Are you students of nmims distance learning program and your exam subject is business economics? If yes! Must prepare mcq of business economics set 1 from these all set, so you can get best marks in your exam. Also try economics mcq quiz and assess your knowledge.
NMIMS MCQ Economics Set 1
Q1. Which one of the following does not fall under the scope of economics
a. Public Finance
c. Health
b. Welfare
d. Poverty
Answer
d. Poverty
Q2. Economics is considered as social science defines the relationship between cause and effect.
a. True
b. False
Answer
b. False
Q3. —– is a process of identifying potential consumers, the amount of goods they want to purchase, and the price they are willing to pay for it
a. Demand Analysis
b. Ratio
c. Forecasting
d. None of these
Answer
a. Demand Analysis
Q4. By studying various economic variables, such as cost production and business capital, organisations can predict the future.
a. True
b. False
Answer
a. True
Q5. Both microeconomics and macroeconomics fall under the scope of economics.
a. True
b. False
Answer
a. True
Q6. Which one of the following shows the importance of microeconomics?
a. It enables nations to formulate various economic policies.
b. It helps in understanding the mechanism of individual markets.
c. It helps economists in finding solutions to economic problems by providing various economic theories.
d. It helps in bringing stability in prices by supporting detailed analysis of fluctuations in business activities.
Answer
b. It helps in understanding the mechanism of individual markets.
Q7. Name the law that states supply diminishes when there is fall in prices and increases with the rise in prices while other factors are unchanged.
a. Demand and supply
b. Law of Supply
c. Forecasting
d. Demand
Answer
b. Law of Supply
Q8. According to Clark, which one of the following is a dynamic factor?
a. Production techniques
b. Population size and its composition
c. Working of business firms
d. Growth in the capital quantity
Answer
d. Growth in the capital quantity
Q9. In economics, —– helps in these models help managers in identifying and eliminating hindrance in effective decision making.
a. Analytical models
b. Descriptive models
c. ABC model
d. None of these
Answer
A. Analytical models
Q10. —– is the process of identifying how successfully an organisation is performing with respect to social, economic and environmental objectives
a. Auditing
b. Social Accounting
c. Verifying
d. Economic Analysis
Answer
b. Social Accounting
Q11. GDP + Net factor from abroad = —–
a. GDP
b. GNP
c. NPA
d. None of these
Answer
b. GNP
Q12. Arrange the phases of business cycles.
1. Peak
2. Trough
3. Expansion
4. Contraction
a. 1, 2, 3, 4
b. 4, 3, 2, 1
c. 3, 1, 4, 2
d. 2, 3, 1, 4
Answer
c. 3, 1, 4, 2
Q13. Which nature of business cycle states that any change in an organisation affects all other organisations too in the industry?
a. Economic nature
b. Accounting nature
c. General nature
d. None of these
Answer
c. General nature
Q14. If the rise in prices exceeds the rise in output, the situation is called —–
a. Good situation
b. Inflationary situation
c. Bad situation
d. None of these
Answer
b. Inflationary situation
Q15. A statement referring to demand for a commodity or service must include the following three key factors, which are:
a. —————–
b. —————–
c. —————–
a) a. The quantity to be purchased, b. The price at which the commodity is to be purchased, c. The time period when the commodity is purchased
b) a. quality, b. location, c. team members
c) a. man power, b. location, c. team members
d) None of these
Answer
a) a. The quantity to be purchased, b. The price at which the commodity is to be purchased, c. The time period when the commodity is purchased
Q16. —– is a demand for different quantities of a commodity or service that consumers intend to purchase at different levels of income assuming other factors remain the same.
a. Cost analysis
b. Price demand
c. Markeitng demand
d. None of these
Answer
b. Price demand
Q17. Which of the following is the demand for commodities or services meant for final consumption?
a. Income demand
b. Derived demand
c. Direct demand
d. Composite demand
Answer
c. Direct demand
Q18. Match the following:
1. Price demand a. DA = f (PA)
2. Composite demand b. Multiple uses
3. Joint demand c. DA = f (PB)
4. Cross demand d. Commodities demanded together
a. 1(a), 2(b), 3(d), 4(c)
b. 1(b), 2(a), 3(d), 4(c)
c. 1(c), 2(b), 3(a), 4(d)
d. 1(c), 2(d), 3(b), 4(a)
Answer
a. 1(a), 2(b), 3(d), 4(c)
Q19. The price of a commodity or service is generally directly proportional to the quantity demanded while other factors are constant.
a. True
b. False
Answer
b. False
Q20. Which of the following determinants result in a fall in the demand of a commodity?
a. Increase in income
b. Fall in the price of substitute goods
c. Favourable credit policy
d. Increase in population size
Answer
b. Fall in the price of substitute goods
Q21. The demand for inexpensive goods rises with an increase in consumers’ income until a certain level after that it becomes constant.
a. True
b. False
Answer
a. True
Q22. A higher demand for burqas in the gulf nations is an outcome of which of these factors?
a. Climatic factors
b. Taste and preferences
c. Income distribution
d. Size and composition of population
Answer
b. Taste and preferences
Q23. —– represents a functional relationship between the price and quantity demanded of a commodity or service.
a. microeconomics
b. Law of demand
c. demand supply
d. None of these
Answer
b. Law of demand
Q24. The formula to calculate linear demand equation is —–
a. Dx = a + bPx
b. Dx = a – bPx
c. DX = x+y+z
d. None of these
Answer
b. Dx = a – bPx
Q25. A Veblen good is a commodity that is unexpectedly consumed more as its price increases.
a. True
b. False
Answer
b. False
Q26. Which of these factors explains an increase in the real income of a consumer due to a fall in the price of a commodity?
a. Substitution effect
b. Income effect
c. Situations of crisis
d. Law of diminishing marginal utilit
Answer
b. Income effect
Q27. Change in the quantity demanded can be measured by the movement along the demand curve, while change in demand is measured by shifts in demand curve.
a. True
b. False
Answer
a. True
Q28. —– is an increase in the demand of a commodity due to decrease in its prices, while other factors are constant
a. Extension or expansion
b. Extension only
c. Expansion only
d. None of these
Answer
a. Extension or expansion
Q29. —– can be defined as the willingness of a seller to sell the specified quantity of a product within a particular price and time period.
a. Factors of production
b. Supply
c. Supply curve
d. None of these
Answer
b. Supply
Q30. The price at which quantities are supplied remains the same at all locations.
a. True
b. False
Answer
b. False
Q31. Which of the following is a type of supply?
a. Group Supply
b. Economic Supply
c. Market Supply
d. Domestic Supply
Answer
c Market Supply
Q32. Cost of production and supply are directly proportional to each other.
a. True
b. False
Answer
b. False
Q33. Raw materials, machines and labour are all —–
a. Supply curve
b. Equilibrium
c. Factors of production
d. None of these
Answer
c. Factors of production
Q34. —– represents the quantities of a product supplied by an individual firm or supplier at different prices during a specific period of time, assuming other factors remain unchanged.
a. Supply curve
b. Individual supply schedule
c. Market supply schedule
d. Economic supply schedule
Answer
b. Individual supply schedule
Q35. The graphical representation of supply schedule is called —–
a. Supply curve
b. Equilibrium
c. Increase
d. None of these
Answer
a. Supply curve
Q36. Which of the following is not an assumption of supply?
a. The time period under consideration is short
b. The technology used keeps changing
c. The producer is rational
d. Natural factors remain stable
Answer
b. The technology used keeps changing
Q37. Which of the following change occurs when smaller quantities of goods are supplied even at reduced prices?
a. Increase in supply
b. Contraction of supply
c. Expansion of supply
d. Decrease in demand
Answer
b. Contraction of supply
Q38. Change in quantity supplied can be measured by the movement along the supply curve.
a. True
b. False
Answer
a. True
Q39. —– is a stage where the balance between two opposite functions, demand and supply, is achieved.
a. Increase
b. Consumer demand analysis
c. Equilibrium
d. None of these
Answer
c. Equilibrium
Q40. A shift in supply or demand curve also shifts the equilibrium point.
a. True
b. False
Answer
a. True
Also study other’s eco MCQ
- Business economics nmims mcq set 1
- Business economics nmims mcq set 2
- Business economics nmims mcq set 3
- Business economics nmims mcq set 4
- Business economics nmims mcq set 5
- Business economics nmims mcq set 6
- Business economics nmims mcq set 7
