Business Economics mcq questions and answers for competitive exams

Posted : 4 months ago
Business Economics mcq questions and answers for competitive exams UPSC SSC , SSC CGL, SSC CHSL, upsc Civils , Entrance exams Online test practice online free Quiz, mock practice online
1.
Cross elasticity of demand between two perfect substitutes will be

a
zero
b
low
c
high
d
infinity

2.
Monopoly exploitation is reduced by regulation that

a
restricts output
b
enhances product-market competition
c
increases the bargaining power of workers
d
increases the bargaining power of employers

3.
In perfect competition in the long run there will be no

a
Costs
b
Production
c
Normal profit
d
Supernormal profits

4.
Which economist stated the positive impact of monopoly?

a
Pigou
b
Marshall
c
Adam Smith
d
Joseph Schumpeter

5.
Monopolistic competition has features of

a
Monopoly but not competition
b
Monopoly and competition with features of monopoly predominating
c
Monopoly and competition, with features of competition predominating
d
None of the above

6.
The % change in demand for a product A divided by the % change in price of product B indicates the degree of

a
Price Elasticity of Demand
b
Cross Elasticity of Demand
c
Ionic Elasticity of Demand
d
Advertising Elasticity of Demand

7.
Income elasticity is computed by

a
ei = (Y2 −Y1)=e1
b
ei = (Y1 −Y2)=P1
c
ei = (Q2 −Q1)=P1
d
ei = ((Q2 −Q1)=Q1=((Y2 −Y1)=Y1)

8.
A consumer consuming two goods will be in equilibrium, when the marginal utilities from both goods are

a
zero
b
Equal
c
Minimum possible positive
d
Maximum possible positive

9.
On an indifference map, if the income consumption curve slopes downwards to the right it shows that

a
X is an inferior good
b
Y is an inferior good
c
Both X and Y are superior goods
d
Both X and Y are inferior goods

10.
Price effect in indifference curve analysis arises

a
When income and price change
b
When the consumer is betler off due to a change in income and price
c
When the consumer becomes either better off or worse off because price change is not compensated by income change
d
None of the above

11.
An indifference curve slopes down towards right since more of one commodity and less of another result in

a
Same satisfaction
b
Greater satisfaction
c
Maximum satisfaction
d
Decreasing expenditure

12.
The degree of monopoly power can be measured by the formula

a
(P - MC) / P
b
AR / (AR - MR)
c
MR / (AR - MR)
d
(AR -MR ) / MR

13.
What is the nature of Elasticity of demand for luxury items like high class furniture

a
zero elastic
b
unit elastic
c
fairly elastic
d
highly elastic

14.
A situation in which the number of competing firms is relatively small is known as

a
Monopoly
b
Oligopoly
c
Monopsony
d
Perfect competition

15.
Impact of change in demand in one sector on other sectors is studied by

a
Partial equilibrium
b
General equilibrium
c
Both (a) and (b)
d
None of these

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Business Economics mcq questions and answers for competitive exams

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