BCOM-Business Economics MCQ

Question 101 : If two goods are unrelated to each other, then it is ______ cross elasticity of demand.

1. None of the above
2. positive
3. Negative
4. zero

Question 102 : Advertisement elasticity of demand is always ______.

1. Negative
2. positive
3. zero
4. None of the above

Question 103 : Different ______ are indicated by differently sloping income demand curve.

1. price elasiticity
2. Income elasticities
3. Elasticity of substitution
4. None of these

Question 104 : A vertical straight line demand curve implies ______ degree of price elasticity.

1. Positive
2. Negative
3. None ot these
4. zero

Question 105 : Commodities which requires a large portion of consumers income tend to have ______ demand.

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

Question 106 : Jointly demanded goods tend to have ______ demand.

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

Question 107 : A flatter demand curve represent relatively ______ demand.

1. elastic
2. Relatively elastic
3. None ot the above
4. inelastic

Question 108 : If elasticity of demand = 1, the marginal revenue is ______.

1. zero
2. Infinity
3. Positive
4. Negative

Question 109 : If cross elasticity between two goods is positive, goods are necessarily complements.

1. true
2. false

Question 110 : In case of inferior goods income elasticity of demand is positive.

1. true
2. false

Question 111 : The cross elasticity of demand may be positive, negative or zero.

1. true
2. false

Question 112 : A vertical demand curve implies zero price elasticity.

1. true
2. false

Question 113 : Promotion elasticity is always positive.

1. true
2. false

Question 114 : The concept of elasticity of demand has no useful application.

1. true
2. false

Question 115 : A perfectly elastic demand is represented by rectangular hyperbola curve.

1. true
2. false

Question 116 : A horizontal demand curve implies perfectly inelastic demand.

1. true
2. false

Question 117 : In zero income elasticity, change in income has not effect on demand.

1. true
2. false

Question 118 : If elasticity of demand is infinite, marginal revenue will be increase.

1. true
2. false

Question 119 : When e = 1, total revenue reaches its maximum.

1. true
2. false

Question 120 : Demand for electricity is elastic.

1. true
2. false

Question 121 : Habits makes demand inelastic

1. true
2. false

Question 122 : The cross price elasticity of demand is defined as :

1. The ratio of percentage change in the demand to the percentage change in the price.
2. The ratio of percentage change in the demand for a given product to the percentage change in the price of a related other product.
3. The ratio of percentage change in the demand for product X to the percentage change in the demand for product Y.
4. The ratio of two different elasticities.

Question 123 : A positive cross-price elasticity coefficient implies that :

1. Two products are substitutes
2. Two products are jointly demanded
3. Two products are complementary
4. Two products have no relations

Question 124 : When the price of a product X is 60 per unit, the quantity demand is 2000 units. When the price of X increased to 100 per unit, the market demand contracted to 1000 units. Then the price elasticity of demand coefficient is :

1. 1.75
2. 0.75
3. 0.8
4. 0.75

Question 125 : Measurement of demand elasticity enables the manager to :

1. Know the magnitude of demand
2. Characterised the nature of demand for the product
3. Consider both (a) and (b)
4. Consider (b) and (c)

Question 126 : Which of the following can be expected to have a flatter demand curve?

1. Petrol
2. Salt
3. Plasma TV
4. All of the above

Question 127 : Which of the following is a possible coefficient of inelastic demand ?

1. 3.3
2. 0.6
3. 1.1
4. 1

Question 128 : If the price of a product increases from 5 to 10 and corresponding change in demand is from 30 units to 12 units; it is the case of :

1. Unitary elastic demand
2. Elastic demand
3. Inelastic demand
4. Perfectly elastic demand

Question 129 : Which could be a positive cross elasticity demand between Butter and Jam?

1. 1
2. 0.9
3. 0.9
4. 2

Question 130 : When demand is perfectly elastic, the demand curve is :

1. Steep
2. Non-linear
3. Linear
4. Horizontal straight line

Question 131 : A product's market demand tends to be inelastic when :

1. There are many suppliers
2. There are several substitutes
3. Less substitutes
4. All of the above

Question 132 : On a linear horizontal demand curve :

1. Elasticity is zero
2. Elasticity is infinity
3. Elasticity is low towards origin
4. All of the above

Question 133 : Unitary elastic demand is represented by :

1. Horizontal demand curve
2. Downward sloping demand curve
3. Vertical demand curve
4. Hyperbola slope demand curve

Question 134 : The demand for a product is referred to as price-inelastic, if :

1. The elasticity coefficient is less than unity
2. The buyers do not respond much to the price variation in the market
3. The fall in price is accompanied by the decrease of demand
4. Both (a) and (b)

Question 135 : The basic formula for the advertising elasticity of demand coefficient is :

1. Ratio of rise in demand to rise in advertising expenses
2. Percentage change in quantity demanded/percentage change in advertising expenditure
3. Absolute change in demand/absolute change in advertising expenditure
4. (% ? D) (% ? A)

Question 136 : In the case of a linear demand curve :

1. Elasticity is same throughout
2. Elasticity varies at different points
3. Demand is highly elastic at vertical intercept
4. Demand is constant

Question 137 : If an increase in the price of product X does not change its total sales revenue, the manager should infer that the demand for X is :

1. Undeterminable
2. Unitary elastic
3. Relatively inelastic
4. Perfectly inelastic

Question 138 : Usually demand for air travel in business class is assumed to be :

1. Highly price elastic
2. Price inelastic
3. Unitary elastic
4. Undeterminable

Question 139 : Market demand for necessaries are usually :

1. Highly price-elastic
2. Price-inelastic
3. Perfectly elastic
4. Perfectly inelastic

Question 140 : Which of the following product has nearly perfectly inelastic demand?

1. Salt
2. Electricity
3. Petrol
4. Higher Education in Management field

Question 141 : If elasticity of demand (e) < 1, then marginal revenue is always ______.

1. Positive
2. Negative
3. Zero
4. None of these

Question 142 : If elasticity of demand = 1 than marginal revenue is ______.

1. positive
2. negative
3. zero
4. none of these

Question 143 : If cross elasticity of demand is positive, goods are ______.

1. Complementary
2. Substitutes
3. not related
4. None of these

Question 144 : If a small reduction in price leads to a fall in total outlay, elasticity of demand is :

1. less than one
2. greater than one
3. equal to one
4. none of the above

Question 145 : Which is the cause of the rightward shift of the demand curve for cars?

1. An increase in income
2. An increase in population size
3. Lower prices of petrol
4. All of the above

Question 146 : A percentage change in quantity demanded divided by a percentage change in price is called

1. income elasticity of demand
2. price elasticity of demand
3. price elasticity of supply
4. elasticity of substitution

Question 147 : On the lower segments of a downward sloping straight line demand curve price elasticity of demand is

1. > 1
2. < 1
3. 1
4. none of the above

Question 148 : Moving averages can be used to measure a _______ .

1. Trade cycle
2. Raulan
3. Trend
4. All of the above

Question 149 : Under _____ method sales man are asked to estimates expected sales.

1. Statistical
2. Survey
3. Collective Opinion
4. None of these

Question 150 : _____ forecasting uses historical figures to predict future results.

1. Time Series
2. None of these