McqMate
| 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 | |
| 51. |
Production function shows -------- relation between input and output |
| A. | technical |
| B. | functional |
| C. | all of the above |
| D. | none of the above |
| Answer» B. functional | |
| 52. |
Value of money --------- when there is inflation |
| A. | increase |
| B. | stagnant |
| C. | decrease |
| D. | zero |
| Answer» A. increase | |
| 53. |
The operating period in which at least one factor of production is fixed is called |
| A. | short run |
| B. | long run |
| C. | medium run |
| D. | none of the above |
| Answer» A. short run | |
| 54. |
The operating period in which all factors of production are variable is called |
| A. | short run |
| B. | long run |
| C. | medium run |
| D. | none of the above |
| Answer» B. long run | |
| 55. |
Uninsured risk are called |
| A. | uncertainty |
| B. | choice |
| C. | inter temporal choice |
| D. | optimum risk |
| Answer» A. uncertainty | |
| 56. |
An example of negative externality is |
| A. | output |
| B. | sales |
| C. | pollution |
| D. | profit |
| Answer» C. pollution | |
| 57. |
Computation of present value is called |
| A. | discounting |
| B. | compounding |
| C. | adding up |
| D. | forecasting |
| Answer» C. adding up | |
| 58. |
Computation of future value of money is called |
| A. | discounting |
| B. | compounding |
| C. | adding up |
| D. | forecasting |
| Answer» D. forecasting | |
| 59. |
In financial sense, investment is |
| A. | net addition to capital stock |
| B. | savings |
| C. | allocation of monetary resources on assets |
| D. | increased output |
| Answer» A. net addition to capital stock | |
| 60. |
The assets known as gilt edged securities |
| A. | debenture |
| B. | government securities |
| C. | bonds |
| D. | gold |
| Answer» C. bonds | |
| 61. |
The privilege of issuing company to call back bonds is known as |
| A. | call |
| B. | hedging |
| C. | speculation |
| D. | arbitrage |
| Answer» A. call | |
| 62. |
------ is also called after market |
| A. | primary market |
| B. | secondary market |
| C. | tertiary market |
| D. | money market |
| Answer» A. primary market | |
| 63. |
Which of the following is a non-negotiable instrument? |
| A. | treasury bills |
| B. | shares |
| C. | debentures |
| D. | bank deposit |
| Answer» D. bank deposit | |
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