BCOM ECO-1 MCQ's




Question 301 :
A horizontal demand curve implies perfectly inelastic demand.

  1. TRUE
  2. FALSE
  

Question 302 :
______ is the cost that has already been incurred and which cannot be recovered

  1. Fixed cost
  2. Sunk cost
  3. Private cost
  4. Social cost
  

Question 303 :
Division of labour results into :

  1. Rising costs
  2. Diminishing returns
  3. Labour economy
  4. Economies of scale
  

Question 304 :
Economies and diseconomies of large scale play a significant role in determining the shape of the ______.

  1. K. J. Arrow
  2. LAC curve
  3. None of these
  

Question 305 :
Seasonal trend refers to :

  1. Cyclical fluctuation
  2. Variations within a year time
  3. Very long period
  4. None of the above
  

Question 306 :
TFC is parallel to X-axis.

  1. TRUE
  2. FALSE
  

Question 307 :
Fixed cost is regarded as ______ cost

  1. unavoidable
  2. variable
  3. avoidable
  4. none of the above
  

Question 308 :
External economics occur when :

  1. Size of firm expands
  2. Size of industry expands
  3. Economy grows
  4. All of the above
  

Question 309 :
If two goods are unrelated to each other, then it is ______ cross elasticity of demand.

  1. None of the above
  2. positive
  3. Negative
  4. zero
  

Question 310 :
The total revenue curve starts from the origin.

  1. TRUE
  2. FALSE
  

Question 311 :
Demand forecasting is always :

  1. Conditional
  2. Unreliable
  3. Accurate
  4. Trustworthy
  

Question 312 :
The point of tangency between iso–cost line and iso–quant is the point of ______.

  1. Consumer’s equilibrium
  2. Producer’s equilibrium
  3. Both (a) and (b)
  4. None of these
  

Question 313 :
Implicit cost are also called as indirect cost.

  1. TRUE
  2. FALSE
  

Question 314 :
The demand curve under monopoly is a _____ curve.

  1. upward sloping
  2. downward sloping
  3. horizontal straight line
  4. None of the above
  

Question 315 :
Advertisement elasticity of demand is always ______.

  1. Negative
  2. positive
  3. zero
  4. None of the above
  

Question 316 :
If the price of a product increases from 5 to 10 and corresponding change in demand is from 30 units to 12 units; it is the case of :

  1. Unitary elastic demand
  2. Elastic demand
  3. Inelastic demand
  4. Perfectly elastic demand
  

Question 317 :
A firm experiences ______ economics of scale when its size expands.

  1. none of there
  2. External
  3. Internal
  

Question 318 :
TVC is inverse – S shaped curve

  1. TRUE
  2. FALSE
  

Question 319 :
Incremental concept is closely related to the cost only.

  1. TRUE
  2. FALSE
  

Question 320 :
Variable cost remain fixed at any level of output in the short run.

  1. TRUE
  2. FALSE
  

Question 321 :
Sunk cost are those cost which can be recovered.

  1. TRUE
  2. FALSE
  

Question 322 :
At zero level of output, total cost of a firm is equal to fixed costs.

  1. TRUE
  2. FALSE
  

Question 323 :
If cross elasticity between two goods is positive, goods are necessarily complements.

  1. TRUE
  2. FALSE
  

Question 324 :
The market supply curve slopes upwards to the right.

  1. TRUE
  2. FALSE
  

Question 325 :
A linear demand function may be stated as D = a – bP.

  1. TRUE
  2. FALSE
  

Question 326 :
The market supply curve slopes _____ to the right.

  1. downward
  2. upwards
  3. Vertical
  4. Horizontal
  

Question 327 :
The change in total cost resulting from a particular decision of the firm is refer as _____.

  1. Opportunity cost
  2. Average cost
  3. Incremental cost
  4. Marginal cost
  

Question 328 :
Economies of scope is reflected in the higher cost.

  1. TRUE
  2. FALSE
  

Question 329 :
Localisation of industry confers ______ economic to the clustering firm.

  1. Internal
  2. none of there
  3. External
  

Question 330 :
Internal economies are realized by the firm :

  1. When its size is big
  2. Scale of operation is large
  3. Within itself
  4. All of the above
  
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