McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Cost Accounting .
| 151. |
Marginal cost curve is |
| A. | Positively sloped |
| B. | Negatively sloped |
| C. | Parallel to X axis |
| D. | Parallel to Y axis |
| Answer» A. Positively sloped | |
| 152. |
Marginal cost can be equal to Average variable cost when |
| A. | Average variable cost is falling |
| B. | Average variable cost is increasing |
| C. | Average variable cost is constant |
| D. | Under any of the above situations |
| Answer» C. Average variable cost is constant | |
| 153. |
The measurement of sensitivity of quantity demand to change in price is calle(d) |
| A. | Price elasticity |
| B. | Income elasticity |
| C. | Expansion in demand |
| D. | None |
| Answer» A. Price elasticity | |
| 154. |
Which of the following is not a type of elasticity in economics………………… |
| A. | Income elasticity |
| B. | Price elasticity |
| C. | Utility elasticity |
| D. | Cross elasticity |
| Answer» C. Utility elasticity | |
| 155. |
Which of the following is not a method of measurement of price elasticity of demand in economics |
| A. | Total Outlay |
| B. | Total savings |
| C. | Point method |
| D. | Arc method |
| Answer» B. Total savings | |
| 156. |
As per total outlay method, demand is said to be elastic if as result of change in price total outlay |
| A. | Increases |
| B. | Decrease |
| C. | Remain same |
| D. | None |
| Answer» C. Remain same | |
| 157. |
If price of sugar fills leading to fall in total outlay on sugar, the demand of sugar is |
| A. | Elastic |
| B. | Inelastic |
| C. | Unitary elastic |
| D. | Less than unit elastic |
| Answer» B. Inelastic | |
| 158. |
If price of X falls leading to increase in total outlay on X, the demand of X is |
| A. | Elastic |
| B. | Inelastic |
| C. | Unitary elastic |
| D. | Less than unit elastic |
| Answer» A. Elastic | |
| 159. |
If price of X falls leading to fall in total outlay on X, the demand of X is |
| A. | Elastic |
| B. | Inelastic |
| C. | Unitary elastic |
| D. | Less than unit elastic |
| Answer» B. Inelastic | |
| 160. |
If price of coffee falls leading to increase in total outlay on coffee, the demand of coffee is |
| A. | Elastic |
| B. | Inelastic |
| C. | Unitary elastic |
| D. | Less than unit elastic |
| Answer» A. Elastic | |
| 161. |
If the price of burger rises from `12 per piece to `20 per piece as a result of which the daily sales decreases from 300 to 200 pieces per day. The price elasticity of demand can be estimated as |
| A. | 0.5 |
| B. | 0.8 |
| C. | 0.25 |
| D. | 2.10 |
| Answer» A. 0.5 | |
| 162. |
If the price of vegetable sandwich rises from `6 per piece to `12 per piece as a result of which the daily sales decreases from 800 to 400 pieces per day. The price elasticity of demand can be estimated as |
| A. | 0.5 |
| B. | 1.5 |
| C. | 3.0 |
| D. | 2.5 |
| Answer» A. 0.5 | |
| 163. |
A decrease in price will result in an increase in total revenue if |
| A. | Percentage change in quantity demanded in greater than the percentage change in price |
| B. | Percentage change in quantity demanded is less than the percentage change in price |
| C. | Percentage change in quantity demanded is equal to the percentage change in price |
| D. | None |
| Answer» A. Percentage change in quantity demanded in greater than the percentage change in price | |
| 164. |
An increase in price will result in an increase in total revenue if |
| A. | Percentage change in quantity demanded in greater than the percentage change in price |
| B. | Percentage change in quantity demanded is less than the percentage change in price |
| C. | Percentage change in quantity demanded is equal to the percentage change in price |
| D. | None |
| Answer» B. Percentage change in quantity demanded is less than the percentage change in price | |
| 165. |
An increase in price will result in no change in total revenue if |
| A. | Percentage change in price equal the percentage change in price |
| B. | Percentage change in demanded is more than the percentage change in price |
| C. | Percentage change in price is less than percentage change in demand |
| D. | Change in price is more than change in demand in absolute terms |
| Answer» A. Percentage change in price equal the percentage change in price | |
| 166. |
Price elasticity of demand of a product will be more inelastic if |
| A. | It forms a major part of consumer house hold budget |
| B. | It forms a very small part of consumers household budget |
| C. | It is inferior |
| D. | It is for mass consumption |
| Answer» B. It forms a very small part of consumers household budget | |
| 167. |
Price elasticity demand of product will be more elastic if it |
| A. | Has no substitutes |
| B. | Has number of substitutes |
| C. | Is an item of necessity |
| D. | Is life saving Product |
| Answer» B. Has number of substitutes | |
| 168. |
If the consumption of a product can be postponed for the time being |
| A. | The demand for the product will be inelastic |
| B. | The demand for the product will be relatively elastic |
| C. | The demand for the product will be perfectly elastic |
| D. | The demand for the product will be perfectly inelastic |
| Answer» B. The demand for the product will be relatively elastic | |
| 169. |
Bread and butter have……….. |
| A. | Negative cross price elasticity of demand |
| B. | Positive cross elasticity of demand |
| C. | Positive income elasticity of demand |
| D. | Negative income elasticity of demand |
| Answer» A. Negative cross price elasticity of demand | |
| 170. |
Omlet and cakes have |
| A. | Negative cross price elasticity of demand |
| B. | Positive cross elasticity of demand |
| C. | Positive income elasticity of demand |
| D. | Negative income elasticity of demand |
| Answer» B. Positive cross elasticity of demand | |
| 171. |
Point elasticity of demand can be useful in which of the following cases |
| A. | A departmental store is thinking of increasing the price of gift packs |
| B. | A service station is considering to lower the service charges |
| C. | A health club is considering to lower the monthly membership fee |
| D. | An airlines company is considering to lower holiday packages |
| Answer» C. A health club is considering to lower the monthly membership fee | |
| 172. |
The coefficient of price elasticity of demand is calculated as……….. |
| A. | The change in price divided by the change in quantity demand |
| B. | The percentage change in quantity demand by the percentage change in price |
| C. | The change in quantity demanded by the change in price |
| D. | The percentage change in price by the percentage change in demand |
| Answer» B. The percentage change in quantity demand by the percentage change in price | |
| 173. |
Point elasticity concept was propounded by |
| A. | Marshal |
| B. | Lipsey |
| C. | Hicks |
| D. | Samulson |
| Answer» A. Marshal | |
| 174. |
Price elasticity of demand is not affected by |
| A. | Nature of the commodity |
| B. | Availability of close substitute |
| C. | Cost of production |
| D. | Consumption habits |
| Answer» C. Cost of production | |
| 175. |
Demand of salt is inelastic because |
| A. | Of low price |
| B. | No substitute |
| C. | Absence of it makes food tasteless |
| D. | All the three |
| Answer» B. No substitute | |
| 176. |
Luxury goods have --- -- degree of elasticity |
| A. | High |
| B. | Low |
| C. | Moderate |
| D. | Completely inelastic |
| Answer» A. High | |
| 177. |
The quantity of a commodity which an individual is willing to purchase over a specific period of time is a function of |
| A. | Price of the product |
| B. | Disposal income |
| C. | Taste and price of other commodities |
| D. | All the three |
| Answer» D. All the three | |
| 178. |
Which of the following is not a factor is market supply of product |
| A. | Cost of production |
| B. | Number of buyers |
| C. | Market price of the product |
| D. | Price of related products |
| Answer» B. Number of buyers | |
| 179. |
Market demand curve for a commodity is……………… |
| A. | Horizontal summation of the individual demand curve for the commodity |
| B. | Summation of individual demand curve for 3 years |
| C. | Demand curve of complementary goods |
| D. | Demand curve of supplementary goods |
| Answer» A. Horizontal summation of the individual demand curve for the commodity | |
| 180. |
Equilibrium state is achieved at ………………… |
| A. | The peak point of supply curve |
| B. | The bottom point of demand curve |
| C. | The inflation point of demand curve |
| D. | The intersection of demand and supply curve |
| Answer» D. The intersection of demand and supply curve | |
| 181. |
If the cross elasticity between two products is positive then we can say that |
| A. | The products are perfectly substitute of each other |
| B. | The products are complementary to each other |
| C. | Both the products are unrelated |
| D. | Both are luxury items |
| Answer» A. The products are perfectly substitute of each other | |
| 182. |
If the price elasticity of a product is greater than 1, we can say that |
| A. | The products demand is sensitive to price variation |
| B. | Product demand is insensitive to price variation |
| C. | Demand and price move in same directions |
| D. | None of this |
| Answer» A. The products demand is sensitive to price variation | |
| 183. |
If the price elasticity of demand for wine is estimated to be -.6, then a 20% increase in price of wine will lead to ………………….in quantity demanded of wine at that price |
| A. | 12% increase |
| B. | 12% decrease |
| C. | 19.6% increase |
| D. | 20.6% decrease |
| Answer» B. 12% decrease | |
| 184. |
If the price elasticity of demand of Chicken is +.95. then a 20% increase in price of chicken will lead to in quantity demanded of chicken at that price |
| A. | 19 increase |
| B. | 19% decrease |
| C. | 20.95% increase |
| D. | 20.6% decrease |
| Answer» A. 19 increase | |
| 185. |
If the cross price elasticity of demand for two product is negative, then the two products are ………………. |
| A. | Complementary to each other |
| B. | Perfectly substitute for each other |
| C. | Completely competitive |
| D. | Unrelated |
| Answer» A. Complementary to each other | |
| 186. |
If demand of coffee increases by 10% with 20% decline in the price of sugar we can say that |
| A. | Cross price elasticity of demand is negative and both the products are complementary to each other |
| B. | Cross price elasticity of demand is negative and the goods are substitute |
| C. | Cross price elasticity is positive and the products are complementary to each other |
| D. | None of these |
| Answer» A. Cross price elasticity of demand is negative and both the products are complementary to each other | |
| 187. |
If the price of coffee falls by 8% and the demand for Tea declines by 2%. The corss price elasticity of demand for Tea is |
| A. | 0.45 |
| B. | 0.25 |
| C. | +0.44 |
| D. | -0.30 |
| Answer» B. 0.25 | |
| 188. |
When the price of complementary products falls, the demand of the other product will |
| A. | Fall |
| B. | Increases |
| C. | Remain stable |
| D. | Drops by 25% |
| Answer» B. Increases | |
| 189. |
When the price of complementary products increases, the demand of the other product will |
| A. | Falls |
| B. | Increases |
| C. | Remains same |
| D. | Increases by 25% |
| Answer» A. Falls | |
| 190. |
Elasticity of supply depends upon |
| A. | Nature of the commodity |
| B. | Production technology |
| C. | Future outlook of prices |
| D. | All the three |
| Answer» D. All the three | |
| 191. |
A supply curve passing through the origin will have elasticity |
| A. | Less than 1 |
| B. | More than 1 |
| C. | Just One |
| D. | Zero |
| Answer» C. Just One | |
| 192. |
A supply curve passing through any point on X axis(quantity) will have elasticity |
| A. | Less than 1 |
| B. | More than 1 |
| C. | Just one |
| D. | Zero |
| Answer» A. Less than 1 | |
| 193. |
Supply curve passing through any point on Y axis(Price) will have elasticity |
| A. | Less than 1 |
| B. | More than 1 |
| C. | Just One |
| D. | Zero |
| Answer» B. More than 1 | |
| 194. |
Goods which are perfect substitute of each other will have rate of substitution |
| A. | Unity |
| B. | Less than 1 |
| C. | More than 1 |
| D. | Zero |
| Answer» A. Unity | |
| 195. |
Goods which are perfect substitute of each other will have elasticity of substitution…... |
| A. | Unity |
| B. | Less than 1 |
| C. | More than 1 |
| D. | Infinite |
| Answer» D. Infinite | |
| 196. |
Goods which are not perfect substitute of each other but have to be consumed in a fixed ratio will have rate of substitution |
| A. | Unity |
| B. | Less than 1 |
| C. | More than 1 |
| D. | Zero |
| Answer» D. Zero | |
| 197. |
If a dealer is prepared to supply 1000 sets of a 29” Color TV if the price is `12,000 per set, however if the price raises to `15,000 he is prepared to supply 1,500 pieces. The elasticity of supply of TV set is |
| A. | 1 |
| B. | 2 |
| C. | 0.75 |
| D. | 1.4 |
| Answer» B. 2 | |
| 198. |
In question No. 201 if at `15,000, the dealer is prepared to supply on 1250 sets of TV the elasticity of supply is |
| A. | 1 |
| B. | 2 |
| C. | 0.75 |
| D. | 1.4 |
| Answer» A. 1 | |
| 199. |
In question No. 201 if at `15,000, the dealer is prepared to supply on 1100 TV sets, the elasticity of supply is |
| A. | 1 |
| B. | 2 |
| C. | 0.4 |
| D. | 1.5 |
| Answer» C. 0.4 | |
| 200. |
Tea and Coffee are perfect substitute of each other, given the price of Tea and Coffee being `100 and `200 per Kg. a consumer is prepared to buy 3 Kg. of each. If the price of tea remain same and the price of Coffee rises to `400 per kg. the demand for Tea goes to 6 Kg. and that of Coffee falls to 1Kg. The elasticity of substitution between Tea and Coffee is |
| A. | 1 |
| B. | 4 |
| C. | 5 |
| D. | 3 |
| Answer» C. 5 | |
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.