Business Economics MCQ – Multiple Choice Questions
21-When demand for the product increases in the same proportion in which income increases, Income elasticity of demand will be equal to___ .
(A) zero
(B) infinity
(C) unity
(D) none of the above
22-Exception(s) to the Law of Demand is (are)
(A) Articles of snob appeal
(B) Speculation
(C) Giffen goods
(D) All of the above
23-Costs which increase because of the expansion of a firm are called
(A) incremental cost
(B) marginal cost
(C) fixed cost
(D) capital cost
24-The production function can be explained by
(A) Optimum combinations of inputs
(B) Laws of returns to scale
(C) Law of variable proportions
(D) All of the above
25-The cost which enter the accounts book of the firm are referred as ___
(A) Accounting cost
(B) Analytical cost
(C) Marginal cost
(D) None of the above
26-Under , Perfect competition, when an individual buyer increases or reduces his demand , the total market demand
(A) decreases
(B) increases
(C) is not all affected
(D) none of the above
27-Type(s) of imperfect competition is (are)
(A) Oligopoly
(B) Duopoly
(C) Monopoly
(D) All of the above
28- The cause(s) of inflation is (are)
(A) Increase in private expenditure
(B) Increase in foreign demand
(C) Increase in public expenditure
(D) All of the above
29- Feature(s) of Pure Competition is (are)
(A) Homogeneous products
(B) Free entry and free exit of firms
(C) Large number of buyers and sellers
(D) All of the above
30-The partnership between private sector & government is called ___ .
(A) sole trader
(B) Partnership Firm
(C) Limited Liability Partnership (LLP)
(D) Joint sector enterprise
ANSWERS:
21-(C), 22-(D), 23-(A), 24-(D), 25-(A), 26-(C), 27-(D), 28-(D), 29-(D), 30-(D)