Are you students of nmims distance learning program and your exam subject is business economics? If yes! Must prepare mcq of business economics set 6 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 6
Q1. —– is an important element of consumer behavior analysis.
a. Budget line
b. Indifference Curve (IC)
c. Consumer’s Income
d. None of the above
Answer
a. Budget line
Q2. —– is a statistical device by which changes in prices of the same articles at different periods are calculated and computed.
a. GNP deflator
b. Real GNP
c. Index number
d. Nominal GNP
Answer
c. Index number
Q3. Which of the following is an example of a positive statement?
a. The Federal Reserve ought to cut the interest rate.
b. Increasing the minimum wage results in more unemployment.
c. We should cut back on our use of carbon-based fuels such as coal and oil.
d. Every American should have equal access to health care.
Answer
b. Increasing the minimum wage results in more unemployment.
Q4. Which of the following is not one of the positive effects of inflation?
a. Encourage entrepreneurship
b. Full utilization of resources
c. Increase in Exports
d. Leads to rise in investment
Answer
c. Increase in Exports
Q5. If the income of consumer increases, then he will move to the and the equilibrium position also shift towards the —– .
a. Higher, right
b. Lower, right
c. Higher, left
d. Lower, left
Answer
a. Higher, right
Q6. —– is the first step of demand forecasting.
a. Collecting and analyzing data
b. Specifying the objective
c. Interpreting outcomes
d. Determining the time perspective
Answer
b. Specifying the objective
Q7. Charging high prices for new products is known as —–.
a. Penetration price policy
b. Charm prices
c. Marginal Cost Pricing
d. Price skimming
Answer
d. Price skimming
Q8. The numerical co-efficient of perfectly inelastic demand ED= —–
a. ED>1
b. ED=0
c. ED<1
d. ED=1
Answer
b. ED=0
Q9. Under —– method, a producer decides a predetermined target rate of return on capital invested.
a. Full-Cost pricing
b. Going Rate Pricing
c. Rate of Return Pricing
d. Administered prices
Answer
c. Rate of Return Pricing
Q10. Normative statements are statements about
a. What ought to be.
b. Quantities.
c. What is.
d. Prices.
Answer
a. What ought to be.
Q11. Calculate the price elasticity of demand for the good, if demand for the good reduces by 4% price by 20%.
a. +0.40
b. -0.40
c. +0.20
d. -0.20
Answer
d. -0.20
Q12. An individual’s preference or indifference for one commodity over another can be applied to another related commodity. This is referred to as —–.
a. Decisiveness
b. Transitivity
c. Non-Satiation
d. None of the above
Answer
b. Transitivity
Q13. —– introduces the concept of “expense preference”.
a. Williamson
b. Boumal
c. Marris
d. Cyert and March
Answer
a. Williamson
Q14. is the sum of the utility derived by a consumer from different units of a commodity or service consumed at a given period of time.
a. Total utility
b. Marginal utility
c. Ordinal utility
d. Cardinal utility
Answer
a. Total utility
Q15. Demand forecasting enables an organization to —– business risks and make effective business decisions.
a. Diminish
b. Mitigate
c. Increase
d. Nullify
Answer
b. Mitigate
Q16. Consumer goods have —– demand.
a. Direct
b. Cross
c. Joint
d. Indirect
Answer
a. Direct
Q17. The price we pay for a commodity basically depends on its
a. retailer selling it
b. manufacturer
c. Worthiness and Utility
d. consumer willingness
Answer
c. Worthiness and Utility
Q18. An industry under perfect competition in the short run, reaches the position of equilibrium when all firms in the industry are producing an equilibrium level of output at which —–.
a. AR AC
b. MR = MC
c. MR = AR
d. MC = AC
Answer
c. MR = AR
Q19. Modern economists have given the concept of —– utility for measuring utility.
a. Cardinal
b. Rational
c. Ordinal
d. None of the above
Answer
c. Ordinal
Q20. A consumer reaches a state of equilibrium when he/she attains maximum —– at the given income level and market price of commodities.
a. marginal utility
b. total utility
c. Transitivity
d. none of the above
Answer
b. total utility
Q21. From the —– perspective, utility is the psychological satisfaction, happiness, well-being, etc.
a. Producer
b. Consumer
c. Product
d. Manufacturer
Answer
b. Consumer
Q22. Surplus generation is possible when the firm produces —–.
a. Minimum output with minimum costs
b. Maximum output with minimum costs
c. Maximum output with maximum costs
d. Minimum output with maximum costs
Answer
b. Maximum output with minimum costs
Q23. The change in the variables results in budget line. in the consumer’s
a. Right or left, shift
b. Upward or downward, shift
c. Upward or downward, slope
d. None of the above
Answer
b. Upward or downward, shift
Q24. CES means
a. Constant Elasticity Substitution
b. Constant Economic Substitution
c. Constant Elasticity Subtraction
d. Constant Elastic Substitution
Answer
a. Constant Elasticity Substitution
Q25. Neo-classical economist, —– brought about significant refinement in the cardinal utility theory
a. Alfred Marshall
b. Karl Menger
c. Leon Walras
d. None of the above
Answer
a. Alfred Marshall
Q26. Which of the following is the central problem of an economy?
a. Assigning limited resources in a way that unlimited desires and needs of the society are satisfied
b. Ensuring a minimum income for each citizen
c. Assuring that production happens in the most effective way
d. Analyzing the demand with market economies
Answer
a. Assigning limited resources in a way that unlimited desires and needs of the society are satisfied
Q27. Capital goods have demand.
a. Cross
b. Direct
c. Indirect
d. Joint
Answer
c. Indirect
Q28. A business cycle has —– phases
a. Five
b. Two
c. Four
d. Six
Answer
c. Four
Q29. Which of the following is a normative statement?
a. The price of candy bars is $1.25 each.
b. Popcorn and candy are sold in movie theaters.
c. Candy bars are more expensive than newspapers.
d. You should eat less candy.
Answer
d. You should eat less candy.
Q30. —– measures price elasticity of demand at different points on a demand curve.
a. The point method
b. Total Expenditure Method
c. Arc Method
d. Production planning
Answer
a. The point method
Q31. What is the other name of opportunity cost?
a. Substitute cost
b. Alternative cost
c. Replacement
d. None of the above
Answer
b. Alternative cost
Q32. The revealed preference theory explains the —– on the basis of consumer’s behavior.
a. utility
b. demand curve
c. price effect
d. none of the above
Answer
b. demand curve
Q33. What is Referred to as Actual cost?
a. Implicit Cost
b. Economic Cost
c. Full Cost
d. Explicit Cost
Answer
d. Explicit Cost
Q34. The next best alternative cost is —–.
a. Opportunity cost
b. Implicit cost
c. Explicit cost
d. Marginal cost
Answer
a. Opportunity cost
Q35. Considering more than —– commodities in —– analysis makes the calculations more complex.
a. one, IC
b. two, utility
c. two, IC
d. one, demand
Answer
c. two, IC
Q36. —– implies the behavior of output when all the factor inputs are changed in the same proportion given the same technology.
a. Returns to scale
b. Input
c. Output
d. Economics
Answer
a. Returns to scale
Q37. Burns and Mitchell observe that peaks and —– are the two main mark-off points of a business cycle.
a. Expansion
b. Prosperity
c. Revival
d. Troughs
Answer
d. Troughs
Q38. The law of diminishing marginal utility does not hold true in some cases called —– to the law of diminishing marginal utility.
a. Indifferent
b. Insignificant
c. Exceptions
d. all of the above
Answer
c. Exceptions
Q39. Which of the following is not the factor in determining Elasticity of Supply
a. Availability and mobility of factors of production
b. Time period
c. Technological improvements
d. Natural factors
Answer
d. Natural factors
Q40. An economic theory is
a. Generalization that summarizes what we understand about economic choices.
b. A positive statement that cannot use the ceteris paribus clause.
c. Usually more complex than the real world.
d. Always a mathematical, or nonverbal, model.
Answer
a. Generalization that summarizes what we understand about economic choices.
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
