McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Business Administration (BBA) .
| 101. |
When a firm doubles its inputs and finds that its output has more than doubled, this is known as: |
| A. | economies of scale. |
| B. | constant returns to scale. |
| C. | diseconomies of scale. |
| D. | a violation of the law of diminishing returns. |
| Answer» A. economies of scale. | |
| 102. |
The larger the diameter of a natural gas pipeline, the lower is the average total cost of transmitting 1,000 cubic feet of gas 1,000 miles. This is an example of: |
| A. | economies of scale. |
| B. | normative economies. |
| C. | diminishing marginal returns. |
| D. | an increasing marginal product of labour. |
| Answer» A. economies of scale. | |
| 103. |
If all resources used in the production of a product are increased by 20 percent and output increases by 20 percent, then there must be: |
| A. | economies of scale. |
| B. | diseconomies of scale. |
| C. | constant returns to scale. |
| D. | increasing average total costs. |
| Answer» C. constant returns to scale. | |
| 104. |
Surplus is a condition of: |
| A. | excess supply |
| B. | a deficiency in supply |
| C. | market equilibrium |
| D. | excess demand |
| Answer» A. excess supply | |
| 105. |
The effect on sales of an increase in price is a decrease in: |
| A. | the quantity demanded |
| B. | demand |
| C. | supply |
| D. | the quantity supplied |
| Answer» B. demand | |
| 106. |
The quantity of product X supplied can be expected to rise with a fall in: |
| A. | prices of competing products |
| B. | price of x |
| C. | energy savings technical charge |
| D. | input prices |
| Answer» B. price of x | |
| 107. |
Firms under perfectly competitive markets generally are |
| A. | price makers |
| B. | price givers |
| C. | price taker |
| D. | none of these |
| Answer» A. price makers | |
| 108. |
The concept of product differentiation was introduced by |
| A. | tr malthus |
| B. | jm keynes |
| C. | mrs. robinson |
| D. | chamberlin |
| Answer» D. chamberlin | |
| 109. |
The architect of the theory of monopolistic competition |
| A. | rosenstein roden |
| B. | jr hicks |
| C. | karl marx |
| D. | chamberlin |
| Answer» D. chamberlin | |
| 110. |
The concept of monopsony was invented by: |
| A. | marshall |
| B. | ap. learner |
| C. | chamberlin |
| D. | mrs. j. robinson |
| Answer» D. mrs. j. robinson | |
| 111. |
A cost that has already been committed and cannot be recovered known as: |
| A. | sunk cost |
| B. | total cost |
| C. | full cost |
| D. | variable cost |
| Answer» A. sunk cost | |
| 112. |
------------ is situation of severely falling prices and lowest level of economic activities |
| A. | boom |
| B. | recovery |
| C. | recession |
| D. | depression |
| Answer» D. depression | |
| 113. |
------------ is situation with increased investment and increased price |
| A. | recession |
| B. | progress |
| C. | boom |
| D. | recovery |
| Answer» C. boom | |
| 114. |
A graph indicating different combination of inputs with different level of output is called |
| A. | iso-cost map |
| B. | bep map |
| C. | input-output map |
| D. | iso-quant map |
| Answer» D. iso-quant map | |
| 115. |
Iso-cost line indicate the price of |
| A. | output |
| B. | inputs |
| C. | finished goods |
| D. | raw material |
| Answer» B. inputs | |
| 116. |
Modern definition is also called as |
| A. | Growth definition |
| B. | Welfare definition |
| C. | scarcity definition |
| D. | Neoclassical definition |
| Answer» A. Growth definition | |
| 117. |
Economics was classified into micro and macro by |
| A. | Ragnar Frisch |
| B. | Adam Smith |
| C. | J M Keynes |
| D. | A C Pigou |
| Answer» A. Ragnar Frisch | |
| 118. |
Who is regarded as a father of Business Economics |
| A. | Joel Dean |
| B. | Adam Smith |
| C. | J M Keynes |
| D. | Ragnar Frisch |
| Answer» B. Adam Smith | |
| 119. |
Decision making and ‐‐‐‐‐‐‐‐are the two important functions of executive of business firms |
| A. | Forward planning |
| B. | Directing |
| C. | Supervising |
| D. | Administration |
| Answer» A. Forward planning | |
| 120. |
“ 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 | |
| 121. |
………….is micro economic theory |
| A. | Demand theory |
| B. | Price theory |
| C. | Income theory |
| D. | None of these |
| Answer» B. Price theory | |
| 122. |
Macro economic theory is also called as |
| A. | Demand theory |
| B. | Price theory |
| C. | Income theory |
| D. | None of these |
| Answer» C. Income theory | |
| 123. |
Allocation of available resources among alternatives is based on the principle |
| A. | Opportunity cost principle |
| B. | Discounting principle |
| C. | Equi‐marginal principle |
| D. | None of these |
| Answer» C. Equi‐marginal principle | |
| 124. |
The techniques of optimization include |
| A. | Marginal analysis |
| B. | Calculus |
| C. | Linear programming |
| D. | All of the above |
| Answer» D. All of the above | |
| 125. |
Which one is not a characteristics of managerial economics |
| A. | Micro economics |
| B. | Normative science |
| C. | Positive science |
| D. | Pragmatic |
| Answer» C. Positive science | |
| 126. |
Which is the characteristics of managerial economics |
| A. | Deals with both micro and macro aspects |
| B. | Both positive and normative science |
| C. | Deals with theoretical aspects |
| D. | Deals with practical aspects. |
| Answer» D. Deals with practical aspects. | |
| 127. |
………….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 | |
| 128. |
Which of the following is not included in functions of managerial economists |
| A. | Sales forecasting |
| B. | Industrial market research |
| C. | Advice on foreign exchange |
| D. | None of the above |
| Answer» D. None of the above | |
| 129. |
Which of the following is included in specific functions of managerial economists |
| A. | Economic analysis of competing companies |
| B. | Advice on pricing problems of industry |
| C. | Environmental forecasting |
| D. | All of the above |
| Answer» D. All of the above | |
| 130. |
Which of the following is not a function of managerial economists |
| A. | Advice on trade and public relations |
| B. | Economic analysis of agriculture |
| C. | Investment analysis |
| D. | Supervision and control |
| Answer» D. Supervision and control | |
| 131. |
Which of the following is not a function of managerial economist |
| A. | Analysis of under developed economies |
| B. | Capital project appraisal |
| C. | Advice on primary commodities |
| D. | None of these |
| Answer» D. None of these | |
| 132. |
Basic economic tools of managerial economics include |
| A. | Opportunity cost principle |
| B. | Incremental principle |
| C. | Discounting principle |
| D. | All of the above |
| Answer» D. All of the above | |
| 133. |
………..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 | |
| 134. |
Analysis of long run and short run affects of decisions on revenue as well as costs is based on |
| A. | Principle of time perspective |
| B. | Equi‐marginal principle |
| C. | incremental principle |
| D. | None of these |
| Answer» A. Principle of time perspective | |
| 135. |
“…………in economics means demand backed up by enough money to pay for the goods demanded” |
| A. | Utility |
| B. | Consumption |
| C. | Supply |
| D. | Demand |
| Answer» D. Demand | |
| 136. |
The demand has three essentials‐ Desire, Purchasing power and ……….. |
| A. | Quantity |
| B. | Cash |
| C. | Supply |
| D. | Willingness to purchase |
| Answer» D. Willingness to purchase | |
| 137. |
………… 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 | |
| 138. |
………… 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 | |
| 139. |
Demand =Desires+ …………… +willingness to pay |
| A. | Supply |
| B. | utility |
| C. | Want |
| D. | Purchasing power |
| Answer» D. Purchasing power | |
| 140. |
Law of demand shows the functional relationship between ………….and quantity demanded |
| A. | Supply |
| B. | Cost |
| C. | Price |
| D. | Requirements |
| Answer» C. Price | |
| 141. |
The relationship between price and quantity demanded is |
| A. | Direct |
| B. | Inverse |
| C. | Linear |
| D. | Non‐linear |
| Answer» B. Inverse | |
| 142. |
…………….means relationship between demand and its various determinants expressed mathematically |
| A. | Demand extension |
| B. | Demand contraction |
| C. | Demand analysis |
| D. | Demand function |
| Answer» D. Demand function | |
| 143. |
D = f (P, Y, T, Ps, U),where the letter U stands for |
| A. | Utility |
| B. | Units of consumption |
| C. | Usage |
| D. | Consumer expectation & others |
| Answer» D. Consumer expectation & others | |
| 144. |
In the above function, the letters Ps stands for |
| A. | Preference of consumers |
| B. | Price of commodity |
| C. | Price of substitutes |
| D. | Product supply |
| Answer» C. Price of substitutes | |
| 145. |
In the above function, the letter Y stands for |
| A. | Yield of production |
| B. | Income of consumers |
| C. | Utility |
| D. | Supply |
| Answer» B. Income of consumers | |
| 146. |
In the above function, the letter T stands for |
| A. | Target price |
| B. | Total supply |
| C. | Total consumption |
| D. | Taste and preference of consumers |
| Answer» D. Taste and preference of consumers | |
| 147. |
Basic assumptions of law of demand does not include |
| A. | There is no change in consumers’ taste and preference |
| B. | Income should remain constant. |
| C. | Prices of other goods should change. |
| D. | There should be no substitute for the commodity |
| Answer» C. Prices of other goods should change. | |
| 148. |
The change in demand due to change in price only, where other factors remaining constant, it is called………. |
| A. | Shift in demand |
| B. | Extension of demand |
| C. | Contraction of demand |
| D. | Both extension and contraction |
| Answer» D. Both extension and contraction | |
| 149. |
When the quantity demanded of a commodity rises due to a fall in price, it is called |
| A. | Extension |
| B. | Upward shift |
| C. | Downward shift |
| D. | Contraction |
| Answer» A. Extension | |
| 150. |
When the demand changes due to changes in other factors, like taste and preferences, income, price of related goods etc... , it is called |
| A. | Extension of demand |
| B. | Contraction of demand |
| C. | Shift in demand |
| D. | None of these |
| Answer» C. Shift in demand | |
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