BCOM ECO-1 MCQ's




Question 91 :
Demand varies directly with price.

  1. TRUE
  2. FALSE
  

Question 92 :
The difference between the actual sales and BEP is term as ______.

  1. Safety margin
  2. profit margin
  3. loss margin
  4. none of the above
  

Question 93 :
Marginal cost is also referred as ______.

  1. Supplementary
  2. fixed cost
  3. All of the above
  4. Incremental cost
  

Question 94 :
Division of labour leads to labour economy

  1. TRUE
  2. FALSE
  

Question 95 :
LAC curve is regarded as the long-run planning device

  1. TRUE
  2. FALSE
  

Question 96 :
When demand is perfectly elastic, the demand curve is :

  1. Steep
  2. Non-linear
  3. Linear
  4. Horizontal straight line
  

Question 97 :
Demand forecasting is an estimate of the _____ demand.

  1. Past
  2. Present
  3. Future
  4. None of these
  

Question 98 :
Jointly demanded goods tend to have ______ demand.

  1. inelastic
  2. perfectly elastic
  3. Relatively inelastic
  4. inelastic
  

Question 99 :
______ remain fixed at any level of output in the short run.

  1. Explicit costs
  2. None of these
  3. Fixed cost
  4. total cost
  

Question 100 :
In the case of a linear demand curve :

  1. Elasticity is same throughout
  2. Elasticity varies at different points
  3. Demand is highly elastic at vertical intercept
  4. Demand is constant
  

Question 101 :
Assuming, QB = Break-even quantity, TFC = total cost, P = price and AVC = average variable cost, algebraically, break-even analysis formula is given as :

  1. QB = TFC/(P + AVC)
  2. QB = TFC/CP – AVC)
  3. QB = TFC/P
  4. QB = P/(TFC – AVC)
  

Question 102 :
_____ refers to the next best alternative foregone or sacrificed.

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

Question 103 :
Long-run is a period in which all the inputs become fixed.

  1. TRUE
  2. FALSE
  

Question 104 :
When marginal product is negative it is called the stage of negative returns.

  1. TRUE
  2. FALSE
  

Question 105 :
The demand for a product is referred to as price-inelastic, if :

  1. The elasticity coefficient is less than unity
  2. The buyers do not respond much to the price variation in the market
  3. The fall in price is accompanied by the decrease of demand
  4. Both (a) and (b)
  

Question 106 :
When the average product is maximum, marginal product is greater than average product.

  1. TRUE
  2. FALSE
  

Question 107 :
When the market schedule is plotted on a graph we get _____ curve.

  1. Equilibrium point
  2. Market demand
  3. None of these
  4. market supply
  

Question 108 :
Increasing long–run average cost is attributed to :

  1. the firm’s experience of increasing returns
  2. the firm’s experience of economies of scale
  3. decreasing returns to the scale
  4. increasing average variable cost curve
  

Question 109 :
Net ______ causes LAC curve to rise.

  1. Diseconomies
  2. economies
  3. None of these
  

Question 110 :
A firm’s ______ is the sum of total fixed costs and total variable cost at each level of output

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

Question 111 :
The aim of demand forecasting is to perceive ______ demand for the product.

  1. Present
  2. future
  3. Past
  4. None of these
  

Question 112 :
In a typical demand schedule quantity demanded _____

  1. Varies directly with price
  2. Varies inversely with price
  3. Is independent of price
  4. Various proportionately with price
  

Question 113 :
A steeper demand curve represent relatively ______ demand.

  1. elastic
  2. perfectly elastic
  3. inelastic
  4. unitary
  

Question 114 :
Which of the following component of time covers analysis referred to long time period?

  1. Trade cycle
  2. Trend
  3. Raulan variation
  4. All of the above
  

Question 115 :
The equilibrium price will change wherever there is a change in income only.

  1. TRUE
  2. FALSE
  

Question 116 :
Fixed cost include cost of raw materials.

  1. TRUE
  2. FALSE
  

Question 117 :
Equation expresses two expression or variables.

  1. TRUE
  2. FALSE
  

Question 118 :
_____ refers to a statement of equality of two expression or economic variables.

  1. Equations
  2. Averages
  3. Functional relation
  4. All of the above
  

Question 119 :
Many economic decisions depend on marginal analysis.

  1. TRUE
  2. FALSE
  

Question 120 :
_____ is the per unit value.

  1. Averages
  2. Equations
  3. Functional relation
  4. None of these
  
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