Question 1 : _____ refers to the integration of economic theory with business practice.cost
- Business economics
- Managerial economics
- business planning
- None of these
Question 2 : Business economies is now termed as _____.
- Managerial economics
- Business economics
- None of these
- business planning
Question 3 : Demand analysis and forecasting is essential for _____.
- Business economics
- business planning
- Managerial economics
- None of these
Question 4 : _____ is narrower in scope than cost analysis.
- Supply analysis
- Production analysis
- Demand analysis
- All of the above
Question 5 : _____ deals with various aspects of supply of a commodity.
- Production analysis
- None of these
- Supply analysis
- Demand analysis
Question 6 : As price generate income to the firm, _____ are important for business economics.
- pice fixation
- Production analysis
- pricing practices
- None of these
Question 7 : The price determination theories in different market conditions enable the firm to solve the _____ problems.
- Supply analysis
- pricing practices
- None of these
- pice fixation
Question 8 : The scope of business economics cover all major aspects of _____ analysis.
- macro–economics
- micro–economic
- Business economic
- Indian economy
Question 9 : _____ enables the manger to become a more competent model builder.
- Indian economy
- Business economics
- macro–economics
- micro–economic
Question 10 : _____ refers to the next best alternative foregone or sacrificed.
- Incremental cost
- Marginal cost
- Opportunity cost
- Average cost
Question 11 : The change in total cost resulting from a particular decision of the firm is refer as _____.
- Opportunity cost
- Average cost
- Incremental cost
- Marginal cost
Question 12 : _____ cover topics such as cost concepts, methods of estimating costs etc.
- Production analysis
- Supply analysis
- Cost analysis
- Demand analysis
Question 13 : _____ refers to the total demand for a commodity by all buyer in the market.
- Individual supply
- market supply
- Market demand
- Individual demand
Question 14 : The market demand schedule shows an _____ relationship between price and demand.
- direct
- No
- inverse
- none of these
Question 15 : The market demand curve slopes _____.
- upwards
- Horizontal
- Vertical
- downward
Question 16 : _____ refers to the total quantities of commodity offered for sale by all in producers.
- equilibrium price
- Market demand
- None of these
- market supply
Question 17 : When the market schedule is plotted on a graph we get _____ curve.
- Equilibrium point
- Market demand
- None of these
- market supply
Question 18 : The market supply curve slopes _____ to the right.
- downward
- upwards
- Vertical
- Horizontal
Question 19 : The _____ is determined by the interaction of market demand and supply.
- market price
- equilibrium point
- none of these
Question 20 : The point at which quantity demand equals to supply is the _____.
- equilibrium point
- none of these
Question 21 : With an increase in supply, demand remaining unchanged, the equilibrium price _____.
- raised
- falls
- constant
- none of these
Question 22 : Shift in the supply curve to the left will _____ the equilibrium price.
- no effect
- increase
- decreased
- none of these
Question 23 : Shift in the supply curve to the left will increase the _____.
- Market demand
- equilibrium price
- Market supply
- none of these
Question 24 : Demand and price have _____ relationship.
- No
- inverse
- Direct
- None of these
Question 25 : The demand curve is _____ elastic.
- Unirary
- perfectly
- Relatively
- None of these
Question 26 : _____ explains the relationship between demand for a commodity and it determinants.
- Demand
- Supply function
- Demand function
- Supply
Question 27 : The demand curve for a perfectly competitive firm is _____.
- Upward slopping
- downward sloping
- perfectly elastic
- Horizontal
Question 28 : The monopoly firm faces a _____ demand curve.
- veritcle
- Upward slopping
- Kinked
- downward sloping
Question 29 : An _____ firm does not face a definite demand curve.
- Monopolistic competition
- Monopoly
- Perfect Competition
- Oligopoly
Question 30 : The demand curve representing a conventional demand function refers to :
- Negative relationship
- Proportional relationship
- straight relationship
- None of the above
Question 31 : Which of the following is a case of linear demand function?
- Dx = f (Px)
- Dx = f (Px , Py)
- Dx = a + b Px + L
- Dx = 100 – 5 Px
Question 32 : _____ is the desire for a commodity which is backed by ability and willingness to pay its price.
- Demand
- Supply
- Demand function
- Supply function
Question 33 : Under oligopoly the firm faces a _____ demand curve.
- horizontal
- vertical
- upward sloping
- Kinked (Indeterminate)
Question 34 : An endless demand at the given price is the case of ______ demand.
- Relatively elastic
- Unitary elastic
- perfectly elastic
- None of these
Question 35 : A steeper demand curve represent relatively ______ demand.
- elastic
- perfectly elastic
- inelastic
- unitary
Question 36 : If income rise by 10%, demand too rise by 10%, then income elasticity of demand is ______.
- Unitary elastic
- Relatively elastic
- unitary
- perfectly elastic
Question 37 : Income elasticity of demand is negative for ______ goods.
- inferior
Question 38 : If two goods are unrelated to each other, then it is ______ cross elasticity of demand.
- None of the above
- positive
- Negative
- zero
Question 39 : Advertisement elasticity of demand is always ______.
- Negative
- positive
- zero
- None of the above
Question 40 : Different ______ are indicated by differently sloping income demand curve.
- price elasiticity
- Income elasticities
- Elasticity of substitution
- None of these
Question 41 : A vertical straight line demand curve implies ______ degree of price elasticity.
- Positive
- Negative
- None ot these
- zero
Question 42 : Commodities which requires a large portion of consumer’s income tend to have ______ demand.
- perfectly elastic
- Zero
- inelastic
- elastic
Question 43 : Jointly demanded goods tend to have ______ demand.
- inelastic
- perfectly elastic
- Relatively inelastic
- inelastic
Question 44 : A flatter demand curve represent relatively ______ demand.
- elastic
- Relatively elastic
- None ot the above
- inelastic
Question 45 : If elasticity of demand = 1, the marginal revenue is ______.
- zero
- Infinity
- Positive
- Negative
Question 46 : A proportional increase in output in relation to the charge in input implies _____ returns to scale.
- minimum
- constant
- maximum
- None of these
Question 47 : When percentage change in output is greater than that of input, it is the phenomenon of _____ returns to scale.
- constant
- increasing
- None of these
- decreasing
Question 48 : When marginal product is zero total product is _____.
- constant
- minimum
- None of these
- maximum
Question 49 : Labour economy is caused by ______. Better
- organisation
- Time management
- Specialisation/division of labour
- Mangerial Efficieny
Question 50 : When managerial costs per unit declines it is the case of ______.
- Managerial economy
- none of there
Question 51 : A firm experiences ______ economics of scale when its size expands.
- domestic
- none of there
- External
- Internal
Question 52 : Localisation of industry confers ______ economic to the clustering firm.
- donestic
- Internal
- none of there
- External
Question 53 : ______ refers to total product per unit of variable factor. `
- average product
- marginal product
- Average cost
- None of the above
Question 54 : ______ is the functional relationship between physical input and output.
- Management function
- production function
- Labour function
- None of these
Question 55 : The scale of production can varied only in the ______.
- greater direction
- reduction
- addition
- none of there
Question 56 : Application of automotive devices with expanding scale of operation leads to :
- Industrial economy
- Technical economy
- External economy
- Technical force
Question 57 : Internal economies are realized by the firm :
- When its size is big
- Scale of operation is large
- Within itself
- All of the above
Question 58 : External economics occur when :
- Size of firm expands
- Size of industry expands
- Economy grows
- All of the above
Question 59 : ______ type of iso-quant assumes perfect substitutability.
- Leontief iso-quant
- Kinked iso-quant
- Linear iso-quant
- Smooth convex iso-quant
Question 60 : Economies of scale lead to ______ in cost of production.
- None of these
- long run
- Short run
Question 61 : ______ was initially called as the law of diminishing returns.
- law of variable proportion
- none of there
Question 62 : ______ cost consists of only those payments which are actually made by the firm.
- variable
- Accounting
- Average
- None of these
Question 63 : In long–run all costs are ______.
- Social
- variable
- Private
- None of these
Question 64 : Under constant costs conditions LAC and LMC curves tend to ______.
- Private
- coinside
- Social
- None of these
Question 65 : Minimum point of the LAC curve implies ______ plant size.
- Social
- Optimum
- Private
- None of these
Question 66 : ______ costs are incorporated in the firm’s total cost of production.
- Social
- Private
- fixed
- None of these
Question 67 : Environmental distraction is a ______ cost.
- fixed
- None of these
- Social
- Private
Question 68 : ______ are direct contractual monetary payments incurred through market transactions.
- Fixed cost
- None of these
- Explicit costs
- total cost
Question 69 : ______ remain fixed at any level of output in the short run.
- Explicit costs
- None of these
- Fixed cost
- total cost
Question 70 : ______ curve is regarded as the long-run planning device.
- None of these
- LAC
Question 71 : ______ is the total expenditure incurred by the firm in producing a given level of output.
- Average fixed cost
- None of these
- total cost
- fixed cost
Question 72 : ______ refers to the total expenditure made by the firm on the variable factor in short run.
- Prime cost
- fixed cost
- All of the above
- total variable cost
Question 73 : Marginal cost is also referred as ______.
- Supplementary
- fixed cost
- All of the above
- Incremental cost
Question 74 : Fixed costs are ______ cost.
- Prime
- Incrementalt
- All of the above
- Supplementary
Question 75 : Variable costs are ______ cost.
- Prime
- Incrementalt
- All of the above
- Prime
Question 76 : Private cost is included in ______.
- All of the above
- Price
Question 77 : ______ is the total cost per unit of output.
- fixed cost
- Total cost
- All of the above
- Average cost
Question 78 : ______ is the summation of TFC and TVC.
- Average cost
- fixed cost
- All of the above
- Total cost
Question 79 : Fixed cost is regarded as ______ cost
- unavoidable
- variable
- avoidable
- none of the above
Question 80 : Electricity charges, sales tax etc. are examples of ______ cost.
- Fixed
- Variable
- Private
- Social
Question 81 : ______ is not related to the level of output
- Total cost
- Total variable cost
- Total fixed cost
- average cost
Question 82 : ______ is obtained by dividing TC by the level of output produced
- Average fixed cost
- Average variable
- Total fixed cost
- Average total cost
Question 83 : A firm’s ______ is the sum of total fixed costs and total variable cost at each level of output
- Average fixed cost
- Average variable cost
- Total cost
- None of these
Question 84 : Marginal cost is an ______ cost.
- Total cost
- fixed cost
- All of the above
- Additional
Question 85 : Break-even analysis compares total ______ and total cost, graphically and algebraically.
- Revenue
- average variable cost
- Average cost
- None of the above
Question 86 : Break-even analysis at break-even point indicates ______ profit
- Zero
- Heavy loss
- Large profit
- All of the above
Question 87 : A break-even analysis is essentially a typical case of required profit analysis where the required profit is ______
- Zero
- Large profit
- Heavy loss
- All of the above
Question 88 : The break-even quantity point will decrease, when price ______.
- decreases
- Increases
- constant
- None of the above
Question 89 : ______ is the point where total revenue is equal to total cost.
- point of origin
- Break-even point
- Marginal point
- None of the above
Question 90 : The ______ graphically depicts the profit-output relationship
- Marginal point
- Break-even chart
- point of origin
- All of the above
Question 91 : When TR > TC, it indicates ______ zone of a firm
- Loss
- Profit
- All of the above
Question 92 : Break-even point of a chart indicates ______.
- Large profit
- Heavy loss
- Zero profit
- All of the above
Question 93 : Break-even analysis compare total revenue with ______.
- Total cost
- Average cost
- marginal cost
- None of the above
Question 94 : Break-even analysis is also referred to as ______.
- Cost-volume-profit analysis
- demand analysis
- Supply analysis
- None of the above
Question 95 : ______ refers to the extent to which the firm can permit a decline in sales before it starts incurring losses.
- safety margin
- average margin
- total margin
- None of the above
Question 96 : BEA help the firm to determine ______ for a given level of output.
- Maximum cost
- Average cost
- None of the above
- minimum cost
Question 97 : BEA at break-even point indicate ______ profit.
- Heavy loss
- Large profit
- None of the above
- zero
Question 98 : Break-even analysis compares total revenue with :
- Total profit
- Total cost
- Average cost
- Price
Question 99 : Break-even analysis is used to determine how much quantity of its product it must sale to :
- Make profit
- Break-even
- Maximise profit
- None of the above
Question 100 : Break-even point of a chart indicates :
- Zero profit
- Heavy loss
- Large profit
- All of the above
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