BCOM-Business Economics MCQ



Question 251 : Private cost is included in ______.

  1. All of the above
  2. Price
  

Question 252 : ______ is the total cost per unit of output.

  1. fixed cost
  2. Total cost
  3. All of the above
  4. Average cost
  

Question 253 : Marginal cost is an ______ cost.

  1. Total cost
  2. fixed cost
  3. All of the above
  4. Additional
  

Question 254 : ______ is the summation of TFC and TVC.

  1. Average cost
  2. fixed cost
  3. All of the above
  4. Total cost
  

Question 255 : A short-run average cost curve is known as ______.

  1. All of the above
  2. Plant curve
  

Question 256 : In long-run all costs are ______.

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

Question 257 : The MC curve intersects AC curve at its ______ point from below.

  1. minimum
  2. Maximum
  3. None of these
  

Question 258 : ______ economies causes LAC curve to fall.

  1. Internal
  2. external
  3. None of these
  

Question 259 : Net ______ causes LAC curve to rise.

  1. Diseconomies
  2. economies
  3. None of these
  

Question 260 : ______ economies causing downward shift of the LAC curve.

  1. External
  2. Internal
  3. None of these
  

Question 261 : ______ economies reflect in reducing the overall cost function of the firm.

  1. External
  2. Intaernal
  3. All of the above
  

Question 262 : ______ is attributed to the diseconomies of scale after a certain point of further expansion.

  1. Increasing LAC
  2. decreasing LAC
  3. All of the above
  

Question 263 : Economies and diseconomies of large scale play a significant role in determining the shape of the ______.

  1. K. J. Arrow
  2. LAC curve
  3. None of these
  

Question 264 : Learning curve was developed by ______.

  1. LAC curve
  2. K. J. Arrow
  3. None of these
  

Question 265 : The ______ is measured by the shift in the LAC with respect to cumulative output change.

  1. Learning effect
  2. None of these
  

Question 266 : Fixed costs refer to Labour costs.

  1. true
  2. false
  

Question 267 : At zero level of output, total cost of a firm is equal to fixed costs.

  1. true
  2. false
  

Question 268 : Economic cost is equal to explicit cost minus implicit cost.

  1. true
  2. false
  

Question 269 : Sunk cost are those cost which can be recovered.

  1. true
  2. false
  

Question 270 : Incremental cost is called as avoidable cost.

  1. true
  2. false
  

Question 271 : Social cost is included in price.

  1. true
  2. false
  

Question 272 : Money cost is the payment made for the factors in terms of money.

  1. true
  2. false
  

Question 273 : Variable cost remain fixed at any level of output in the short run.

  1. true
  2. false
  

Question 274 : When MC is more than AC, if exerts a downward pull on the AC curve.

  1. true
  2. false
  

Question 275 : The LAC curve is referred as the envelope curve.

  1. true
  2. false
  

Question 276 : The LAC curve is less U-shaped.

  1. true
  2. false
  

Question 277 : Marginal cost is a U-shape curve

  1. true
  2. false
  

Question 278 : AFC never becomes zero.

  1. true
  2. false
  

Question 279 : AVC curve is a U shape curve.

  1. true
  2. false
  

Question 280 : When MC and AC are falling, MC curve lies above the AC curve.

  1. true
  2. false
  

Question 281 : Fixed cost are overhead cost.

  1. true
  2. false
  

Question 282 : Implicit cost are also called as indirect cost.

  1. true
  2. false
  

Question 283 : Sunk cost is called as avoidable cost.

  1. true
  2. false
  

Question 284 : Explicit costs are called as the accounting costs.

  1. true
  2. false
  

Question 285 : Total cost is summation of AVC and AFC.

  1. true
  2. false
  

Question 286 : TFC is parallel to X-axis.

  1. true
  2. false
  

Question 287 : Long-run is a period in which all the inputs become fixed.

  1. true
  2. false
  

Question 288 : LAC curve is regarded as the long-run planning device

  1. true
  2. false
  

Question 289 : Fixed cost include cost of raw materials.

  1. true
  2. false
  

Question 290 : LAC curve is called a planning curve.

  1. true
  2. false
  

Question 291 : In a short run period, all costs are variable.

  1. true
  2. false
  

Question 292 : TVC is inverse S shaped curve

  1. true
  2. false
  

Question 293 : Internal economies causes LAC curve to rise

  1. true
  2. false
  

Question 294 : Net diseconomies causes LAC to rise.

  1. true
  2. false
  

Question 295 : External diseconomies lead LAC curve to shift upwards.

  1. true
  2. false
  

Question 296 : Learning curve indicate increase in cost of production to the decrease in output.

  1. true
  2. false
  

Question 297 : The increase in cost due to increase in efficiency is called learning curve effect.

  1. true
  2. false
  

Question 298 : Learning curve indicate increase in cost of production to the decrease in output.

  1. true
  2. false
  

Question 299 : The fundamental difference between economic cost and accounting cost is :

  1. Conditional
  2. Pyschological
  3. Academic
  4. Implicity and Explicity
  

Question 300 : Fixed costs refer to :

  1. Contractual payments
  2. Labour costs
  3. Out of pocket expenses
  4. Business payments
  
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