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.
Suppose the short run cost function can be written as TC=250 + 10Q. Average fixed cost equals

A. 250/Q

B. 250

C. 10

D. 250/Q + 10

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82.
Price discrimination often favours public interest because it

A. Allows production of some products that would have been otherwise difficult in the economy due to the fear of making losses

B. Opens consumption possibilities to the consumer that would otherwise not be inaccessible if a single price prevailed in the market

C. Allows firms to make supernormal profits, which in turn, allows them to sustain price wars when breaking into new markets

D. All of the above

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83.
In perfect competition, the demand curve of a firm is:

A. Vertical

B. horizontal

C. positively sloped

D. negatively sloped

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84.
Match the following.

List-I (Elasticity Coefficient) List-II (Change in Total Revenue)

a. e = 0 1. Increase

b. e < 1 2. Decrease

c. e = 1 3. No change

d. e = ∞ 4. Decrease to zero

A. a-1, b-2, c-3, d-4

B. a-1, b-3, c-4, d-2

C. a-2, b-1, c-3, d-4

D. a-4, b-3, c-1, d-2

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85.
The elasticity of demand describes-

A. the distinction between changes in demand and changes in amount demanded

B. a change in the incomes of the buyers in response to change in the prices of products they sell

C. the slope of the demand curve

D. the responsiveness of price to changes in the quantity demanded

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86.
The phrase 'Payment by results' is more close to

A. Time rate wages

B. Incentives

C. Productivity linked wages

D. All are correct

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87.
If total production increases with the increases in variable factor, it is called

A. Law of constant return

B. Law of diminishing return

C. Law of increasing return

D. Law of supply of production

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88.
The price elasticity of demand for any product in the long run

A. Is more than its short-run value

B. Is less than its short-run value

C. Is same as its short-run value

D. None of the above

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89.
Under perfect competition, a firm will be in equilibrium, when its AC is

A. at minimum level

B. equal to AR

C. covering only prime cost of production

D. None of the above

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90.
Which of the following is the largest source of income of the government of India?

A. Direct tax

B. Indirect tax

C. Progressive tax

D. Specific tax

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List-I (Elasticity Coefficient)	List-II (Change in Total Revenue)
a. e = 0	1. Increase
b. e < 1	2. Decrease
c. e = 1	3. No change
d. e = ∞	4. Decrease to zero

Economics MCQ Questions and Solutions with Explanations | Commerce

81. Suppose the short run cost function can be written as TC=250 + 10Q. Average fixed cost equals

Answer & Solution

82. Price discrimination often favours public interest because it

Answer & Solution

83. In perfect competition, the demand curve of a firm is:

Answer & Solution

84. Match the following. List-I (Elasticity Coefficient) List-II (Change in Total Revenue) a. e = 0 1. Increase b. e < 1 2. Decrease c. e = 1 3. No change d. e = ∞ 4. Decrease to zero

Answer & Solution

85. The elasticity of demand describes-

Answer & Solution

86. The phrase 'Payment by results' is more close to

Answer & Solution

87. If total production increases with the increases in variable factor, it is called

Answer & Solution

88. The price elasticity of demand for any product in the long run

Answer & Solution

89. Under perfect competition, a firm will be in equilibrium, when its AC is

Answer & Solution

90. Which of the following is the largest source of income of the government of India?

Answer & Solution

Read More Section(Economics)

81.
Suppose the short run cost function can be written as TC=250 + 10Q. Average fixed cost equals

82.
Price discrimination often favours public interest because it

83.
In perfect competition, the demand curve of a firm is:

84.
Match the following.

List-I (Elasticity Coefficient) List-II (Change in Total Revenue)

a. e = 0 1. Increase

b. e < 1 2. Decrease

c. e = 1 3. No change

d. e = ∞ 4. Decrease to zero

85.
The elasticity of demand describes-

86.
The phrase 'Payment by results' is more close to

87.
If total production increases with the increases in variable factor, it is called

88.
The price elasticity of demand for any product in the long run

89.
Under perfect competition, a firm will be in equilibrium, when its AC is

90.
Which of the following is the largest source of income of the government of India?