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

81.
In a typical demand schedule, quantity demanded

A. Varies directly with price

B. Varies proportionately with price

C. Varies inversely with price

D. Is independent of price

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82.
When the perfectly competitive firm and industry are in long run equilibrium, then

A. P = MR = SAC = LAC

B. D = MR = SMC = LMC

C. P = MR = Lowest point on the LAC curve

D. All of the above

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83.
In monopoly, the relationship between average and marginal revenue curves is as follows

A. AR curve lies above the MR curve

B. AR curve coincides with the MR curve

C. AR curve lies below the MR curve

D. AR curve is parallel to the MR curve

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84.
The total effect of a price change of a commodity is

A. Sustitution effect plus price effect

B. Substitution effect plus income effect

C. Substitution effect plus demonstration effect

D. Substitution effect minus income effect

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85.
The following are some of the costs of a clothing manufacturer. State which among them will you consider as fixed cost?

A. Cost of cloth

B. Piece wages paid to workers

C. Depreciation on machines owing to time

D. Cost of electricity for running machines

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86.
The cost that a firm incurs in hiring or purchasing any factor of production is referred to as

A. Explicit cost

B. Implicit cost

C. Variable cost

D. Fixed cost

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87.
Supply of a commodity is a

A. Stock concept

B. Flow concept

C. Both stock and flow concept

D. None of the above

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88.
If two goods were perfect substitutes of each other, it necessarily follows that

A. An indifference curve relating the two goods will be curvilinear

B. An indifference curve relating the two goods will be linear

C. An indifference curve relating the two goods will be divided into two segments which meet at a right angle

D. An indifference curve relating the two goods will be convex to the origin

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89.
The MC curve cuts the AVC and ATC curves at

A. The falling part of each

B. Different points

C. Their respective minimas

D. The rising part of each

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90.
Giffen goods are those goods

A. For which demand increases as price increases

B. That have a high income elasticity of demand

C. That are in short supply

D. None of the above

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Economics MCQ Questions and Solutions with Explanations | Commerce

81. In a typical demand schedule, quantity demanded

Answer & Solution

82. When the perfectly competitive firm and industry are in long run equilibrium, then

Answer & Solution

83. In monopoly, the relationship between average and marginal revenue curves is as follows

Answer & Solution

84. The total effect of a price change of a commodity is

Answer & Solution

85. The following are some of the costs of a clothing manufacturer. State which among them will you consider as fixed cost?

Answer & Solution

86. The cost that a firm incurs in hiring or purchasing any factor of production is referred to as

Answer & Solution

87. Supply of a commodity is a

Answer & Solution

88. If two goods were perfect substitutes of each other, it necessarily follows that

Answer & Solution

89. The MC curve cuts the AVC and ATC curves at

Answer & Solution

90. Giffen goods are those goods

Answer & Solution

Read More Section(Economics)

81.
In a typical demand schedule, quantity demanded

82.
When the perfectly competitive firm and industry are in long run equilibrium, then

83.
In monopoly, the relationship between average and marginal revenue curves is as follows

84.
The total effect of a price change of a commodity is

85.
The following are some of the costs of a clothing manufacturer. State which among them will you consider as fixed cost?

86.
The cost that a firm incurs in hiring or purchasing any factor of production is referred to as

87.
Supply of a commodity is a

88.
If two goods were perfect substitutes of each other, it necessarily follows that

89.
The MC curve cuts the AVC and ATC curves at

90.
Giffen goods are those goods