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

31.
Extension and contraction of demand are result of

A. change in consumer's income

B. change in consumer's tastes

C. change in price

D. none of these

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32.
The law of variable proportion is valid when

A. Only one input is fixed and all other inputs are kept variable

B. All the factors are kept constant

C. All the inputs vary in the same proportion

D. None of the above

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33.
The finance commission is organized every

A. Three years

B. Six years

C. Four years

D. Five years

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34.
Barriers to entry are highest, in which two types of markets?

A. Differentiated competition and oligopoly

B. Perfect competition and differentiated competition

C. Monopoly and differentiated competition

D. Oligopoly and monopoly

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35.
Consider the following statements.
1. MP is also called MPP.
2. Physical product refers to production as measured in terms of physical units of the commodity.
3. TP increases even when MP is decreasing.
Which of the statement(s) given above is/are correct?

A. Only 1

B. Both 2 and 3

C. Both 1 and 2

D. All of the above

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36.
Marginal revenue is equal to the price for which one of the following types of market structure?

A. Monopoly

B. Perfect competition

C. Monopolistic competition

D. Oligopoly

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37.
Which of the following statements summarizes Robbins definition?

A. "Economics is the subject concerned with the discovery of the nature and causes of the wealth of nations"

B. "Economics is the study of the ordinary business of human life"

C. "Economics is the science of finite"

D. "Economics is the study of the allocation of scarce resources and the determination of employment, income and economy development"

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38.
What is the elasticity of demand for luxury items like high-class furniture?

A. Unit Elastic

B. Highly-Elastic

C. Fairly Elastic

D. Zero Elastic

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39.
We may define economics as a study of the problems arising from

A. the distribution of very scarce goods

B. production, distribution and exchange

C. production and pricing of durable commodities

D. exchange of services for money

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40.
Assertion (A): Long run equilibrium of the industry in a perfectly competitive market occurs at the point where price equals minimum long run average cost.
Reason (R): In this position of zero economic profit, there is no tendency on the part of any existing firm to stage an exit, and no potential entrant wants to enter the industry.

A. Both A and R are individually true and R is the correct explanation of A

B. Both A and R are individually true, but R is not the correct explanation of A

C. A is true, but R is false

D. A is false, but R is true

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Economics MCQ Questions and Solutions with Explanations | Commerce

31. Extension and contraction of demand are result of

Answer & Solution

32. The law of variable proportion is valid when

Answer & Solution

33. The finance commission is organized every

Answer & Solution

34. Barriers to entry are highest, in which two types of markets?

Answer & Solution

35. Consider the following statements. 1. MP is also called MPP. 2. Physical product refers to production as measured in terms of physical units of the commodity. 3. TP increases even when MP is decreasing. Which of the statement(s) given above is/are correct?

Answer & Solution

36. Marginal revenue is equal to the price for which one of the following types of market structure?

Answer & Solution

37. Which of the following statements summarizes Robbins definition?

Answer & Solution

38. What is the elasticity of demand for luxury items like high-class furniture?

Answer & Solution

39. We may define economics as a study of the problems arising from

Answer & Solution

Answer & Solution

Read More Section(Economics)

31.
Extension and contraction of demand are result of

32.
The law of variable proportion is valid when

33.
The finance commission is organized every

34.
Barriers to entry are highest, in which two types of markets?

35.
Consider the following statements.
1. MP is also called MPP.
2. Physical product refers to production as measured in terms of physical units of the commodity.
3. TP increases even when MP is decreasing.
Which of the statement(s) given above is/are correct?

36.
Marginal revenue is equal to the price for which one of the following types of market structure?

37.
Which of the following statements summarizes Robbins definition?

38.
What is the elasticity of demand for luxury items like high-class furniture?

39.
We may define economics as a study of the problems arising from