Are you students of nmims distance learning program and your exam subject is business economics? If yes! Must prepare mcq of business economics set 2 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 2
Q1. When the demand curve shifts, an increase in quantity leads to an —–in the equilibrium price
a. Consumer demand analysis
b. Increase
c. a. Decisiveness, b. Transitivity, c. Non-satiation
d. None of these
Answer
b. Increase
Q2. If the shift in supply curve is greater than the demand curve, equilibrium price falls and output rises.
a. True
b. False
Answer
a. True
Q3. —– is a process of assessing consumer behaviour based on the satisfaction of wants and needs generated by a consumer from the consumption of various goods.
a. Forecasting
b. Calculation
c. Consumer demand analysis
d. None of these
Answer
c. Consumer demand analysis
Q4. The study and analysis of consumer behaviour is based on three main assumptions, which are:
a. —–
b. —–
c. —–
a. a. Control, b. Production, c. Manucturer
b. a. Distributor, b. Marketing, c. Sales
c. a. Decisiveness, b. Transitivity, c. Non-satiation
d. None of these
Answer
c. a. Decisiveness, b. Transitivity, c. Non-satiation
Q5. The concept of utility may be looked upon from two perspectives, which are:
a. —–
b. —–
a. a. Consumer perspective, b. Product perspective
b. a. Sales, b. Growth
c. a. Growth, b. Services
d. None of these
Answer
a. a. Consumer perspective, b. Product perspective
Q6. How would you measure the utility U of a consumer who consumes quantity m1 of a commodity M, quantity n1 of a commodity N, and quantity r1 of a commodity R?
a. L = m1+m3
b. Both of above
c. U = f (m1, n1, r1)
d. None of these
Answer
c. U = f (m1, n1, r1)
Q7. Total utility is defined as the utility derived from the marginal or additional unit of a commodity consumed by an individual.
a. True
b. False
Answer
b. False
Q8. Provide the formula for measuring marginal utility.
a. Mu = a+b+c
b. MUΔ = (Δ TUΔ)/ (Δ QΔ) or MU of nth unit = TUn – TUn
c. MUΔ = (Δ + Α)
d. None of these
Answer
b. MUΔ = (Δ TUΔ)/ (Δ QΔ) or MU of nth unit = TUn – TUn
Q9. —– states that as the quantity consumed of a commodity continue to increase, the utility obtained from each successive unit goes on diminishing, assuming that the consumption of all other commodities remains the same.
a. Util
b. Marginal rate of substitution (MRS)
c. Law of diminishing marginal utility
d. None of these
Answer
c. Law of diminishing marginal utility
Q10. Match the following:
1. Rationality a. Other factors remain unchanged
2. Measurement of utility b. Use of quantifiable standards
3. Homogeneity of c. Successive units are identical commodity
4. Ceteris paribus d. Consumer tries to maximise utility
a. 1 (c), 2(b), 3(d), 4(a)
b. 1 (a), 2(d), 3(c), 4(b)
c. 1 (d), 2(b), 3(c), 4(a)
Answer
c. 1 (d), 2(b), 3(c), 4(a)
Q11. Which of these economists brought about significant refinement in the cardinal utility theory?
a. Alfred Marshall
b. William Stanley Jevons
c. Karl Menger
Answer
a. Alfred Marshall
Q12. The unit for measuring utility is referred to as —–
a. Util
b. Marginal rate of substitution (MRS)
c. Both of above
d. None of these
Answer
a. Util
Q13. According to the cardinal utility approach, a consumer reaches equilibrium when the last unit of his/her money spent on each unit of the commodity yields the same utility.
a. True
b. False
Answer
a. True
Q14. According to the ordinal theory, utility can be measured quantitatively.
a. True
b. False
Answer
b. False
Q15. According to the ordinal utility approach, the —– goes on decreasing when a consumer continues to substitute one commodity for another.
a. ABS
b. CRM
c. Marginal rate of substitution (MRS)
d. None of these
Answer
c. Marginal rate of substitution (MRS)
Q16. The indifference curve is concave to the origin.
a. True
b. False
Answer
b. False
Q17. —– for two substitute goods may be defined as the quantity of one commodity required to replace the other such that the utility derived from either combinations remains the same.
a. Budget line
b. Marginal rate of substitution (MRS)
c. Revealed Preference theory
d. None of these
Answer
b. Marginal rate of substitution (MRS)
Q18. —– represents various combinations of two commodities, which can be purchased by a consumer at the given income level and market price.
a. Revealed Preference theory
b. Extra Line
c. Budget line
d. None of these
Answer
c. Budget line
Q19. A change in the consumer’s income or the prices of commodities does not affect the budget line.
a. True
b. False
Answer
b. False
Q20. A consumer reaches a state of equilibrium when he/she attains maximum total utility at the given income level and market price of commodities.
a. True
b. False
Answer
a. True
Q21. Which of the following explains the situation where a consumer would tend to purchase more units of commodity X and fewer units of commodity Y?
a. Price effect on consumer’s equilibrium
b. Substitution effect on consumer’s equilibrium
c. Income effect on consumer’s equilibrium
Answer
b. Substitution effect on consumer’s equilibrium
Q22. —– theory states that consumers’ preferences can be revealed by the purchases they make under different income and price circumstances.
a. Revealed Preference theory
b. NPA
c. Price elasticity of demand
d. None of these
Answer
a. Revealed Preference theory
Q23. Give the expanded forms for the following:
a. WARP: ———-
b. SARP: ———-
c. GARP: ———-
a. a. Weak atom reason program, b. Strong atom reason program, c. General Atom Reason Preference
b. a. Weak atom return program, b. Strong atom return program, c. General Atom return Preference
c. a. Weak Axiom of Revealed Preference, b. Strong Axiom of Revealed Preference, c. Generalised Axiom of Revealed Preference
d. None of these
Answer
c. a. Weak Axiom of Revealed Preference, b. Strong Axiom of Revealed Preference, c. Generalised Axiom of Revealed Preference
Q24. “Elasticity of demand may be defined as the ratio of percentage change in demand to the percentage change in the price.” –Identify the speaker of these words.
a. Lipsey
b. Prof. Boulding
c. Alfred Marshall
d. Mrs. Jone Robinson
Answer
a. Lipsey
Q25. —– is a measure of a change in the quantity demanded for a product due to a change in the price of the product in the market.
a. Perfectly elastic demand
b. Price elasticity of demand
c. elastic demand
d. None of these
Answer
b. Price elasticity of demand
Q26. The extent of responsiveness of demand with a change in the price remains same under every situation.
a. True
b. False
Answer
b. False
Q27. When a small change (rise or fall) in the price results in a large change (fall or rise) in the quantity demanded, it is known as —–
a. Elasticity
b. Point elasticity method
c. Perfectly elastic demand
d. None of these
Answer
c. Perfectly elastic demand
Q28. In relatively inelastic demand, ep is —– than one.
a. Less
b. More
c. maximum
d. None of these
Answer
a. Less
Q29. Unitary elastic demand occurs when a change (rise or fall) in price results in equivalent change (fall or rise) in demand.
a. True
b. False
Answer
a. True
Q30. In the total outlay method, if the total outlay remains unchanged after there is a change in the price of the good, the price elasticity equals one (ep>1).
a. True
b. False
Answer
b. False
Q31. Name the method that is used to measure the elasticity at a specific point on a demand curve.
a. Midpoint
b. Elastic
c. Point elasticity method
d. None of these
Answer
c. Point elasticity method
Q32. The arc elasticity method is used to calculate the elasticity of demand at the —– of an arc on the demand curve.
a. Elastic
b. Midpoint
c. Price Discrimination
d. None of these
Answer
b. Midpoint
Q33. The need of every individual is same for the same product.
a. True
b. False
Answer
b. False
Q34. If consumers spend a large sum on a product, the demand for the product would be —–
a. Price Discrimination
b. Income elasticity of demand
c. Elastic
d. None of these
Answer
c. Elastic
Q35. Under —– market conditions, an organisation sets a low price per unit of the product in the case of elastic demand.
a. Monopolistic
b. Duopolistic
c. Oligopolistic
d. Perfectly competitive
Answer
a. Monopolistic
Q36. —– refers to charging different prices from various customers for the same product.
a. Price Discrimination
b. Income elasticity of demand
c. Positive
d. None of these
Answer
a. Price Discrimination
Q37. Government levies high taxes on products (for producers) whose demand is elastic.
a. True
b. False
Answer
a. True
Q38. An increase in the income of consumers increases the demand for the product even if the price remains constant.
a. True
b. False
Answer
a. True
Q39. Percentage change in quantity demanded / Percentage change in income = ?
a. Income elasticity of demand
b. Positive
c. Cross elasticity of demand
d. None of these
Answer
a. Income elasticity of demand
Q40. When a proportionate change in the income of a consumer increases the demand for a product and vice versa, the income elasticity of demand is said to be —–
a. Cross elasticity of demand
b. Pricing
c. Positive
d. None of these
Answer
c. Positive
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
