Business Economics MCQ – Multiple Choice Questions

Business Economics MCQ – Multiple Choice Questions

1-Economist’s concept of profit is

(A) Just Profit

(B) Economic Profit

(C) Pure Profit

(D) All of the above

 

2-In economics, demand means desire backed by adequate

(A) supply

(B) purchasing power

(C) production

(D) none of the above

 

3-Giffen goods are ___ goods.

(A) superior

(B) luxury

(C) inferior

(D) none of the above

 

4-Demand for a commodity depends on the relative price of its

(A) substitute goods

(B) raw material

(C) complimentary goods

(D) normal goods

 

5-At the level of the society, the macro-economic objective(s) is (are)

(A) employment generation

(B) poverty reduction

(C) economic stabilization

(D) all of the above

 

6-Demand Curve

(A) slopes downward

(B) explains the relation between price and demand

(C) is a graphical presentation

(D) all of the above

 

7-Output rises in a lesser proportion to that of the increase in input, under the case of ___

(A) constant returns to scale

(B) increasing returns to scale

(C) decreasing returns to scale

(D) none of the above

 

8-A place where buyers & sellers meet each other to effect a business transaction is known as

(A) Conference

(B) Market

(C) Trade fair

(D) None of the above

 

9- ___ cost are those costs which vary with the level of output

(A) Variable

(B) Fixed

(C) Both (A) and (B)

(D) None of the above

 

10- ___ pricing helps the firm to become more aggressive in the market.

(A) Marginal cost

(B) Fixed

(C) Going rate

(D) All of the above

 

ANSWERS:

1-(D), 2-(B), 3-(C), 4-(A), 5-(D), 6-(D), 7-(C), 8-(B), 9-(A), 10-(A)