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1. The market period supply curve for perishable commodities is

Options

A : Perfectly elastic

B : Perfectly inelastic

C : Relatively elastic

D : Relatively inelastic

Options

A : 1 and 3

B : 2 and 3

C : 2,3 and 4

D : 1,2,3 and 4

3. The degree of monopoly power can be measured by the formula

Options

A : (P - MC) / P

B : MR / (AR - MR)

C : AR / (AR - MR)

D : (AR -MR ) / MR

4. Under monopoly and imperfect competition, MC is

Options

A : Equal to the price

B : Less than the price

C : More than the price

D : Any of the above

Options

A : ∞

B : 0

C : 1

D : -1

46. Which one of the following is not a common property of an indifference curve

Options

A : Downward sloping

B : Convex to the origin

C : Two indifference curves can intersect each other

D : None of the above

47. The appropriate objective of an enterprise is

Options

A : Maximisation of sales

B : Maximization of the owner's wealth

C : Maximization of profits

D : None of the above

48. The positive income effect is greater than the negative substitution effect in case of

Options

A : Normal goods

B : Inferior goods

C : Luxury goods

D : Giffen goods

49. Match List-I with List-II and select the correct answer using the codes given below the lists:

Options

A : a b c d I II III IV

B : a b c d II III IV I

C : a b c d III II IV I

D : a b c d IV III II I

50. When the demand for a commodity also depends upon prices of the substitutes & complementaries or relative prices then it is called

Options

A : Price-demand

B : Income-Demand

C : Cross-Demand

D : None of the above

51. Assertion (A). Business Economics is a tool facilitating decision making in business. Reason (R). It provides an analytical understanding of economic activities.

Options

A : Both (A) and (R) are not correct.

B : Both (A) and (R) are correct.

C : (A) is true, but (R) is false

D : (R) is true but (A) is false.

Options

A : I and 3

B : III and 4

C : II and 1

D : IV and 2

53. For the relationship between AC and MC, which of the following statement is wrong?

Options

A : Both AC & MC are calculated from TC

B : If AC Falls, MC will rise

C : If AC rises, MC also rises

D : For the minimum point of AC, the average cost is equal to marginal cost.

54. Assertion (A). The demand for the product of a firm under oligopoly is at a price higher than the prevailing market price. Reason (R). The oligopolistic firm faces a kinked demand curve.

Options

A : Both (A) and (R) are false.

B : Both (A) and (R) are true, but (R) is not the correct explanation of (A).

C : (A) is true but (R) is false.

D : (A) is false but (R) is true.

55. In the case of utility theory, as income increases, the marginal utility of money

Options

A : Decreases

B : Increases

C : Remains constant

D : None of these

56. When quantity demanded changes due to factors other than price, it is called

Options

A : increase in demand

B : decrease in demand

C : Both (a) and (b)

D : None of these

57. Assertion (A). "Utility will be maximized when the marginal unit of expenditure in each direction brings the same incremental utility. Reason (R). A consumer will try to maximize his utility.

Options

A : Both (A) and (R) are true and (R) is the correct explanation of (A).

B : Both (A) and (R) are true but (R) is not the correct explanation of (A).

C : Both (A) and (R) are false.

D : (A) is true but (R) is false.

58. The perfect competition is characterized by

Options

A : seller as a price taker

B : firms selling identical products

C : presence of many firms

D : all of these

59. The term 'revealed preference' was introduced in the book by

Options

A : Das Capital

B : Affluent Society

C : Foundations of Economic Analysis

D : None of these

60. In the case of contraction or extension in demand, the movement is along a demand curve whereas, in case of increase or decrease, the demand curve will move

Options

A : downward

B : upward

C : any of these

D : none of these