Business Economics Online MCQ Set 10

QN01. When the quantity demanded of a commodity rises due to a fall in price, it is called

  1. Extension
  2. Upward shift
  3. Downward shift
  4. Contraction
Answer

(A)Extension

QN02. Perfect elasticity is known as

  1. Finite elastic
  2. Infinite elastic
  3. Unitary elastic
  4. Zero elastic
Answer

(B)Infinite elastic

QN03. EP = ______________ in case of relatively inelastic demand

  1. 0
  2. Infinite
  3. 1
  4. <1
Answer

(D)<1

QN04. Tools and techniques for demand estimation includes;

  1. Consumer surveys.
  2. consumer clinics and focus groups
  3. Market Experiment
  4. All of the above
Answer

(D)All of the above

QN05. In ______________ approach, Consumers reactions on the new products are found out indirectly with the help of specialized dealers

  1. Growth curve approach
  2. Evolutionary approach.
  3. Opinion polling approach
  4. Vicarious approach.
Answer

(D)Vicarious approach.

QN06. Under the Marginal cost pricing, the price is determined on the basis of;

  1. Fixed cost
  2. Variable cost
  3. Total cost
  4. Average cost
Answer

(B)Variable cost

QN07. The concept of product differentiation was introduced by

  1. TR Malthus
  2. JM Keynes
  3. Mrs. Robinson
  4. Chamberlin
Answer

(D)Chamberlin

QN08. The implication of the kinked demand curve is reflected in a discontinuity in the:

  1. Marginal revenue curve
  2. Marginal cost curve
  3. Total revenue curve
  4. Total cost curve
Answer

(A)Marginal revenue curve

QN09. Pricing methods are:

  1. Standard cost method
  2. Learning curve method
  3. Marginal cost method
  4. All of these
Answer

(D)All of these

QN10. Price discrimination occurs when variation in prices for a product in different markets does not reflect variation?

  1. Costs
  2. Price
  3. Demand
  4. All of these
Answer

(A)Costs

QN11. A firm that is the sole seller of a product without close substitutes called:

  1. Monopoly
  2. Oligopoly
  3. Competition
  4. Bureaucracy
Answer

(A)Monopoly

QN12. Where boom ends, ______________ starts

  1. Recovery
  2. Recession
  3. Progress
  4. Depression
Answer

(B)Recession

QN13. ______________ product will never be zero or negative

  1. Marginal
  2. Total
  3. Average
  4. All the above
Answer

(C)Average

QN14. Which of the following is not a variable input?

  1. Raw material
  2. Power
  3. Equipment
  4. None of these
Answer

(C)Equipment

QN15. Which is not a property of ISOQUANT?

  1. Downward sloping
  2. Convex
  3. Negative slope
  4. Positive slope
Answer

(D)Positive slope

QN16. The term "Economies" refers to

  1. Product advantage
  2. Cost advantage
  3. Sales advantage
  4. All of the above
Answer

(B)Cost advantage

QN17. Which of the following is not coming under imperfect competition?

  1. Oligopoly
  2. Duopoly
  3. Monopoly
  4. Monopolistic
Answer

(C)Monopoly

QN18. Selling at a lower price in export market and at a higher price at home market is called

  1. Export subsidy
  2. Dumping
  3. Price cut
  4. All the above
Answer

(B)Dumping

QN19. Modern definition is also called as

  1. Growth definition
  2. Welfare definition
  3. scarcity definition
  4. Neoclassical definition
Answer

(A)Growth definition

QN20. "A rupee tomorrow is worth less than a rupee today" relates to

  1. Opportunity cost principle
  2. Discounting principle
  3. Equi-marginal principle
  4. None of these
Answer

(B)Discounting principle

QN21. Allocation of available resources among alternatives is based on the principle

  1. Opportunity cost principle
  2. Discounting principle
  3. Equi-marginal principle
  4. None of these
Answer

(C)Equi-marginal principle

QN22. Which of the following is included in specific functions of managerial economists

  1. Economic analysis of competing companies
  2. Advice on pricing problems of industry
  3. Environmental forecasting
  4. All of the above
Answer

(D)All of the above

QN23. ______________ principle is closely related to the marginal costs and marginal revenue of economic theory

  1. Principle of time perspective
  2. Equi-marginal principle
  3. Incremental principle
  4. None of these
Answer

(C)Incremental principle

QN24. ______________ is known as the ‘first law in market”

  1. Law of supply
  2. Law of consumption
  3. Law of demand
  4. Law of production
Answer

(C)Law of demand

QN25. D= f(P,Y,T,Ps,U), where the letter U stands for

  1. Utility
  2. Units of consumption
  3. Usage
  4. Consumer expectation & others
Answer

(D)Consumer expectation & others

QN26. Generally demand curve have ______________

  1. Negative slope
  2. Positive slope
  3. Horizontal line
  4. Vertical line
Answer

(A)Negative slope

QN27. The Giffen goods are ______________ Goods

  1. Inferior goods
  2. Superior goods
  3. Related goods
  4. Same goods
Answer

(A)Inferior goods

QN28. Demand for electricity is an example of

  1. Composite demand
  2. Derivative demand
  3. Joint demand
  4. Direct demand
Answer

(A)Composite demand

QN29. Which of the following is not an exception to the downward sloping of demand curve

  1. Giffen paradox
  2. Veblen effects
  3. Necessaries
  4. Income effect
Answer

(D)Income effect

QN30. Perfect elasticity is known as

  1. Finite elastic
  2. Infinite elastic
  3. Unitary elastic
  4. Zero elastic
Answer

(B)Infinite elastic

QN31. Factors which change over a long period of time are called ______________ factors

  1. Business
  2. Cyclic
  3. Secular
  4. All the above
Answer

(C)Secular

QN32. ______________ is called produced means of production

  1. Land
  2. Labour
  3. Capital
  4. Raw material
Answer

(C)Capital

QN33. EP = ______________ in the case of relatively elastic demand

  1. 1
  2. >1
  3. <1
  4. 0
Answer

(B)>1

QN34. Demand for milk, sugar, tea for making tea, is an example of

  1. Composite demand
  2. Derivative demand
  3. Joint demand
  4. Direct demand
Answer

(C)Joint demand

QN35. When the demand changes due to changes in other factors, like taste and preferences, income, price of related goods etc…., it is called

  1. Extension of demand
  2. Contraction of demand
  3. Shift in demand
  4. None of these
Answer

(C)Shift in demand

QN36. Demand =Desires+ ______________ + willingness to pay

  1. Supply
  2. utility
  3. Want
  4. Purchasing power
Answer

(D)Purchasing power

QN37. Basic economic tools of managerial economics include

  1. Opportunity cost principle
  2. Incremental principle
  3. Discounting principle
  4. All of the above
Answer

(D)All of the above

QN38. Which of the following is not included in functions of managerial economists

  1. Sales forecasting
  2. Industrial market research
  3. Advice on foreign exchange
  4. None of the above
Answer

(D)None of the above

QN39. Economics was classified into micro and macro by

  1. Ragnar Frisch
  2. Adam Smith
  3. J M Keynes
  4. AC Pigou
Answer

(A)Ragnar Frisch

QN40. The author of the book "The General Theory of Employment, Interest and Money"

  1. Alfred Marshall
  2. Adam Smith
  3. J M Keynes
  4. A C Pigou
Answer

(C)J M Keynes

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