Business Economics MCQs
Business Economics MCQs
Answer these 300+ Business Economics MCQs and assess your grip on the subject of Business Economics.
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1: Economics is neutral between ends is said by
A. Adam smith
B. lionel robbins
C. Alfred Marshall
D. samuelson.
2: which branch of economics studies about unemployment, illiteracy, National income tax?
A. Micro economics
B. Wealth economics c
C. Macro economics
D. fiscal economics
3: when we go form particular to general, this method is called as
A. Inductive method
B. General method
C. Deductive method
D. Partial method
4: The subject of economics is
A. A natural science
B. A social science
C. A political Science
D. A physical Science.
5: Micro economics is also known as
A. price theory
B. process theory
C. product theory
D. projection theory.
6: The business economic theory is concerned with the management technique to achieve
A. Maximization of total revenue from sales
B. minimization of cost of production
C. maximize profit from the business unit.
D. all the above
7: Which is not included in the welfare goal to the society by the firm?
A. building of roads
B. charitable hospital
C. living wages
D. maintaining parks
8: which is not the assumption of production possibility curve?
A. amount of resources are given
B. prices of factors fluctuates
C. resources are not specific
D. Technology remains constant
9: A decision is not profitable if
A. it increases revenue more than costs.
B. it decreases some cost more than it increases others.
C. it increases costs more than revenue
D. it increases some revenues more than it decreases others.
10: Organizational efficiency does not include
A. administrative efficiency
B. entrepreneurial efficiency
C. managerial efficiency
D. technical efficiency
11: What type of relationship exists between the price and quantity demanded?
A. indirect
B. Inverse
C. Positive
D. Both a&b
12: -------------represents the tabular form of quantity demanded of a particular product during a given period of time
A. Law of demand
B. Demand Curve
C. Demand schedule
D. Cross demand
13: Extension and contraction of demand for a good occurs as a result of
A. Change in the quality of good
B. Change in the price of a good
C. Availability of cheaper substitutes
D. Increases in Income
14: An exceptional demand curve is one that moves
A. upward to the right
B. downward to the right
C. horizontall
D. upward to the left
15: In the case of a Giffen good, a fall in its price tends to
A. Demand remain constant
B. demand increases
C. Reduce the demand
D. Abnormal change in demand.
16: What would be the value of elasticity of demand, if the demand for the good is perfectly inelastic?
A. 0
B. 1
C. infinity
D. less than Zero
17: The demand for necessities is usually
A. highly elastic
B. highly inelastic
C. unit elasticity
D. relatively inelastic
18: The responsiveness of demand to the change in income is known as
A. Price elasticity of demand
B. cross elasticity of demand
C. income elasticity of demand
D. none of these
19: Which one of the following is not a method of measuring elasticity of demand?
A. are method
B. percentage method
C. point method
D. none of these
20: which of the following statements regarding cross elasticity holds good?
A. it is always negativ
B. it can be either positive or negative
C. it is always positive
D. it always lies between 0 and 1
21: Demand forecasting can be categorized on the basis of
A. the level of forecasting
B. time period
C. nature of goods
D. All the above
22: Which is not a statistical method in forecasting?
A. Trend analysis
B. consumer survey
C. Regression method
D. east square method
23: east square method
A. Delphi techniques
B. Multi collinearity
C. Simultaneous equation method
D. correlation.
24: A time series can be calculated through
A. leading series
B. coincident series
C. logging series
D. all the above
25: A simultaneous equation model may consists of all the following except
A. Endogenous variables
B. Undefined equation
C. Exogenous variables
D. Structural equations.
26: The law which studies the direct relationship between price and quantity supplied of a commodity is
A. Law of demand
B. Law of variable proportion
C. Law of supply
D. None of the above
27: .When price rises, quantity supplied
A. expands
B. falls
C. increases
D. unchanged.
28: In case of perfectly inelastic supply the supply curve will be
A. rising
B. vertical
C. horizontal
D. falling
29: When a percentage in price results in equal change in quantity supplied, it is called,
A. elastic supply
B. perfectly inelastic
C. elasticity of supply
D. unitary elastic supply.
30: when supply of a commodity decreases on a fall in its price, its is called
A. Expansion of supply
B. Increase in supply
C. Contraction of supply
D. Decrease in supply
31: which utility approach suggests that utility can be measured and quantified?
A. ordinal
B. Cardinal
C. both a &b
D. diminishing marginal utility
32: ---------------------- of a commodity is the additional utility derived by a consumer, by consuming one more unit of that commodity.
A. Marginal utilit
B. Total utilit
C. Average utility
D. maximum utility
33: ---------------------- of a commodity is the additional utility derived by a consumer, by consuming one more unit of that commodity.
A. Marginal utilit
B. Total utilit
C. Average utility
D. maximum utility
34: At what point does total utility starts diminishing?
A. when marginal utility is positive
B. when it remains constant
C. when marginal utility is increasing
D. when marginal utility is negative.
35: Consumer’s surplus is also known as
A. indifference surplus
B. elasticity of supply
C. buyer’s surplus
D. indifference surplus.
36: Which of the following is called Gossen’s first law?
A. Law of substitution b
B. Law of equal- marginal utility
C. Law of diminishing marginal
D. None of the above
37: Which utility measuring approach, is utility ranked in order of preference, but not measured?
A. Cardinal
B. Ordinal
C. Both a & b
D. Variable approach
38: Which shows various combinations of two products that give same amount of satisfaction?
A. Iso-cost curve.
B. Marginal utility curve.
C. Iso-quant.
D. Indifference curve.
39: Indifference curve slopes,
A. Downward to the right
B. upward to the right
C. Downward to the left
D. Upward to the left.
40: the process of capital formation includes,
A. capital of savings.
B. Mobilization of savings.
C. Investment of savings.
D. all of the above
41: internal economies is related to
A. Marketing economies
B. Financial economies.
C. Labour economies
D. All of the above.
42: Which of the following cost curve is U shaped?
A. Average cost curve.
B. Marginal cost curve.
C. Average fixed cost curve
D. Average variable cost curve
43: the point where TR curve cuts TC curve is called
A. equilibrium point
B. split off point
C. point of inflexion
D. Break even point.
44: the shape of TFC curve is
A. Horizontal line
B. Downward sloping.
C. U shaped
D. Upward sloping.
45: Indicate which of the following is a variable cost?
A. Cost of raw materials
B. Cost of machine.
C. Interest on capital.
D. rent payment for buildings
46: few sellers is the feature of
A. monopoly
B. oligopoly
C. perfect competition
D. monopolistic competition.
47: Market which have two firms are known as
A. Oligopoly
B. monopoly
C. Duopoly
D. perfect competition
48: which item is not included in public utilities?
A. Water supply
B. Accessories
C. Gas supply
D. Electricity
49: supply curve of a perfectly competitive firm is
A. Vertical
B. Upward sloping
C. horizontal
D. Downward sloping.A
50: In perfect competition a fiem increases profit when _____ exceeds ________
A. TC, TR
B. MC, MR
C. AR, AC
D. TR, TFC.
51: the discriminating monopoly can be categorized as
A. Personal
B. place
C. use
D. all of the above.
52: which is not a phase of business cycle?
A. Depression
B. Accumulation
C. Recession
D. recovery
53: which is not an instrument of fiscal policy in controlling business cycle?
A. Taxation
B. investment
C. borrowing
D. spending
54: the fluctuations or movement in economic activity are commonly classified as
A. secular trends.
B. cyclical fluctuations
C. random fluctuations
D. all of the above
55: which is the most preferred methods of measuring inflation?
A. WPI
B. CPI
C. NID
D. all of the above
56: Who gains in inflation?
A. Savers
B. Creditors
C. Pensioners
D. debtors
57: Economics deals with what is and normative economics deals with ---------------------
A. Positive, what ought to be
B. negative, what ought to be
C. both a&b
D. None of these
58: --------------------- deals with the behavior of individual decision makings units such as consumers, resource owners and so on.
A. Macro economics
B. Micro economics
C. mini economics
D. None of these
59: There are two methods of constructing an economics theory, they are ------- and ------ methods.
A. Inductive
B. Deductive
C. Both A&B
D. None of these
60: Ina ---------------------- economy, public and private sectors exist by side
A. Macro
B. Micro
C. Mixed
D. all the above
61: Capitalism is the system that advocates --------------- to solve the basic economic problems.
A. Price Mechnanism
B. Profit Mechanism
C. Loss Mechnaism
D. None of these
62: Business economics is a science which deals with the application of ----------------- in business practices.
A. Economic theory
B. ommerce theory
C. macro theory
D. None of these
63: ------------------- means the process of choosing one action from two or more alternatives available.
A. choice
B. Decision Making
C. option making
D. All the above
64: A Firm’s profitability depends much on its ----------------- of production.
A. Price
B. Charge
C. Cost
D. All the above
65: Generally, ----------------- are the primary measure of the success of any business.
A. loss
B. Profit
C. Profit and Loss
D. break even point
66: The guiding principle of business economics is not -----------------but avoiding loss.
A. Profit maximization
B. Loss maximization
C. Profit minimization
D. Loss minimization
67: The law of demand states that there is an ------------- relationship between price and quantity demanded
A. The law of demand states that there is an ------------- relationship between price and quantity demanded
B. Inverse
C. discuss
D. none of these
68: A ------------------ along the demand curve is caused by a change in the price of the good only.
A. Movement
B. Progress
C. growth
D. all the above
69: Assuming that bread and jam are complements. If the price of jam increase, the equilibrium quantity for bread will--------------
A. Increase
B. neutral
C. Decrease
D. n
70: There is a direct relationship between ------------- of the consumer and his demand.
A. expenses
B. losses
C. gains
D. income
71: Elasticity of demand tells the -------- of change in demand to the change in price
A. Rate/quantum
B. charge
C. low rate
D. high rate
72: ------------ elasticity of demand measures changes in the quality demanded of good x due to change in the price of good y.
A. straight
B. right
C. left
D. cross
73: . Low price of a good generally keeps its price elasticity of demand as -------------
A. high
B. medium
C. normal
D. low
74: in the case of inferior goods, the income elasticity of demand is -----------------
A. positive
B. negative
C. positive, negative
D. negative, positive
75: when as a result of increase in price of goods, total expenditure made on goods falls, price elasticity of demand is ------- than unity.
A. Greater
B. lesser
C. nominal
D. none of these
76: ---------------- is the scientific and analytical estimation of demand for a product for a particular period of time
A. Demand forecasting
B. forecasting
C. claim
D. none of these
77: --------------- refers to the opinion of the buyers, sales force to have the knowledge of emerging trend in market demand.
A. questionnaire method
B. interview method
C. Survey/opinion method
D. all the above
78: collective opinion method is also known as the --------------
A. sales force opinion
B. purchase force opinion method
C. sales return opinion
D. purchase return opinion
79: The past data is arranged chronologically with regular intervals of time. This type of data is called----------------------
A. cost series
B. price series
C. time series
D. gap series
80: ----------------------- establishes the relationship between quantity demanded and one or more independent variables
A. Co-relation method
B. independent method
C. quantity method
D. Regression method. model buildings.
81: The law of supply states that firms will ----------- of the commodity when prices are high and vice versa.
A. purchase more
B. sell more
C. purchase less
D. sell less
82: Market ----------- occurs where demand and supply are equal.
A. Equilibrium
B. utility
C. elastic
D. none of these
83: Commodities which are perishable in nature have ---------------- supply.
A. elastic
B. expand
C. inelastic
D. all the above
84: When a supply of a commodity decreases on a fall in its price, it is called ----------
A. demand
B. Contraction of supply
C. consumer surplus
D. none of these
85: When a supply of a commodity decreases on a fall in its price, it is called ----------
A. demand
B. Contraction of supply
C. consumer surplus
D. none of these
86: -------------- of a commodity is the total quantity that is available in a market at a certain time.
A. Stock
B. opening stock
C. closing stock
D. all the above
87: --------------- is the measure of satisfaction a consumer derives out of consumption of a commodity.
A. utility
B. indifference
C. margin of safety
D. all the above
88: when total utility is maximum, marginal utility is zero, it is called ----------- point.
A. saturation
B. diffusion
C. utility
D. none of these
89: -------------- is equal to the difference between the price a consumer is willing to pay and the price actually he pays for a commodity.
A. surplus
B. customer surplus c
C. consumer surplus
D. none of these
90: Cardinal utility approach is based on the -------- school of thought.
A. Marshallian
B. Albert
C. economic
D. none of these
91: Cardinal utility approach is based on the -------- school of thought.
A. Marshallian
B. Albert
C. economic
D. none of these
92: The assumption of ----------------- implies that an individual consumer’s preferences are always consistent.
A. transitivity
B. saturation
C. utility
D. none of these
93: The IC analysis explains the demand for inferior goods and solves
A. Veblen effect
B. Giffen paradox
C. speculative effect
D. all the above
94: The book “Value and capital”was written by
A. JR Hicks
B. RGD Allen
C. Alfred Marshall
95: Which of the following is considered production in economics?
A. Driving for pleasure
B. Teaching for a fee
C. Boating for recreation
D. Donating blood
96: In which stage of production would a rational producer like to operate
A. I stage-MP is maximum
B. I State –BothMP&AP are decreasing but positive
C. III Stage –MP is negative
D. either stage II or III
97: Perfect competition has the following features except
A. Homogenous products
B. perfect knowledge
C. selling and transport cost occur
D. free entry and exit
98: Markets are being classified on the basis of
A. demand and supply
B. Time
C. situation
D. all of the above
99: There is a single seller of a commodity which has no close substitutes can be termed as
A. Pure monopoly
B. duopoly
C. monopoly
D. pure oligopoly
100: A firm that produces substitute goods can adopt the following pricing strategy
A. Transfer pricing
B. full costing
C. going rate pricing
D. ustomary pricing
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