Business Economics 3

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Objective Questions and Answers of MBA: Business Economics 3

Subject: Objective Questions and Answers of MBA: Business Economics 3

Part 3: Objective questions and answers of Business Economics

 

Q1. Whenever ______________ is greater than average total cost, average total cost is rising.

a) Marginal cost

b) Variable cost

c) Fixed cost

d) Full cost

 

Q2. Iso-cost line indicate the price of

a) Output

b) Inputs

c) Finished goods

d) Raw material

 

Q3. Product differentiation is the important feature of

a) Monopoly

b) Perfect competition

c) Monopolistic competition

d) Monophony

 

Q4. Method of demand forecasting is also called "economic model building"

a) Opinion survey

b) Complete enumeration

c) Correlation and regression

d) Delphi method

 

Q5. Want satisfying power of commodity is called

a) Demand

b) Utility

c) Satisfaction

d) Consumption

 

Q6. Decision making and ______________ are the two important functions of executive of business firms

a) Forward planning

b) Directing

c) Supervising

d) Administration

 

Q7. The firm charges price in tune with the industry’s price is called

a) Competitive pricing

b) Going rate pricing

c) Tune pricing

d) Target pricing

 

Q8. Information for pricing decisions involves:

a) Product information

b) Market information

c) Information at the micro level

d) All of these

 

Q9. Functional relationship between input and output known as

a) Conversion

b) Production function

c) Work in progress

d) Output function

 

Q10. Which is the reason of skimming price?

a) Inelastic demand

b) Diversion of market

c) Safer price policy

d) All of these

 

Q11. If the commodities are substitute in nature, cross elasticity will be

a) Negative

b) Positive

c) Zero

d) Any of the above

 

Q12. For the commodities like salt, sugar etc., the income elasticity will be

a) Zero

b) Negative

c) Positive

d) Unitary

 

Q13. When a small change in price leads to infinite change in quantity demanded, it is called

a) Perfectly elastic demand

b) Perfectly inelastic demand

c) Relative elastic demand

d) Relative inelastic demand

 

Q14. An increase in income may lead to an increase in the quantity demanded, it is

a) Positive income elasticity

b) Zero income elasticity

c) Negative income elasticity

d) Unitary income elasticity

 

Q15. In a perfectly competitive market, individual firm

a) Cannot influence the price of its product

b) Can influence the price of its product

c) Can fix the price of its product

d) Can influence the market force

 

Q16. The cause of emergence of monopoly is/are:

a) Concentration of ownership of raw materials

b) State regulation

c) Public utility services

d) All of these

 

Q17. A purpose of short term demand forecasting doesn’t include;

a) Making a suitable production policy.

b) To reduce the cost of purchasing raw materials and to control inventory.

c) Deciding suitable price policy

d) Planning of a new unit or expansion of existing unit

 

Q18. Quantity remains the same whatever the change in price, this is the case of

a) Perfectly elastic demand

b) Perfectly inelastic demand

c) Relative elastic demand

d) Relative inelastic demand

 

Q19. Analysis of long run and short run affects of decisions on revenue as well as costs is based on

a) Principle of time perspective

b) Equi-marginal principle

c) Incremental principle

d) None of these

 

Q20. In the case of ______________ consumer may moves to higher or lower demand curve

a) Extension of demand

b) Contraction of demand

c) Shift in demand

d) Slopes in demand

 

Part 3: Objective questions and answers of Business Economics

 

Q1. Answer a

 

Q2. Answer b

 

Q3. Answer c

 

Q4. Answer c

 

Q5. Answer b

 

Q6. Answer a

 

Q7. Answer b

 

Q8. Answer d

 

Q9. Answer b

 

Q10. Answer d

 

Q11. Answer b

 

Q12. Answer a

 

Q13. Answer a

 

Q14. Answer a

 

Q15. Answer a

 

Q16. Answer d

 

Q17. Answer d

 

Q18. Answer b

 

Q19. Answer a

 

Q20. Answer c

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