B.COM ECO-1 MCQ's




Question 331 :
______ economies reflect in reducing the overall cost function of the firm.

  1. External
  2. Intaernal
  3. All of the above
  

Question 332 :
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 333 :
The market supply curve slopes _____ to the right.

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

Question 334 :
BEA help the firm to determine ______ for a given level of output.

  1. Maximum cost
  2. Average cost
  3. None of the above
  4. minimum cost
  

Question 335 :
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 336 :
When TR > TC, it indicates ______ zone of a firm

  1. Loss
  2. Profit
  3. All of the above
  

Question 337 :
The ______ is measured by the shift in the LAC with respect to cumulative output change.

  1. Learning effect
  2. None of these
  

Question 338 :
The ______ graphically depicts the profit-output relationship

  1. Marginal point
  2. Break-even chart
  3. point of origin
  4. All of the above
  

Question 339 :
The break-even quantity point will decrease, when price ______.

  1. decreases
  2. Increases
  3. constant
  4. None of the above
  

Question 340 :
______ 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 341 :
At zero level of output, total cost of a firm is equal to fixed costs.

  1. TRUE
  2. FALSE
  

Question 342 :
Fixed cost is regarded as ______ cost

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

Question 343 :
External diseconomies lead LAC curve to shift upwards.

  1. TRUE
  2. FALSE
  

Question 344 :
The reduction in cost due to increase in efficiency is referred as ______.

  1. income effect
  2. price effect
  3. Learning curve effect
  4. all of the above
  

Question 345 :
______ 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 346 :
Economic cost is equal to explicit cost minus implicit cost.

  1. TRUE
  2. FALSE
  

Question 347 :
The LAC curve is also referred as ______

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

Question 348 :
The short–run AVC curve moves upward owing to :

  1. Increasing returns to scale
  2. Rising overhead costs
  3. Diseconomies
  4. Diminishing returns
  

Question 349 :
Under constant costs conditions or constant returns to scale :

  1. Economies of scale are continuously interacting
  2. LAC and LMC curves coincide
  3. LMC > LAC
  4. The management is steady
  

Question 350 :
Fixed costs refer to Labour costs.

  1. TRUE
  2. FALSE
  

Question 351 :
Social cost is included in price.

  1. TRUE
  2. FALSE
  

Question 352 :
Net diseconomies causes LAC to rise.

  1. TRUE
  2. FALSE
  

Question 353 :
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 354 :
Sunk cost are those cost which can be recovered.

  1. TRUE
  2. FALSE
  

Question 355 :
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 356 :
Electricity charges, sales tax etc. are examples of ______ cost.

  1. Fixed
  2. Variable
  3. Private
  4. Social
  

Question 357 :
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 358 :
The fundamental difference between economic cost and accounting cost is :

  1. Conditional
  2. Pyschological
  3. Academic
  4. Implicity and Explicity
  

Question 359 :
Internal economies causes LAC curve to rise

  1. TRUE
  2. FALSE
  

Question 360 :
Learning curve indicate increase in cost of production to the decrease in output.

  1. TRUE
  2. FALSE
  
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