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

71.
In perfect competition, when a firm is in short periods, for equilibrium, the following condition does apply
1. Marginal cost must equal marginal revenue.
2. Average cost must equal average revenue.
3. Marginal revenue must equal average revenue.
4. Marginal cost must equal average cost.

A. 1, 2 and 3

B. 1 and 3

C. 2, 3 and 4

D. Only 3

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72.
MRTP ACT came into force on:

A. 5^th September, 1966

B. 3^rd April, 1964

C. 1^st June, 1970

D. 10^th June, 1982

E. 25^th December, 1988

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73.
Which one of these is an exception to the law of demand?

A. Demonstration effect goods

B. Giffen goods

C. Future scarcity of goods

D. All of the above

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74.
The production possibility curve is based on

A. Contract curve in the Marshall Edgeworth input box

B. Contract curve in the Marshall Edgeworth output box

C. Social Welfare Function

D. Price-Ratio Line

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75.
The statement that "economics is positive and not normative" means

A. that economics can be used to prove that capitalism is better than socialism

B. that economics tells us what kind of economic behaviour or policy is wholesome and what evil

C. that economics tells policy makers which alternative to choose from among several efficient ones

D. that economics can only indicate consequences of policies, choices, or conditions

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76.
When supply of money declines, then price of goods:

A. increases

B. decreases

C. remains constant

D. None of the above

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77.
As a consumer increases his consumption of a commodity, the total utility he derives from its consumption increases but at a diminishing rate. This is

A. a statement of fact

B. an economic law

C. a hypothesis

D. None of these

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78.
The 'law of diminishing returns' can apply to a business only when:

A. All factors of production can be varied

B. At least one factor of production is fixed

C. All factors of production are fixed

D. Capital used in production is fixed

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79.
Cardinal utility analysis of consumer's behaviour is based on which combination of the following assumptions:
I. Utility is measurable is terms of cardinal numbers
II. Constancy of the marginal utility of money
III. Utilities of different goods are interdependent
IV. Gossen's first law of consumption
Choose the correct answer

A. Only I and II

B. Only I, II and IV

C. Only II, III and IV

D. Only III and IV

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80.
Price discrimination is profitable and possible if the two markets have

A. Equal elasticity of demand

B. Different elasticity of demand

C. Inelastic demand

D. Highly elastic demand

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Economics MCQ Questions and Solutions with Explanations | Commerce

71. In perfect competition, when a firm is in short periods, for equilibrium, the following condition does apply 1. Marginal cost must equal marginal revenue. 2. Average cost must equal average revenue. 3. Marginal revenue must equal average revenue. 4. Marginal cost must equal average cost.

Answer & Solution

72. MRTP ACT came into force on:

Answer & Solution

73. Which one of these is an exception to the law of demand?

Answer & Solution

74. The production possibility curve is based on

Answer & Solution

75. The statement that "economics is positive and not normative" means

Answer & Solution

76. When supply of money declines, then price of goods:

Answer & Solution

77. As a consumer increases his consumption of a commodity, the total utility he derives from its consumption increases but at a diminishing rate. This is

Answer & Solution

78. The 'law of diminishing returns' can apply to a business only when:

Answer & Solution

Answer & Solution

80. Price discrimination is profitable and possible if the two markets have

Answer & Solution

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71.
In perfect competition, when a firm is in short periods, for equilibrium, the following condition does apply
1. Marginal cost must equal marginal revenue.
2. Average cost must equal average revenue.
3. Marginal revenue must equal average revenue.
4. Marginal cost must equal average cost.

72.
MRTP ACT came into force on:

73.
Which one of these is an exception to the law of demand?

74.
The production possibility curve is based on

75.
The statement that "economics is positive and not normative" means

76.
When supply of money declines, then price of goods:

77.
As a consumer increases his consumption of a commodity, the total utility he derives from its consumption increases but at a diminishing rate. This is

78.
The 'law of diminishing returns' can apply to a business only when:

80.
Price discrimination is profitable and possible if the two markets have