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.
Presented the idea of imperfect competition

A. Calder

B. Chamberlin

C. Samuelson

D. Mrs. John Robinson

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82.
Assume that a PPC for wheat and rice is drawn so that it is a straight line. This means that

A. the cost of producing rice in terms of wheat falls as more rice is produced

B. the cost of producing rice in terms of wheat does not change as more rice is produced

C. the fixed costs of rice and wheat are equal

D. the average cost of population of rice and wheat are at their optimum level

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83.
The first clear and satisfactory explanation of rent was given by

A. Adam Smith

B. Marshall

C. Ricardo

D. J. H. Mill

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84.
The magnitude of the slope of an indifference curve is the

A. Marginal rate of substitution

B. Rate of increasing opportunity cost

C. Marginal rate of utility of income

D. Rate of relative price

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85.
At present the base year for measuring national income at constant prices is

A. 2002-03

B. 2001-02

C. 1995-96

D. 1993-94

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86.
For the following statement of Assertion (A) and Reasoning (R) select the correct answer:
Assertion (A): Price reduction normally leads to an increase in the demand for a commodity.
Reason (R): Price reduction leads to the entry of new buyers of the commodity in the market.

A. (A) is correct but (R) is not correct

B. (A) is not correct but (R) is correct

C. Both (A) and (R) are correct and offers a full explanation of (A)

D. Both (A) and (R) are correct but (R) does not offer a full explanation of (A)

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87.
Which of the following is not known as the 'law of equi-marginal utility'?

A. Law of substitution

B. Gossen's first law

C. Gossen's second law

D. Law of indifference

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88.
If ∆I = Rs. 100 and marginal production cost Rs. 9 then National income will increase

A. Rs. 9000

B. Rs. 900

C. Rs. 100

D. Rs. 1000

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89.
When there is a very small change in the price of a commodity and there is a great change in the demand, when the demand for such will be

A. Completely inelastic

B. Perfectly elastic

C. Elastic

D. Highly elastic

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90.
The method of finding NNP is-

A. NNP = GNP - Depreciation

B. NNP = GNP + Depreciation

C. NNP = GNP + Direct Tax

D. NNP = GNP + Indirect Tax

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Economics MCQ Questions and Solutions with Explanations | Commerce

81. Presented the idea of imperfect competition

Answer & Solution

82. Assume that a PPC for wheat and rice is drawn so that it is a straight line. This means that

Answer & Solution

83. The first clear and satisfactory explanation of rent was given by

Answer & Solution

84. The magnitude of the slope of an indifference curve is the

Answer & Solution

85. At present the base year for measuring national income at constant prices is

Answer & Solution

86. For the following statement of Assertion (A) and Reasoning (R) select the correct answer: Assertion (A): Price reduction normally leads to an increase in the demand for a commodity. Reason (R): Price reduction leads to the entry of new buyers of the commodity in the market.

Answer & Solution

87. Which of the following is not known as the 'law of equi-marginal utility'?

Answer & Solution

88. If ∆I = Rs. 100 and marginal production cost Rs. 9 then National income will increase

Answer & Solution

89. When there is a very small change in the price of a commodity and there is a great change in the demand, when the demand for such will be

Answer & Solution

90. The method of finding NNP is-

Answer & Solution

Read More Section(Economics)

81.
Presented the idea of imperfect competition

82.
Assume that a PPC for wheat and rice is drawn so that it is a straight line. This means that

83.
The first clear and satisfactory explanation of rent was given by

84.
The magnitude of the slope of an indifference curve is the

85.
At present the base year for measuring national income at constant prices is

86.
For the following statement of Assertion (A) and Reasoning (R) select the correct answer:
Assertion (A): Price reduction normally leads to an increase in the demand for a commodity.
Reason (R): Price reduction leads to the entry of new buyers of the commodity in the market.

87.
Which of the following is not known as the 'law of equi-marginal utility'?

88.
If ∆I = Rs. 100 and marginal production cost Rs. 9 then National income will increase

89.
When there is a very small change in the price of a commodity and there is a great change in the demand, when the demand for such will be

90.
The method of finding NNP is-