

McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Arts in Economics (BA Economics) .
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» B. negative |
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 |
26. |
A fall in the price of the commodity whose demand curve is a rectangular hyperbola causes total expenditure on the commodity |
A. | increases |
B. | decreases |
C. | remains unchanged |
D. | none of the above |
Answer» D. none of the above |
27. |
If the quantity demanded remains unchanged as the price of the commodity falls, the coefficient of price elasticity of demand is |
A. | greater than |
B. | one equal to one |
C. | smaller than one |
D. | zero |
Answer» D. zero |
28. |
An increase in the price of the commodity when demand is inelastic causes the total expenditure of consumers of the commodity to |
A. | increase |
B. | decrease |
C. | remains unchanged |
D. | any of the above |
Answer» D. any of the above |
29. |
A negative income elasticity of demand for a commodity indicates that as income falls, the amount of the commodity purchased |
A. | rises |
B. | falls |
C. | remains unchanged |
D. | none of the above |
Answer» A. rises |
30. |
Most common form of price discrimination is |
A. | first degree price discrimination |
B. | second degree price discrimination |
C. | third degree price discrimination |
D. | fourth degree price discrimination |
Answer» A. first degree price discrimination |
31. |
If the income elasticity of demand is greater than one, then the commodity is |
A. | necessity |
B. | luxury |
C. | inferior |
D. | non-related commodity |
Answer» A. necessity |
32. |
If the income elasticity of demand for a commodity is found to be 0.4, then the commodity concerned is |
A. | luxury |
B. | necessity |
C. | giffen’s goods |
D. | independent good |
Answer» C. giffen’s goods |
33. |
A fall in income of the consumer, other things being equal, causes |
A. | increase in demand |
B. | decrease in demand |
C. | increase in quantity demanded |
D. | decease in quantity demanded |
Answer» D. decease in quantity demanded |
34. |
Which of the following Elasticities measure movement along a curve, rather than a shift in the curve |
A. | price elasticity of demand |
B. | income elasticity of demand |
C. | cross elasticity of demand |
D. | none of the above |
Answer» D. none of the above |
35. |
Cross elasticity of demand in the case of substitutes |
A. | zero |
B. | negative |
C. | positive |
D. | infinity |
Answer» C. positive |
36. |
A movement down the given demand curve shows |
A. | increase in demand |
B. | decrease in demand |
C. | extension in demand |
D. | contraction in demand |
Answer» D. contraction in demand |
37. |
Which of the following results in an increase in an increase in demand |
A. | fall in prices of substitutes |
B. | increase in price of complementary goods |
C. | fall in consumer’s income |
D. | none of the above |
Answer» B. increase in price of complementary goods |
38. |
When total product is maximum, marginal product is |
A. | maximum |
B. | positive |
C. | zero |
D. | negative |
Answer» C. zero |
39. |
Who popularized the degrees of price discrimination |
A. | alfred marshall |
B. | pigou |
C. | keynes |
D. | jevons |
Answer» B. pigou |
40. |
As a result of a fall in the price total expenditure on the commodity decreases, the coefficient of elasticity will be |
A. | equal to one |
B. | greater than one |
C. | less than one |
D. | cannot sa |
Answer» A. equal to one |
41. |
If a small change in price leads to infinitely large change in quantity demanded, then the demand is |
A. | perfectly elastic |
B. | perfectly inelastic |
C. | elastic |
D. | inelastic |
Answer» C. elastic |
42. |
When demand curve is rectangular hyperbola, the value of price elasticity of demand will be |
A. | zero |
B. | one |
C. | greater than one |
D. | infinity |
Answer» B. one |
43. |
Consumers are denied of any consumer surplus in ------- degree of price discrimination |
A. | first |
B. | second |
C. | third |
D. | fourth degree price discrimination |
Answer» A. first |
44. |
On a linear demand curve, the coefficient of price elasticity is unity, then the value of MR will be |
A. | positive |
B. | zero |
C. | negative |
D. | one |
Answer» B. zero |
45. |
Business economics lie at the borderline between economics and ------ |
A. | political science |
B. | commerce |
C. | management |
D. | statistics |
Answer» A. political science |
46. |
Planning for future is also called |
A. | logistic planning |
B. | capital planning |
C. | forward planning |
D. | none of the above |
Answer» A. logistic planning |
47. |
Economics is concerned with allocation of --------- resources |
A. | abundant |
B. | unlimited |
C. | scarce |
D. | redundant |
Answer» C. scarce |
48. |
The cost of next best alternative is called --------- |
A. | opportunity cost |
B. | marginal cost |
C. | total cost |
D. | sink cost |
Answer» A. opportunity cost |
49. |
The most important objective of the producer is ----- |
A. | maximum sales |
B. | maximum profit |
C. | maximum revenue |
D. | maximum cost |
Answer» A. maximum sales |
50. |
Who is the author Principles of Economics |
A. | adam smith |
B. | alfred marshall |
C. | j m keynes |
D. | friedman |
Answer» A. adam smith |
Done Studing? Take A Test.
Great job completing your study session! Now it's time to put your knowledge to the test. Challenge yourself, see how much you've learned, and identify areas for improvement. Don’t worry, this is all part of the journey to mastery. Ready for the next step? Take a quiz to solidify what you've just studied.