BCOM-Business Economics MCQ

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Question 201 : The laws of variable proportions assumes all factors should remain constant.

  1. true
  2. false
  

Question 202 : With the division of labour specialisation leads to technological economics

  1. true
  2. false
  

Question 203 : External economics are realized by the monopolist firms since there is no competition

  1. true
  2. false
  

Question 204 : Internal economics enjoyed by an individual firm.

  1. true
  2. false
  

Question 205 : Division of labour leads to labour economy

  1. true
  2. false
  

Question 206 : Using superior technology leads to external economy of scale.

  1. true
  2. false
  

Question 207 : The iso-quants are concave to the origin.

  1. true
  2. false
  

Question 208 : Two iso-quants can intersect each other.

  1. true
  2. false
  

Question 209 : The point of tangency between iso-cost line and iso-quant is the point of producers equilibrium.

  1. true
  2. false
  

Question 210 : Economies of scale lead to reduction in cost of production.

  1. true
  2. false
  

Question 211 : A large firm can enjoy financial economies and marketing economies.

  1. true
  2. false
  

Question 212 : Increasing return to scale curve is upward sloping curve.

  1. true
  2. false
  

Question 213 : Economies of scope is reflected in the higher cost.

  1. true
  2. false
  

Question 214 : Economies of scope is possible when two or more goods are produced.

  1. true
  2. false
  

Question 215 : Production refers to :

  1. Production function
  2. Creation of utilities
  3. Producing output
  4. Transformation
  

Question 216 : Inputs in the process of production refers to :

  1. The employment
  2. The use of factors of production
  3. Anything in a factory
  4. None of the above
  

Question 217 : Production function refers to :

  1. The input output relationship in the process of production
  2. The technological impact
  3. The technology and other resources in operations
  4. The production methods
  

Question 218 : In the shortrun :

  1. All factors are variable
  2. There exists some fixed factors only
  3. Output varies with variable factors
  4. There is short time for change
  

Question 219 : In longrun :

  1. Production level can be increased infinitely
  2. All factors are variable
  3. Everything can be changed
  4. Production level refers to period of 10 years and above
  

Question 220 : When the total product is maximum :

  1. Average product is maximum
  2. Marginal product is maximum
  3. Marginal product is equal to average product
  4. Marginal product is zero
  

Question 221 : Increasing returns to scale means :

  1. Marginal product is constant
  2. Proportion of change is output is exceeding the proportion of change in input
  3. The marginal product curve is declining
  4. Excellent management
  

Question 222 : The slope of an isoquant refers to the measurement of :

  1. The marginal rate of technical substitution
  2. The marginal physical product of labour
  3. The capital efficiency
  4. All of the above
  

Question 223 : Long-run average cost decline as output expands due to :

  1. Good management
  2. Technological advancement
  3. Economics of scale
  4. Spread of fixed costs
  

Question 224 : Labour economy is caused by :

  1. Division of labour
  2. Time management
  3. Managerial efficiency
  4. Better organisation
  

Question 225 : The slope of long-run cost curve is influenced by :

  1. The artist
  2. Managerial economy
  3. Economics and diseconomics of scale
  4. Input-output technical relationship
  

Question 226 : Application of automotive devices with expanding scale of operation leads to :

  1. Industrial economy
  2. Technical economy
  3. External economy
  4. Technical force
  

Question 227 : Internal economies are realized by the firm :

  1. When its size is big
  2. Scale of operation is large
  3. Within itself
  4. All of the above
  

Question 228 : External economics occur when :

  1. Size of firm expands
  2. Size of industry expands
  3. Economy grows
  4. All of the above
  

Question 229 : ______ type of iso-quant assumes perfect substitutability.

  1. Leontief iso-quant
  2. Kinked iso-quant
  3. Linear iso-quant
  4. Smooth convex iso-quant
  

Question 230 : The area lying between the two ridge lines is the ______.

  1. non-economic region
  2. economic region
  3. economic of scope
  4. none of there
  

Question 231 : ______ is attributed to the multiproduct cost function.

  1. Economies of scope
  2. Diseconomies of scale
  3. Economies of scale
  4. None of these
  

Question 232 : The point of tangency between isocost line and isoquant is the point of ______.

  1. Consumers equilibrium
  2. Producers equilibrium
  3. Both (a) and (b)
  4. None of these
  

Question 233 : Decreasing return to scale arises due to ______ of large scale production.

  1. economies
  2. diseconomies
  3. both (a) and (b)
  4. None of these
  

Question 234 : If there is zero substitutability between capital and labour the isoquant is__________.

  1. a straight line
  2. L shaped
  3. concave to the origin
  4. None of these
  

Question 235 : The total amount of output produced is called ______.

  1. Total supply
  2. Total product
  3. Both a and b
  4. None of the above
  

Question 236 : Using five units of labour a firm can produce 2500 units of a good. Using six units of labour the firm can produce 3000 units of the good. The marginal product of the sixth unit of labour is.

  1. 100 units
  2. 1500 units
  3. 2000 units
  4. 500 units
  

Question 237 : ______ cost consists of only those payments which are actually made by the firm.

  1. variable
  2. Accounting
  3. Average
  4. None of these
  

Question 238 : In longrun all costs are ______.

  1. Social
  2. variable
  3. Private
  4. None of these
  

Question 239 : Under constant costs conditions LAC and LMC curves tend to ______.

  1. Private
  2. coinside
  3. Social
  4. None of these
  

Question 240 : Minimum point of the LAC curve implies ______ plant size.

  1. Social
  2. Optimum
  3. Private
  4. None of these
  

Question 241 : ______ costs are incorporated in the firms total cost of production.

  1. Social
  2. Private
  3. fixed
  4. None of these
  

Question 242 : Environmental distraction is a ______ cost.

  1. fixed
  2. None of these
  3. Social
  4. Private
  

Question 243 : ______ are direct contractual monetary payments incurred through market transactions.

  1. Fixed cost
  2. None of these
  3. Explicit costs
  4. total cost
  

Question 244 : ______ remain fixed at any level of output in the short run.

  1. Explicit costs
  2. None of these
  3. Fixed cost
  4. total cost
  

Question 245 : ______ curve is regarded as the long-run planning device.

  1. None of these
  2. LAC
  

Question 246 : ______ is the total expenditure incurred by the firm in producing a given level of output.

  1. Average fixed cost
  2. None of these
  3. total cost
  4. fixed cost
  

Question 247 : ______ refers to the total expenditure made by the firm on the variable factor in short run.

  1. Prime cost
  2. fixed cost
  3. All of the above
  4. total variable cost
  

Question 248 : Marginal cost is also referred as ______.

  1. Supplementary
  2. fixed cost
  3. All of the above
  4. Incremental cost
  

Question 249 : Fixed costs are ______ cost.

  1. Prime
  2. Incrementalt
  3. All of the above
  4. Supplementary
  

Question 250 : Variable costs are ______ cost.

  1. Prime
  2. Incrementalt
  3. All of the above
  4. Prime
  
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