Business Economics MCQ Questions and Answers Part – 2

Business Economics MCQ Questions and Answers Part – 1

Business Economics MCQ Questions and Answers Part – 2

Business Economics MCQ Questions and Answers Part – 3

51. The forecasting model that the opinions of a group of experts or managers is known as ———
A. salesforce composition model
B. multiple regression
C. jury of executive model
D. consumer market survey model
ANSWER: C
52. Which of the following techniques uses variables such as price and promotional expenditures, which are
related to the product demand, to predict demand
A. Associative models
B. exponential smoothing
C. weighted moving average
D. simple moving average
ANSWER: B
53. Time-series data may exhibit which of the following behaviours?
A. Trend
B. Random variation
C. Seasonality
D. Cycles
ANSWER: A
54. Gradual long term movement in time series data is called ——–
A. Seasonal variation
B. cycles
C. trends
D. exponential variation
ANSWER: A
55. Which of the following is not present in a time series?
A. Seasonality
B. operational variations
C. trend
D. random variations
ANSWER: D
56. In sample survey method —– technique is adopted
A. deliberate
B. convenience
C. quota
D. random
ANSWER: D
57. car and petrol are —- goods
A. substitutes
B. complementary
C. producers
D. None of the above
ANSWER: B
58. Tea and coffee are —– goods
A. substitutes
B. complementary
C. producers
D. none of the above
ANSWER: A
59. In cross elasticity of demand, for unrelated goods the demand curve will be——-
A. Horizontal straight line
B. rectangular hyperbola
C. vertical line
D. none of the above
ANSWER: C
60. The total outlay method explains the relationship between price and ——A. demand
B. supply
C. expenditure
D. income
ANSWER: C
61. Supply is a function of —–
A. a straight line
B. a parabola
C. a hyperbola
D. convex to the origin
ANSWER: C
62. The supply of a product does not depend on ——-
A. labour costs
B. the number of sellers in the market
C. consumers tastes
D. existing technology
ANSWER: C
63. Passive factor of production is ——-
A. only land
B. only capital
C. both land and capital
D. neither land nor capital
ANSWER: C
64. Reasons for increasing return in stage I of law of variable proportion is ——–
A. Indivisibility
B. Specialisation
C. both a and b
D. none of the above
ANSWER: C
65. —– Economics views on reducing the production costs
A. internal
B. inventory
C. pecuniary
D. External
ANSWER: D
66. Which of the following are not related to factors of production(FOP)
A. land
B. capital
C. raw material
D. labour
ANSWER: C
67. Which factor of production is considered as fixed input
A. labour
B. technology
C. capital
D. land
ANSWER: D68. The supply of a product does not depend on ——-
A. labour costs
B. the number of sellers in the market
C. consumers tastes
D. existing technology
ANSWER: C
69. ——- is the remuneration for organisation
A. rent
B. wages
C. interest
D. profit
ANSWER: D
70. ——- input factor is divided as skilled, semiskilled, unskilled
A. land
B. capital
C. Technology
D. labour
ANSWER: D
71. In the Law of variable proportion when TP is maximum then the MP = —–
A. MP = 1
B. MP<0
C. MP=0
D. MP>!
ANSWER: C
72. Cobb Douglas production function mainly studies ———
A. capital and labour
B. labour and expenditure
C. land and labour
D. land and capital
ANSWER: A
73. Marginal cost is defined as
A. change in total cost due to change in output
B. total cost divided by output
C. change in output due to a change in an input
D. total product divided by the quantity of input
ANSWER: A
74. Which of the following is correct?
A. TC = TFC+TVC
B. TFC=TC-TVC
C. TVC=TC-TFC
D. None of the above
ANSWER: D
75. The cost with which the concept of marginal cost is closely related
A. variable cost
B. fixed cost
C. opportunity cost
D. economic cost
ANSWER: A
76. Opportunity cost is also known as ——-
A. outlay cost
B. sunk cost
C. alternative cost
D. total cost
ANSWER: C
77. —– costs are business costs which do not involve any cash payments but for them a provision is made in accounts
A. private cost
B. social cost
C. accounting cost
D. book cost
ANSWER: D
78. The vertical difference between TVC and TC is equal to ——
A. MC
B. AVC
C. TFC
D. none
ANSWER: C
79. The costs that depend on output in the short run are ——-
A. total variable costs only
B. both total variable costs and total costs
C. total costs only
D. total fixed cost only
ANSWER: A
80. Inthe short run as economists use the phrase is characterised by ——-
A. all inputs being variable
B. a period where the law of diminishing return does no hold
C. at least one fixed factor of production and firms neither leaving nor entering the industry
D. no variable inputs
ANSWER: C
81. A graph showing all the combination of capital and labour available for a given total cost is the ——-
A. isoquant
B. budget constraint
C. isocost line
D. expenditure set
ANSWER: A
82. The formula for average fixed costs is ———-
A. TFC/Q
B. DQ/DFC
C. Q/TFC
D. TFC – Q
ANSWER: A
83. Implicit costs are ——-
A. equal to total fixed costs
B. comprised entirely of variable costs
C. payments for self-employed resources
D. always greater in the short run than in the long run
ANSWER: C
84. The short run is a time period in which ——-
A. all resources are fixed
B. the level of output is fixed
C. the size of the production plant is variable
D. some resources are fixed and others are variable
ANSWER: A
85. When the total product curve is falling, ———-
A. marginal product curve is zero
B. marginal product curve is negative
C. average product is increasing
D. average product is negative
ANSWER: B
86. Variable costs are ————————
A. Sunk costs
B. Multiplied by fixed cost
C. Cost that change with the level of production
D. the change in total cost resulting from the production of an additional unit of output.
ANSWER: C
87. Money paid to an unskilled labour is called —————
A. Wages
B. Salary
C. Royalty
D. None
ANSWER: A
88. Marginal cost curve cuts the average cost curve ————–
A. at the left of its lowest point
B. at its lowest point
C. at the right of its lowest point
D. at its highest point
ANSWER: B
89. An LAC curve is not known as —————
A. Envelope curve
B. Planning curve
C. operating curve
D. plant curve
ANSWER: D
90. Marginal cost means ————————
A. Substitutional cost
B. addition to the total cost
C. multiplication to the total cost
D. variable cost
ANSWER: B91. In case of oligopoly, the number of firms is ——————-
A. Larger
B. Infinite
C. one
D. few
ANSWER: D
92. What are homogenous products?
A. Undifferentiated products
B. Differentiated products
C. Both (a) and (b)
D. None
ANSWER: A
93. A distinguishing characteristic of monopolistic competition is ——————
A. Large number of firms
B. Low entry barriers
C. product standardisation
D. product differentiation
ANSWER: D
94. If firms can neither enter nor leave an industry, the relevant time period is the ———
A. Short run
B. Intermediate run
C. Long run
D. Immediate run
ANSWER: A
95. Imperfect competition was introduced by ————-
A. Marshall
B. Chamberlin
C. Keynes
D. None
ANSWER: B
96. In case of monopoly, a firm in the long run can have ————–
A. Loss
B. Profit
C. Supernormal profit
D. All of the above
ANSWER: D
97. In perfect competition equilibrium is attained when ——————
A. AR = AC
B. TR=TC
C. MR=MC
D. Q=P
ANSWER: C
98. kinked demand curve is associated with —————–
A. Cournot
B. Chamberlin
C. Edgeworth
D. Sweezy
ANSWER: D
99. The upper portion of the kinked demand curve is relatively ————–
A. More inelastic
B. More elastic
C. Less elastic
D. Less inelastic
ANSWER: B
100. Concentration of monopoly is implemented under ——————
A. FERA
B. MRTP
C. FEMA
D. None
ANSWER: B