B.COM Eco-1 (Cost Analysis) MCQ's




Question 1 :
______ cost consists of only those payments which are actually made by the firm.

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

Question 2 :
In long–run all costs are ______.

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

Question 3 :
Under constant costs conditions LAC and LMC curves tend to ______.

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

Question 4 :
Minimum point of the LAC curve implies ______ plant size.

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

Question 5 :
______ costs are incorporated in the firm’s total cost of production.

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

Question 6 :
Environmental distraction is a ______ cost.

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

Question 7 :
______ are direct contractual monetary payments incurred through market transactions.

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

Question 8 :
______ 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 9 :
______ curve is regarded as the long-run planning device.

  1. None of these
  2. LAC
  

Question 10 :
______ 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 11 :
______ 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 12 :
Marginal cost is also referred as ______.

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

Question 13 :
Fixed costs are ______ cost.

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

Question 14 :
Variable costs are ______ cost.

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

Question 15 :
Private cost is included in ______.

  1. All of the above
  2. Price
  

Question 16 :
______ is the total cost per unit of output.

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

Question 17 :
Marginal cost is an ______ cost.

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

Question 18 :
______ is the summation of TFC and TVC.

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

Question 19 :
A short-run average cost curve is known as ______.

  1. All of the above
  2. Plant curve
  

Question 20 :
In long-run all costs are ______.

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

Question 21 :
The MC curve intersects AC curve at its ______ point from below.

  1. minimum
  2. Maximum
  3. None of these
  

Question 22 :
______ economies causes LAC curve to fall.

  1. Internal
  2. external
  3. None of these
  

Question 23 :
Net ______ causes LAC curve to rise.

  1. Diseconomies
  2. economies
  3. None of these
  

Question 24 :
______ economies causing downward shift of the LAC curve.

  1. External
  2. Internal
  3. None of these
  

Question 25 :
______ economies reflect in reducing the overall cost function of the firm.

  1. External
  2. Intaernal
  3. All of the above
  

Question 26 :
______ is attributed to the diseconomies of scale after a certain point of further expansion.

  1. Increasing LAC
  2. decreasing LAC
  3. All of the above
  

Question 27 :
Economies and diseconomies of large scale play a significant role in determining the shape of the ______.

  1. K. J. Arrow
  2. LAC curve
  3. None of these
  

Question 28 :
Learning curve was developed by ______.

  1. LAC curve
  2. K. J. Arrow
  3. None of these
  

Question 29 :
The ______ is measured by the shift in the LAC with respect to cumulative output change.

  1. Learning effect
  2. None of these
  

Question 30 :
Fixed costs refer to Labour costs.

  1. TRUE
  2. FALSE
  
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