Business Economics 5

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Objective Questions and Answers of MBA: Business Economics 5

Subject: Objective Questions and Answers of MBA: Business Economics 5

Part 5: Objective questions and answers of Business Economics

 

Q1. ______________ means an attempt to determine the factors affecting the demand of a commodity or service and to measure such factors and their influences

a) Demand planning

b) Demand forecasting

c) Demand analysis

d) Demand estimation

 

Q2. Demand for necessary goods (salt, rice, etc,) is ______________ and demand for comfort and luxury good is

a) Elastic, inelastic

b) Inelastic, elastic

c) Elastic, elastic

d) Inelastic, inelastic

 

Q3. Which one of the following is an internal factor influencing pricing

a) Demand

b) Competition

c) Distribution channel

d) Product life cycle

 

Q4. Total revenue will be maximum at the point where marginal revenue is

a) One

b) Zero

c) <1

d) >1

 

Q5. Method of charging low price initially called ______________

a) Skimming

b) Penetrating

c) Full cost pricing

d) Target pricing

 

Q6. Under oligopoly a single seller cannot influence significantly

a) Market price

b) Quantity supplied

c) Advertisement cost

d) All the above

 

Q7. Which of the following is / are the reason for adopting penetration price strategy

a) Economies of large scale production available to firm.

b) Potential market for the product is large.

c) Cost of production is low.

d) All the above

 

Q8. Demand for tyres depends on demand of vehicles, the demand for tyres called as

a) Composite demand

b) Derivative demand

c) Joint demand

d) Direct demand

 

Q9. Consumer interview method of demand forecasting may undertaken by;

a) Complete enumeration

b) Sample survey

c) Enduse method

d) All the above

 

Q10. Prices of bata shoe as rs.99.99, this pricing is

a) Mark up pricing

b) Odd pricing

c) Marginal cost pricing

d) Follow up pricing.

 

Q11. In the case of unitary elastic demand, the shape of demand curve is

a) Vertical line

b) Horizontal line

c) Rectangular hyperbola

d) Steep

 

Q12. ______________ method is also known as salesforce composite method or collective opinion method

a) Opinion survey

b) Expert opinion

c) Delphi method

d) Consumer interview method

 

Q13. ______________ forecasting is more important from managerial view point as it helps the management in decision making with regard to the firms demand and production.

a) Macro level

b) Industry level

c) Firm level

d) None of these

 

Q14. Under ______________ method, a panel is selected to give suggestions to solve the problems in hand

a) Opinion survey

b) Expert opinion

c) Delphi method

d) Consumer interview

 

Q15. Which of the following is/ are the reason for adopting skimming price strategy

a) When the buyers are not able to compare the value and utility.

b) To attract the high income customers.

c) When the product has distinctive qualities, luxuries

d) All the above

 

Q16. Average cost pricing is also called as

a) Cost plus pricing

b) Marginal cost pricing

c) Margin pricing

d) Both a & c

 

Q17. A purpose of short term demand forecasting includes;

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) All the above

 

Q18. When income increases, quantity demanded falls, it is

a) Positive income elasticity

b) Zero income elasticity

c) Negative income elasticity

d) Unitary income elasticity

 

Q19. Under which method, the cost is added with the predetermined target rate of return on capital invested

a) Cost plus pricing

b) Target pricing

c) Mark up pricing

d) None of these

 

Q20. Average revenue is the revenue per

a) Unit commodity sold

b) Total commodity sold

c) Marginal commodity sold

d) None of these

 

Part 5: Objective questions and answers of Business Economics

 

Q1. Answer c

 

Q2. Answer b

 

Q3. Answer d

 

Q4. Answer b

 

Q5. Answer b

 

Q6. Answer d

 

Q7. Answer d

 

Q8. Answer b

 

Q9. Answer d

 

Q10. Answer b

 

Q11. Answer c

 

Q12. Answer a

 

Q13. Answer c

 

Q14. Answer c

 

Q15. Answer d

 

Q16. Answer d

 

Q17. Answer d

 

Q18. Answer c

 

Q19. Answer b

 

Q20. Answer a

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