B.COM Economics-II MCQ's




Question 1 :
A movies theater that charges a lower price for matiness than for evening showing is engaging in_______

  1. First degree price discrimination
  2. Second degree price discrimination
  3. Third degree price discrimination
  4. Regular price discrimination
  

Question 2 :
A firm charges $ 15 for a product. If the markup is 50% then the fully allocated average cost is ________

  1. 20
  2. 10
  3. 15
  4. 25
  

Question 3 :
Under dumping a monopolist’s demand curve in the home market is

  1. Downward sloping
  2. Vertical
  3. Kinked demand
  4. Upward
  

Question 4 :
Lower portion of the kinked demand curve is _______

  1. Elastic
  2. Inelastic
  3. Regular
  4. More elastic
  

Question 5 :
Under dumping a monopolist’s demand curve in the world market is

  1. Downward sloping
  2. Vertical
  3. Kinked demand
  4. Horizontal
  

Question 6 :
________ is characteristic of perfect competition.

  1. Single seller
  2. Selling cost
  3. Kinked demand curve
  4. Perfect information
  

Question 7 :
Which one of the following methods of capital budgeting assumes that inflows are reinvested at the project’s rate of return.

  1. Net present value
  2. Internal rate of return
  3. Pay back method
  4. Accounting rate of return method
  

Question 8 :
Under perfect competition firm’s demand curve is ________

  1. Vertical
  2. Horizontal
  3. Upward
  4. Downward
  

Question 9 :
In perfect competition equilibrium is attained when _______

  1. AR=AC
  2. TR =TC
  3. MR = MC
  4. Q = P
  

Question 10 :
Kinked demand curve is associated with _______

  1. Cournot
  2. Chamberlin
  3. Edgeworth
  4. Sweezy
  

Question 11 :
In the case of perfectly price discriminating monopoly there is no……….

  1. Transfer of consumer surplus to producer
  2. Dead-weight loss
  3. Long run economic profit
  4. Short run economic profit
  

Question 12 :
Cost plus pricing is also called________

  1. Transfer pricing
  2. Marginal cost pricing
  3. Full cost pricing
  4. Average cost pricing
  

Question 13 :
_______is not feature of oligopoly market.

  1. Few seller
  2. Price rigidity
  3. Kinked demand
  4. Perfect information
  

Question 14 :
SCB private limited company invest the money in project C is Rs.200000 and Cash inflow every year is Rs 25000. What is the Payback period of project B?

  1. 8 years 3 month
  2. 8 years
  3. 8 years 6 month
  4. 6 years 5 months
  

Question 15 :
Which degree of price discrimination occurs when two separate prices are charged in two segregated markets that differ in demand?

  1. First
  2. Second
  3. Third
  4. Perfect
  

Question 16 :
The monopolistic firm sale 100 unit of output at a price Rs. 10 per unit totalcost of production 100 units is Rs.1200 . What is loss of firm?

  1. 3
  2. 200
  3. 100
  4. 400
  

Question 17 :
Capital budgeting deals with ________

  1. Long term decisions
  2. Short term decisions
  3. Regular
  4. Span of return
  

Question 18 :
If the cost of a pen is Rs.200 and its price is Rs.300 what is the mark-up?

  1. 0.3
  2. 0.5
  3. 0.6
  4. 0.25
  

Question 19 :
Under monopoly the slope of AR curve is ________

  1. Upward sloping
  2. Downward sloping
  3. Horizontal sloping
  4. Vertical sloping
  

Question 20 :
An unregulated monopoly will________

  1. Produce in the elastic range of its demand curve
  2. Flood the market with goods to deter entry
  3. Produce only where MR is zero
  4. Produce in the inelastic range of its demand curve
  

Question 21 :
A monopoly producer usually earns ________

  1. Super normal profit
  2. Neither profit nor loss
  3. Only normal profit
  4. Profit and loss which are uncertain
  

Question 22 :
Monopolists are able to practice price discrimination because________

  1. They have constant marginal cost
  2. Differing price elasticity of supply
  3. They have constant average cost
  4. Differing average willingness to pay among consumers.
  

Question 23 :
The refrigerator industry is an example of ________

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

Question 24 :
The span of time within which the investment made for the project will be recovered by the net returns of the project is known as________

  1. Period return
  2. Payback return
  3. Span of return
  4. Net present return
  

Question 25 :
Payback period method of capital budgeting primarily focuses on________

  1. The current rate of interest
  2. The rate of profitability of assets
  3. Time period required to recover original investment
  4. The cost acquiring capital assets
  

Question 26 :
Under oligopoly market if one firm reduces the price of product then other firm also ________

  1. Increase price
  2. Reduce price
  3. Stay original price
  4. Regular
  

Question 27 :
If the cost of mobile is Rs.10000 and mark-up is 20% what is the price ofproduct?

  1. Rs.12000
  2. Rs.8000
  3. Rs.14000
  4. Rs.15000
  

Question 28 :
While determining the full cost price the firm uses ________

  1. Fully allocated average cost
  2. only AVC
  3. Only overhead cost
  4. Marginal cost
  

Question 29 :
Marginal cost pricing may be charged for which of the following reasons?

  1. Maximizing profit
  2. To control monopoly
  3. Minimizing losses
  4. Prevent shutting down of the firm
  

Question 30 :
Price rigidity is a characteristic of ________

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