Economics MCQ Questions and Solutions with Explanations | Commerce

A. Cost and Profit

B. Input and Output

C. Profit and Loss

D. Price and Demand

A. a downward sloping demand curve

B. a vertical demand curve

C. a rectangular hyperbola demand curve

D. a horizontal demand curve

A. falling parts of each

B. different points

C. rising parts of each

D. their minimum level

A. Increase output, which will increase the firm's positive economic profit

B. Increase output, which will reduce the firm's economic losses

C. Shut down, which will reduce the firm's economic losses

D. Decrease output, which will increase the firm's positive economic profit

A. Marginal revenue

B. Marginal cost

C. Average fixed rate

D. Average variable cost

A. Money is an asset, which provides cash to its owner

B. Money is an asset, which is used in exchange for goods and services

C. The United States money supply is largely composed of accumulating or borrowed money

D. The commodity is backbone of the United States money supply

A. It is difficult to define a monopolistically competitive market and to determine the firms and products that comprise it

B. When product differentiation is slight, each firm's demand curve is nearly horizontal so the perfectly competitive solution provides an adequate approximation to the monopolistically competitive solution

C. When there are strong brand preferences and few producers of many differentiated products, or when there are many producers but only a few compete as rivals for any given consumer, the oligopoly solution then provides an adequate approximation to the monopolistically competitive solution

D. All of the above

A. slopes downward from left to right

B. slopes upward from left to right

C. slopes upward from right to left

D. parallel to horizontal axis

A. Both (A) and (R) are true

B. Both (A) and (R) are false

C. (A) is false, but (R) is true

D. (A) is true, but (R) is not a correct explanation of (A)

A. In case of inferior goods, the income effect is negative, although the substitution effect is positive

B. In inferior goods, the income and substitution effect is positive

C. In inferior goods, the income and substitution effect are negative

D. In case of inferior goods, the income effect is positive, although the substitution effect is negative