Basics of Economics MCQ Question with Answer

Basics of Economics MCQ with detailed explanation for interview, entrance and competitive exams. Explanation are given for understanding.

Question No : 50
Marginal utility is only meant for:

Half utility

Full utility

Additional utility

Multiplied utility

Question No : 51
The basic and essential economic problems in a community are related to choice and:

Freedom

Scarcity

Social class

Politics

Question No : 52
Price discrimination is undertaken with the aim of:

Increasing sales and maximizing profits

Reducing sales and raising prices

Minimizing cost and maximizing revenue

Serving the markets without earning profits

Question No : 53
A demand curve which is horizontal and parallel to x-axis represents:

Infinitely elastic demand

Infinitely inelastic demand

Relatively elastic demand

Relatively inelastic demand

Question No : 54
Airlines that try to lower fares in order to increase revenues believe that demand for airline services is:

Price elastic

Price inelastic

Income elastic

Income inelastic

Question No : 55
With the expansion of output, the short run average cost curve, beyond a point, starts rising because:

Average fixed cost increases sharply

More production yields lower per unit price

The law of variable proportions applies to short run production

Sales expenses become much larger

Question No : 56
Which is the correct statement?

The U shape of long-run cost curve is less pronounced than the short-run cost curves

The U shape of the short-run cost curves is less pronounced than the long-run cost curves

The U shape of the long-run cost curve is more pronounced than the short-run cost curves

The long-run cost curves are never U shaped