. Greater than Zero but less than One

C. One

D. Greater than One

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75.
If the marginal (additional) opportunity cost is a constant then the PPC would be

A. Straight line

B. Convex

C. Backward leading

D. Concave

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76.
If a good is a luxury, its income elasticity of demand is

A. Positive and less than 1

B. Negative but greater than 1

C. Positive and greater than 1

D. Zero

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77.
When ____, we know that the firms must be producing at the minimum point of the average cost curve and so there will be productive efficiency.

A. AC = AR

B. MC = AC

C. MC = MR

D. AR = MR

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78.
Suppose the demand for meals at a medium-priced restaurant is elastic. If the management of the restaurant is considering rasiing prices, it can expect a relatively

A. Large fall in quantity demanded

B. Large fall in demand

C. Small fall in quantity demanded

D. Small fall in demand

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79.
Which of the following is not a characteristic of a 'price taker'?

A. TR = P x Q

B. AR = Price

C. Negatively sloped demand

D. Marginal Revenue = Price

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80.
In monopolistic competition, a firm is in long run equilibrium

A. At the minimum point of the LAC curve

B. In the declining segment of the LAC curve

C. In the rising segment of the LAC curve

D. When price is equal to marginal cost

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Economics MCQ Questions and Solutions with Explanations | Commerce

71. The average profit is the difference between

Answer & Solution

72. At the point of inflexion, the marginal product is

Answer & Solution

73. Marginal revenue will be negative if elasticity of demand is

Answer & Solution

74. If lowering of fares reduces railway's revenues and increasing of fares increases, then the demand for rail travel has a price elasticity of

Answer & Solution

75. If the marginal (additional) opportunity cost is a constant then the PPC would be

Answer & Solution

76. If a good is a luxury, its income elasticity of demand is

Answer & Solution

77. When ____, we know that the firms must be producing at the minimum point of the average cost curve and so there will be productive efficiency.

Answer & Solution

78. Suppose the demand for meals at a medium-priced restaurant is elastic. If the management of the restaurant is considering rasiing prices, it can expect a relatively

Answer & Solution

79. Which of the following is not a characteristic of a 'price taker'?

Answer & Solution

80. In monopolistic competition, a firm is in long run equilibrium

Answer & Solution

Read More Section(Economics)

71.
The average profit is the difference between

72.
At the point of inflexion, the marginal product is

73.
Marginal revenue will be negative if elasticity of demand is

74.
If lowering of fares reduces railway's revenues and increasing of fares increases, then the demand for rail travel has a price elasticity of

75.
If the marginal (additional) opportunity cost is a constant then the PPC would be

76.
If a good is a luxury, its income elasticity of demand is

77.
When ____, we know that the firms must be producing at the minimum point of the average cost curve and so there will be productive efficiency.

78.
Suppose the demand for meals at a medium-priced restaurant is elastic. If the management of the restaurant is considering rasiing prices, it can expect a relatively

79.
Which of the following is not a characteristic of a 'price taker'?

80.
In monopolistic competition, a firm is in long run equilibrium