Are you students of nmims distance learning program and your exam subject is business economics? If yes! Must prepare mcq of business economics set 3 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 3
Q1. The advertisement elasticity of demand is a degree of responsiveness of a change in the sales of a product with respect to a proportionate change in —–
a. Unity
b. Perfectly elastic supply
c. Pricing
d. None of these
Answer
c. Pricing
Q2. Even with a rise in the income of a consumer, the demand for basic products does not change and remain inelastic.
a. True
b. False
Answer
a. True
Q3. —– can be defined as a measure of a proportionate change in the demand for goods as a result of change in the price of related goods.
a. Pricing
b. Cross elasticity of demand
c. Pricing
d. None of these
Answer
b. Cross elasticity of demand
Q4. Which of the following is not a type of positive income elasticity of demand?
a. Unitary
b. Less than unitary
c. More than unitary
d. Zero
Answer
d. Zero
Q5. The cross-elasticity of demand is positive in case of complementary goods.
a. True
b. False
Answer
b. False
Q6. Cross elasticity helps organisations in making —– by determining the expected change in the demand for its substitutes and complementary goods
a. Pricing
b. Pricing
c. Unity
d. None of these
Answer
b. Pricing
Q7. At the time of a new product launch in the market, the advertisement elasticity of demand is greater than —–
a. Perfectly elastic supply
b. Unity
c. Relatively inelastic supply
d. None of these
Answer
b. Unity
Q8. When a proportionate change in advertisement expenditure results in an equal proportionate change in the total sales of an organisation,
a. eA =0
b. eA =1
c. eA >1
d. eA >0 but <1
Answer
b. eA =1
Q9. When a proportionate change (increase/decrease) in the price of a product results in an increase/decrease of quantity supplied, it is called as —–.
a. Relatively inelastic supply
b. Perfectly elastic supply
c. Demand forecasting
d. None of these
Answer
b. Perfectly elastic supply
Q10. Supply is said to be —– when e < 1.
a. Demand forecasting
b. Production
c. Relatively inelastic supply
d. None of these
Answer
c. Relatively inelastic supply
Q11. The knowledge of the future demand for a product or service in the market is gained through the process of —–
a. Demand forecasting
b. Production
c. Land, labour, capital, enterprise
d. None of these
Answer
a. Demand forecasting
Q12. The bases for performing demand forecasting are:
a. —–
b. —–
c. —–
Answer
a. Level of forecasting, b. Time period involved, c. Nature of products
Q13. Which of these steps of demand forecasting is performed immediately after determination of the time perspective?
a. Interpreting outcomes
b. Selecting the method for forecasting
c. Collecting and analysing data
d. None of these
Answer
b. Selecting the method for forecasting
Q14. Which of the following methods of demand forecasting is based on the consensus of demand forecasts made by all experts in the industry?
a. Expert opinion method
b. Delphi method
c. Market studies and experiments
Answer
b. Delphi method
Q15. Match the following:
1. Leading indicators a. events that follow a change
2. Coincident indicators b. events that have already occurred
3. Lagging indicators c. events that move simultaneously with current event
a. 1(d), 2(a), 3(c)
b. 1(b), 2(c), 3(a)
c. 1(c), 2(a), 3(b)
Answer
b. 1(b), 2(c), 3(a)
Q16. The use of demand forecasting is not affected by the change in consumers’ tastes and preferences or psychological factors.
a. True
b. False
Answer
b. False
Q17. Not all methods are appropriate to be used for all kinds of forecasting. A forecaster should therefore focus on which of the following criteria to select a demand forecasting method?
a. Durability of outcomes
b. Reliability
c. Accuracy
d. Ease of use
Answer
c. Accuracy
Q18. —–is the process of converting inputs into outputs.
a. Production
b. Land, labour, capital, enterprise
c. Concave
d. None of these
Answer
a. Production
Q19. Profit is the sum of cost and revenue.
a. True
b. False
Answer
b. False
Q20. The main factors of production for an organisation are —–, —–, —– and —–
a. Country, State, Destrict, Company
b. Team, labour, Police, Government
c. Land, labour, capital, enterprise
d. None of these
Answer
c. Land, labour, capital, enterprise
Q21. PPC stands for:
a. Production Profit Curve
b. Production Possibility Cart
c. Profit Possibility Curve
d. Production Possibility Curve
Answer
d. Production Possibility Curve
Q22. PPC is —–to origin.
a. Average Product = Total Product/variable inputs employed
b. Concave
c. Law of variable proportions or the law of diminishing marginal returns
d. None of these
Answer
b. Concave
Q23. Production function assumes technology as fixed.
a. True
b. False
Answer
a. True
Q24. The formula to calculate AP is —–
a. AP = Profit/Loss
b. AP = Total profit / total expense
c. Average Product = Total Product/variable inputs employed
d. None of these
Answer
c. Average Product = Total Product/variable inputs employed
Q25. The law of production studied under short-run production is called the —–
a. Law of variable proportions or the law of diminishing marginal returns
b. Diminishing returns to scale
c. Increasing returns
d. None of these
Answer
a. Law of variable proportions or the law of diminishing marginal returns
Q26. —– refers to the stage of production in which the total output increases, but the marginal product starts declining with the increase in the number of workers.
a. Increasing returns
b. Expansion path
c. Diminishing returns to scale
d. None of these
Answer
c. Diminishing returns to scale
Q27. If MPL > APL, then the production stage is —–
a. Expansion path
b. Increasing returns
c. Equal
d. None of these
Answer
b. Increasing returns
Q28. L-shaped isoquant is the case of perfect substitutes.
a. True
b. False
Answer
b. False
Q29. —–can be defined as the locus of all the points that show the least combination of the factors corresponding to different levels of output.
a. Equal
b. Leontief production function
c. Expansion path
d. None of these
Answer
c. Expansion path
Q30. A constant return to scale implies the situation in which an increase in output is —–to the increase in factor inputs.
a. Equal
b. Leontief production function
c. Cost of production
d. None of these
Answer
a. Equal
Q31. —– production function uses fixed proportion of inputs having no substitutability between them.
a. Cost of production
b. b. 1(d), 2(b), 3(c), 4(a)
c. Leontief production function
d. None of these
Answer
c. Leontief production function
Q32. Inputs utilised multiplied by their respective prices, when added together constitute the money value of these inputs referred to as —–
a. Service
b. Cost of production
c. Costs
d. None of these
Answer
b. Cost of production
Q33. Which of these costs include the return from the second best use of the firm’s limited resources, which it forgoes in order to benefit from the best use of these resources?
a. Fixed costs
b. Explicit costs
c. Implicit costs
d. Opportunity costs
Answer
d. Opportunity cost
Q34. Variable costs refer to the costs borne by a firm that do not change with changes in the output level.
a. True
b. False
Answer
b. False
Q35. Match the following:
1. Accounting costs a. additional cost
2. Fixed costs b. constant with change in output
3. Economic costs c. accounting and opportunity costs
4. Incremental costs d. recorded in the books of accounts
a) a. 1(a), 2(b), 3(c), 4(d)
b) b. 1(d), 2(b), 3(c), 4(a)
c) c. 1(d), 2(b), 3(a), 4(c)
d) None of these
Answer
b. 1(d), 2(b), 3(c), 4(a)
Q36. Give the formula for Total Costs of a firm (TC).
a. TC = TC + FC
b. TC = FC + Cost
c. Total Costs of a firm (TC) = Fixed costs (FC) + Variable costs (VC)
d. None of these
Answer
c. Total Costs of a firm (TC) = Fixed costs (FC) + Variable costs (VC)
Q37. —– refers to the change in short-run total cost due to a change in the firm’s output.
a. Short-run marginal cost
b. Long run
c. LRMC
d. None of these
Answer
a. Short-run marginal cost
Q38. Give the formula for SRAC.
a. LRMC = TFC / TVC
b. LRMC = TFC * TVC
c. SRAC = (TFC+TVC)/Q or SRAC = AFC + AVC
d. None of these
Answer
c. SRAC = (TFC+TVC)/Q or SRAC = AFC + AVC
Q39. Long-run average cost (LRAC) refers to per unit cost incurred by a firm in the production of a desired level of output when all the inputs are variable.
a. True
b. False
Answer
a. True
Q40. —– is the slope of the LRTC curve.
a. TC
b. LRMC
c. Average Revenue
d. None of these
Answer
b. LRMC
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
