B.COM ECO-1 MCQ's




Question 241 :
With decrease in demand, supply remaining unchanged, the equilibrium price falls.

  1. TRUE
  2. FALSE
  

Question 242 :
The market supply curve slopes upwards to the right.

  1. TRUE
  2. FALSE
  

Question 243 :
The market demand schedule shows a direct relationship between price and quantity demanded.

  1. TRUE
  2. FALSE
  

Question 244 :
With an increase in supply, demand remaining unchanged, the equilibrium price _____.

  1. raised
  2. falls
  3. constant
  4. none of these
  

Question 245 :
_____ is narrower in scope than cost analysis.

  1. Supply analysis
  2. Production analysis
  3. Demand analysis
  4. All of the above
  

Question 246 :
_____ involves a cost–benefit comparison of various business activities.

  1. Cost analysis
  2. Production analysis
  3. Demand analysis
  4. Marginal analysis
  

Question 247 :
_____ deals with various aspects of supply of a commodity.

  1. Production analysis
  2. None of these
  3. Supply analysis
  4. Demand analysis
  

Question 248 :
The sum of the dependent variable is _____.

  1. Total
  2. Average
  3. Marginal
  4. None of these
  

Question 249 :
The point at which quantity demand equals to supply is the _____.

  1. equilibrium point
  2. none of these
  

Question 250 :
The _____ is determined by the interaction of market demand and supply.

  1. market price
  2. equilibrium point
  3. none of these
  

Question 251 :
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 252 :
The market supply curve slopes _____ to the right.

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

Question 253 :
The market demand schedule shows an _____ relationship between price and demand.

  1. direct
  2. No
  3. inverse
  4. none of these
  

Question 254 :
_____ refers to the total demand for a commodity by all buyer in the market.

  1. Individual supply
  2. market supply
  3. Market demand
  4. Individual demand
  

Question 255 :
_____ refers to the total quantities of commodity offered for sale by all in producers.

  1. equilibrium price
  2. Market demand
  3. None of these
  4. market supply
  

Question 256 :
The market demand curve slopes _____.

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

Question 257 :
Break-even analysis compares total revenue with :

  1. Total profit
  2. Total cost
  3. Average cost
  4. Price
  

Question 258 :
______ is known as no profit no loss point

  1. point of origin
  2. Marginal point
  3. Break-even point
  4. none of the above
  

Question 259 :
The difference between the actual sales and BEP is term as ______.

  1. Safety margin
  2. profit margin
  3. loss margin
  4. none of the above
  

Question 260 :
When total revenue is less than total cost (TR < TC) the firm incur ______.

  1. profit
  2. loss
  3. No profit no loss
  4. none of the above
  

Question 261 :
There are no limitations to BEA.

  1. TRUE
  2. FALSE
  

Question 262 :
Safety Margin is the difference between ______

  1. TR and TC
  2. TR and TFC
  3. AC and MC
  4. sales and BEP
  

Question 263 :
Break-even analysis is also referred to as :

  1. Cost-volume-profit analysis
  2. Managerial decision technique
  3. Profit maximizing device
  4. None of the above
  

Question 264 :
Break-even analysis has great importance to managerial economists.

  1. TRUE
  2. FALSE
  

Question 265 :
The BEA relate to the long-term relationship.

  1. TRUE
  2. FALSE
  

Question 266 :
Division of labour results into :

  1. Rising costs
  2. Diminishing returns
  3. Labour economy
  4. Economies of scale
  

Question 267 :
Assuming, QB = Break-even quantity, TFC = total cost, P = price and AVC = average variable cost, algebraically, break-even analysis formula is given as :

  1. QB = TFC/(P + AVC)
  2. QB = TFC/CP – AVC)
  3. QB = TFC/P
  4. QB = P/(TFC – AVC)
  

Question 268 :
The downward slope of LAC curve is subject to the ______.

  1. internal economies
  2. economies and diseconomies
  3. internal diseconomies
  4. external diseconomies
  

Question 269 :
In long–run :

  1. all costs are variable
  2. costs are divided into fixed and variable costs
  3. costs tends to constant
  4. shape of LAC is always ‘L’
  

Question 270 :
Break-even point of a chart indicates :

  1. Zero profit
  2. Heavy loss
  3. Large profit
  4. All of the above
  
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