BCOM Economics-1 MCQ

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Question 1 : _____ refers to the integration of economic theory with business practice.cost

  1. Business economics
  2. Managerial economics
  3. business planning
  4. None of these
  

Question 2 : Business economies is now termed as _____.

  1. Managerial economics
  2. Business economics
  3. None of these
  4. business planning
  

Question 3 : Demand analysis and forecasting is essential for _____.

  1. Business economics
  2. business planning
  3. Managerial economics
  4. None of these
  

Question 4 : _____ is narrower in scope than cost analysis.

  1. Supply analysis
  2. Production analysis
  3. Demand analysis
  4. All of the above
  

Question 5 : _____ deals with various aspects of supply of a commodity.

  1. Production analysis
  2. None of these
  3. Supply analysis
  4. Demand analysis
  

Question 6 : As price generate income to the firm, _____ are important for business economics.

  1. pice fixation
  2. Production analysis
  3. pricing practices
  4. None of these
  

Question 7 : The price determination theories in different market conditions enable the firm to solve the _____ problems.

  1. Supply analysis
  2. pricing practices
  3. None of these
  4. pice fixation
  

Question 8 : The scope of business economics cover all major aspects of _____ analysis.

  1. macro–economics
  2. micro–economic
  3. Business economic
  4. Indian economy
  

Question 9 : _____ enables the manger to become a more competent model builder.

  1. Indian economy
  2. Business economics
  3. macro–economics
  4. micro–economic
  

Question 10 : _____ refers to the next best alternative foregone or sacrificed.

  1. Incremental cost
  2. Marginal cost
  3. Opportunity cost
  4. Average cost
  

Question 11 : The change in total cost resulting from a particular decision of the firm is refer as _____.

  1. Opportunity cost
  2. Average cost
  3. Incremental cost
  4. Marginal cost
  

Question 12 : _____ cover topics such as cost concepts, methods of estimating costs etc.

  1. Production analysis
  2. Supply analysis
  3. Cost analysis
  4. Demand analysis
  

Question 13 : _____ refers to the total demand for a commodity by all buyer in the market.

  1. Individual supply
  2. market supply
  3. Market demand
  4. Individual demand
  

Question 14 : The market demand schedule shows an _____ relationship between price and demand.

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

Question 15 : The market demand curve slopes _____.

  1. upwards
  2. Horizontal
  3. Vertical
  4. downward
  

Question 16 : _____ refers to the total quantities of commodity offered for sale by all in producers.

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

Question 17 : When the market schedule is plotted on a graph we get _____ curve.

  1. Equilibrium point
  2. Market demand
  3. None of these
  4. market supply
  

Question 18 : The market supply curve slopes _____ to the right.

  1. downward
  2. upwards
  3. Vertical
  4. Horizontal
  

Question 19 : The _____ is determined by the interaction of market demand and supply.

  1. market price
  2. equilibrium point
  4. none of these
  

Question 20 : The point at which quantity demand equals to supply is the _____.

  1. equilibrium point
  4. none of these
  

Question 21 : With an increase in supply, demand remaining unchanged, the equilibrium price _____.

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

Question 22 : Shift in the supply curve to the left will _____ the equilibrium price.

  1. no effect
  2. increase
  3. decreased
  4. none of these
  

Question 23 : 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 24 : Demand and price have _____ relationship.

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

Question 25 : The demand curve is _____ elastic.

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

Question 26 : _____ explains the relationship between demand for a commodity and it determinants.

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

Question 27 : The demand curve for a perfectly competitive firm is _____.

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

Question 28 : The monopoly firm faces a _____ demand curve.

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

Question 29 : An _____ firm does not face a definite demand curve.

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

Question 30 : The demand curve representing a conventional demand function refers to :

  1. Negative relationship
  2. Proportional relationship
  3. straight relationship
  4. None of the above
  

Question 31 : 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 32 : _____ 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 33 : Under oligopoly the firm faces a _____ demand curve.

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

Question 34 : 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 35 : A steeper demand curve represent relatively ______ demand.

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

Question 36 : 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 37 : Income elasticity of demand is negative for ______ goods.

  4. inferior
  

Question 38 : 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 39 : Advertisement elasticity of demand is always ______.

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

Question 40 : Different ______ are indicated by differently sloping income demand curve.

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

Question 41 : A vertical straight line demand curve implies ______ degree of price elasticity.

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

Question 42 : Commodities which requires a large portion of consumer’s income tend to have ______ demand.

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

Question 43 : Jointly demanded goods tend to have ______ demand.

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

Question 44 : A flatter demand curve represent relatively ______ demand.

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

Question 45 : If elasticity of demand = 1, the marginal revenue is ______.

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

Question 46 : A proportional increase in output in relation to the charge in input implies _____ returns to scale.

  1. minimum
  2. constant
  3. maximum
  4. None of these
  

Question 47 : When percentage change in output is greater than that of input, it is the phenomenon of _____ returns to scale.

  1. constant
  2. increasing
  3. None of these
  4. decreasing
  

Question 48 : When marginal product is zero total product is _____.

  1. constant
  2. minimum
  3. None of these
  4. maximum
  

Question 49 : Labour economy is caused by ______. Better

  1. organisation
  2. Time management
  3. Specialisation/division of labour
  4. Mangerial Efficieny
  

Question 50 : When managerial costs per unit declines it is the case of ______.

  3. Managerial economy
  4. none of there
  

Question 51 : A firm experiences ______ economics of scale when its size expands.

  1. domestic
  2. none of there
  3. External
  4. Internal
  

Question 52 : Localisation of industry confers ______ economic to the clustering firm.

  1. donestic
  2. Internal
  3. none of there
  4. External
  

Question 53 : ______ refers to total product per unit of variable factor. `

  1. average product
  2. marginal product
  3. Average cost
  4. None of the above
  

Question 54 : ______ is the functional relationship between physical input and output.

  1. Management function
  2. production function
  3. Labour function
  4. None of these
  

Question 55 : The scale of production can varied only in the ______.

  1. greater direction
  2. reduction
  3. addition
  4. none of there
  

Question 56 : Application of automotive devices with expanding scale of operation leads to :

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

Question 57 : 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 58 : External economics occur when :

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

Question 59 : ______ 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 60 : Economies of scale lead to ______ in cost of production.

  2. None of these
  3. long run
  4. Short run
  

Question 61 : ______ was initially called as the law of diminishing returns.

  3. law of variable proportion
  4. none of there
  

Question 62 : ______ cost consists of only those payments which are actually made by the firm.

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

Question 63 : In long–run all costs are ______.

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

Question 64 : Under constant costs conditions LAC and LMC curves tend to ______.

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

Question 65 : Minimum point of the LAC curve implies ______ plant size.

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

Question 66 : ______ costs are incorporated in the firm’s total cost of production.

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

Question 67 : Environmental distraction is a ______ cost.

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

Question 68 : ______ are direct contractual monetary payments incurred through market transactions.

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

Question 69 : ______ 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 70 : ______ curve is regarded as the long-run planning device.

  2. None of these
  3. LAC
  

Question 71 : ______ 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 72 : ______ 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 73 : Marginal cost is also referred as ______.

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

Question 74 : Fixed costs are ______ cost.

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

Question 75 : Variable costs are ______ cost.

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

Question 76 : Private cost is included in ______.

  3. All of the above
  4. Price
  

Question 77 : ______ is the total cost per unit of output.

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

Question 78 : ______ is the summation of TFC and TVC.

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

Question 79 : Fixed cost is regarded as ______ cost

  1. unavoidable
  2. variable
  3. avoidable
  4. none of the above
  

Question 80 : Electricity charges, sales tax etc. are examples of ______ cost.

  1. Fixed
  2. Variable
  3. Private
  4. Social
  

Question 81 : ______ is not related to the level of output

  1. Total cost
  2. Total variable cost
  3. Total fixed cost
  4. average cost
  

Question 82 : ______ is obtained by dividing TC by the level of output produced

  1. Average fixed cost
  2. Average variable
  3. Total fixed cost
  4. Average total cost
  

Question 83 : A firm’s ______ is the sum of total fixed costs and total variable cost at each level of output

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

Question 84 : Marginal cost is an ______ cost.

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

Question 85 : Break-even analysis compares total ______ and total cost, graphically and algebraically.

  1. Revenue
  2. average variable cost
  3. Average cost
  4. None of the above
  

Question 86 : Break-even analysis at break-even point indicates ______ profit

  1. Zero
  2. Heavy loss
  3. Large profit
  4. All of the above
  

Question 87 : A break-even analysis is essentially a typical case of required profit analysis where the required profit is ______

  1. Zero
  2. Large profit
  3. Heavy loss
  4. All of the above
  

Question 88 : The break-even quantity point will decrease, when price ______.

  1. decreases
  2. Increases
  3. constant
  4. None of the above
  

Question 89 : ______ is the point where total revenue is equal to total cost.

  1. point of origin
  2. Break-even point
  3. Marginal point
  4. None of the above
  

Question 90 : The ______ graphically depicts the profit-output relationship

  1. Marginal point
  2. Break-even chart
  3. point of origin
  4. All of the above
  

Question 91 : When TR > TC, it indicates ______ zone of a firm

  1. Loss
  3. Profit
  4. All of the above
  

Question 92 : Break-even point of a chart indicates ______.

  1. Large profit
  2. Heavy loss
  3. Zero profit
  4. All of the above
  

Question 93 : Break-even analysis compare total revenue with ______.

  1. Total cost
  2. Average cost
  3. marginal cost
  4. None of the above
  

Question 94 : Break-even analysis is also referred to as ______.

  1. Cost-volume-profit analysis
  2. demand analysis
  3. Supply analysis
  4. 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.

  1. safety margin
  2. average margin
  3. total margin
  4. None of the above
  

Question 96 : BEA help the firm to determine ______ for a given level of output.

  1. Maximum cost
  2. Average cost
  3. None of the above
  4. minimum cost
  

Question 97 : BEA at break-even point indicate ______ profit.

  1. Heavy loss
  2. Large profit
  3. None of the above
  4. zero
  

Question 98 : Break-even analysis compares total revenue with :

  1. Total profit
  2. Total cost
  3. Average cost
  4. Price
  

Question 99 : Break-even analysis is used to determine how much quantity of its product it must sale to :

  1. Make profit
  2. Break-even
  3. Maximise profit
  4. None of the above
  

Question 100 : Break-even point of a chart indicates :

  1. Zero profit
  2. Heavy loss
  3. Large profit
  4. All of the above
  
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