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

21.
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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22.
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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23.
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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24.
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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25.
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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26.
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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27.
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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28.
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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29.
In case of inferior goods, the income elasticity is

A. Zero

B. Positive

C. Negative

D. None

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30.
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

21. 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

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

Answer & Solution

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

Answer & Solution

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

Answer & Solution

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

Answer & Solution

26. 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

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

Answer & Solution

28. One characteristic not typical of oligopolistic industry is

Answer & Solution

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

Answer & Solution

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

Answer & Solution

Read More Section(Economics)

21.
A firm's average fixed cost is Rs.20 at 6 units of output. What will it be at 4 units of output?

22.
If the price of good A increases relative to the price of substitutes B and C, the demand for

23.
If income elasticity for a good is 2, then it is a

24.
Lesser production of ____ would lead to lesser production in future.

25.
In perfect competition, the firm's _____ above AVC has the identical shape of the firm's supply curve

26.
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?

27.
When indifference curve is L shaped, then two goods will be

28.
One characteristic not typical of oligopolistic industry is

29.
In case of inferior goods, the income elasticity is

30.
If all inputs are trebled and the resultant output is doubled, this is a case of