Business Economics MCQ Multiple Choice Questions Answers | Quiz for Practice

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

Correct Answer is: Variable cost

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

Correct Answer is: Envelope curve

Q: 3. Which of the following statements is false?

Correct Answer is: statistics is derived from in French word statistik

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

Correct Answer is: Q = F (L,L,K,E) T

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

Correct Answer is: Singing a song before friends

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

Correct Answer is: It is immobile & passive

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

Correct Answer is: Labour â€“ management disputes in firm

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

Correct Answer is: tax exemption for industry

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

Correct Answer is: High Tax Govt. Policy

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

Correct Answer is: Total fixed cost curve

Business Economics MCQs are essential for students and exam aspirants to test and enhance their understanding of key economic principles and their application in business. Practice these questions to excel in your exams and interviews.

About Business Economics MCQ Questions

Business Economics, a branch of economics, focuses on the application of economic theories and principles to business decision-making. Key concepts covered in these MCQs include market structures, pricing strategies, cost analysis, and demand forecasting. These questions are designed to deepen your understanding and practical application of these concepts.

Why Practice Business Economics Objective Questions?

Practicing Business Economics MCQs offers several benefits. They help you prepare for school and college exams, competitive exams, and job interviews. Regular practice enhances your problem-solving skills, improves your speed and accuracy, and reinforces your grasp of fundamental economic concepts. This preparation is crucial for academic success and professional advancement.

Who Should Use These MCQs?

Students preparing for school or college exams
Competitive exam aspirants
Candidates preparing for interviews

Business Economics MCQ Questions for Practice

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

Variable cost
Fixed cost
Opportunity cost
Economic cost

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

Basket Curve
Wallet Curve
Envelope curve
None of above

3. Which of the following statements is false?

Statistics is derived from the Latin word status
statistics is derived from Italian word statista
statistics is derived from in French word statistik
none

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

Arc method
Point method
Percentage method
None of these

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

Q = F (L,L,K,E)
Q = F (L,E)
Q = F (L,L,K,E) T
None of above

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

Tilling of soil by farmers
Singing a song before friends
Construction of Canal by laborers
Painting a picture for sale

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

Its inseparable from laborer
It is immobile & passive
It is human efforts
It is rewarded with wages

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

High salary of firm
High tax for industry
Low tax for industry
Labour â€“ management disputes in firm

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

Low salary of firm
tax exemption for industry
High tax for industry
Labour â€“ management disputes of firm

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

Lower salary of firm
Higher salary of firm
Tax exemption by Govt.
High Tax Govt. Policy

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

Total cost curve
Total Variable cost curve
Total fixed cost curve
None of above

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

Telephone Interview
Mailed Questionnaire
Direct Interview
All of these

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

Falls
Rises
Remains unchanged
Any of the above

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

AP lies below MP
AP & MP intersect
MP Lies below AP
None of above

15. Under a Command economy

State plays a major role
Market plays major role
Both a & b
Neither a nor b

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

Increasing Returns
Decreasing Returns
Constant Returns
None of above

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

Identical
Different
Unable to be determined
None of above

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

In both, capital is fixed
In both, labor is variable
In both, production is absent
None of above

19. The unit of measurement in tabulation is shown in

Box head
Body
Caption
stub

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

Economies of scale
Diminishing returns
The coordination problems in firm
Diseconomies of scale

21. The primary data are collected by

Interview method
Observation method
Questionnaire method
All of these

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

density
frequency
both
none

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

2045
2020
2030
2025

24. The mode of presentation of data are

Textual, tabulation & diagrammatic
Tabular, Internal & External
Textual, tabular & internal
Tabular, textual & external

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

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

26. The law of Returns to scale applies to

The short run, but not the long run
The long run, but not the short run
Both the short run and the long run
Neither the short run nor the long run

27. The first industrial revolution laid the foundation of

Capitalist economy
Socialist economy
Mixed economy
None of these

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

caption
stub
Box head
Body

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

Primary data
Secondary data
Discrete data
continuous data

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

Personal Interview
Indirect Interview
Questionnaire Method
none