BCOM ECO-1 MCQ's




Question 31 :
If income rise by 10%, demand too rise by 10%, then income elasticity of demand is ______.

  1. Unitary elastic
  2. Relatively elastic
  3. unitary
  4. perfectly elastic
  

Question 32 :
LAC curve is called a planning curve.

  1. TRUE
  2. FALSE
  

Question 33 :
Social cost is included in price.

  1. TRUE
  2. FALSE
  

Question 34 :
_____ is the desire for a commodity which is backed by ability and willingness to pay its price.

  1. Demand
  2. Supply
  3. Demand function
  4. Supply function
  

Question 35 :
There is no uniform pattern as regards to the scope of business economics.

  1. TRUE
  2. FALSE
  

Question 36 :
Shift in the supply curve to the left will increase the _____.

  1. Market demand
  2. equilibrium price
  3. Market supply
  4. none of these
  

Question 37 :
The demand curve for a perfectly competitive firm is perfectly elastic.

  1. TRUE
  2. FALSE
  

Question 38 :
Break-even analysis compares total revenue with :

  1. Total profit
  2. Total cost
  3. Average cost
  4. Price
  

Question 39 :
Total cost curve starts from above the origin.

  1. TRUE
  2. FALSE
  

Question 40 :
The area lying between the two ridge lines is the ______.

  1. non-economic region
  2. economic region
  3. economic of scope
  4. none of there
  

Question 41 :
Demand forecasting is very essential to fix ______ target.

  1. Production
  2. None of the above
  3. sales
  

Question 42 :
Opportunity costs arise because resources are unlimited.

  1. TRUE
  2. FALSE
  

Question 43 :
______ cost consists of only those payments which are actually made by the firm.

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

Question 44 :
When marginal product is zero total product is _____.

  1. constant
  2. minimum
  3. None of these
  4. maximum
  

Question 45 :
Habits makes demand inelastic

  1. TRUE
  2. FALSE
  

Question 46 :
Demand for a commodity depends only on price, income of the commodity.

  1. TRUE
  2. FALSE
  

Question 47 :
If a small reduction in price leads to a fall in total outlay, elasticity of demand is :

  1. less than one
  2. greater than one
  3. equal to one
  4. none of the above
  

Question 48 :
The downward slope of LAC curve is subject to the ______.

  1. internal economies
  2. economies and diseconomies
  3. internal diseconomies
  4. external diseconomies
  

Question 49 :
Decreasing return to scale arises due to ______ of large scale production.

  1. economies
  2. diseconomies
  3. both (a) and (b)
  4. None of these
  

Question 50 :
Environmental distraction is a ______ cost.

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

Question 51 :
When total revenue is less than total cost (TR < TC) the firm incur ______.

  1. profit
  2. loss
  3. No profit no loss
  4. none of the above
  

Question 52 :
When MC and AC are falling, MC curve lies above the AC curve.

  1. TRUE
  2. FALSE
  

Question 53 :
On a linear horizontal demand curve :

  1. Elasticity is zero
  2. Elasticity is infinity
  3. Elasticity is low towards origin
  4. All of the above
  

Question 54 :
Income elasticity of demand is negative for ______ goods.

  1. inferior
  

Question 55 :
External diseconomies lead LAC curve to shift upwards.

  1. TRUE
  2. FALSE
  

Question 56 :
The LAC curve is also referred as ______

  1. envelope curve
  2. planning curve
  3. both (a) and (b)
  4. None of the above
  

Question 57 :
Break-even analysis compare total revenue with ______.

  1. Total cost
  2. Average cost
  3. marginal cost
  4. None of the above
  

Question 58 :
______ is obtained by dividing TC by the level of output produced

  1. Average fixed cost
  2. Average variable
  3. Total fixed cost
  4. Average total cost
  

Question 59 :
A break-even analysis is essentially a typical case of required profit analysis where the required profit is ______.

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

Question 60 :
Business economics does not involve decision – making process.

  1. TRUE
  2. FALSE
  
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