B.COM ECO-1 MCQ's




Question 181 :
The cross price elasticity of demand is defined as :

  1. The ratio of percentage change in the demand to the percentage change in the price.
  2. The ratio of percentage change in the demand for a given product to the percentage change in the price of a related other product.
  3. The ratio of percentage change in the demand for product X to the percentage change in the demand for product Y.
  4. The ratio of two different elasticities.
  

Question 182 :
Production function defines the master servant relationship.

  1. TRUE
  2. FALSE
  

Question 183 :
Demand for electricity is elastic.

  1. TRUE
  2. FALSE
  

Question 184 :
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 185 :
Many economic decisions depend on marginal analysis.

  1. TRUE
  2. FALSE
  

Question 186 :
A linear demand function implies proportionate demand behaviour.

  1. TRUE
  2. FALSE
  

Question 187 :
If elasticity of demand is infinite, marginal revenue will be increase.

  1. TRUE
  2. FALSE
  

Question 188 :
An exogenous variable is within an economic model.

  1. TRUE
  2. FALSE
  

Question 189 :
When e = 1, total revenue reaches its maximum.

  1. TRUE
  2. FALSE
  

Question 190 :
In zero income elasticity, change in income has not effect on demand.

  1. TRUE
  2. FALSE
  

Question 191 :
A horizontal demand curve implies perfectly inelastic demand.

  1. TRUE
  2. FALSE
  

Question 192 :
opportunity cost is also called as _____ cost.

  1. Total
  2. Average
  3. Marginal
  4. Alternative
  

Question 193 :
A linear demand function may be stated as D = a – bP.

  1. TRUE
  2. FALSE
  

Question 194 :
The ratio of change in total revenue to a unit change in output sold is _____.

  1. Marginal revenue
  2. Marginal cost
  3. Average revenue
  4. Average cost
  

Question 195 :
Opportunity costs arise because resources are unlimited.

  1. TRUE
  2. FALSE
  

Question 196 :
The demand curve for a perfectly competitive firm is perfectly elastic.

  1. TRUE
  2. FALSE
  

Question 197 :
Demand for a commodity depends only on price, income of the commodity.

  1. TRUE
  2. FALSE
  

Question 198 :
Demand and price have _____ relationship.

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

Question 199 :
Dx = a – b Px is a case of _____ demand function.

  1. Linear
  2. Steep
  3. Vertical
  4. Non– Linear
  

Question 200 :
_____ explains the dependence of one variable on the other variable.

  1. Functional relation
  2. Equations
  3. Both (a) and (b)
  4. None of these
  

Question 201 :
Market _____ is derived by adding up all the individual demand.

  1. demand
  2. supply
  3. price
  4. none of these
  

Question 202 :
The monopoly firm faces a downward sloping demand curve.

  1. TRUE
  2. FALSE
  

Question 203 :
All of the following are determinants of demand except _____

  1. Consumer income
  2. Price related to goods
  3. Quantity supplied
  4. Size of population
  

Question 204 :
_____ is the economics of business or managerial decisions.

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

Question 205 :
In a homogeneous oligopoly the firm try to differentiate their products from the other competitors.

  1. TRUE
  2. FALSE
  

Question 206 :
The demand curve representing a conventional demand function refers to :

  1. Price-demand functional relationship
  2. Proportionate relationship between price charge and demand variation
  3. Straight relationship between price charge and demand variation
  4. Effective desire of the buyers
  

Question 207 :
A linear demand function is depicted through :

  1. a straight line demand curve
  2. a downward slopping demand curve
  3. a vertical demand curve
  4. none of the above
  

Question 208 :
A perfect competitive firm faces a _____ demand curve for its product.

  1. upward sloping
  2. downward sloping
  3. vertical straight line
  4. horizontal straight line
  

Question 209 :
In a typical demand schedule quantity demanded _____

  1. Varies directly with price
  2. Varies inversely with price
  3. Is independent of price
  4. Various proportionately with price
  

Question 210 :
Which of the following is a case of linear demand function?

  1. Dx = f (Px)
  2. Dx = f (Px , Py)
  3. Dx = a + b Px + L
  4. Dx = 100 – 5 Px
  
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