McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Cost Accounting .
| 251. |
Sugar and tea are …………… goods |
| A. | Complementary |
| B. | Prefect substitute of each other |
| C. | Both |
| D. | Unrelated |
| Answer» A. Complementary | |
| 252. |
If price of sugar increase, the demand for tea will …………. |
| A. | Fall |
| B. | Increase |
| C. | Not affected |
| D. | No relation |
| Answer» A. Fall | |
| 253. |
Increase in price of a product reduces the purchasing power as a result of which demand for a product goes up. This effect is known as |
| A. | Substitution effect |
| B. | Income effect |
| C. | Diminishing marginal utility concept |
| D. | Law of diminishing returns |
| Answer» B. Income effect | |
| 254. |
Traditional approach to law of Demand was propounded by |
| A. | Giffen |
| B. | A Samulson |
| C. | Alfred Marshall |
| D. | Pique |
| Answer» C. Alfred Marshall | |
| 255. |
According to traditional approach the factor responsible for operation of downward slope of demand curve are |
| A. | Change in number of consumers |
| B. | Law of decreasing marginal utility |
| C. | Alternative uses of goods |
| D. | All the three |
| Answer» D. All the three | |
| 256. |
According to Modern approach, law of demand is caused by |
| A. | Income effect |
| B. | Substitution effect |
| C. | Both |
| D. | None |
| Answer» C. Both | |
| 257. |
Which of these are exception to law of Demand |
| A. | Giffen effect/goods |
| B. | Future change in prices |
| C. | Change in fashion |
| D. | All the three |
| Answer» D. All the three | |
| 258. |
Shift in Demand curve or change in Demand curve occurs due to |
| A. | Increase in price |
| B. | Decrease in cost of production |
| C. | Change in Cetris paribus conditions |
| D. | All the three |
| Answer» C. Change in Cetris paribus conditions | |
| 259. |
Change in quantity demanded or Movement along demand curve occurs due |
| A. | Due to change in price only |
| B. | Change in Cetris paribus conditions only |
| C. | Change in cost of production |
| D. | Change in technology |
| Answer» A. Due to change in price only | |
| 260. |
Increase in Demand is also known as – in economics |
| A. | Expansion in demand |
| B. | Compression in demand |
| C. | Extension in demand |
| D. | Extraction in demand |
| Answer» A. Expansion in demand | |
| 261. |
Decrease in Demand is also known as |
| A. | Expansion in demand |
| B. | Compression in demand |
| C. | Extension in demand |
| D. | Extraction in demand |
| Answer» D. Extraction in demand | |
| 262. |
Tea and coffee are |
| A. | Complementary goods |
| B. | Alternative goods |
| C. | Unrelated goods |
| D. | None of these |
| Answer» B. Alternative goods | |
| 263. |
If price of Tea increases the demand of coffee will |
| A. | Increase |
| B. | Decrease |
| C. | Remain same |
| D. | Cannot say |
| Answer» A. Increase | |
| 264. |
The demand function of a product x is as dx = 12-2Px, where Px stand for price. The quantity demanded corresponding to price of `2 will be ……………. |
| A. | 8 |
| B. | 6 |
| C. | 5 |
| D. | 10 |
| Answer» A. 8 | |
| 265. |
In question No. 269 the quantity demanded if the price is 5 will be ………. |
| A. | 8 |
| B. | 2 |
| C. | 5 |
| D. | 10 |
| Answer» B. 2 | |
| 266. |
If an Individual Y has a demand of 6 units of the product of market price of the product will be ………….. (Ref. Q. No. 269) |
| A. | `4 |
| B. | `5 |
| C. | `3 |
| D. | `4.5 |
| Answer» C. `3 | |
| 267. |
If there are 5000 customers for the product, the aggregate market demand for the product at market price `2 in the question No. 269 will be …………. |
| A. | 40,000 |
| B. | 30,000 |
| C. | 20,000 |
| D. | 16,000 |
| Answer» A. 40,000 | |
| 268. |
Aggregate market demand in question No. 270 If there are 5000 customers will be …… |
| A. | 40,000 |
| B. | 30,000 |
| C. | 20,000 |
| D. | 16,000 |
| Answer» D. 16,000 | |
| 269. |
The Supply function of a product x is as Sx = 5px + 3. Where Px stand for price. The quantity supplied corresponding to price of `2 will be …………… |
| A. | 18 |
| B. | 13 |
| C. | 15 |
| D. | 23 |
| Answer» B. 13 | |
| 270. |
In question No. 274 if the price is `4 the supply available in the market will be …….. |
| A. | 18 |
| B. | 13 |
| C. | 15 |
| D. | 23 |
| Answer» D. 23 | |
| 271. |
At what price the firm will be willing to supply 28 pieces in the market (Ref. Q. No. 274) |
| A. | `4 |
| B. | `5 |
| C. | `3 |
| D. | `4.5 |
| Answer» B. `5 | |
| 272. |
If there are 1000 firms in the market dealing the product under question what would be the aggregate supply if the price is `4 (Ref. Q. No. 274) |
| A. | 20,000 |
| B. | 23,000 |
| C. | 25,000 |
| D. | 21,000 |
| Answer» B. 23,000 | |
| 273. |
The individual demand and supply curve of a product are Dx = 12-2px, Sx=3+5px, where Px stand for price and Dx and Sc respectively stands for quantity demanded and quantity supplie(d) If there are 5000 consumers and 1000 suppliers for the product under question. What will be the equilibrium price |
| A. | `4 |
| B. | `5 |
| C. | `3 |
| D. | `4.5 |
| Answer» C. `3 | |
| 274. |
What is the quantity demanded and supplied at the equilibrium price (Ref. Q. No. 278) |
| A. | 20,000 |
| B. | 22,000 |
| C. | 21,000 |
| D. | 19,000 |
| Answer» B. 22,000 | |
| 275. |
What is the aggregate demand if the market price is `4.20 per unit (Ref. Q. No. 278) |
| A. | 20,000 |
| B. | 22,000 |
| C. | 19,000 |
| D. | 18,000 |
| Answer» D. 18,000 | |
| 276. |
What is the aggregate supply if the market price is `4.20 per unit (Ref. Q. No. 278) |
| A. | 20,000 |
| B. | 24,000 |
| C. | 25,000 |
| D. | 28,000 |
| Answer» B. 24,000 | |
| 277. |
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 | |
| 278. |
Equilibrium state is achieved at |
| A. | The peak point of supply curve |
| B. | The bottom point of demand curve |
| C. | The inflection point of demand curve |
| D. | The intersection of demand and supply curve |
| Answer» D. The intersection of demand and supply curve | |
| 279. |
Under the law of demand ceteris paribus is/are |
| A. | Price of other goods |
| B. | Disposal income |
| C. | Tastes and preferences |
| D. | All the three |
| Answer» D. All the three | |
| 280. |
The demand for a product is 25 units when the price is `10, however the demand rises to 26 when the price is reduced to `9.9 per unit. The marginal revenue from production and sale of additional unit from 25 to 26 is |
| A. | `7.4 |
| B. | `(16) |
| C. | `10 |
| D. | `257.6 |
| Answer» A. `7.4 | |
| 281. |
If in question No. 286 the price is reduced to `9 But the demand goes to 26 units what is the marginal revenue from sale of 26th unit |
| A. | `7.4 |
| B. | `(-16) |
| C. | `16 |
| D. | `257.4 |
| Answer» B. `(-16) | |
| 282. |
In question No. 286 what is the total revenue from sale of 26 units |
| A. | `7.4 |
| B. | `9 |
| C. | `10 |
| D. | `257.40 |
| Answer» D. `257.40 | |
| 283. |
In question No. 286 what is the total revenue from sale of 26 units |
| A. | `16 |
| B. | `9 |
| C. | `234 |
| D. | `257.4 |
| Answer» C. `234 | |
| 284. |
In question No. 286 what is the average revenue from sale of 26 units |
| A. | `10 |
| B. | `9.9 |
| C. | `9 |
| D. | `16 |
| Answer» B. `9.9 | |
| 285. |
If the question No. 286 despite reduction in price to `9.9 the demand for the product remains at 25 units we can say that the demand for the product is |
| A. | Elastic |
| B. | Less elastic |
| C. | Perfectly inelastic |
| D. | Unity elastic |
| Answer» C. Perfectly inelastic | |
| 286. |
In question No. 286 if the price is reduced to `9 per unit the demand for the product instead of increasing fall down to 24 units, the goods can be ……….. |
| A. | Essential goods |
| B. | Luxury goods |
| C. | Inferior goods |
| D. | None of these |
| Answer» C. Inferior goods | |
| 287. |
In question No. 286 if the price is increased to `11 per unit and the demand sharply falls to 20 unit, we can say that the goods are …………….. |
| A. | Essential goods |
| B. | Luxury goods |
| C. | Inferior goods |
| D. | None of these |
| Answer» B. Luxury goods | |
| 288. |
A levy of excise duty on consumption of an item consumed will …………….. |
| A. | Induce suppliers to pump in more quantity in the market |
| B. | Result in fall in the consumption of the commodity and lower total expenditure on it by the consumer |
| C. | Lead to inflationary conditions |
| D. | Place the consumer on lower indifference curve |
| Answer» D. Place the consumer on lower indifference curve | |
| 289. |
An imposition of excise duty would effect the demand of a product due to ………….. |
| A. | Income effect |
| B. | Substitution effect |
| C. | Both |
| D. | None |
| Answer» C. Both | |
| 290. |
Two commodities X and Y goods can be inferred as close substitute of each other if – |
| A. | Increase in price of one leads to increase in demand of other and vice versa |
| B. | Increase in price of one leads to decrease in demand of other and vice versa |
| C. | Fall in price of one lead to fall in demand of other one |
| D. | Increase in price of one leads to increase in demand of other one |
| Answer» A. Increase in price of one leads to increase in demand of other and vice versa | |
| 291. |
Two Commodities X and UY can be inferred as complementary to each other if |
| A. | Increase in price of one leads to increase in demand of other and vice versa |
| B. | Increase in price of one leads to decrease in demand of other and vice versa |
| C. | Fall in price of one lead to fall in demand of other one |
| D. | Increase in price of one leads to increase in demand of other one |
| Answer» B. Increase in price of one leads to decrease in demand of other and vice versa | |
| 292. |
Goods or services that are necessary for living are |
| A. | Needs |
| B. | Desires |
| C. | Wants |
| D. | Essentials |
| Answer» A. Needs | |
| 293. |
A goods can be considered inferior goods in economics if increase in disposal income of the consumer causes |
| A. | An increase in demand |
| B. | No change in demand |
| C. | Decrease in demand |
| D. | Less than proportionate change in demand |
| Answer» C. Decrease in demand | |
| 294. |
A goods can be considered a normal goods in economics if increase in disposal income of the consumer causes |
| A. | An increase in demand |
| B. | No change in demand |
| C. | Decrease in demand |
| D. | Less than proportionate change in demand |
| Answer» A. An increase in demand | |
| 295. |
Change in consumers tastes and preference causes – of the particular goods |
| A. | Change in quantity demanded |
| B. | Shift in demand curve |
| C. | Change in price |
| D. | No effect on quantity demanded |
| Answer» B. Shift in demand curve | |
| 296. |
Change in price of the goods cause |
| A. | Change in quantity demanded |
| B. | Shift in demand curve |
| C. | Change in price |
| D. | No effect on quantity demanded |
| Answer» A. Change in quantity demanded | |
| 297. |
If price of Choco bar decreases we except |
| A. | The quantity demanded to increase |
| B. | Quantity demanded to decrease |
| C. | Demand curve to shift left |
| D. | No change in quantity demanded |
| Answer» A. The quantity demanded to increase | |
| 298. |
According to law of demand |
| A. | Higher the price higher the production of the product |
| B. | Higher the price lower the cost of production |
| C. | Lower the price higher the demand for the product |
| D. | Higher price higher the quantity the more the consumer demand |
| Answer» C. Lower the price higher the demand for the product | |
| 299. |
The quantity of a commodity that an individual is willing to purchase over a specified period of time is a function of except ………. |
| A. | Price of the commodity |
| B. | Price of the competitive products |
| C. | His disposal income |
| D. | Price of factor of production |
| Answer» D. Price of factor of production | |
| 300. |
Market demand curve for a commodity is a |
| A. | Horizontal summation of all the individual demand curve for that product |
| B. | Summation of demand curve of competitive products |
| C. | Demand curve of average demand and price of previous six months |
| D. | Projected demand schedule for next three months |
| Answer» A. Horizontal summation of all the individual demand curve for that product | |
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