Business Economics Online MCQ Set 6

QN01. Managerial Economics is

  1. Dealing only micro aspects
  2. Only a normative science
  3. Deals with practical aspects
  4. All of the above
Answer

(D)All of the above

QN02. The techniques of optimization include

  1. Marginal analysis
  2. Calculus
  3. Linear programming
  4. All of the above
Answer

(D)All of the above

QN03. In economics, desire backed by purchasing power is known as

  1. Utility
  2. Demand
  3. Consumption
  4. Scarcity
Answer

(B)Demand

QN04. Basic assumptions of law of demand include

  1. Prices of other goods should change.
  2. There should be substitute for the commodity.
  3. The commodity should not confer any distinction.
  4. The demand for the commodity should not be continuous
Answer

(C)The commodity should not confer any distinction.

QN05. Higher the price of certain luxurious articles, higher will be the demand, this concept is called

  1. Giffen effects
  2. Veblen effects
  3. Demonstration effects
  4. Bothb&cabove
Answer

(B) Veblen effects

QN06. In the case of perfect elasticity, the demand curve is

  1. Vertical
  2. Horizontal
  3. Flat
  4. Steep
Answer

(B) Horizontal

QN07. Outlay method of measurement of elasticity is also called as

  1. Percentage method
  2. Expenditure method
  3. Point method
  4. Geometric method
Answer

(B) Expenditure method

QN08. ______________ demand forecasting is related to the business conditions prevailing in the economy as a whole

  1. Macro level
  2. Industry level
  3. Firm level
  4. None of these
Answer

(A) Macro level

QN09. ______________ is the base of marketing planning

  1. Demand Estimation
  2. Demand analysis
  3. Demand function
  4. Demand forecasting
Answer

(D) Demand forecasting

QN10. ______________ is the change in total revenue irrespective of changes in price or due to the effect of managerial decision on revenue

  1. Average revenue
  2. Total revenue
  3. Marginal revenue
  4. Incremental revenue
Answer

(D) Incremental revenue

QN11. ______________ is the process of finding current values of demand for various values of prices and other determining variables.

  1. Demand Estimation
  2. Demand analysis
  3. Demand function
  4. Demand forecasting
Answer

(A)Demand Estimation

QN12. In the case of ______________ a small change in price leads to very big change in quantity demanded

  1. Perfectly elastic demand
  2. Perfectly inelastic demand
  3. Relative elastic demand
  4. Unit elastic demand
Answer

(C)Relative elastic demand

QN13. In ______________ approach, on the basis of the growth of an established product, the demand for the new product is estimated

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

(A)Growth curve approach

QN14. Which one of the following is not a reason for adopting penetration price strategy

  1. Product has high price elasticity in the initial stage.
  2. The product is accepted by large number of customers.
  3. Economies of large scale production available to firm
  4. When the buyers are not able to compare the value and utility
Answer

(D)When the buyers are not able to compare the value and utility

QN15. Car and petrol are

  1. Complimentary goods
  2. Substitute goods
  3. Supplementary goods
  4. Reserve goods
Answer

(A)Complimentary goods

QN16. Criteria for good demand forecasting includes;

  1. Plausibility
  2. Simplicity
  3. Economy
  4. All the above.
Answer

(D)All the above.

QN17. Cost plus pricing is also called

  1. margin pricing
  2. full cost pricing
  3. mark up pricing
  4. all the above
Answer

(D)all the above

QN18. Generally used strategy for pricing new products is/are

  1. Skimming price strategy
  2. Penetration price strategy
  3. Both a & b
  4. None of these
Answer

(C)Both a & b

QN19. The architect of the theory of monopolistic competition

  1. Rosenstein Roden
  2. JR Hicks
  3. Karl Marx
  4. Chamberlin
Answer

(D)Chamberlin

QN20. The function of combining the other factors of production is done by

  1. land
  2. labour
  3. Capital
  4. Entrepreneurship
Answer

(D)Entrepreneurship

QN21. ______________ means the total receipts from sales divided by the number of unit sold.

  1. Average revenue
  2. Total revenue
  3. Marginal revenue
  4. Incremental revenue
Answer

(A)Average revenue

QN22. Ep=0in the case of ______________ elasticity

  1. Perfectly elastic demand
  2. Perfectly inelastic demand
  3. Relative elastic demand
  4. Unitary elastic demand
Answer

(B)Perfectly inelastic demand

QN23. Law of demand shows the functional relationship between ______________ and quantity demanded

  1. Supply
  2. Cost
  3. Price
  4. Requirements
Answer

(C)Price

QN24. When the change in demand is exactly equal to the change in price, it is called

  1. Perfectly elastic demand
  2. Perfectly inelastic demand
  3. Relative elastic demand
  4. Unitary elastic demand
Answer

(D)Unitary elastic demand

QN25. Tea and coffee are

  1. Complimentary goods
  2. Substitute goods
  3. Supplementary goods
  4. Reserve goods
Answer

(B)Substitute goods

QN26. Survey method of demand forecasting includes

  1. Opinion survey
  2. Expert opinion
  3. Delphi method
  4. All the above
Answer

(D)All the above

QN27. In ______________ pricing fixed cost are excluded.

  1. skimming pricing
  2. going rate pricing
  3. administered pricing
  4. marginal cost pricing
Answer

(D)marginal cost pricing

QN28. The market with a single producer''

  1. perfect competition
  2. monopolistic competition
  3. oligopoly
  4. monopoly
Answer

(D)monopoly

QN29. The short run production function is called;

  1. Returns to scale
  2. law of variable proportion
  3. Production possibility frontier
  4. None of these
Answer

(B)law of variable proportion

QN30. Which are the characteristics of monopoly?

  1. Single seller or producer
  2. No close substitutes
  3. Inelastic demand curve
  4. All of these
Answer

(D)All of these

QN31. Whenever ______________ is greater than average total cost, average total cost is rising.

  1. Marginal cost
  2. Variable cost
  3. Fixed cost
  4. Full cost
Answer

(A)Marginal cost

QN32. Which of the following is not a macroeconomic concept?

  1. Business cycle
  2. National income
  3. Government policy
  4. None of these
Answer

(D)None of these

QN33. Iso-cost line indicate the price of

  1. Output
  2. Inputs
  3. Finished goods
  4. Raw material
Answer

(B)Inputs

QN34. Who classified economies of scale into internal and external?

  1. Robinson
  2. Marshall
  3. Edward west
  4. Pigue
Answer

(B)Marshall

QN35. Product differentiation is the important feature of

  1. monopoly
  2. perfect competition
  3. monopolistic competition
  4. monophony
Answer

(c)monopolistic competition

QN36. 13th Finance Commission has been constituted under the chairmanship of:

  1. C.Rangarajan
  2. Vijay L Kelkar
  3. Deepak Parekh
  4. Indira Bhargara
Answer

(B)Vijay L Kelkar

QN37. Method of demand forecasting is also called "economic model building"

  1. Opinion survey
  2. Complete enumeration
  3. Correlation and regression
  4. Delphi method
Answer

(C)Correlation and regression

QN38. The responsiveness of demand due to a change in promotional expenses is called

  1. Expenditure elasticity
  2. Advertisement elasticity
  3. Promotional elasticity
  4. Above b or c
Answer

(D)Above b or c

QN39. Want satisfying power of commodity is called

  1. Demand
  2. Utility
  3. Satisfaction
  4. Consumption
Answer

(B)Utility

QN40. The relationship between price and quantity demanded is

  1. Direct
  2. Inverse
  3. Linear
  4. Non-linear
Answer

(B)Inverse

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