| 1. |
Business economics is the application of ------- to business management |
| A. | commerce |
| B. | management |
| C. | economics |
| D. | finance |
| Answer» C. economics | |
| 2. |
Risks that cannot be insured is called ----- |
| A. | uncertainty |
| B. | injury |
| C. | capital |
| D. | none of the above |
| Answer» A. uncertainty | |
| 3. |
Market in which securities are issued for the first time is --------- |
| A. | secondary market |
| B. | primary market |
| C. | tertiary market |
| D. | money market |
| Answer» A. secondary market | |
| 4. |
Market in which prices of shares are going up is called------- |
| A. | bull market |
| B. | bear market |
| C. | stock market |
| D. | capital market |
| Answer» A. bull market | |
| 5. |
Market in which prices of shares are going down is called------- |
| A. | bull market |
| B. | bear market |
| C. | stock market |
| D. | capital market |
| Answer» B. bear market | |
| 6. |
For substitutes, cross elasticity is -------- |
| A. | positive |
| B. | negative |
| C. | zero |
| D. | infinity |
| Answer» A. positive | |
| 7. |
For complementary goods, cross elasticity is -------- |
| A. | positive |
| B. | negative |
| C. | zero |
| D. | infinity |
| Answer» A. positive | |
| 8. |
Entry preventing price is called -------- |
| A. | limit price |
| B. | full cost price |
| C. | penetration price |
| D. | psychological price |
| Answer» C. penetration price | |
| 9. |
Long run theory of production is known as ---- |
| A. | law of variable proportion |
| B. | law of diminishing returns |
| C. | law of returns to scale |
| D. | none of the above |
| Answer» A. law of variable proportion | |
| 10. |
An example of cartel is------- |
| A. | opec |
| B. | oecd |
| C. | saarc |
| D. | eu |
| Answer» C. saarc | |
| 11. |
Other things remaining the same, the quantity of a product demanded increases with ------------ in price |
| A. | increase |
| B. | decrease |
| C. | variation |
| D. | none of the above |
| Answer» A. increase | |
| 12. |
For necessary goods, the income elasticity of demand |
| A. | more than 1 |
| B. | less than 1 |
| C. | zero |
| D. | none |
| Answer» A. more than 1 | |
| 13. |
Relation between price of a commodity and demand for another commodity is measured by |
| A. | price elasticity |
| B. | income elasticity |
| C. | cross elasticity |
| D. | elasticity of substitution |
| Answer» C. cross elasticity | |
| 14. |
When Q = f (P), the elasticity coefficient is measured by |
| A. | Δq/Δp / p/q |
| B. | Δp/Δq * q/p |
| C. | Δq/Δp * p/q |
| D. | Δp/Δq / q/p |
| Answer» C. Δq/Δp * p/q | |
| 15. |
Income elasticity of demand for inferior goods is |
| A. | negative |
| B. | positive |
| C. | zero |
| D. | unity |
| Answer» A. negative | |
| 16. |
In the case of luxury goods, the income elasticity of demand will be |
| A. | less than unity |
| B. | unity |
| C. | more than unity |
| D. | all the above |
| Answer» A. less than unity | |
| 17. |
Income elasticity is positive, but less than unity in the case of |
| A. | necessity |
| B. | luxury |
| C. | inferior |
| D. | substitutes |
| Answer» C. inferior | |
| 18. |
The price is kept artificially low in |
| A. | price skimmimg |
| B. | limit pricing |
| C. | full cost pricing |
| D. | psychological pricing |
| Answer» C. full cost pricing | |
| 19. |
In drawing an individual demand curve for a commodity, all but which of the following are kept constant |
| A. | individual’s money income |
| B. | the prices of the related commodity |
| C. | price of the commodity under consideration |
| D. | tastes of the consumer |
| Answer» A. individual’s money income | |
| 20. |
A fall in the price of the commodity holding everything else constant results in |
| A. | increase in demand |
| B. | decrease in demand |
| C. | increase in quantity demanded |
| D. | decrease in quantity demanded |
| Answer» D. decrease in quantity demanded | |
| 21. |
When an individual’s income falls, when everything else remains the same, his demand for inferior goods |
| A. | increases |
| B. | decreases |
| C. | remains unchanged |
| D. | cannot say |
| Answer» A. increases | |
| 22. |
When the price of the substitute commodity of X falls, the demand for X |
| A. | rises |
| B. | falls |
| C. | remains unchanged |
| D. | all of the above is possible |
| Answer» A. rises | |
| 23. |
When both the price of a substitute and the price of complement of X rises, the demand for X |
| A. | rises |
| B. | falls |
| C. | remains unchanged |
| D. | all of the above is possible |
| Answer» B. falls | |
| 24. |
Most rare type of price discrimination is |
| A. | first degree |
| B. | second degree |
| C. | third degree |
| D. | fourth degree |
| Answer» D. fourth degree | |
| 25. |
The price which is initially low is called -------- |
| A. | limit price |
| B. | full cost price |
| C. | penetration price |
| D. | psychological price |
| Answer» C. penetration price | |
We want to make our service better for you. Please take a moment to fill out our survey.
Take Survey