Business Economics Online MCQ Set 8

QN01. Under oligopoly a single seller cannot influence significantly

  1. market price
  2. quantity supplied
  3. advertisement cost
  4. all the above
Answer

(D)all the above

QN02. Average cost pricing is also called as

  1. cost plus pricing
  2. marginal cost pricing
  3. margin pricing
  4. both a & c
Answer

(D)both a & c

QN03. Which of the following is / are the reason for adopting penetration price strategy

  1. Economies of large scale production available to firm.
  2. Potential market for the product is large.
  3. Cost of production is low.
  4. All the above
Answer

(D)All the above

QN04. Purposes of Short term Demand forecasting includes;

  1. Making a suitable production policy.
  2. To reduce the cost of purchasing raw materials and to control inventory.
  3. Deciding suitable price policy
  4. All the above
Answer

(D)All the above

QN05. Demand for tyres depends on demand of vehicles, the demand for tyres called as

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

(B)Derivative demand

QN06. when income increases, quantity demanded falls, it is

  1. Positive income elasticity
  2. Zero income elasticity
  3. Negative income elasticity
  4. Unitary income elasticity
Answer

(C)Negative income elasticity

QN07. Consumer Interview method of demand forecasting may undertaken by;

  1. Complete enumeration
  2. Sample survey
  3. End-use method
  4. All the above
Answer

(D)All the above

QN08. Under which method, the cost is added with the predetermined target rate of return on capital invested

  1. Cost plus pricing
  2. Target pricing
  3. Mark up pricing
  4. None of these
Answer

(B)Target pricing

QN09. Prices of Bata shoe as Rs.99.99, this pricing is

  1. Mark up pricing
  2. Odd pricing
  3. Marginal cost pricing
  4. Follow up pricing.
Answer

(B)Odd pricing

QN10. Average revenue is the revenue per

  1. unit commodity sold
  2. total commodity sold
  3. marginal commodity sold
  4. none of these
Answer

(A)unit commodity sold

QN11. In a perfect market both buyers and sellers are

  1. price maker
  2. price giver
  3. price taker
  4. all the above
Answer

(C)price taker

QN12. So long as Average Revenue is falling, Marginal Revenue will be ______________ Average Revenue

  1. Less than
  2. More than
  3. Equal to
  4. None of these
Answer

(A)Less than

QN13. Price discrimination is also called as

  1. Discriminatory pricing
  2. Differential pricing
  3. Average cost pricing
  4. a & b above
Answer

(D)a & b above

QN14. ______________= R2-R1/Q2-Q1

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

(C)Marginal revenue

QN15. If the commodities are complimentary, cross elasticity will be

  1. Negative
  2. Positive
  3. Zero
  4. Any of the above
Answer

(A)Negative

QN16. In the oligopoly market there are

  1. large no. of firms
  2. a few firms
  3. a single firm
  4. an infinite no. of firms
Answer

(B)a few firms

QN17. The law of diminishing returns applies more to

  1. agriculture
  2. industry
  3. services
  4. commerce
Answer

(A)agriculture

QN18. ______________ provide guidelines to carry out ______________

  1. Pricing strategies, pricing policies
  2. Pricing policies, pricing strategies
  3. Pricing rules, pricing policies
  4. Pricing rules, pricing strategies
Answer

(B)Pricing policies, pricing strategies

QN19. In case of ______________ quantity demanded changes less than proportionate to changes in price

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

(D)Relative inelastic demand

QN20. ______________ method measures elasticity between two points

  1. Proportional or Percentage Method
  2. Outlay Method
  3. Geometric method
  4. Arc Method
Answer

(D)Arc Method

QN21. Target pricing is also called as

  1. Cost plus pricing
  2. Rate of return pricing
  3. Mark up pricing
  4. None of these
Answer

(B)Rate of return pricing

QN22. The condition for the long run equilibrium of a perfectly competitive firm

  1. Price=MC=AC
  2. Price=TC
  3. MC=AVC
  4. MC=MR
Answer

(A)Price=MC=AC

QN23. The monopoly can be controlled by:

  1. Social boycott
  2. Antimonopoly legislation
  3. Public ownership
  4. All of these
Answer

(D)All of these

QN24. Where Marginal revenue is negative, TR will be ______________.

  1. Rising
  2. Falling
  3. Zero
  4. One
Answer

(B)Falling

QN25. ______________ is the method of leadership pricing

  1. Going rate pricing
  2. Follow up pricing
  3. Barometric pricing
  4. Parity pricing
Answer

(C)Barometric pricing

QN26. The properties of indifference curves are:

  1. Indifference curve slops downwards from left to right
  2. Convex to the point of origin
  3. Two indifference curve never cut each other
  4. All of these
Answer

(D)All of these

QN27. The competitive firm’s long run supply curve is the portion of it’s ______________ curve lies above average total cost.

  1. Marginal cost
  2. Revenue cost
  3. Fixed cost
  4. All of these
Answer

(A)Marginal cost

QN28. The opportunity cost of a given activity is

  1. the value of next best activity
  2. the value of material used
  3. the cost of input used
  4. none of these
Answer

(A)the value of next best activity

QN29. Marginal revenue is ______________ at the quantity that generate maximum total revenue and negative beyond that point.

  1. Zero
  2. One
  3. +1
  4. −1
Answer

(A)Zero

QN30. In business cycle concept, the period of "long wave" is of;

  1. 25 years
  2. 50 years
  3. 100 years
  4. 200 years
Answer

(B)50 years

QN31. Cinema Theater, telephone bills etc.. are following

  1. Full cost pricing
  2. Marginal cost pricing
  3. Differential pricing
  4. Mark up pricing
Answer

(C)Differential pricing

QN32. The factors used in the production

  1. Land and labor
  2. capital & entrepreneurship
  3. both a&b
  4. only capital
Answer

(B)both a&b

QN33. Which is the feature of perfect competition?

  1. Large number of buyers and sellers
  2. Freedom of entry and exit
  3. Normal profit in the long run
  4. All of these
Answer

(D)All of these

QN34. The concept of monopsony was invented by:

  1. Marshall
  2. AP. Learner
  3. Chamberlin
  4. Mrs. J. Robinson
Answer

(D)Mrs. J. Robinson

QN35. Which is/are the salient features of monopolistic competition?

  1. Large number of sellers
  2. Normal profit
  3. Free entry and exit of firms in industry
  4. All of these
Answer

(D)All of these

QN36. A cost that has already been committed and cannot be recovered known as:

  1. Sunk cost
  2. Total cost
  3. Full cost
  4. Variable cost
Answer

(A)Sunk cost

QN37. The claim that, other things equal, the quantity supplied of a goods rises when the price of goods raises known as:

  1. Law of economics
  2. Law of supply
  3. Law of demand
  4. All of these
Answer

(B)Law of supply

QN38. In business cycle concept, the period (approximately) of "Kit chin cycle" is of:

  1. 5 years
  2. 10 months
  3. 2 years
  4. 4 months
Answer

(D)4 months

QN39. The demand curve of a firm in the case of perfect competition is:

  1. Parallel to output axis
  2. Increasing with the output axis
  3. Decreasing with the output axis
  4. Complete
Answer

(A)Parallel to output axis

QN40. Which factors is/are influencing price policy?

  1. Cost of product
  2. Time factor
  3. Government policy
  4. All of these
Answer

(D)All of these

ed010d383e1f191bdb025d5985cc03fc?s=120&d=mm&r=g

DistPub Team

Distance Publisher (DistPub.com) provide project writing help from year 2007 and provide writing and editing help to hundreds student every year.