BCOM ECO-1 MCQ's




Question 1 :
Which of the following product has nearly perfectly inelastic demand?

  1. Salt
  2. Electricity
  3. Petrol
  4. Higher Education in Management field
  

Question 2 :
Break-even analysis at break-even point indicates ______ profit

  1. Zero
  2. Heavy loss
  3. Large profit
  4. All of the above
  

Question 3 :
Under constant costs conditions or constant returns to scale :

  1. Economies of scale are continuously interacting
  2. LAC and LMC curves coincide
  3. LMC > LAC
  4. The management is steady
  

Question 4 :
In a short run period, all costs are variable.

  1. TRUE
  2. FALSE
  

Question 5 :
______ type of iso-quant assumes perfect substitutability.

  1. Leontief iso-quant
  2. Kinked iso-quant
  3. Linear iso-quant
  4. Smooth convex iso-quant
  

Question 6 :
The sum of the dependent variable is _____.

  1. Total
  2. Average
  3. Marginal
  4. None of these
  

Question 7 :
In test marketing method, a market experiment is performed under artificial market situation.

  1. TRUE
  2. FALSE
  

Question 8 :
In long-run all costs are ______.

  1. variable
  2. fixed
  3. Average
  4. None of these
  

Question 9 :
When MC is more than AC, if exerts a downward pull on the AC curve.

  1. TRUE
  2. FALSE
  

Question 10 :
In long–run all costs are ______.

  1. Social
  2. variable
  3. Private
  4. None of these
  

Question 11 :
_____ is narrower in scope than cost analysis.

  1. Supply analysis
  2. Production analysis
  3. Demand analysis
  4. All of the above
  

Question 12 :
______ economies reflect in reducing the overall cost function of the firm.

  1. External
  2. Intaernal
  3. All of the above
  

Question 13 :
The methods of demand forecasting is are

  1. Survey method
  2. Statistical method
  3. Only (a)
  4. Both (a) and (b)
  

Question 14 :
When the total product is maximum :

  1. Average product is maximum
  2. Marginal product is maximum
  3. Marginal product is equal to average product
  4. Marginal product is zero
  

Question 15 :
The ratio of change in total revenue to a unit change in output sold is _____.

  1. Marginal revenue
  2. Marginal cost
  3. Average revenue
  4. Average cost
  

Question 16 :
The iso-quants are concave to the origin.

  1. TRUE
  2. FALSE
  

Question 17 :
Labour economy is caused by ______.

  1. Better organisation
  2. Time management
  3. Specialisation/division of labour
  4. Mangerial Efficieny
  

Question 18 :
Cost analysis is more significant than production analysis.

  1. TRUE
  2. FALSE
  

Question 19 :
Usually demand for air travel in business class is assumed to be :

  1. Highly price elastic
  2. Price inelastic
  3. Unitary elastic
  4. Undeterminable
  

Question 20 :
If elasticity of demand = 1 than marginal revenue is ______.

  1. positive
  2. negative
  3. zero
  4. none of these
  

Question 21 :
If elasticity of demand = 1, the marginal revenue is ______.

  1. zero
  2. Infinity
  3. Positive
  4. Negative
  

Question 22 :
_____ forecasting uses historical figures to predict future results.

  1. Time Series
  2. None of these
  

Question 23 :
Which could be a positive cross elasticity demand between Butter and Jam?

  1. 1
  2. – 0.9
  3. 0.9
  4. 2
  

Question 24 :
The point at which quantity demand equals to supply is the _____.

  1. equilibrium point
  2. none of these
  

Question 25 :
A linear demand function is depicted through :

  1. a straight line demand curve
  2. a downward slopping demand curve
  3. a vertical demand curve
  4. none of the above
  

Question 26 :
The demand curve under monopolistic competition is more elastic in comparison to demand curve under monopoly.

  1. TRUE
  2. FALSE
  

Question 27 :
An endless demand at the given price is the case of ______ demand.

  1. Relatively elastic
  2. Unitary elastic
  3. perfectly elastic
  4. None of these
  

Question 28 :
BEA help the firm to determine ______ for a given level of output.

  1. Maximum cost
  2. Average cost
  3. None of the above
  4. minimum cost
  

Question 29 :
Market management is crucial for any business economics.

  1. TRUE
  2. FALSE
  

Question 30 :
Under constant costs conditions LAC and LMC curves tend to ______.

  1. Private
  2. coinside
  3. Social
  4. None of these
  
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