McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Business Administration (BBA) .
| 251. |
The condition for the long run equilibrium of a perfectly competitive firm |
| A. | Price=MC=AC |
| B. | Price=TC |
| C. | MC=AVC |
| D. | MC=MR |
| Answer» A. Price=MC=AC | |
| 252. |
Product differentiation is the important feature of |
| A. | monopoly |
| B. | perfect competition |
| C. | monopolistic competition |
| D. | monophony |
| Answer» C. monopolistic competition | |
| 253. |
The no. of firms under oligopoly is |
| A. | 1 |
| B. | 2 |
| C. | many |
| D. | few |
| Answer» D. few | |
| 254. |
The law of diminishing returns applies more to |
| A. | agriculture |
| B. | industry |
| C. | services |
| D. | commerce |
| Answer» A. agriculture | |
| 255. |
The opportunity cost of a given activity is |
| A. | the value of next best activity |
| B. | the value of material used |
| C. | the cost of input used |
| D. | none of these |
| Answer» A. the value of next best activity | |
| 256. |
The function of combining the other factors of production is done by |
| A. | land |
| B. | labour |
| C. | Capital |
| D. | Entrepreneurship |
| Answer» B. labour | |
| 257. |
The factors used in the production |
| A. | Land and labor |
| B. | capital & entrepreneurship |
| C. | both a&b |
| D. | only capital |
| Answer» C. both a&b | |
| 258. |
In a perfect market both buyers and sellers are |
| A. | price maker |
| B. | price giver |
| C. | price taker |
| D. | all the above |
| Answer» C. price taker | |
| 259. |
Which is the determinant of the pricing policy of a firm? |
| A. | Channel of distribution |
| B. | Age of product |
| C. | Consumer association |
| D. | All of these |
| Answer» D. All of these | |
| 260. |
Information for pricing decisions involves: |
| A. | Product information |
| B. | Market information |
| C. | Information at the micro level |
| D. | All of these |
| Answer» D. All of these | |
| 261. |
Which is the reason of skimming price? |
| A. | Inelastic demand |
| B. | Diversion of market |
| C. | Safer price policy |
| D. | All of these |
| Answer» D. All of these | |
| 262. |
Which is the condition of for market penetration? |
| A. | High price elasticity of demand in the short run |
| B. | Savings in production costs |
| C. | Threat of potential competition |
| D. | All of these |
| Answer» D. All of these | |
| 263. |
Production may be defined as an act of: |
| A. | Creating utility |
| B. | Earning profit |
| C. | Destroying utility |
| D. | Providing services |
| Answer» A. Creating utility | |
| 264. |
The demand curve of a firm in the case of perfect competition is: |
| A. | Parallel to output axis |
| B. | Increasing with the output axis |
| C. | Decreasing with the output axis |
| D. | Complete |
| Answer» A. Parallel to output axis | |
| 265. |
The implication of the kinked demand curve is reflected in a discontinuity in the: |
| A. | Marginal revenue curve |
| B. | Marginal cost curve |
| C. | Total revenue curve |
| D. | Total cost curve |
| Answer» A. Marginal revenue curve | |
| 266. |
A firm that is the sole seller of a product without close substitutes called: |
| A. | Monopoly |
| B. | Oligopoly |
| C. | Competition |
| D. | Bureaucracy |
| Answer» A. Monopoly | |
| 267. |
When all the productive services are increased in a given proportion, the product is increased in the same proportion. This situation is called: |
| A. | Law of increasing |
| B. | Situation of constant returns |
| C. | Fixed cost |
| D. | Variable cost |
| Answer» B. Situation of constant returns | |
| 268. |
Which factors is/are influencing price policy? |
| A. | Cost of product |
| B. | Time factor |
| C. | Government policy |
| D. | All of these |
| Answer» D. All of these | |
| 269. |
Pricing methods are: |
| A. | Standard cost method |
| B. | Learning curve method |
| C. | Marginal cost method |
| D. | All of these |
| Answer» D. All of these | |
| 270. |
Which is the feature of perfect competition? |
| A. | Large number of buyers and sellers |
| B. | Freedom of entry and exit |
| C. | Normal profit in the long run |
| D. | All of these |
| Answer» D. All of these | |
| 271. |
Which is/are the salient features of monopolistic competition? |
| A. | Large number of sellers |
| B. | Normal profit |
| C. | Free entry and exit of firms in industry |
| D. | All of these |
| Answer» D. All of these | |
| 272. |
Which are the characteristics of monopoly? |
| A. | Single seller or producer |
| B. | No close substitutes |
| C. | Inelastic demand curve |
| D. | All of these |
| Answer» D. All of these | |
| 273. |
The causes of emergence of monopoly is/are: |
| A. | Concentration of ownership of raw materials |
| B. | State regulation |
| C. | Public utility services |
| D. | All of these |
| Answer» D. All of these | |
| 274. |
Which are not the features of oligopoly? |
| A. | Few sellers |
| B. | Advertising and sales promotion |
| C. | One firm |
| D. | Conflicting attitudes of firms |
| Answer» C. One firm | |
| 275. |
The monopoly can be controlled by: |
| A. | Social boycott |
| B. | Antimonopoly legislation |
| C. | Public ownership |
| D. | All of these |
| Answer» D. All of these | |
| 276. |
The properties of indifference curves are: |
| A. | Indifference curve slops downwards from left to right |
| B. | Convex to the point of origin |
| C. | Two indifference curve never cut each other |
| D. | All of these |
| Answer» D. All of these | |
| 277. |
Price discrimination occurs when variation in prices for a product in different markets does not reflect variation? |
| A. | Costs |
| B. | Price |
| C. | Demand |
| D. | All of these |
| Answer» A. Costs | |
| 278. |
The competitive firm’s long run supply curve is the portion of it’s …………..curve lies above average total cost. |
| A. | Marginal cost |
| B. | Revenue cost |
| C. | Fixed cost |
| D. | All of these |
| Answer» A. Marginal cost | |
| 279. |
Whenever marginal cost is more than …………average total cost is falling: |
| A. | Average total revenue |
| B. | Average total cost |
| C. | Average profit |
| D. | All of these |
| Answer» B. Average total cost | |
| 280. |
Whenever ………..is greater than average total cost, average total cost is rising. |
| A. | Marginal cost |
| B. | Variable cost |
| C. | Fixed cost |
| D. | Full cost |
| Answer» A. Marginal cost | |
| 281. |
The claim that, other things equal, the quantity supplied of a goods rises when the price of goods raises known as: |
| A. | Law of economics |
| B. | Law of supply |
| C. | Law of demand |
| D. | All of these |
| Answer» B. Law of supply | |
| 282. |
The marginal revenue equation can be derived from the: |
| A. | Demand equation |
| B. | Supply equation |
| C. | Cost equation |
| D. | Price equation |
| Answer» A. Demand equation | |
| 283. |
Marginal revenue is ………….at the quantity that generate maximum total revenue and negative beyond that point. |
| A. | Zero |
| B. | One |
| C. | +1 |
| D. | -1 |
| Answer» A. Zero | |
| 284. |
------------is situation of severely falling prices and lowest level of economic activities |
| A. | Boom |
| B. | Recovery |
| C. | Recession |
| D. | Depression |
| Answer» D. Depression | |
| 285. |
------------is situation with increased investment and increased price |
| A. | Recession |
| B. | Progress |
| C. | Boom |
| D. | Recovery |
| Answer» C. Boom | |
| 286. |
Which of the following is not a macroeconomic concept? |
| A. | Business cycle |
| B. | National income |
| C. | Government policy |
| D. | None of these |
| Answer» D. None of these | |
| 287. |
Where boom ends,……….. starts |
| A. | Recovery |
| B. | Recession |
| C. | Progress |
| D. | Depression |
| Answer» B. Recession | |
| 288. |
Factors which change over a long period of time are called……..factors |
| A. | Business |
| B. | Cyclic |
| C. | Secular |
| D. | All the above |
| Answer» C. Secular | |
| 289. |
In business cycle concept, the period (approximately) of “Kit chin cycle” is of: |
| A. | 5 years |
| B. | 10 months |
| C. | 2 years |
| D. | 4 months |
| Answer» D. 4 months | |
| 290. |
The “law of variable proportion” is first explained by |
| A. | Edward west |
| B. | Marshall |
| C. | Veblen |
| D. | Keynes |
| Answer» A. Edward west | |
| 291. |
Functional relationship between input and output known as |
| A. | Conversion |
| B. | Production function |
| C. | Work in progress |
| D. | Output function |
| Answer» B. Production function | |
| 292. |
…………..product will never be zero or negative |
| A. | Marginal |
| B. | Total |
| C. | Average |
| D. | All the above |
| Answer» C. Average | |
| 293. |
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 | |
| 294. |
Which is not a property of ISOQUANT? |
| A. | Downward sloping |
| B. | Convex |
| C. | Negative slope |
| D. | Positive slope |
| Answer» D. Positive slope | |
| 295. |
Which of the following is not a variable input? |
| A. | Raw material |
| B. | Power |
| C. | Equipment |
| D. | None of these |
| Answer» C. Equipment | |
| 296. |
Which of the following is a short run law? |
| A. | Law of constant return to scale |
| B. | Law of increasing return to scale |
| C. | Law of diminishing return |
| D. | None of these |
| Answer» C. Law of diminishing return | |
| 297. |
…………is called produced means of production |
| A. | Land |
| B. | Labour |
| C. | Capital |
| D. | Raw material |
| Answer» C. Capital | |
| 298. |
In the long run all input become ………… |
| A. | Fixed |
| B. | Variable |
| C. | Semi variable |
| D. | None of these |
| Answer» B. Variable | |
| 299. |
The term “Economies” refers to |
| A. | Product advantage |
| B. | Cost advantage |
| C. | Sales advantage |
| D. | All of the above |
| Answer» B. Cost advantage | |
| 300. |
Who classified economies of scale into internal and external? |
| A. | Robinson |
| B. | Marshall |
| C. | Edward west |
| D. | Pigue |
| Answer» B. Marshall | |
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