BCOM-Business Economics MCQ

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Question 51 : Shift in the supply curve to the left will increase the _____.

  1. Market demand
  2. equilibrium price
  3. Market supply
  4. none of these
  

Question 52 : The market demand schedule shows a direct relationship between price and quantity demanded.

  1. true
  2. false
  

Question 53 : The market supply curve slopes upwards to the right.

  1. true
  2. false
  

Question 54 : The equilibrium price will change wherever there is a change in income only.

  1. true
  2. false
  

Question 55 : With decrease in demand, supply remaining unchanged, the equilibrium price falls.

  1. true
  2. false
  

Question 56 : With an increase in supply, demand remaining unchanged, the equilibrium price rises.

  1. true
  2. false
  

Question 57 : Shift in the supply curve to the left will increase the equilibrium price

  1. true
  2. false
  

Question 58 : Shift in the demand curve to the left will increase the equilibrium price.

  1. true
  2. false
  

Question 59 : The market demand curve slopes _____ from left to right.

  1. downward
  2. upward
  3. horizontal
  4. vertical
  

Question 60 : The market supply schedule shows _____ relationship between price and quantity supplied.

  1. inverse
  2. direct
  3. no
  4. none of these
  

Question 61 : The point at which the quantity demanded equals supplied is the _____.

  1. total supply
  2. total demand
  3. equilibrium point
  4. none of these
  

Question 62 : A case of increase in demand, supply remaining unchanged, the equilibrium price _____.

  1. rises
  2. falls
  3. constant
  4. none of these
  

Question 63 : A case of decrease in supply, demand remaining unchanged, the equilibrium price _____.

  1. falls
  2. rises
  3. constant
  4. None of these
  

Question 64 : As price _____ , quantity demanded decreases and quantity supplies increases.

  1. decreases
  2. increases
  3. remain constant
  4. None of these
  

Question 65 : Market _____ is derived by adding up all the individual demand.

  1. demand
  2. supply
  3. price
  4. none of these
  

Question 66 : Which of the following shows the relationship between the price of a good and the amount of the good that consumers want at that price?

  1. Supply curve
  2. Demand curve
  3. Supply schedule
  4. Production possibilities frontier
  

Question 67 : The market clearing price is also called the ________.

  1. current price
  2. prevailing price
  3. equilibrium price
  4. None of the above
  

Question 68 : A straight line demand curve implies _____ demand function.

  1. Linear
  2. Non Linear
  3. Steep
  4. Vertical
  

Question 69 : Dx = a b Px is a case of _____ demand function.

  1. Linear
  2. Steep
  3. Vertical
  4. Non Linear
  

Question 70 : Demand and price have _____ relationship.

  1. No
  2. inverse
  3. Direct
  4. None of these
  

Question 71 : The demand curve is _____ elastic.

  1. Unirary
  2. perfectly
  3. Relatively
  4. None of these
  

Question 72 : _____ explains the relationship between demand for a commodity and it determinants.

  1. Demand
  2. Supply function
  3. Demand function
  4. Supply
  

Question 73 : The demand curve for a perfectly competitive firm is _____.

  1. Upward slopping
  2. downward sloping
  3. perfectly elastic
  4. Horizontal
  

Question 74 : The monopoly firm faces a _____ demand curve.

  1. veritcle
  2. Upward slopping
  3. Kinked
  4. downward sloping
  

Question 75 : An _____ firm does not face a definite demand curve.

  1. Monopolistic competition
  2. Monopoly
  3. Perfect Competition
  4. Oligopoly
  

Question 76 : Demand function explains the functional relationship between price and demand.

  1. true
  2. false
  

Question 77 : A linear demand function implies proportionate demand behaviour.

  1. true
  2. false
  

Question 78 : Demand for a commodity depends only on price, income of the commodity.

  1. true
  2. false
  

Question 79 : A linear demand function may be stated as D = a bP.

  1. true
  2. false
  

Question 80 : The demand curve for a perfectly competitive firm is perfectly elastic.

  1. true
  2. false
  

Question 81 : A monopoly firm faces a upward sloping demand curve.

  1. true
  2. false
  

Question 82 : The demand curve under monopolistic competition is more elastic in comparison to demand curve under monopoly.

  1. true
  2. false
  

Question 83 : Demand varies directly with price.

  1. true
  2. false
  

Question 84 : The demand curve for an oligopoly firm is indeterminate.

  1. true
  2. false
  

Question 85 : In a homogeneous oligopoly the firm try to differentiate their products from the other competitors.

  1. true
  2. false
  

Question 86 : The monopoly firm faces a downward sloping demand curve.

  1. true
  2. false
  

Question 87 : The demand curve representing a conventional demand function refers to :

  1. Price-demand functional relationship
  2. Proportionate relationship between price charge and demand variation
  3. Straight relationship between price charge and demand variation
  4. Effective desire of the buyers
  

Question 88 : Which of the following is a case of linear demand function?

  1. Dx = f (Px)
  2. Dx = f (Px , Py)
  3. Dx = a + b Px + L
  4. Dx = 100 5 Px
  

Question 89 : A linear demand function is depicted through :

  1. a straight line demand curve
  2. a downward slopping demand curve
  3. a vertical demand curve
  4. none of the above
  

Question 90 : All of the following are determinants of demand except _____

  1. Consumer income
  2. Price related to goods
  3. Quantity supplied
  4. Size of population
  

Question 91 : In a typical demand schedule quantity demanded _____

  1. Varies directly with price
  2. Varies inversely with price
  3. Is independent of price
  4. Various proportionately with price
  

Question 92 : A perfect competitive firm faces a _____ demand curve for its product.

  1. upward sloping
  2. downward sloping
  3. vertical straight line
  4. horizontal straight line
  

Question 93 : The demand curve under monopoly is a _____ curve.

  1. upward sloping
  2. downward sloping
  3. horizontal straight line
  4. None of the above
  

Question 94 : When demand is perfectly elastic, the demand curve is _____.

  1. horizontal straight line
  2. vertical straight line
  3. Steep
  4. None of the above
  

Question 95 : _____ is the desire for a commodity which is backed by ability and willingness to pay its price.

  1. Demand
  2. Supply
  3. Demand function
  4. Supply function
  

Question 96 : Under oligopoly the firm faces a _____ demand curve.

  1. horizontal
  2. vertical
  3. upward sloping
  4. Kinked (Indeterminate)
  

Question 97 : An endless demand at the given price is the case of ______ demand.

  1. Relatively elastic
  2. Unitary elastic
  3. perfectly elastic
  4. None of these
  

Question 98 : A steeper demand curve represent relatively ______ demand.

  1. elastic
  2. perfectly elastic
  3. inelastic
  4. unitary
  

Question 99 : If income rise by 10%, demand too rise by 10%, then income elasticity of demand is ______.

  1. Unitary elastic
  2. Relatively elastic
  3. unitary
  4. perfectly elastic
  

Question 100 : Income elasticity of demand is negative for ______ goods.

  1. inferior
  
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