B.COM Economics-II MCQ's




Question 31 :
Persistent dumping refers to the practice of ________

  1. International price discrimination
  2. Domestic price discrimination
  3. Regular price discrimination
  4. Local price discrimination
  

Question 32 :
_______ is responsible for price discrimination.

  1. Differences in elasticity of demand
  2. Market information
  3. Uncertainty
  4. Cartel
  

Question 33 :
Supernormal profit means…….

  1. TR = TC
  2. TR>TC
  3. TR
  4. TC > AC
  

Question 34 :
A monopolistic firm will expand its output when ________

  1. MR >MC
  2. MC > MR
  3. MC = MR
  4. MR is negative
  

Question 35 :
The values of the future net incomes discounted by the cost of capital are called ________

  1. Average capital cost
  2. Discounted capital cost
  3. Net capital cost
  4. Net present values
  

Question 36 :
Firm shut-down point is reached when_______

  1. AR fails to cover average total cost
  2. AR fails to cover average variable cost
  3. AR fails to cover average fixed cost
  4. AR fails to cover marginal cost
  

Question 37 :
Marginal cost pricing generally followed by………

  1. Private enterprises
  2. Small and medium enterprises
  3. Public sector enterprises
  4. Large Private MNCs
  

Question 38 :
Price discrimination is profitable and possible of the two market have ________

  1. Equal elasticity of demand
  2. Different elasticity of demand
  3. Inelastic demand
  4. High elastic demand
  

Question 39 :
Under first degree price discrimination consumer surplus entirely captured by ________

  1. Consumer
  2. Firm
  3. Government
  4. Market
  

Question 40 :
Normal profit means ………..

  1. TR= TC
  2. TR > TC
  3. TR < TC
  4. TR = AR
  

Question 41 :
________ is not characteristic of perfect competition.

  1. No transport cost
  2. Free entry
  3. Perfect information
  4. Price rigidity
  

Question 42 :
Apple limited invest the money in project A is Rs.20000 and cash inflow every year is Rs.5000. What is the Payback period of project A?

  1. 5 years
  2. 4 years
  3. 6 years
  4. 2 years
  

Question 43 :
Game theory proves most useful for analyzing ________

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

Question 44 :
In the long run under perfect competition price of the product is equal to …

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

Question 45 :
Under payback period method ________project are preferred.

  1. Higher payback period
  2. Lower pay back period
  3. Normal pay back period
  4. Medium pay back period
  

Question 46 :
Price leadership avoids _______

  1. Price war
  2. New entry into market
  3. Promotes product differentiation
  4. Uncertainty
  

Question 47 :
KR private limited company invest the money in project B is Rs.100000 and Cash inflow every year is Rs 40000. What is the Payback period of project B?

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

Question 48 :
________ is not feature of monopolistic competition.

  1. Selling cost
  2. Product Differentiation
  3. Free entry
  4. Cartel
  

Question 49 :
Which one is not collusive oligopoly……………

  1. Price leadership
  2. Market sharing cartel
  3. Price discrimination
  4. Price fixing cartel
  

Question 50 :
An example of a monopolistically competitive industry is________

  1. Phone service
  2. The restaurant industry
  3. Wheat farming
  4. The automobile industry
  

Question 51 :
In oligopolistic markets …………….

  1. There are many firms
  2. There are only a few firms
  3. There are no barriers to entry
  4. All firms are price takers
  

Question 52 :
If the present value of total cash outflow is Rs.30000 and present value of total Cash inflow is Rs.35000 What is the NPV of the project?

  1. 5000
  2. -5000
  3. 2000
  4. -2000
  

Question 53 :
Cartel is part of ________

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

Question 54 :
The following industry often is a monopoly________

  1. Cigarette industry
  2. Publishing industry
  3. Drug industry
  4. Electric power industry
  

Question 55 :
Capital budgeting decisions are ________

  1. Reversible
  2. Irreversible
  3. Unimportant
  4. Short term
  

Question 56 :
A project is profitable if NPV is ________

  1. Zero
  2. One
  3. Negative
  4. Positive
  

Question 57 :
The first step in calculation of NPV is to find out________

  1. Present value of equity
  2. Future value of investment
  3. Present value of cash flow
  4. Future value of cash flow
  

Question 58 :
TR =

  1. P x Q
  2. P
  3. Q
  4. P x MR
  

Question 59 :
According to the IRR method of capital budgeting a project will accepted if_______

  1. IRR less then market rate of interest
  2. IRR equal to NPV
  3. IRR greater than market rate of interest
  4. IRR equal to market rate of interest
  

Question 60 :
Capital budgeting is a part of ________

  1. Investment decision
  2. Working capital management
  3. Marketing management
  4. Capital structure
  
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