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

51.
A consumer consuming two goods will be in equilibrium, when the marginal utilities from both goods are

A. maximum possible positive

B. minimum possible positive

C. equal

D. zero

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52.
A demand curve regressive at the lower end depicts the case of

A. A normal good

B. A good commonly demanded

C. An inferior good

D. A good demanded urgently

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53.
If the short-run average variable costs of production for a firm are rising, then it indicates that

A. The average total costs are at a maximum

B. The average fixed costs are constant

C. The marginal costs are above average variable costs

D. The average variable costs are below average fixed costs

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54.
If an imperfectly competitive firm is producing a level of output where marginal cost is equal to marginal revenue, marginal revenue is below average variable cost, and the price is equal to the average total cost, then the firm is

A. In long-run equilibrium

B. In short-run equilibrium

C. Minimizing short-run average total cost

D. Breaking even

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55.
Which of the following commodities has the lowest elasticity of demand?

A. Milk

B. Black pepper

C. Eggs

D. Car

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56.
Assertion (A): Want - the satisfying power of commodity is called its utility.
Reason (R): Utility may not have the characteristic of morality codes.

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

B. (A) is true but (R) is false

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

D. (R) is true but (A) is false

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57.
Shifts in demand curve as shown in the figure below represents

A. extension of demand

B. increment of demand

C. increase of demand

D. expansion of demand

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58.
The total area under the demand curve of a good, measures

A. marginal utility

B. total utility

C. consumer's surplus

D. producer's surplus

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59.
Normally when price per unit of a good falls, its

A. quantity demanded increases

B. quantity demanded decreases

C. quantity demanded remains constant

D. none of these happens

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60.
If the market demand curve for a commodity has a negative slope, then the market structure must be

A. Perfect competition

B. Monopoly

C. Imperfect competition

D. The market structure cannot be determined from the given information

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Economics MCQ Questions and Solutions with Explanations | Commerce

51. A consumer consuming two goods will be in equilibrium, when the marginal utilities from both goods are

Answer & Solution

52. A demand curve regressive at the lower end depicts the case of

Answer & Solution

53. If the short-run average variable costs of production for a firm are rising, then it indicates that

Answer & Solution

54. If an imperfectly competitive firm is producing a level of output where marginal cost is equal to marginal revenue, marginal revenue is below average variable cost, and the price is equal to the average total cost, then the firm is

Answer & Solution

55. Which of the following commodities has the lowest elasticity of demand?

Answer & Solution

56. Assertion (A): Want - the satisfying power of commodity is called its utility. Reason (R): Utility may not have the characteristic of morality codes.

Answer & Solution

57. Shifts in demand curve as shown in the figure below represents

Answer & Solution

58. The total area under the demand curve of a good, measures

Answer & Solution

59. Normally when price per unit of a good falls, its

Answer & Solution

60. If the market demand curve for a commodity has a negative slope, then the market structure must be

Answer & Solution

Read More Section(Economics)

51.
A consumer consuming two goods will be in equilibrium, when the marginal utilities from both goods are

52.
A demand curve regressive at the lower end depicts the case of

53.
If the short-run average variable costs of production for a firm are rising, then it indicates that

54.
If an imperfectly competitive firm is producing a level of output where marginal cost is equal to marginal revenue, marginal revenue is below average variable cost, and the price is equal to the average total cost, then the firm is

55.
Which of the following commodities has the lowest elasticity of demand?

56.
Assertion (A): Want - the satisfying power of commodity is called its utility.
Reason (R): Utility may not have the characteristic of morality codes.

57.
Shifts in demand curve as shown in the figure below represents

58.
The total area under the demand curve of a good, measures

59.
Normally when price per unit of a good falls, its

60.
If the market demand curve for a commodity has a negative slope, then the market structure must be