Economics Of Business And Finance Set 1
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This set of Economics of Business and Finance Multiple Choice Questions & Answers (MCQs) focuses on Economics Of Business And Finance Set 1
Q1 | Business economics is the application of ------- to business management
- commerce
- management
- economics
- finance
Q2 | Risks that cannot be insured is called -----
- uncertainty
- injury
- capital
- none of the above
Q3 | Market in which securities are issued for the first time is ---------
- secondary market
- primary market
- tertiary market
- money market
Q4 | Market in which prices of shares are going up is called-------
- bull market
- bear market
- stock market
- capital market
Q5 | Market in which prices of shares are going down is called-------
- bull market
- bear market
- stock market
- capital market
Q6 | For substitutes, cross elasticity is --------
- positive
- negative
- zero
- infinity
Q7 | For complementary goods, cross elasticity is --------
- positive
- negative
- zero
- infinity
Q8 | Entry preventing price is called --------
- limit price
- full cost price
- penetration price
- psychological price
Q9 | Long run theory of production is known as ----
- law of variable proportion
- law of diminishing returns
- law of returns to scale
- none of the above
Q10 | An example of cartel is-------
- opec
- oecd
- saarc
- eu
Q11 | Other things remaining the same, the quantity of a product demandedincreases with ------------ in price
- increase
- decrease
- variation
- none of the above
Q12 | For necessary goods, the income elasticity of demand
- more than 1
- less than 1
- zero
- none
Q13 | Relation between price of a commodity and demand for anothercommodity is measured by
- price elasticity
- income elasticity
- cross elasticity
- elasticity of substitution
Q14 | When Q = f (P), the elasticity coefficient is measured by
- Δq/Δp / p/q
- Δp/Δq * q/p
- Δq/Δp * p/q
- Δp/Δq / q/p
Q15 | Income elasticity of demand for inferior goods is
- negative
- positive
- zero
- unity
Q16 | In the case of luxury goods, the income elasticity of demand will be
- less than unity
- unity
- more than unity
- all the above
Q17 | Income elasticity is positive, but less than unity in the case of
- necessity
- luxury
- inferior
- substitutes
Q18 | The price is kept artificially low in
- price skimmimg
- limit pricing
- full cost pricing
- psychological pricing
Q19 | In drawing an individual demand curve for a commodity, all but which ofthe following are kept constant
- individual’s money income
- the prices of the related commodity
- price of the commodity under consideration
- tastes of the consumer
Q20 | A fall in the price of the commodity holding everything else constantresults in
- increase in demand
- decrease in demand
- increase in quantity demanded
- decrease in quantity demanded
Q21 | When an individual’s income falls, when everything else remains thesame, his demand for inferior goods
- increases
- decreases
- remains unchanged
- cannot say
Q22 | When the price of the substitute commodity of X falls, the demand for X
- rises
- falls
- remains unchanged
- all of the above is possible
Q23 | When both the price of a substitute and the price of complement of Xrises, the demand for X
- rises
- falls
- remains unchanged
- all of the above is possible
Q24 | Most rare type of price discrimination is
- first degree
- second degree
- third degree
- fourth degree
Q25 | The price which is initially low is called --------
- limit price
- full cost price
- penetration price
- psychological price