McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Business Administration (BBA) , Bachelor of Commerce (B Com) .
| 1. |
Which of the following statements is NOT TRUE of indifference curves? |
| A. | they could intersect |
| B. | they are convex to origin |
| C. | they are |
| D. | they exhibit higher levels of utility d. as you move from the origin |
| Answer» B. they are convex to origin | |
| 2. |
A consumer with a given income will maximise their utility when: |
| A. | the marginal utility derived from each commodity is equal. |
| B. | the marginal utility derived from each product consumed is zero. |
| C. | the total utility derived from each commodity consumed is equal. |
| D. | the marginal utilities derived from each commodity consumed are proportional |
| Answer» D. the marginal utilities derived from each commodity consumed are proportional | |
| 3. |
The typical indifference curve …….. |
| A. | shows that as a consumer has more of a good he/she is less willing to exchange it for one unit of another good. |
| B. | shows all combinations of goods that give a consumer in same level of utility |
| C. | shifts out if income increases |
| D. | both b and c |
| Answer» B. shows all combinations of goods that give a consumer in same level of utility | |
| 4. |
The rate at which a consumer is able to substitute one good for another is determined by the ……. |
| A. | consumers income |
| B. | indifference map |
| C. | ratio of the prices of the goods |
| D. | marginal rate of substitution. |
| Answer» C. ratio of the prices of the goods | |
| 5. |
A utility function shows the relation between ….. |
| A. | the amount of goods consumed and a consumer utility. |
| B. | income and a consumer utility. |
| C. | prices and consumers utility. |
| D. | maximum utility and the price and income facing a consumer. |
| Answer» A. the amount of goods consumed and a consumer utility. | |
| 6. |
Which of the following is the measure to control inflation. |
| A. | granting credit on liberal terms |
| B. | raising bank rate |
| C. | demonetization |
| D. | none of these |
| Answer» B. raising bank rate | |
| 7. |
Which of the following is a measure to reduce inequality of income |
| A. | promotion of industries |
| B. | social securities |
| C. | granting of credit to poor on concessional rate |
| D. | none of these |
| Answer» B. social securities | |
| 8. |
The most outstanding feature of capitalist economic system is … |
| A. | unemployment |
| B. | poverty |
| C. | inequality of income |
| D. | industrial backwardness |
| Answer» C. inequality of income | |
| 9. |
Employment of people who take jobs below their capacity is known as |
| A. | underemployment |
| B. | disguised unemployment |
| C. | cyclical unemployment |
| D. | none of these |
| Answer» A. underemployment | |
| 10. |
Which of the following is a social consequences of unemployment in india |
| A. | burden on the government |
| B. | loss of income and respect |
| C. | wastages of resources |
| D. | none of these |
| Answer» B. loss of income and respect | |
| 11. |
Unemployment caused by a decline in demand for production in a particular industry is |
| A. | seasonal unemployment |
| B. | frictional unemployment |
| C. | structural unemployment |
| D. | none of these |
| Answer» C. structural unemployment | |
| 12. |
Which of the following is not a development issue in india |
| A. | unemployment |
| B. | population pressure |
| C. | inflation |
| D. | decreasing trend of foreign capital |
| Answer» D. decreasing trend of foreign capital | |
| 13. |
Indian economy growth is primarily driven by |
| A. | industry |
| B. | agriculture |
| C. | service |
| D. | none of these |
| Answer» C. service | |
| 14. |
Law of equi-marginal utility was suggested by |
| A. | marshal |
| B. | robins |
| C. | hh ghosen |
| D. | none of these |
| Answer» B. robins | |
| 15. |
The concept of consumer surplus was developed by |
| A. | marshal |
| B. | hh ghosen |
| C. | bhentham |
| D. | none of these |
| Answer» A. marshal | |
| 16. |
Indifference curve analysis is based on the principles of |
| A. | consumer surplus |
| B. | diminishing marginal utility |
| C. | diminishing marginal rate of substitution |
| D. | none of these |
| Answer» C. diminishing marginal rate of substitution | |
| 17. |
The author of the wealth of nation is |
| A. | marshal |
| B. | robins |
| C. | adam smith |
| D. | none of these |
| Answer» C. adam smith | |
| 18. |
Macro economic theory is also known as |
| A. | price theory |
| B. | income theory |
| C. | demand theory |
| D. | none of these |
| Answer» A. price theory | |
| 19. |
The study of entire economic system is called |
| A. | macro economics |
| B. | micro economics |
| C. | economics |
| D. | none of these |
| Answer» A. macro economics | |
| 20. |
The author of “the wealth of nations” is |
| A. | marshal |
| B. | ricardo |
| C. | robins |
| D. | adam smith |
| Answer» D. adam smith | |
| 21. |
The study of international trade and national income is part of |
| A. | global economics |
| B. | macro economics |
| C. | positive economics |
| D. | micro economics |
| Answer» B. macro economics | |
| 22. |
If the income elasticity of demand is that one, the good is a |
| A. | necessity |
| B. | luxury |
| C. | substitute |
| D. | complement |
| Answer» B. luxury | |
| 23. |
The income elasticity of demand is negative for a |
| A. | positive good |
| B. | normal good |
| C. | elastic good |
| D. | inferior good |
| Answer» D. inferior good | |
| 24. |
If the price of DVRs fell and as a result the demand for VHS recorders fell we could conclude that VHS recorders DVRs are |
| A. | normal goods |
| B. | substitutes |
| C. | elastic goods |
| D. | unrelated |
| Answer» B. substitutes | |
| 25. |
What effect is working when the price of a good falls and consumers tend to buy it instead of other goods |
| A. | income effect |
| B. | substitution effect |
| C. | price effect |
| D. | none of these |
| Answer» B. substitution effect | |
| 26. |
The quantity demanded of a product increases when |
| A. | the consumers suddenly want more of the goods |
| B. | the consumers level of income falls |
| C. | the price of the product falls |
| D. | more buyers of the goods enter the market |
| Answer» C. the price of the product falls | |
| 27. |
Two goods that are used jointly to provide satisfaction are called |
| A. | inferior goods |
| B. | normal goods |
| C. | complementary goods |
| D. | substitute goods |
| Answer» C. complementary goods | |
| 28. |
Demand curve slopes downwards because of |
| A. | the law of diminishing marginal utility |
| B. | the income effect |
| C. | substitution effect |
| D. | all of the above |
| Answer» D. all of the above | |
| 29. |
If the income and substitution effect of a price increase works in the same direction the good whose price has changed is a |
| A. | giffen goods |
| B. | inferior goods |
| C. | normal goods |
| D. | superior |
| Answer» C. normal goods | |
| 30. |
Which of the following is not a survey method of demand forecasting |
| A. | consumers interview method |
| B. | expert opinion method |
| C. | barometric method |
| D. | collective opinion method |
| Answer» C. barometric method | |
| 31. |
Which of the following is not a method of demand forecasting |
| A. | trend projection method |
| B. | substitute approach |
| C. | sales experience approach |
| D. | evolutionary approach |
| Answer» A. trend projection method | |
| 32. |
Which one is not a property of isoquant |
| A. | downward sloping |
| B. | convex |
| C. | negative slope |
| D. | positive slope |
| Answer» D. positive slope | |
| 33. |
In which production function, the degree of homogeneity is always one |
| A. | cobb doubglas production fuction |
| B. | homogeneous production function |
| C. | linear homogeneous production function |
| D. | none of these |
| Answer» C. linear homogeneous production function | |
| 34. |
Which of the following is a short run law |
| A. | law of diminishing returns |
| B. | law of constant returns to scale |
| C. | law increasing returns to scale |
| D. | none of these |
| Answer» A. law of diminishing returns | |
| 35. |
Which of the following is not a variable input |
| A. | raw material |
| B. | power |
| C. | equipment |
| D. | none of these |
| Answer» C. equipment | |
| 36. |
Which cost is more useful for decision making |
| A. | opportunity cost |
| B. | sunk cost |
| C. | historical cost |
| D. | none of these |
| Answer» A. opportunity cost | |
| 37. |
Which cost are recorded in books of accounts |
| A. | opportunity cost |
| B. | implicit cost |
| C. | social cost |
| D. | explicit cost |
| Answer» D. explicit cost | |
| 38. |
Fixed cost per unit increases when |
| A. | volume of production decreases |
| B. | volume of production increases |
| C. | variable cost per unit decreases |
| D. | none of these |
| Answer» A. volume of production decreases | |
| 39. |
Variable cost per unit |
| A. | remains fixed |
| B. | varies with the volume of production |
| C. | varies with sales |
| D. | none of these |
| Answer» B. varies with the volume of production | |
| 40. |
Firms in a oligopoly |
| A. | are independent of each other’s action |
| B. | can each influence the market price |
| C. | charge a price equal to marginal revenue |
| D. | all of these |
| Answer» B. can each influence the market price | |
| 41. |
Duopoly is |
| A. | another name for monopoly |
| B. | special type of monopolistic competition |
| C. | two firm oligopoly |
| D. | none of these |
| Answer» C. two firm oligopoly | |
| 42. |
Product differentiation is an important feature of |
| A. | perfect competition |
| B. | monopolistic competiton |
| C. | monopoly |
| D. | none of these |
| Answer» B. monopolistic competiton | |
| 43. |
Globalisation has created new opportunities of |
| A. | establishing rules of domestic trade |
| B. | restricting trade practices |
| C. | liberalizing international trade |
| D. | none of these |
| Answer» D. none of these | |
| 44. |
Removing barriers or restrictions set by the government is called |
| A. | liberalization |
| B. | investment |
| C. | favourable trade |
| D. | free trade |
| Answer» A. liberalization | |
| 45. |
WTO aims at |
| A. | establishing rules for domestic trade |
| B. | restricting trade practices |
| C. | liberalizing international trade |
| D. | none of these |
| Answer» C. liberalizing international trade | |
| 46. |
What are “hawala transaction” |
| A. | foreign trade in goods that are banned by the government. |
| B. | transfer of money without actually moving it |
| C. | illegal drug trade at the international level |
| D. | conversion of black money into white money |
| Answer» B. transfer of money without actually moving it | |
| 47. |
Which of the following is a measure to control inflation. |
| A. | granting of credit on liberal terms |
| B. | raising bank rate |
| C. | demonetization |
| D. | none of these |
| Answer» B. raising bank rate | |
| 48. |
Which of the following is a measure to reduce inequality of income |
| A. | promotion of industries |
| B. | social securities |
| C. | granting of credit to poor on concessional rates |
| D. | none of these |
| Answer» B. social securities | |
| 49. |
The most outstanding feature of the capitalist economic system is |
| A. | unemployment |
| B. | poverty |
| C. | nequality of income |
| D. | industrial backwardness |
| Answer» C. nequality of income | |
| 50. |
Which of the following is a social consequence of unemployment in india |
| A. | burden on the government |
| B. | loss of income and respect |
| C. | wastage of resources |
| D. | none of these |
| Answer» B. loss of income and respect | |
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