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MBA Business Economics MCQ Set 3
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MBA Business Economics MCQ Set 3
1
In a perfect market both buyers and sellers are
A
price maker
B
price giver
C
price taker
D
All the above.
2
So long as Average Revenue is falling, Marginal Revenue will be ______________ Average Revenue
A
Less than
B
More than
C
Equal to
D
None of these
3
Price discrimination is also called as
A
Discriminatory pricing
B
Differential pricing
C
Average cost pricing
D
a & b above
4
__________= R2-R1/Q2-Q1
A
Average revenue
B
Total revenue
C
Marginal revenue
D
Incremental revenue
5
If the commodities are complimentary, cross elasticity will be
A
Negative
B
Positive
C
Zero
D
Any of the above
6
In the oligopoly market there are
A
large no. of firms
B
a few firms
C
a single firm
D
an infinite no. of firms
7
The law of diminishing returns applies more to
A
agriculture
B
industry
C
services
D
commerce
8
_________ provide guidelines to carry out ______
A
Pricing strategies, pricing policies
B
Pricing policies, pricing strategies
C
Pricing rules, pricing policies
D
Pricing rules, pricing strategies
9
In case of ______________ quantity demanded changes less than proportionate to changes in price
A
Perfectly elastic demand
B
Perfectly inelastic demand
C
Relative elastic demand
D
Relative inelastic demand
10
______ method measures elasticity between two points
A
Proportional or Percentage Method
B
Outlay Method
C
Geometric method
D
Arc Method
11
Target pricing is also called as
A
Cost plus pricing
B
Rate of return pricing
C
Mark up pricing
D
None of these
12
The condition for the long run equilibrium of a perfectly competitive firm
A
Price=MC=AC
B
Price=TC
C
MC=AVC
D
MC=MR
13
The monopoly can be controlled by:
A
Social boycott
B
Antimonopoly legislation
C
Public ownership
D
All of these
14
Where Marginal revenue is negative, TR will be _____
A
Rising
B
Falling
C
Zero
D
One
15
_______ is the method of leadership pricing
A
Going rate pricing
B
Follow up pricing
C
Barometric pricing
D
Parity pricing
16
The properties of indifference curves are:
A
Indifference curve slops downwards from left to right
B
Convex to the point of origin
C
Two indifference curve never cut each other
D
All of these
17
The competitive firm’s long run supply curve is the portion of it’s ______________ curve lies above average total cost.
A
Marginal cost
B
Revenue cost
C
Fixed cost
D
All of these
18
The opportunity cost of a given activity is
A
the value of next best activity
B
the value of material used
C
the cost of input used
D
None of these
19
Marginal revenue is ______________ at the quantity that generate maximum total revenue and negative beyond that point.
A
Zero
B
One
C
+1
D
−1
20
In business cycle concept, the period of "long wave" is of;
A
25 years
B
50 years
C
100 years
D
200 years
21
Cinema Theater, telephone bills etc.. are following
A
Full cost pricing
B
Marginal cost pricing
C
Differential pricing
D
Mark up pricing
22
The factors used in the production
A
Land and labor
B
capital & entrepreneurship
C
both a&b
D
only capital
23
Which is the feature of perfect competition?
A
Large number of buyers and sellers
B
Freedom of entry and exit
C
Normal profit in the long run
D
All of these
24
The concept of monopsony was invented by:
A
Marshall
B
AP. Learner
C
Chamberlin
D
Mrs. J. Robinson
25
Which is/are the salient features of monopolistic competition?
A
Large number of sellers
B
Normal profit
C
Free entry and exit of firms in industry
D
All of these
26
A cost that has already been committed and cannot be recovered known as:
A
Sunk cost
B
Total cost
C
Full cost
D
Variable cost
27
The claim that, other things equal, the quantity supplied of a goods rises when the price of goods raises known as:
A
Law of economics
B
Law of supply
C
Law of demand
D
All of these
28
In business cycle concept, the period (approximately) of "Kit chin cycle" is of:
A
5 years
B
10 months
C
2 years
D
4 months
29
The demand curve of a firm in the case of perfect competition is:
A
Parallel to output axis
B
Increasing with the output axis
C
Decreasing with the output axis
D
Complete
30
Which factors is/are influencing price policy?
A
Cost of product
B
Time factor
C
Government policy
D
All of these
31
The no. of firms under oligopoly is
A
1
B
2
C
many
D
Few
32
Growth curve approach is used for forecasting demand of ______________ products
A
New
B
Old
C
Existing
D
Both old and existing.
33
A positive income elasticity may be
A
Unit income elasticity
B
Income elasticity greater than unity
C
Income elasticity less than unity
D
Any of the above
34
The concept of Elasticity of Demand was introduced by
A
Alfred Marshall
B
Lionel Robbins
C
Adam smith
D
J M Keynes
35
When the quantity demanded falls due to a rise in price, it is called
A
Extension
B
Upward shift
C
Downward shift
D
Contraction
36
Determinants of demand includes
A
Price of a commodity
B
Nature of commodity
C
Income and wealth of consumer
D
All the above.
37
Exceptional Demand Curve (Perverse demand curve)
A
Moving upward from left to right
B
Moving upward from right to left
C
Moving horizontally
D
Moving vertically
38
Purposes of long term Demand forecasting doesn’t includes;
A
Planning of a new unit or expansion of existing unit.
B
Planning long term financial requirements.
C
Planning of manpower requirements.
D
Deciding suitable price policy
39
Which of the following method of pricing is popular in wholesale and retail trades
A
skimming
B
penetrating
C
full cost pricing
D
target pricing
40
_________ is an "objective assessment of the future course of demand"
A
Demand Estimation
B
Demand analysis
C
Demand function
D
Demand forecasting
41
The change in demand due to change in price only, where other factors remaining constant, it is called ________
A
Shift in demand
B
Extension of demand
C
Contraction of demand
D
Both extension and contraction
42
In the above function, the letter T stands for
A
Target price
B
Total supply
C
Total consumption
D
Taste and preference of consumers
43
__________ means relationship between demand and its various determinants expressed mathematically
A
Demand extension
B
Demand contraction
C
Demand analysis
D
Demand function
44
_______ in economics means demand backed up by enough money to pay for the goods demanded"
A
Utility
B
Consumption
C
Supply
D
Demand
45
In the case of ______________ a small change in price leads to very big change in quantity demanded
A
Perfectly elastic demand
B
Perfectly inelastic demand
C
Relative elastic demand
D
Unit elastic demand
46
Basic assumptions of law of demand does not include
A
There is no change in consumers' taste and preference
B
Income should remain constant.
C
Prices of other goods should change.
D
There should be no substitute for the commodity
47
in the case of perfect inelasticity, the demand curve is
A
Vertical
B
Horizontal
C
Flat
D
Steep
48
Purposes of long term Demand forecasting includes
A
Making a suitable production policy.
B
To reduce the cost of purchasing raw materials and to control inventory.
C
Deciding suitable price policy
D
Planning of a new unit or expansion of existing unit
49
Pricing is done on the basis of managerial decisions, not on the basis of cost, demand etc...
A
Managerial pricing
B
Administered pricing
C
Full cost pricing
D
Competitive pricing
50
The pricing of cup of tea or coffee, is an example of
A
Mark up pricing
B
Marginal cost pricing
C
Conventional pricing
D
Cost plus pricing
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