BCOM ECO-1 MCQ's




Question 121 :
The BEA relate to the long-term relationship.

  1. TRUE
  2. FALSE
  

Question 122 :
______ is the point where total revenue is equal to total cost.

  1. point of origin
  2. Break-even point
  3. Marginal point
  4. None of the above
  

Question 123 :
A perfect competitive firm faces a _____ demand curve for its product.

  1. upward sloping
  2. downward sloping
  3. vertical straight line
  4. horizontal straight line
  

Question 124 :
______ refers to the extent to which the firm can permit a decline in sales before it starts incurring losses.

  1. safety margin
  2. None of the above
  

Question 125 :
Market demand for necessaries are usually :

  1. Highly price-elastic
  2. Price-inelastic
  3. Perfectly elastic
  4. Perfectly inelastic
  

Question 126 :
A product's market demand tends to be inelastic when :

  1. There are many suppliers
  2. There are several substitutes
  3. Less substitutes
  4. All of the above
  

Question 127 :
In long–run all factors tend to be variable.

  1. TRUE
  2. FALSE
  

Question 128 :
All of the following are determinants of demand except _____

  1. Consumer income
  2. Price related to goods
  3. Quantity supplied
  4. Size of population
  

Question 129 :
The market demand schedule shows a direct relationship between price and quantity demanded.

  1. TRUE
  2. FALSE
  

Question 130 :
On the lower segments of a downward sloping straight line demand curve price elasticity of demand is

  1. > 1
  2. < 1
  3. 1
  4. none of the above
  

Question 131 :
BEA at break-even point indicate ______ profit.

  1. Heavy loss
  2. Large profit
  3. None of the above
  4. zero
  

Question 132 :
As price _____ , quantity demanded decreases and quantity supplies increases.

  1. decreases
  2. increases
  3. remain constant
  4. None of these
  

Question 133 :
Sunk cost is called as avoidable cost.

  1. TRUE
  2. FALSE
  

Question 134 :
______ refers to total product per unit of variable factor.

  1. average product
  

Question 135 :
The slope of an iso–quant refers to the measurement of :

  1. The marginal rate of technical substitution
  2. The marginal physical product of labour
  3. The capital efficiency
  4. All of the above
  

Question 136 :
When the price of a product X is 60 per unit, the quantity demand is 2000 units. When the price of X increased to 100 per unit, the market demand contracted to 1000 units. Then the price elasticity of demand coefficient is :

  1. – 1.75
  2. – 0.75
  3. 0.8
  4. 0.75
  

Question 137 :
______ refers to the total expenditure made by the firm on the variable factor in short run.

  1. Prime cost
  2. fixed cost
  3. All of the above
  4. total variable cost
  

Question 138 :
Under _____ method sales man are asked to estimates expected sales.

  1. Statistical
  2. Survey
  3. Collective Opinion
  4. None of these
  

Question 139 :
In long–run :

  1. all costs are variable
  2. costs are divided into fixed and variable costs
  3. costs tends to constant
  4. shape of LAC is always ‘L’
  

Question 140 :
The demand curve representing a conventional demand function refers to :

  1. Price-demand functional relationship
  2. Proportionate relationship between price charge and demand variation
  3. Straight relationship between price charge and demand variation
  4. Effective desire of the buyers
  

Question 141 :
Shift in the supply curve to the left will _____ the equilibrium price.

  1. no effect
  2. increase
  3. decreased
  4. none of these
  

Question 142 :
Which of the following shows the relationship between the price of a good and the amount of the good that consumers want at that price?

  1. Supply curve
  2. Demand curve
  3. Supply schedule
  4. Production possibilities frontier
  

Question 143 :
The cross elasticity of demand may be positive, negative or zero.

  1. TRUE
  2. FALSE
  

Question 144 :
A flatter demand curve represent relatively ______ demand.

  1. elastic
  2. Relatively elastic
  3. None ot the above
  4. inelastic
  

Question 145 :
The ______ are the locus of points of an iso-quants where the marginal product of factors are zero.

  1. Ridge line
  

Question 146 :
External economics are realized by the monopolist firms since there is no competition

  1. TRUE
  2. FALSE
  

Question 147 :
In the short–run :

  1. All factors are variable
  2. There exists some fixed factors only
  3. Output varies with variable factors
  4. There is short time for change
  

Question 148 :
Break-even analysis compares total ______ and total cost, graphically and algebraically.

  1. Revenue
  2. average variable cost
  3. Average cost
  4. None of the above
  

Question 149 :
When marginal product is zero, total product is minimum.

  1. TRUE
  2. FALSE
  

Question 150 :
Fixed costs refer to :

  1. Contractual payments
  2. Labour costs
  3. Out of pocket expenses
  4. Business payments
  
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