Economics Of Business And Finance Set 2
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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 2
Q1 | A fall in the price of the commodity whose demand curve is a rectangularhyperbola causes total expenditure on the commodity
- increases
- decreases
- remains unchanged
- none of the above
Q2 | If the quantity demanded remains unchanged as the price of thecommodity falls, the coefficient of price elasticity of demand is
- greater than
- one equal to one
- smaller than one
- zero
Q3 | An increase in the price of the commodity when demand is inelasticcauses the total expenditure of consumers of the commodity to
- increase
- decrease
- remains unchanged
- any of the above
Q4 | A negative income elasticity of demand for a commodity indicates that asincome falls, the amount of the commodity purchased
- rises
- falls
- remains unchanged
- none of the above
Q5 | Most common form of price discrimination is
- first degree price discrimination
- second degree price discrimination
- third degree price discrimination
- fourth degree price discrimination
Q6 | If the income elasticity of demand is greater than one, then thecommodity is
- necessity
- luxury
- inferior
- non-related commodity
Q7 | If the income elasticity of demand for a commodity is found to be 0.4,then the commodity concerned is
- luxury
- necessity
- giffen’s goods
- independent good
Q8 | A fall in income of the consumer, other things being equal, causes
- increase in demand
- decrease in demand
- increase in quantity demanded
- decease in quantity demanded
Q9 | Which of the following Elasticities measure movement along a curve,rather than a shift in the curve
- price elasticity of demand
- income elasticity of demand
- cross elasticity of demand
- none of the above
Q10 | Cross elasticity of demand in the case of substitutes
- zero
- negative
- positive
- infinity
Q11 | A movement down the given demand curve shows
- increase in demand
- decrease in demand
- extension in demand
- contraction in demand
Q12 | Which of the following results in an increase in an increase in demand
- fall in prices of substitutes
- increase in price of complementary goods
- fall in consumer’s income
- none of the above
Q13 | When total product is maximum, marginal product is
- maximum
- positive
- zero
- negative
Q14 | Who popularized the degrees of price discrimination
- alfred marshall
- pigou
- keynes
- jevons
Q15 | As a result of a fall in the price total expenditure on the commoditydecreases, the coefficient of elasticity will be
- equal to one
- greater than one
- less than one
- cannot sa
Q16 | If a small change in price leads to infinitely large change in quantitydemanded, then the demand is
- perfectly elastic
- perfectly inelastic
- elastic
- inelastic
Q17 | When demand curve is rectangular hyperbola, the value of priceelasticity of demand will be
- zero
- one
- greater than one
- infinity
Q18 | Consumers are denied of any consumer surplus in ------- degree of pricediscrimination
- first
- second
- third
- fourth degree price discrimination
Q19 | On a linear demand curve, the coefficient of price elasticity is unity, thenthe value of MR will be
- positive
- zero
- negative
- one
Q20 | Business economics lie at the borderline between economics and ------
- political science
- commerce
- management
- statistics
Q21 | Planning for future is also called
- logistic planning
- capital planning
- forward planning
- none of the above
Q22 | Economics is concerned with allocation of --------- resources
- abundant
- unlimited
- scarce
- redundant
Q23 | The cost of next best alternative is called ---------
- opportunity cost
- marginal cost
- total cost
- sink cost
Q24 | The most important objective of the producer is -----
- maximum sales
- maximum profit
- maximum revenue
- maximum cost
Q25 | Who is the author Principles of Economics
- adam smith
- alfred marshall
- j m keynes
- friedman