B.COM ECO-1 (Demand Function) MCQ's




Question 1 :
A straight line demand curve implies _____ demand function.

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

Question 2 :
Dx = a – b Px is a case of _____ demand function.

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

Question 3 :
Demand and price have _____ relationship.

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

Question 4 :
The demand curve is _____ elastic.

  1. Unirary
  2. perfectly
  3. Relatively
  4. None of these
  

Question 5 :
_____ explains the relationship between demand for a commodity and it determinants.

  1. Demand
  2. Supply function
  3. Demand function
  4. Supply
  

Question 6 :
The demand curve for a perfectly competitive firm is _____.

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

Question 7 :
The monopoly firm faces a _____ demand curve.

  1. veritcle
  2. Upward slopping
  3. Kinked
  4. downward sloping
  

Question 8 :
An _____ firm does not face a definite demand curve.

  1. Monopolistic competition
  2. Monopoly
  3. Perfect Competition
  4. Oligopoly
  

Question 9 :
Demand function explains the functional relationship between price and demand.

  1. TRUE
  2. FALSE
  

Question 10 :
A linear demand function implies proportionate demand behaviour.

  1. TRUE
  2. FALSE
  

Question 11 :
Demand for a commodity depends only on price, income of the commodity.

  1. TRUE
  2. FALSE
  

Question 12 :
A linear demand function may be stated as D = a – bP.

  1. TRUE
  2. FALSE
  

Question 13 :
The demand curve for a perfectly competitive firm is perfectly elastic.

  1. TRUE
  2. FALSE
  

Question 14 :
A monopoly firm faces a upward sloping demand curve.

  1. TRUE
  2. FALSE
  

Question 15 :
The demand curve under monopolistic competition is more elastic in comparison to demand curve under monopoly.

  1. TRUE
  2. FALSE
  

Question 16 :
Demand varies directly with price.

  1. TRUE
  2. FALSE
  

Question 17 :
The demand curve for an oligopoly firm is indeterminate.

  1. TRUE
  2. FALSE
  

Question 18 :
In a homogeneous oligopoly the firm try to differentiate their products from the other competitors.

  1. TRUE
  2. FALSE
  

Question 19 :
The monopoly firm faces a downward sloping demand curve.

  1. TRUE
  2. FALSE
  

Question 20 :
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 21 :
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
  

Question 22 :
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 23 :
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 24 :
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 25 :
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 26 :
The demand curve under monopoly is a _____ curve.

  1. upward sloping
  2. downward sloping
  3. horizontal straight line
  4. None of the above
  

Question 27 :
When demand is perfectly elastic, the demand curve is _____.

  1. horizontal straight line
  2. vertical straight line
  3. Steep
  4. None of the above
  

Question 28 :
_____ is the desire for a commodity which is backed by ability and willingness to pay its price.

  1. Demand
  2. Supply
  3. Demand function
  4. Supply function
  

Question 29 :
Under oligopoly the firm faces a _____ demand curve.

  1. horizontal
  2. vertical
  3. upward sloping
  4. Kinked (Indeterminate)
  
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