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.
Which one of the following statement is false?

A. Normally, a price demand curve slopes downward from left to right

B. Economies of scale and economies of scope are the same

C. For optimisation, equality between marginal cost and marginal revenue is a necessary condition but it is not a sufficient one

D. Law of variable proportions denotes input-output relationship during short run

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52.
Which of the following statement is incorrect?

A. If demand increases and supply decreases, equilibrium price will rise

B. If supply increases and demand decreases, equilibrium price will fall

C. If demand decreases and supply increases, equilibrium price will rise

D. If supply declines and demand remains constant, equilibrium price will rise

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53.
"Economics is the science that studies money" it has been defined as

A. A. C. Pigou

B. Marshall

C. J. B. Says

D. Robbins

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54.
The reason the marginal cost curve eventually increases as output increases for the typical firm is because of

A. Diseconomies of scale

B. Minimum efficient scale

C. The law of diminishing returns

D. Normal profit exceeds economic profit

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55.
The additivity of utility in the Marshallian analysis is based on the assumptions of

A. rationality and diminishing marginal utility

B. cardinality and independence of utility

C. constancy of marginal utility of money and divisibility

D. consistency and transitivity

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56.
According to the market law of Say's

A. Supply is not equal to demand

B. Supply creates its own demand

C. Demand creates its own supply

D. Supply is more than demand

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57.
Consider the following statements.
1. TR starts declining when MR is negative.
2. MR can be zero or even negative.
3. TR stops increasing when MR = 0.
Which of the statement(s) given above is/are correct?

A. Both 1 and 3

B. Both 1 and 2

C. Only 1

D. None of the above

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58.
With reference to the theories of population, which of the following statement is/are correct?
1. Malthusian theory of population applies only to over populated countries.
2. Optimum theory of population applies to all countries.
Select the correct answer

A. Only 1

B. Only 2

C. Both 1 and 2

D. Neither 1 nor 2

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59.
A firm may be considered to be of optimum size when

A. its TC and TR curve coincide

B. AC is at its minimum

C. AC = TFC

D. it is faced with a horizontal demand curve

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60.
A profit maximising firm in perfect competition produces where

A. total revenue is maximised

B. marginal revenue equals zero

C. marginal revenue equals marginal cost

D. marginal revenue equals average cost

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Economics MCQ Questions and Solutions with Explanations | Commerce

51. Which one of the following statement is false?

Answer & Solution

52. Which of the following statement is incorrect?

Answer & Solution

53. "Economics is the science that studies money" it has been defined as

Answer & Solution

54. The reason the marginal cost curve eventually increases as output increases for the typical firm is because of

Answer & Solution

55. The additivity of utility in the Marshallian analysis is based on the assumptions of

Answer & Solution

56. According to the market law of Say's

Answer & Solution

57. Consider the following statements. 1. TR starts declining when MR is negative. 2. MR can be zero or even negative. 3. TR stops increasing when MR = 0. Which of the statement(s) given above is/are correct?

Answer & Solution

58. With reference to the theories of population, which of the following statement is/are correct? 1. Malthusian theory of population applies only to over populated countries. 2. Optimum theory of population applies to all countries. Select the correct answer

Answer & Solution

59. A firm may be considered to be of optimum size when

Answer & Solution

60. A profit maximising firm in perfect competition produces where

Answer & Solution

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51.
Which one of the following statement is false?

52.
Which of the following statement is incorrect?

53.
"Economics is the science that studies money" it has been defined as

54.
The reason the marginal cost curve eventually increases as output increases for the typical firm is because of

55.
The additivity of utility in the Marshallian analysis is based on the assumptions of

56.
According to the market law of Say's

57.
Consider the following statements.
1. TR starts declining when MR is negative.
2. MR can be zero or even negative.
3. TR stops increasing when MR = 0.
Which of the statement(s) given above is/are correct?

58.
With reference to the theories of population, which of the following statement is/are correct?
1. Malthusian theory of population applies only to over populated countries.
2. Optimum theory of population applies to all countries.
Select the correct answer

59.
A firm may be considered to be of optimum size when

60.
A profit maximising firm in perfect competition produces where