BCOM ECO-1 MCQ's




Question 241 :
Labour economy is caused by :

  1. Division of labour
  2. Time management
  3. Managerial efficiency
  4. Better organisation
  

Question 242 :
A double decker bus is an example of ______ economy of increased dimension.

  1. Technical
  

Question 243 :
When average cost is maximum :

  1. Marginal cost is minimum
  2. Marginal cost is equal to average cost
  3. Marginal cost is also maximum
  4. Total cost is minimum
  

Question 244 :
Demand for electricity is elastic.

  1. TRUE
  2. FALSE
  

Question 245 :
______ is the summation of TFC and TVC.

  1. Average cost
  2. fixed cost
  3. All of the above
  4. Total cost
  

Question 246 :
_____ is the economics of business or managerial decisions.

  1. Micro economics
  2. Macro economics
  3. Indian economy
  4. Business economics
  

Question 247 :
Break-even analysis is also referred to as :

  1. Cost-volume-profit analysis
  2. Managerial decision technique
  3. Profit maximizing device
  4. None of the above
  

Question 248 :
Statistical method is called qualitative method.

  1. TRUE
  2. FALSE
  

Question 249 :
The basic formula for the advertising elasticity of demand coefficient is :

  1. Ratio of rise in demand to rise in advertising expenses
  2. Percentage change in quantity demanded/percentage change in advertising expenditure
  3. Absolute change in demand/absolute change in advertising expenditure
  4. (%  D) (%  A)
  

Question 250 :
_____ involves a cost–benefit comparison of various business activities.

  1. Cost analysis
  2. Production analysis
  3. Demand analysis
  4. Marginal analysis
  

Question 251 :
Economies of scale lead to reduction in cost of production.

  1. TRUE
  2. FALSE
  

Question 252 :
When LAC curve intersect the LMC curve it implies :

  1. the point of increasing returns
  2. the optimum plant size
  3. the end of economies of scale
  4. none of the above
  

Question 253 :
______ are direct contractual monetary payments incurred through market transactions.

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

Question 254 :
Production function refers to :

  1. The input output relationship in the process of production
  2. The technological impact
  3. The technology and other resources in operations
  4. The production methods
  

Question 255 :
The BEA provides an important link between business behavior in practice and economic theory.

  1. TRUE
  2. FALSE
  

Question 256 :
The monopoly firm faces a _____ demand curve.

  1. veritcle
  2. Upward slopping
  3. Kinked
  4. downward sloping
  

Question 257 :
At zero level of output, total cost of a firm is :

  1. equal to zero
  2. equal to variable costs
  3. equal to marginal cost
  4. equal to variable costs
  

Question 258 :
Increasing returns to scale means :

  1. Marginal product is constant
  2. Proportion of change is output is exceeding the proportion of change in input
  3. The marginal product curve is declining
  4. Excellent management
  

Question 259 :
Under increasing returns : MP > AP

  1. TRUE
  2. FALSE
  

Question 260 :
Demand forecasting at firm level involves forecasting the demand for the whole industry.

  1. TRUE
  2. FALSE
  

Question 261 :
Incremental principle state that, a investment decision is profitable if _____.

  1. revenue increase more than costs
  2. cost reduce more than revenue
  3. both (a) and (b)
  4. None of these
  

Question 262 :
Unitary elastic demand is represented by :

  1. Horizontal demand curve
  2. Downward sloping demand curve
  3. Vertical demand curve
  4. Hyperbola slope demand curve
  

Question 263 :
_____ analysis helps to identity the various factors influencing the demand for a product.

  1. Supply
  2. Demand
  3. Production
  4. Cost
  

Question 264 :
A perfectly elastic demand is represented by rectangular hyperbola curve.

  1. TRUE
  2. FALSE
  

Question 265 :
When percentage change in output is greater than that of input, it is the phenomenon of _____ returns to scale.

  1. constant
  2. increasing
  3. None of these
  4. decreasing
  

Question 266 :
Safety Margin is the difference between ______

  1. TR and TC
  2. TR and TFC
  3. AC and MC
  4. sales and BEP
  

Question 267 :
When TC > TR it indicate profit zone.

  1. TRUE
  2. FALSE
  

Question 268 :
In Linear Break-even analysis, total fixed cost is a vertical straight line parallel to

  1. TRUE
  2. FALSE
  

Question 269 :
When demand is perfectly elastic, the demand curve is _____.

  1. horizontal straight line
  2. vertical straight line
  3. Steep
  4. None of the above
  

Question 270 :
Demand and price have _____ relationship.

  1. No
  2. inverse
  3. Direct
  4. None of these
  
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