Business Economics 11

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Objective Questions and Answers of MBA: Business Economics 11

Subject: Objective Questions and Answers of MBA: Business Economics 11

Part 11: Objective questions and answers of Business Economics

 

Q1. Factors which change over a long period of time are called ______________ factors

a) Business

b) Cyclic

c) Secular

d) All the above

 

Q2. Ep = ______________ in the case of relatively elastic demand

a) 1

b) >1

c) <1

d) 0

 

Q3. 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

 

Q4. 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

 

Q5. The author of the book "the general theory of employment, interest and money"

a) Alfred marshall

b) Adam smith

c) J m keynes

d) A c pigou

 

Q6. 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

 

Q7. The products under monopolistic competition are

a) Differentiated with close substitute

b) Perfect substitute

c) Differentiated without close substitute

d) Homogeneous

 

Q8. If the tax function is given by t= -20+0.1 y the average tax rate would

a) Be 0.1

b) Fall as income falls

c) Vary negatively with income

d) Be -20 _0.1

e) None of the above

 

Q9. The structural deficit is

a) Directly attributable to the long-run behaviour of the economy

b) Not directly attributable to the cyclical behaviour of the economy

c) The result of permanent decisions policymakers have made about tax rates, the level of government spending, and benefit levels for transfer programs.

d) Both b and c

 

Q10. In the is-lm model, an easy monetary in conjunction with a tight fiscal policy

a) Increases exports and decreases imports

b) Decreases exports and increases imports

c) Encourages foreign capital inflows to the u.s.

d) Both b and c

 

Q11. Which one is not an exception to the law of demand?

a) Normal good

b) Articles of distinction

c) Ignorance

d) Inferior good

 

Q12. The relationship between demand for a commodity and price, ceteris paribus, is:

a) Negative

b) Positive

c) Non-negative

d) Non-positive

 

Q13. Unitary elasticity of demand is:

a) Zero

b) Equal to one

c) Greater than 1

d) Less than 1

 

Q14. Which of the following statements are correct? According to real business cycle theory,

a) The desirable monetary policy would appear to be one that results in a slow steady growth in the money supply and, thus stable prices.

b) There is some role for activist monetary stabilization policy of a keynesian type

c) Changes in aggregate demand cannot impact output

d) Both a and b

e) Both a and c

 

Q15. An example of negative productivity shocks that could cause recessions is

a) A hurricane which destroys capital

b) A decrease in the price of oil

c) Reductions in defense spending

d) All of the above

e) Both a and b

 

Q16. Which of the following statements are correct?

a) Real business cycle theorists remain convinced that the business cycle can be explained as an equilibrium phenomenon

b) According to real business cycle theorists fluctuations in output come as optimizing agents respond to real shocks that affect production possibilities

c) Real business cycle theorists consider policies to prevent fluctuations in output unnecessary

d) Both a and b

e) All of the above

 

Q17. Who gave the first scientific treatment of general equilibrium analysis

a) Leon walras

b) J.b say

c) Edward chamberlain

d) K.e boulding

 

Q18. The rational entrepreneur will expand his output and select input combinations which lie on his:

a) Isoquant line

b) Ridge line

c) Isoquant line

d) Expansion path

 

Q19. The income consumption curve generally?

a) Slopes upwards to the right

b) Slopes downwards to the right

c) Slopes upwards to the left

d) Slopes downwards to the left

e) Represents a horizontal line

 

Q20. In the simple keynesian model, if the tax function is given by t=0.15y and the consumption function is c= 50 + 0.7 yd then a 10-unit increase in government spending would increase equilibrium income by

a) 10 units

b) 11.2 units

c) 22.4 units

d) 30 units

e) None of these

 

Part 11: Objective questions and answers of Business Economics

 

Q1. Answer c

 

Q2. Answer b

 

Q3. Answer c

 

Q4. Answer d

 

Q5. Answer c

 

Q6. Answer d

 

Q7. Answer a

 

Q8. Answer b

 

Q9. Answer d

 

Q10. Answer d

 

Q11. Answer a

 

Q12. Answer a

 

Q13. Answer b

 

Q14. Answer e

 

Q15. Answer a

 

Q16. Answer e

 

Q17. Answer a

 

Q18. Answer d

 

Q19. Answer c

 

Q20. Answer b

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