B.COM ECO-1 MCQ's




Question 151 :
Internal economies are realized by the firm :

  1. When its size is big
  2. Scale of operation is large
  3. Within itself
  4. All of the above
  

Question 152 :
External economics occur when :

  1. Size of firm expands
  2. Size of industry expands
  3. Economy grows
  4. All of the above
  

Question 153 :
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 154 :
The change in total cost resulting from a particular decision of the firm is refer as _____.

  1. Opportunity cost
  2. Average cost
  3. Incremental cost
  4. Marginal cost
  

Question 155 :
The area lying between the two ridge lines is the ______.

  1. non-economic region
  2. economic region
  3. economic of scope
  4. none of there
  

Question 156 :
Application of automotive devices with expanding scale of operation leads to :

  1. Industrial economy
  2. Technical economy
  3. External economy
  4. Technical force
  

Question 157 :
The slope of long-run cost curve is influenced by :

  1. The artist
  2. Managerial economy
  3. Economics and diseconomics of scale
  4. Input-output technical relationship
  

Question 158 :
Internal economics enjoyed by an individual firm.

  1. TRUE
  2. FALSE
  

Question 159 :
In long–run :

  1. Production level can be increased infinitely
  2. All factors are variable
  3. Everything can be changed
  4. Production level refers to period of 10 years and above
  

Question 160 :
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 161 :
Habits makes demand inelastic

  1. TRUE
  2. FALSE
  

Question 162 :
In long–run all factors tend to be variable.

  1. TRUE
  2. FALSE
  

Question 163 :
When the total product is maximum :

  1. Average product is maximum
  2. Marginal product is maximum
  3. Marginal product is equal to average product
  4. Marginal product is zero
  

Question 164 :
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 165 :
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 166 :
The laws of variable proportions assumes all factors should remain constant.

  1. TRUE
  2. FALSE
  

Question 167 :
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 168 :
Demand analysis and forecasting is essential for _____.

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

Question 169 :
Total is the per unit value.

  1. TRUE
  2. FALSE
  

Question 170 :
Inputs in the process of production refers to :

  1. The employment
  2. The use of factors of production
  3. Anything in a factory
  4. None of the above
  

Question 171 :
Economies of scope is reflected in the higher cost.

  1. TRUE
  2. FALSE
  

Question 172 :
A large firm can enjoy financial economies and marketing economies.

  1. TRUE
  2. FALSE
  

Question 173 :
Economies of scope is possible when two or more goods are produced.

  1. TRUE
  2. FALSE
  

Question 174 :
External economics are realized by the monopolist firms since there is no competition

  1. TRUE
  2. FALSE
  

Question 175 :
Economies of scale lead to reduction in cost of production.

  1. TRUE
  2. FALSE
  

Question 176 :
The ______ are the locus of points of an iso-quants where the marginal product of factors are zero.

  1. Ridge line
  

Question 177 :
When marginal product is negative it is called the stage of negative returns.

  1. TRUE
  2. FALSE
  

Question 178 :
Under increasing returns : MP > AP

  1. TRUE
  2. FALSE
  

Question 179 :
TPL falls when MPL falls.

  1. TRUE
  2. FALSE
  

Question 180 :
When marginal product is zero, total product is minimum.

  1. TRUE
  2. FALSE
  
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