B.COM Economics-II MCQ's




Question 61 :
Upper portion of the kinked demand curve is relatively _______

  1. More inelastic
  2. More elastic
  3. Less elastic
  4. Less inelastic
  

Question 62 :
If the cost of the project is Rs.20000 and present value of total cash inflow is Rs.19000 What is the NPV of the project?

  1. 1000
  2. -1000
  3. 2000
  4. -2000
  

Question 63 :
Under perfect competition a firm is________

  1. Price-maker
  2. Price-taker
  3. Product differentiated
  4. Price rigidity
  

Question 64 :
Copyright is related to _______ monopoly

  1. Natural monopoly
  2. Legal monopoly
  3. Technology monopoly
  4. Control over recourses monopoly
  

Question 65 :
Under dumping a monopoly firm charges higher price in …………..

  1. World market
  2. Home market
  3. Oligopoly market3
  4. . Perfect market
  

Question 66 :
Product differentiation is a defined characteristic of ……………

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

Question 67 :
Which of the following is not capital budgeting decision?

  1. Expansion programme
  2. Merger
  3. Inventory level
  4. Replacement of an assets
  

Question 68 :
In the long run a firm in monopolistic competition will earn________

  1. Excess profit
  2. Loss
  3. Normal profit
  4. Covered only fixed cost
  

Question 69 :
Price discrimination is generally practiced under………..

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

Question 70 :
________is one method of capital budgeting.

  1. End use method
  2. Expert opinion method
  3. IRR method
  4. Survey method
  

Question 71 :
The monopolistic firm sale 120 unit of output at a price Rs. 20 per unit totalcost of production 120 units is Rs.2400 So firm earn ________ profit?

  1. 3
  2. 200
  3. Zero
  4. 400
  

Question 72 :
Firms in monopolistic competition make products that are……..

  1. Close but not perfect substitute
  2. Perfect substitute
  3. Close but not perfect complements
  4. Perfect complements
  

Question 73 :
Which of the following is example of perfectly competitive market?

  1. Diamonds
  2. Athletic shoes
  3. Soft drinks
  4. Farming
  

Question 74 :
________ is one characteristics of monopoly

  1. No entry
  2. Free entry
  3. Entry is possible but difficult
  4. No transport cost
  

Question 75 :
Imperfect competition was introduced by………………..

  1. Marshall
  2. Chamberlin
  3. Keynes
  4. Smith
  

Question 76 :
Which pricing strategy uses various class distinctions?

  1. Marginal cost pricing
  2. Price discrimination
  3. Product line pricing
  4. Mark-up pricing
  

Question 77 :
Which of the following good is best example of a natural monopoly?

  1. Natural gas
  2. Diamonds
  3. A patented good
  4. First class mail
  

Question 78 :
Under perfect competition TR is increasing _______ rate.

  1. Increasing
  2. Negative
  3. Constant
  4. Diminishing
  

Question 79 :
Investment to replace working but obsolete equipment with more efficient ones is generally done for ………….

  1. Increasing cost
  2. Cost reduction
  3. Expansion into new markets
  4. Expansion of existing production capacity
  

Question 80 :
Present value may be defined as ________

  1. The discounted value of future cash flows
  2. The interest rate earned on future cash flows
  3. The compounded value of future cash flows
  4. The opportunity costs of future cash flows
  
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