Business Economics MCQs Quiz Multiple Choice Questions & Answers

1. With which of the following is the concept of marginal cost closely related?

1. Variable cost
2. Fixed cost
3. Opportunity cost
4. Economic cost

2. Which one of the following is also known as Long run average cost curve?

1. Basket Curve
2. Wallet Curve
3. Envelope curve
4. None of above

3. Which of the following statements is false?

1. Statistics is derived from the Latin word status
2. statistics is derived from Italian word statista
3. statistics is derived from in French word statistik
4. none

4. Which of the following is the method of measuring elasticity of demand when change in price of a commodity is substantial?

1. Arc method
2. Point method
3. Percentage method
4. None of these

5. Which of the following is the best formula of the production function?

1. Q = F (L,L,K,E)
2. Q = F (L,E)
3. Q = F (L,L,K,E) T
4. None of above

6. Which of the following is not considered production in Economics?

1. Tilling of soil by farmers
2. Singing a song before friends
3. Construction of Canal by laborers
4. Painting a picture for sale

7. Which of the following is not a characteristic of labour?

1. Its inseparable from laborer
2. It is immobile & passive
3. It is human efforts
4. It is rewarded with wages

8. Which of the following is an example of internal diseconomies?

1. High salary of firm
2. High tax for industry
3. Low tax for industry
4. Labour – management disputes in firm

9. Which of the following is an example of External economies?

1. Low salary of firm
2. tax exemption for industry
3. High tax for industry
4. Labour – management disputes of firm

10. Which of the following is an example of external diseconomies?

1. Lower salary of firm
2. Higher salary of firm
3. Tax exemption by Govt.
4. High Tax Govt. Policy

11. Which of the following does not have non linear shape?

1. Total cost curve
2. Total Variable cost curve
3. Total fixed cost curve
4. None of above

12. which method of data collection covers the widest area?

1. Telephone Interview
2. Mailed Questionnaire
3. Direct Interview
4. All of these

13. When the price of a complementary of commodity X falls, the demand for X

1. Falls
2. Rises
3. Remains unchanged
4. Any of the above

14. When marginal product (MP) & average product (AP) both falls

1. AP lies below MP
2. AP & MP intersect
3. MP Lies below AP
4. None of above

15. Under a Command economy

1. State plays a major role
2. Market plays major role
3. Both a & b
4. Neither a nor b

16. Uncommon thing between law of variable proportions & returns to scale is

1. Increasing Returns
2. Decreasing Returns
3. Constant Returns
4. None of above

17. Total Product, Marginal Product & Average Product for 1st unit of labor aree

1. Identical
2. Different
3. Unable to be determined
4. None of above

18. To economists, the common thing between the short run and the long is that

1. In both, capital is fixed
2. In both, labor is variable
3. In both, production is absent
4. None of above

19. The unit of measurement in tabulation is shown in

1. Box head
2. Body
3. Caption
4. stub

20. The rising part of the LAC curve is due to which of the following?

1. Economies of scale
2. Diminishing returns
3. The coordination problems in firm
4. Diseconomies of scale

21. The primary data are collected by

1. Interview method
2. Observation method
3. Questionnaire method
4. All of these

22. The number of observations falling within a Class is called

1. density
2. frequency
3. both
4. none

23. The National Population Policy (NPP) 2000 set long term objective of achieving a stable population by

1. 2045
2. 2020
3. 2030
4. 2025

24. The mode of presentation of data are

1. Textual, tabulation & diagrammatic
2. Tabular, Internal & External
3. Textual, tabular & internal
4. Tabular, textual & external

25. The long run, as economists use the phrase, is characterized by

1. At least one fixed factor of production.
2. The law of variable proportions
3. The law of Returns to scale
4. All inputs being fixed

26. The law of Returns to scale applies to

1. The short run, but not the long run
2. The long run, but not the short run
3. Both the short run and the long run
4. Neither the short run nor the long run

27. The first industrial revolution laid the foundation of

1. Capitalist economy
2. Socialist economy
3. Mixed economy
4. None of these

28. The entire upper part of the table is known as

1. caption
2. stub
3. Box head
4. Body

29. The data collected on the height of group of students after recording their heights with a measuring tape are

1. Primary data
2. Secondary data
3. Discrete data
4. continuous data

30. The best method to collect the data in case of natural Calamity, is

1. Personal Interview
2. Indirect Interview
3. Questionnaire Method
4. none

31. The amount of non responses is maximum in

1. mailed Questionnaire method
2. Interview method
3. Observation method
4. All of these

32. The 3rd Five Year Plan duration covered the period

1. 1951-56
2. 1961-66
3. 1947-52
4. None of above

33. stub Of a table is

1. Left part of the table describing the Columns
2. Right part of the table describing the Column
3. Right part of table describing rows
4. Left past of the table describing the rows

34. Statistics is applied in

1. Economics
2. Business Management
3. Commerce & Industry
4. All of these

35. Some believe that statistics originated from a German word ........

1. Statista
2. Statistik
3. Status
4. none

36. Slope of AR curve in the context of monopolistic competition is

1. Perfectly elastic
2. Relatively elastic
3. Unitary elastic
4. Relatively inelastic

37. Relative frequency for a Particular class

1. Lies between 0 & 1
2. Lies between O & 1, both inclusive
3. Lies between -1 & 0
4. Lies between -1 & 1

38. Price discrimination implies that the monopolist maximizes profits

1. None of Below
2. By implementing arbitrage
3. By Charging single price
4. By prohibiting Arbitrage

39. Pie diagram is based on a

1. Circle
2. Rectangle
3. Triangle
4. none

40. Nearly ............percent of working population is engaged in the service sector

1. 23 percent
2. 45 percent
3. 80 percent
4. 50 percent

41. median of a distribution can be obtained from

1. Frequency Polygon
2. Histogram
3. Less than type ogives
4. None

42. Market structure where goods have close substitutes is best described as

1. Perfectly competitive
2. Monopolistic
3. Monopolistically competitive
4. None of above

43. Literacy rate calculated considering total population into account is known as

1. Crude Literacy Rate
2. Total Literacy Rate
3. Mean Literacy Rate
4. None

44. Law of Variable proportions passes from

1. 2 stages
2. 4 stages
3. 1 stage
4. 3 stages

45. Internal economies of scale are noticed at

1. Firm level independent of industry
2. Industry level independent of Firm
3. At both firm & industry level
4. nowhere

46. In tabulation source of data if any is shown in the

1. Footnote
2. Body
3. Stub
4. Caption

47. In perfect competition in the short run there will be ..................possibilities

1. Normal profits
2. Supernormal profits
3. Loss
4. All of above

48. In order to encourage investment in the economy, the RBI may

1. Increase Bank Rate
2. Sell securities in the open market
3. Buy securities in the open market
4. None of above

49. In Histogram, the classes are taken

1. Overlapping
2. non-overlapping
3. both
4. none

50. If sellers AR & AC functions are given as 115Q + 290 & 95Q + 305 respectively, with Output of 19 units, seller is making

1. NP
2. SNP
3. Loss
4. None of above