B.COM ECO-1 MCQ's




Question 121 :
______ is the total cost per unit of output.

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

Question 122 :
Fixed costs are ______ cost.

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

Question 123 :
______ is the summation of TFC and TVC.

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

Question 124 :
Increasing return to scale curve is upward sloping curve.

  1. TRUE
  2. FALSE
  

Question 125 :
When the average product is maximum, marginal product is greater than average product.

  1. TRUE
  2. FALSE
  

Question 126 :
A positive cross-price elasticity coefficient implies that :

  1. Two products are substitutes
  2. Two products are jointly demanded
  3. Two products are complementary
  4. Two products have no relations
  

Question 127 :
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 128 :
Decreasing return to scale arises due to ______ of large scale production.

  1. economies
  2. diseconomies
  3. both (a) and (b)
  4. None of these
  

Question 129 :
With the division of labour specialisation leads to technological economics

  1. TRUE
  2. FALSE
  

Question 130 :
The total amount of output produced is called ______.

  1. Total supply
  2. Total product
  3. Both a and b
  4. None of the above
  

Question 131 :
Measurement of demand elasticity enables the manager to :

  1. Know the magnitude of demand
  2. Characterised the nature of demand for the product
  3. Consider both (a) and (b)
  4. Consider (b) and (c)
  

Question 132 :
A short-run average cost curve is known as ______.

  1. All of the above
  2. Plant curve
  

Question 133 :
Marginal cost is an ______ cost.

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

Question 134 :
______ type of iso-quant assumes perfect substitutability.

  1. Leontief iso-quant
  2. Kinked iso-quant
  3. Linear iso-quant
  4. Smooth convex iso-quant
  

Question 135 :
The point of tangency between iso-cost line and iso-quant is the point of producer’s equilibrium.

  1. TRUE
  2. FALSE
  

Question 136 :
In long-run all costs are ______.

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

Question 137 :
Business economics does not involve decision – making process.

  1. TRUE
  2. FALSE
  

Question 138 :
The demand curve for a perfectly competitive firm is _____.

  1. Upward slopping
  2. downward sloping
  3. perfectly elastic
  4. Horizontal
  

Question 139 :
Under constant costs conditions LAC and LMC curves tend to ______.

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

Question 140 :
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 141 :
______ cost consists of only those payments which are actually made by the firm.

  1. variable
  2. Accounting
  3. Average
  4. None of these
  

Question 142 :
The point of tangency between iso–cost line and iso–quant is the point of ______.

  1. Consumer’s equilibrium
  2. Producer’s equilibrium
  3. Both (a) and (b)
  4. None of these
  

Question 143 :
The iso-quants are concave to the origin.

  1. TRUE
  2. FALSE
  

Question 144 :
Division of labour leads to labour economy

  1. TRUE
  2. FALSE
  

Question 145 :
Using superior technology leads to external economy of scale.

  1. TRUE
  2. FALSE
  

Question 146 :
Minimum point of the LAC curve implies ______ plant size.

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

Question 147 :
Business economics is the economics of business.

  1. TRUE
  2. FALSE
  

Question 148 :
_____ refers to the integration of economic theory with business practice.

  1. Business economics
  2. Managerial economics
  3. business planning
  4. None of these
  

Question 149 :
In long–run all costs are ______.

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

Question 150 :
Long-run average cost decline as output expands due to :

  1. Good management
  2. Technological advancement
  3. Economics of scale
  4. Spread of fixed costs
  
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