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

11.
If the MRS_xy (Marginal Substitution Rate) for consumer A is greater than that of MRS_xy (Marginal Substitution Rate) of B, then profit for consumer A will be assuming that

A. More quantity of commodity Y than exchange X with consumer B

B. Consumer B to exchange XY for X for more than X

C. Exchanging X or Y

D. Nothing can be said without additional information

Answer & Solution Discuss in Board Save for Later

12.
Purchasing Power Parity theory was propounded by Gustav Cassele in year . . . . . . . .

A. 1922

B. 1923

C. 1921

D. 1924

Answer & Solution Discuss in Board Save for Later

13.
When both the demand and the supply curves slope downwards and the demand curve is steeper than the supply curve, the equilibrium is

A. stable in both Marshallian and Walrasian sense

B. unstable in both Marshallian and Walrasian sense

C. stable in the Marshallian sense but unstable in the Walrasian sense

D. unstable in the Marshallian sense but stable in the Walrasian sense

Answer & Solution Discuss in Board Save for Later

14.
In the long-run, the market price of a commodity is equal to its minimum average cost of production, if there is

A. perfect competition

B. monopoly

C. oliogopoly

D. monopolistic competition

Answer & Solution Discuss in Board Save for Later

15.
Economics is derived from the Greek word 'oikonomikus' which means

A. Business Management

B. Economics

C. House Management

D. Wealth Management

Answer & Solution Discuss in Board Save for Later

16.
A production function expressed as Q = A [αK^-β + (1 - α)L^-β]-^1/β
Or
Q = A [αL^-β + (1 - α)K^-β]-^1/β
When A > 0, 0 < α < 1 and β > -1
Where L = labour, K = Capital and A, α and β are three parameters is called

A. Constant elasticity substitution function

B. Variable elasticity substitution function

C. Leontief-type function

D. Cobb - Douglas function

Answer & Solution Discuss in Board Save for Later

17.
According to the modern ideology, the law of diminishing return applies to

A. Agricultural sector

B. Industrial sector

C. In service

D. In all areas of production

Answer & Solution Discuss in Board Save for Later

18.
Which one of the following is not the basic property of indifference curves?

A. Negative slope

B. Indifference curves of two imperfect substitutes are concave to the point of origin

C. The indifference curves do not intersect nor are they tangent to one another

D. Upper indifference curves indicate a higher level of satisfaction

Answer & Solution Discuss in Board Save for Later

19.
A monopoly is a market structure, in which

A. a single firm exercises its power over smaller firms

B. a single firm produces a product with a wide variety of very close substitutes

C. each firm is run by a small proprietor

D. there is only one firm producing a product, which has no close substitutes

Answer & Solution Discuss in Board Save for Later

20.
The area which lies under the demand curve for a given good measures

A. marginal utility

B. marginal cost

C. marginal profit

D. total utility

Answer & Solution Discuss in Board Save for Later

1 2 3 4 5 6 7 8 9 10

Economics MCQ Questions and Solutions with Explanations | Commerce

11. If the MRSxy (Marginal Substitution Rate) for consumer A is greater than that of MRSxy (Marginal Substitution Rate) of B, then profit for consumer A will be assuming that

Answer & Solution

12. Purchasing Power Parity theory was propounded by Gustav Cassele in year . . . . . . . .

Answer & Solution

13. When both the demand and the supply curves slope downwards and the demand curve is steeper than the supply curve, the equilibrium is

Answer & Solution

14. In the long-run, the market price of a commodity is equal to its minimum average cost of production, if there is

Answer & Solution

15. Economics is derived from the Greek word 'oikonomikus' which means

Answer & Solution

16. A production function expressed as Q = A [αK-β + (1 - α)L-β]-1/β Or Q = A [αL-β + (1 - α)K-β]-1/β When A > 0, 0 < α < 1 and β > -1 Where L = labour, K = Capital and A, α and β are three parameters is called

Answer & Solution

17. According to the modern ideology, the law of diminishing return applies to

Answer & Solution

18. Which one of the following is not the basic property of indifference curves?

Answer & Solution

19. A monopoly is a market structure, in which

Answer & Solution

20. The area which lies under the demand curve for a given good measures

Answer & Solution

Read More Section(Economics)

11.
If the MRS_xy (Marginal Substitution Rate) for consumer A is greater than that of MRS_xy (Marginal Substitution Rate) of B, then profit for consumer A will be assuming that

12.
Purchasing Power Parity theory was propounded by Gustav Cassele in year . . . . . . . .

13.
When both the demand and the supply curves slope downwards and the demand curve is steeper than the supply curve, the equilibrium is

14.
In the long-run, the market price of a commodity is equal to its minimum average cost of production, if there is

15.
Economics is derived from the Greek word 'oikonomikus' which means

16.
A production function expressed as Q = A [αK^-β + (1 - α)L^-β]-^1/β
Or
Q = A [αL^-β + (1 - α)K^-β]-^1/β
When A > 0, 0 < α < 1 and β > -1
Where L = labour, K = Capital and A, α and β are three parameters is called

17.
According to the modern ideology, the law of diminishing return applies to

18.
Which one of the following is not the basic property of indifference curves?

19.
A monopoly is a market structure, in which

20.
The area which lies under the demand curve for a given good measures