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

11.
Which one of the following is represented by a rectangular hyperbola?

A. Average fixed cost curve

B. Average variable cost curve

C. Production potential curve

D. Extension path

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12.
The demand curve for a commodity is generally drawn on the assumption that

A. the commodity has no substitutes

B. tastes, income and all other prices remain constant

C. the average household consists of two persons

D. purchases of the commodity are made by a free market

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13.
The total transaction of various goods and services by a country in a span of one year from different countries of the world is called:

A. Current account

B. Balance of trade

C. Capital account

D. Balance of payments

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14.
Total utility of a commodity is measured by which price of that commodity?

A. Value in use

B. Value in exchange

C. Both A and B

D. None of the above

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15.
The first five year plan of India was based on

A. Mahalanovis model

B. Feldman model

C. Harrod-Domar model

D. Nehan-Mahalanovis model

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16.
The larger the co-efficient of price elasticity of demand for a product, the

A. Larger the resulting price change for a given increase in supply

B. More rapid the rate at which the marginal utility of that product diminishes

C. Less competitive will be the industry supplying that product

D. Smaller the resulting price change for a given increase in supply

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17.
A change in the supply of a commodity along with same supply curve may occur due to

A. Change in the price of the commodity

B. Change in the prices of related goods

C. Change in the future expectations of the price of the good

D. Change in the cost of inputs

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18.
With fixed costs of Rs. 400, a firm has average total costs of Rs. 3 and average variable costs of Rs. 2.50. Its output is

A. 200 units

B. 400 units

C. 800 units

D. 1,600 units

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19.
Match the following.

List-I List-II

a. Increase in demand 1. Leftward shift of the demand curve

b. Extension of demand 2. Upward shift of the demand curve

c. Decrease in demand 3. Upward movement on the demand curve

d. Contraction of demand 4. Downward movement on the demand curve

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

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

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

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

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20.
The following are the steps in designing the market driven distribution:
1. Know what customers want
2. Determine the costs
3. Review assumptions
4. Decide on the outlet
5. Compare alternatives
6. Implement changes
Select the right sequence of the steps:

A. 1, 4, 2, 5, 3, 6

B. 1, 2, 3, 5, 4, 6

C. 1, 3, 4, 5, 2, 6

D. 2, 3, 4, 5, 6, 1

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1 2 3 4 5 6 7 8 9 10

List-I	List-II
a. Increase in demand	1. Leftward shift of the demand curve
b. Extension of demand	2. Upward shift of the demand curve
c. Decrease in demand	3. Upward movement on the demand curve
d. Contraction of demand	4. Downward movement on the demand curve

Economics MCQ Questions and Solutions with Explanations | Commerce

11. Which one of the following is represented by a rectangular hyperbola?

Answer & Solution

12. The demand curve for a commodity is generally drawn on the assumption that

Answer & Solution

13. The total transaction of various goods and services by a country in a span of one year from different countries of the world is called:

Answer & Solution

14. Total utility of a commodity is measured by which price of that commodity?

Answer & Solution

15. The first five year plan of India was based on

Answer & Solution

16. The larger the co-efficient of price elasticity of demand for a product, the

Answer & Solution

17. A change in the supply of a commodity along with same supply curve may occur due to

Answer & Solution

18. With fixed costs of Rs. 400, a firm has average total costs of Rs. 3 and average variable costs of Rs. 2.50. Its output is

Answer & Solution

19. Match the following. List-I List-II a. Increase in demand 1. Leftward shift of the demand curve b. Extension of demand 2. Upward shift of the demand curve c. Decrease in demand 3. Upward movement on the demand curve d. Contraction of demand 4. Downward movement on the demand curve

Answer & Solution

20. The following are the steps in designing the market driven distribution: 1. Know what customers want 2. Determine the costs 3. Review assumptions 4. Decide on the outlet 5. Compare alternatives 6. Implement changes Select the right sequence of the steps:

Answer & Solution

Read More Section(Economics)

11.
Which one of the following is represented by a rectangular hyperbola?

12.
The demand curve for a commodity is generally drawn on the assumption that

13.
The total transaction of various goods and services by a country in a span of one year from different countries of the world is called:

14.
Total utility of a commodity is measured by which price of that commodity?

15.
The first five year plan of India was based on

16.
The larger the co-efficient of price elasticity of demand for a product, the

17.
A change in the supply of a commodity along with same supply curve may occur due to

18.
With fixed costs of Rs. 400, a firm has average total costs of Rs. 3 and average variable costs of Rs. 2.50. Its output is

19.
Match the following.

List-I List-II

a. Increase in demand 1. Leftward shift of the demand curve

b. Extension of demand 2. Upward shift of the demand curve

c. Decrease in demand 3. Upward movement on the demand curve

d. Contraction of demand 4. Downward movement on the demand curve

20.
The following are the steps in designing the market driven distribution:
1. Know what customers want
2. Determine the costs
3. Review assumptions
4. Decide on the outlet
5. Compare alternatives
6. Implement changes
Select the right sequence of the steps: