McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Business Administration (BBA) .
| 1. |
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. | |
| 2. |
_______ is known as father of economics |
| A. | marshal |
| B. | robins |
| C. | adam smith |
| D. | a c pigou |
| Answer» C. adam smith | |
| 3. |
The famous book on economics “An Enquiry into the Nature and Cause of Wealth of Nation” was written by |
| A. | marshal |
| B. | ricardo |
| C. | robins |
| D. | adam smith |
| Answer» D. adam smith | |
| 4. |
Welfare (neo classical) definition of economics is given by |
| A. | j b say |
| B. | lionel robbins |
| C. | adam smith |
| D. | alfred marshall |
| Answer» D. alfred marshall | |
| 5. |
If the income elasticity of demand is that one, the good is a |
| A. | necessity |
| B. | luxury |
| C. | substitute |
| D. | complement |
| Answer» B. luxury | |
| 6. |
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 | |
| 7. |
What effect is working when the price of a good falls and consumers tend to buy it insteadof other goods |
| A. | income effect |
| B. | substitution effect |
| C. | price effect |
| D. | none of these |
| Answer» B. substitution effect | |
| 8. |
“A rupee tomorrow is worth less than a rupee today” relates to |
| A. | opportunity cost principle |
| B. | discounting principle |
| C. | equi‐marginal principle |
| D. | none of these |
| Answer» B. discounting principle | |
| 9. |
Basic economic tools of managerial economics does not include |
| A. | principle of time perspective |
| B. | equi‐marginal principle |
| C. | incremental principle |
| D. | none of these |
| Answer» D. none of these | |
| 10. |
…….. principle is closely related to the marginal costs and marginal revenue of economic theory |
| A. | principle of time perspective |
| B. | equi‐marginal principle |
| C. | incremental principle |
| D. | none of these |
| Answer» C. incremental principle | |
| 11. |
Analysis of long run and short run affects of decisions on revenue as well as costs is bas ed on |
| A. | principle of time perspective |
| B. | equi‐marginal principle |
| C. | incremental principle |
| D. | none of these |
| Answer» A. principle of time perspective | |
| 12. |
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 | |
| 13. |
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 | |
| 14. |
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 | |
| 15. |
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 | |
| 16. |
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 | |
| 17. |
Which one is not a property of isoquant |
| A. | downward sloping |
| B. | convex |
| C. | negative slope |
| D. | positive slope |
| Answer» D. positive slope | |
| 18. |
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 | |
| 19. |
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 | |
| 20. |
Which of the following is not a variable input |
| A. | raw material |
| B. | power |
| C. | equipment |
| D. | none of these |
| Answer» C. equipment | |
| 21. |
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 | |
| 22. |
Which cost are recorded in books of accounts |
| A. | opportunity cost |
| B. | implicit cost |
| C. | social cost |
| D. | explicit cost |
| Answer» D. explicit cost | |
| 23. |
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 | |
| 24. |
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 | |
| 25. |
Firms in an 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 | |
| 26. |
Product differentiation is an important feature of |
| A. | perfect competition |
| B. | monopolistic competition |
| C. | monopoly |
| D. | none of these |
| Answer» B. monopolistic competition | |
| 27. |
……… refers to the quantity of a good or service that producers are willing and able to sell during a certain period under a given set of conditions |
| A. | supply |
| B. | demand |
| C. | price |
| D. | production |
| Answer» A. supply | |
| 28. |
………. for a product is a statement of the relation between the quantity supplied and all factors affecting that quantity |
| A. | market demand function |
| B. | production function |
| C. | market supply function |
| D. | all of the above |
| Answer» C. market supply function | |
| 29. |
Which is/are determinants of Supply……. |
| A. | price of the commodity |
| B. | state of technology |
| C. | cost of production |
| D. | all the above |
| Answer» C. cost of production | |
| 30. |
…………a statement in the form of a table that shows the different quantities of a commodity that a firm or a producer offers for sale in the market at different prices. |
| A. | supply schedule |
| B. | production schedule |
| C. | demand schedule |
| D. | price schedule |
| Answer» A. supply schedule | |
| 31. |
……….. a schedule that depicts the supply by an individual firm or producer of a commodity in relation to its price |
| A. | market price schedule |
| B. | market supply schedule |
| C. | individual supply schedule |
| D. | none of them |
| Answer» C. individual supply schedule | |
| 32. |
…………… is the degree of responsiveness of supply to changes in the price of a good |
| A. | elasticity of demand |
| B. | elasticity of supply |
| C. | both (a) & (b) |
| D. | none of them |
| Answer» B. elasticity of supply | |
| 33. |
Business Economics is also known as…………. |
| A. | managerial economics |
| B. | economics for executives |
| C. | economic analysis for business decisions |
| D. | all the above |
| Answer» D. all the above | |
| 34. |
An input should be so allocated that the value added by the last unit is the same in all cases. |
| A. | opportunity cost principle |
| B. | equi-marginal principle |
| C. | incremental principle |
| D. | discounting principle |
| Answer» B. equi-marginal principle | |
| 35. |
The principle reasons behind economic problems |
| A. | unlimited wants |
| B. | limited or scarce of means |
| C. | alternatives uses of means |
| D. | all of the above |
| Answer» D. all of the above | |
| 36. |
Managerial utility function is expressed as: |
| A. | u = s (s, m, i) |
| B. | u = s (s, m) |
| C. | u = f (s, m, i) |
| D. | u = f (s, m, i) |
| Answer» C. u = f (s, m, i) | |
| 37. |
The value of an entrepreneur’s resources that she uses in production are known as: |
| A. | explicit costs. |
| B. | sunk costs. |
| C. | operating expenses. |
| D. | implicit costs. |
| Answer» D. implicit costs. | |
| 38. |
Inflation is: |
| A. | a decrease in the overall level of economic activity. |
| B. | an increase in the overall level of economic activity. |
| C. | an increase in the overall price level. |
| D. | a decrease in the overall price level. |
| Answer» C. an increase in the overall price level. | |
| 39. |
A recession is: |
| A. | a period of declining unemployment. |
| B. | a period of declining prices |
| C. | a period during which aggregate output declines |
| D. | a period of very rapidly declining prices. |
| Answer» C. a period during which aggregate output declines | |
| 40. |
Opportunity cost means |
| A. | the accounting cost minus the marginal benefit. |
| B. | the highest-valued alternative forgone. |
| C. | the monetary costs of an activity. |
| D. | the accounting cost minus the marginal cost |
| Answer» B. the highest-valued alternative forgone. | |
| 41. |
______ is economic theory used in business whereas ______ is economics theory used in business and non-business organization |
| A. | micro economics, macro economics |
| B. | business economics, managerial economics |
| C. | positive economics and normative economics |
| D. | none of these |
| Answer» B. business economics, managerial economics | |
| 42. |
Managerial economics is also called |
| A. | micro economics |
| B. | theory of the firm |
| C. | economics of the firm |
| D. | all of the above. |
| Answer» D. all of the above. | |
| 43. |
Want satisfying power of commodity is called |
| A. | demand |
| B. | utility |
| C. | satisfaction |
| D. | consumption |
| Answer» B. utility | |
| 44. |
In economics, desire backed by purchasing power is known as |
| A. | utility |
| B. | demand |
| C. | consumption |
| D. | scarcity |
| Answer» B. demand | |
| 45. |
The demand has three essentials ‐ Desire, Purchasing power and ……….. |
| A. | quantity |
| B. | cash |
| C. | supply |
| D. | willingness to purchase |
| Answer» D. willingness to purchase | |
| 46. |
.………… means an attempt to determine the factors affecting the demand of a commodity or service and to measure such factors and their influences |
| A. | demand planning |
| B. | demand forecasting |
| C. | demand analysis |
| D. | demand estimation |
| Answer» C. demand analysis | |
| 47. |
.………… is known as the ‘first law in market” |
| A. | law of supply |
| B. | law of consumption |
| C. | law of demand |
| D. | law of production |
| Answer» C. law of demand | |
| 48. |
Demand = Desires + …………… + Willingness to pay |
| A. | supply |
| B. | utility |
| C. | want |
| D. | purchasing power |
| Answer» D. purchasing power | |
| 49. |
Law of demand shows the functional relationship between _______ and quantity demanded |
| A. | supply |
| B. | cost |
| C. | price |
| D. | requirements |
| Answer» C. price | |
| 50. |
Basic assumptions of law of demand include |
| A. | prices of other goods should change. |
| B. | there should be substitute for the commodity. |
| C. | the commodity should not confer any distinction. |
| D. | the demand for the commodity should not be continuous |
| Answer» C. the commodity should not confer any distinction. | |
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