Business economics nmims mcq set 4

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NMIMS MCQ Economics Set 4

Q1. Give the formula for cost schedule derived from a firm’s production schedule.

a. TC = Average Revenue/Total Revenue
b. TC = Average Revenue * Total Revenue
c. vpnYT78
d. None of these

Answer

c. vpnYT78

Q2. Which of these arises due to an increase in the number of firms in an industry leading to over production?

a. Internal economies of scale
b. External economies of scale
c. External diseconomies of scale
d. Internal diseconomies of scale

Answer

c. External diseconomies of scale

Q3. Economies of scope are usually attained by manufacturing large batches instead of small batches of many items.

a. True
b. False

Answer

b. False

Q4. —– of a firm refers to the revenue earned per unit of the output sold.

a. Average Revenue
b. Purely competitive
c. Monopolistic competition
d. None of these

Answer

a. Average Revenue

Q5. In a perfectly competitive market, where there is no market control, marginal revenue is less than the average revenue.

a. True
b. False

Answer

b. False

Q6. Which one of the following is not an essential of a market?

a. Products
b. Presence of buyers and sellers
c. A place
d. Economy

Answer

d. Economy

Q7. The geographical area of a market is dependent upon the region where buyers and sellers are dispersed.

a. True
b. False

Answer

a. True

Q8. In —– markets, all the products are considered as substitutes of one another.

a. Monopolistic competition
b. Oligopoly
c. Purely competitive
d. None of these

Answer

c. Purely competitive

Q9. In perfect competition, the absence of transportation costs results in price variation in all the sectors of the market.

a. True
b. False

Answer

b. False

Q10. Under—–, both buyers and sellers are unaware of the prices.

a. Pure competition
b. Imperfect competition
c. Perfect competition
d. Impure competition

Answer

b. Imperfect competition

Q11. Name the type of imperfect competition, wherein a large number of sellers are engaged in offering heterogeneous products for sale to buyers.

a. Oligopoly
b. Monopolistic competition
c. Barrier
d. None of these

Answer

b. Monopolistic competition

Q12. Which one of the following is not a characteristic of oligopoly?

a. Existence of few sellers
b. Easy entry and exit
c. Enhanced role of the government
d. Mutual interdependence

Answer

b. Easy entry and exit

Q13. In a cartel, all the firms sell at the same price, and each organisation sets its individual production volume for sale, so that the marginal cost of operation remains same.

a. True
b. False

Answer

a. True

Q14. —–is a type of imperfect competition, wherein there are few sellers dealing either in homogenous or differentiated products.

a. Barrier
b. Utility based price discrimination
c. Oligopoly
d. None of these

Answer

c. Oligopoly

Q15. Under monopoly market structure, there is always a single seller producing small quantities of the products.

a. True
b. False

Answer

b. False

Q16. Technological efficiencies resulting in economies of scale is a —– to entry of new organisations.

a. Barrier
b. Utility based price discrimination
c. Profit maximisation
d. None of these

Answer

a. Barrier

Q17. In which type of price discrimination, the seller charges different prices from buyers in accordance with the use of the products?

a. Profit maximisation
b. Short run
c. Utility based price discrimination
d. None of these

Answer

c. Utility based price discrimination

Q18. —– is mainly concerned with the determination of price and output level that returns the maximum profit.

a. Short run
b. Profit maximisation
c. Concentration ratios
d. None of these

Answer

b. Profit maximisation

Q19. Which one of the following is the condition to be satisfied for profit maximisation?

a. MR > MC
b. MR < MC
c. MR = MC
d. MR = MC = 0

Answer

a. MR > MC

Q20. —–can be defined as a time period in which at least one input is fixed.

a. Concentration ratios
b. Herfindahl-Hirschman Index
c. Short run
d. None of these

Answer

c. Short run

Q21. A firm with total market power is in a position to raise the prices without any loss of customers.

a. True
b. False

Answer

a. True

Q22. —– can be defined as a measure of market power in relation to the size of the business firm with that of product’s size.

a. Concentration ratios
b. Herfindahl-Hirschman Index
c. Public goods
d. None of these

Answer

a. Concentration ratios

Q23. —– index is used as an indicator of competition among organisations in an industry.

a. Public goods
b. Price regulations
c. Herfindahl-Hirschman Index
d. None of these

Answer

c. Herfindahl-Hirschman Index

Q24. An industry is considered to be under low concentration if its concentration ratio is from 50 to 80 percent.

a. True
b. False

Answer

b. False

Q25. Which one of the following is not a determinant of market power?

a. Economies of scale
b. Governmental regulations
c. Control of raw materials
d. Outdated technology

Answer

d. Outdated technology

Q26. Due to brand establishment in the market, the market power of the organisation remains high making it difficult for new entrants to gain share in the market.

a. True
b. False

Answer

a. True

Q27. —– occurs mainly due to inefficient allocation of goods and services in the free market.

a. Market power
b. Market sustenance
c. Market failure
d. Buyers’ control

Answer

c. Market failure

Q28. Name the type of goods that are characterised by nonexcludability and non-rivalry.

a. Price regulations
b. Public goods
c. Rate of return
d. None of these

Answer

b. Public goods

Q29. In the case of a positive externality, a producer does not like to invest in the activity unless government aids him with a subsidy.

a. True
b. False

Answer

a. True

Q30. —– are the governmental measures dictating the quantities of a commodity to be sold at specified price both in the retail marketplace and at other stages in the production process.

a. Rate of return
b. Industrial revolution
c. Price regulations
d. None of these

Answer

c. Price regulations

Q31. The shortage created by price ceilings can be resolved through government’s control of production.

a. True
b. False

Answer

a. True

Q32. Name the method that considers the firm size to evaluate a reasonable level of profit from its capital base.

a. Rate of return
b. Industrial revolution
c. Maximisation
d. None of these

Answer

a. Rate of return

Q33. A price cap regulation is used to set a maximum allowed price for a specific product.

a. True
b. False

Answer

a. True

Q34. In which method of demand forecasting, consumer-buyers are asked to reveal their future purchase plans with respect to specific items.

a. Collective opinion method

b. Delphi Method

c. Survey of buyer’s intentions or preferences

d. Trend Projection Method

Answer

c. Survey of buyer’s intentions or preferences

Q35. The most fundamental economic problem is

a. Security.

b. The fact the United States buys more goods from foreigners than we sell to foreigners.

c. Health.

d. Scarcity.

Answer

a. Scarcity.

Q36. The creation of choice is done by —–.

a. Scarcity of resources

b. Less choices

c. The urgency of needs

d. Abundance of resources

Answer

a. Scarcity of resources

Q37. —– can be defined as how individual, households and nations make optimum use of scarce resources to satisfy their needs.

a. Literature

b. Economics

c. Communication

d. Utilization

Answer

b. Economics

Q38. Which of the following method is not used for measuring the price elasticity of demand?

a. Total outlay method

b. Point method

c. Arc method

d. Division method

Answer

d. Division method

Q39. Which is the most accurate definition of the study of economics? Economics is the study of

a. The distribution of surplus goods to those in need.

b. Affluence in a morally bankrupt world.

c. Ways to reduce wants to eliminate the problem of scarcity.

d. The choices we make because of scarcity

Answer

d. The choices we make because of scarcity

Q40. Demand for new Tata Indica, which is a modified version of Old Indica can most effectively be projected based on the sales of the old Indica, can be the example of —–.

a. Substitute Approach

b. Evolutionary Approach

c. Opinion Poll Approach

d. Sales Experience Approach

Answer

b. Evolutionary Approach

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