B.COM ECO-1 MCQ's




Question 91 :
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 92 :
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 93 :
Demand function explains the functional relationship between price and demand.

  1. TRUE
  2. FALSE
  

Question 94 :
Income elasticity of demand is negative for ______ goods.

  1. inferior
  

Question 95 :
If elasticity of demand (e) < 1, then marginal revenue is always ______.

  1. Positive
  2. Negative
  3. Zero
  4. None of these
  

Question 96 :
Which of the following is a possible coefficient of inelastic demand ?

  1. 3.3
  2. 0.6
  3. 1.1
  4. 1
  

Question 97 :
The monopoly firm faces a _____ demand curve.

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

Question 98 :
When demand is perfectly elastic, the demand curve is :

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

Question 99 :
Which of the following product has nearly perfectly inelastic demand?

  1. Salt
  2. Electricity
  3. Petrol
  4. Higher Education in Management field
  

Question 100 :
If elasticity of demand = 1 than marginal revenue is ______.

  1. positive
  2. negative
  3. zero
  4. none of these
  

Question 101 :
Which could be a positive cross elasticity demand between Butter and Jam?

  1. 1
  2. – 0.9
  3. 0.9
  4. 2
  

Question 102 :
Two iso-quants can intersect each other.

  1. TRUE
  2. FALSE
  

Question 103 :
______ is attributed to the multi–product cost function.

  1. Economies of scope
  2. Diseconomies of scale
  3. Economies of scale
  4. None of these
  

Question 104 :
If the price of a product increases from 5 to 10 and corresponding change in demand is from 30 units to 12 units; it is the case of :

  1. Unitary elastic demand
  2. Elastic demand
  3. Inelastic demand
  4. Perfectly elastic demand
  

Question 105 :
Environmental distraction is a ______ cost.

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

Question 106 :
Which of the following can be expected to have a flatter demand curve?

  1. Petrol
  2. Salt
  3. Plasma TV
  4. All of the above
  

Question 107 :
Marginal cost is also referred as ______.

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

Question 108 :
Production refers to :

  1. Production function
  2. Creation of utilities
  3. Producing output
  4. Transformation
  

Question 109 :
Using five units of labour a firm can produce 2500 units of a good. Using six units of labour the firm can produce 3000 units of the good. The marginal product of the sixth unit of labour is.

  1. 100 units
  2. 1500 units
  3. 2000 units
  4. 500 units
  

Question 110 :
Labour economy is caused by :

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

Question 111 :
______ is the total expenditure incurred by the firm in producing a given level of output.

  1. Average fixed cost
  2. None of these
  3. total cost
  4. fixed cost
  

Question 112 :
______ curve is regarded as the long-run planning device.

  1. None of these
  2. LAC
  

Question 113 :
The demand curve is _____ elastic.

  1. Unirary
  2. perfectly
  3. Relatively
  4. None of these
  

Question 114 :
______ 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 115 :
If there is zero substitutability between capital and labour the isoquant is__________.

  1. a straight line
  2. L shaped
  3. concave to the origin
  4. None of these
  

Question 116 :
______ costs are incorporated in the firm’s total cost of production.

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

Question 117 :
______ 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 118 :
______ are direct contractual monetary payments incurred through market transactions.

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

Question 119 :
Private cost is included in ______.

  1. All of the above
  2. Price
  

Question 120 :
Variable costs are ______ cost.

  1. Prime
  2. Incrementalt
  3. All of the above
  4. Prime
  
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