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MBA Business Economics MCQ Set 1
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MBA Business Economics MCQ Set 1
1
Managerial Economics is
A
Dealing only micro aspects
B
Only a normative science
C
Deals with practical aspects
D
All of the above
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✅ Correct Answer: 4
2
The techniques of optimization include
A
Marginal analysis
B
Calculus
C
Linear programming
D
All of the above
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✅ Correct Answer: 4
3
In economics, desire backed by purchasing power is known as
A
Utility
B
Demand
C
Consumption
D
Scarcity
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✅ Correct Answer: 2
4
Basic assumptions of law of demand include
A
Prices of other goods should change.
B
There should be substitute for the commodity.
C
The commodity should not confer any distinction.
D
The demand for the commodity should not be continuous
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✅ Correct Answer: 3
5
Higher the price of certain luxurious articles, higher will be the demand, this concept is called
A
Giffen effects
B
Veblen effects
C
Demonstration effects
D
Bothb&cabove
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✅ Correct Answer: 2
6
In the case of perfect elasticity, the demand curve is
A
Vertical
B
Horizontal
C
Flat
D
Steep
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✅ Correct Answer: 2
7
Outlay method of measurement of elasticity is also called as
A
Percentage method
B
Expenditure method
C
Point method
D
Geometric method
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✅ Correct Answer: 2
8
_______ demand forecasting is related to the business conditions prevailing in the economy as a whole
A
Macro level
B
Industry level
C
Firm level
D
None of these
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✅ Correct Answer: 1
9
________ is the base of marketing planning
A
Demand Estimation
B
Demand analysis
C
Demand function
D
Demand forecasting
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✅ Correct Answer: 4
10
____ is the change in total revenue irrespective of changes in price or due to the effect of managerial decision on revenue
A
Average revenue
B
Total revenue
C
Marginal revenue
D
Incremental revenue
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✅ Correct Answer: 4
11
Perfect competition is characterized by
A
large number of buyers and sellers
B
homogeneous product
C
free entry and exit of firms
D
All the above.
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✅ Correct Answer: 4
12
The distinction between variable cost and fixed cost is relevant only in
A
long period
B
short period
C
medium term
D
mixed period
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✅ Correct Answer: 2
13
Purposes of Short term Demand forecasting doesn’t includes;
A
Making a suitable production policy.
B
To reduce the cost of purchasing raw materials and to control inventory.
C
Deciding suitable price policy
D
Planning of a new unit or expansion of existing unit
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✅ Correct Answer: 4
14
In ______________ approach, the demand for new product is estimated on the basis demand of existing product
A
Growth curve approach
B
Evolutionary approach.
C
Opinion polling approach
D
Vicarious approach.
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✅ Correct Answer: 2
15
The proportionate change in the quantity demanded of a commodity in response to change in the price of another related commodity is called
A
Price elasticity
B
Related elasticity
C
Cross elasticity
D
Income elasticity
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✅ Correct Answer: 3
16
Which one is the method for measurement of elasticity
A
Proportional or Percentage Method
B
Outlay Method
C
Geometric method
D
All the above.
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✅ Correct Answer: 4
17
_______ Method is also known as Sales-Force – Composite method or collective opinion method
A
Opinion survey
B
Expert opinion
C
Delphi method
D
Consumer interview method
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✅ Correct Answer: 1
18
Which of the following is not a method of demand forecasting of new products
A
Trend projection
B
Substitute approach
C
Evolutionary approach
D
Sales experience approach
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✅ Correct Answer: 1
19
Psychological pricing is also called as;
A
Penetration pricing
B
Skimming pricing
C
Odd pricing
D
None of these
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✅ Correct Answer: 3
20
Customary pricing is also known as
A
Consumer pricing
B
Conventional pricing
C
Cost plus pricing
D
Full cost pricing
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✅ Correct Answer: 2
21
_____ is the process of finding current values of demand for various values of prices and other determining variables.
A
Demand Estimation
B
Demand analysis
C
Demand function
D
Demand forecasting
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✅ Correct Answer: 2
22
In the case of ______________ a small change in price leads to very big change in quantity demanded
A
Perfectly elastic demand
B
Perfectly inelastic demand
C
Relative elastic demand
D
Unit elastic demand
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✅ Correct Answer: 3
23
In ______________ approach, on the basis of the growth of an established product, the demand for the new product is estimated
A
Growth curve approach
B
Evolutionary approach.
C
Opinion polling approach
D
vicarious approach
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✅ Correct Answer: 1
24
Which one of the following is not a reason for adopting penetration price strategy
A
Product has high price elasticity in the initial stage.
B
The product is accepted by large number of customers.
C
Economies of large scale production available to firm
D
When the buyers are not able to compare the value and utility
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✅ Correct Answer: 4
25
Car and petrol are
A
Complimentary goods
B
Substitute goods
C
Supplementary goods
D
Reserve goods
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✅ Correct Answer: 1
26
Criteria for good demand forecasting includes;
A
Plausibility
B
Simplicity
C
Economy
D
All the above.
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✅ Correct Answer: 4
27
Cost plus pricing is also called
A
margin pricing
B
full cost pricing
C
mark up pricing
D
All the above.
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✅ Correct Answer: 4
28
Generally used strategy for pricing new products is/are
A
Skimming price strategy
B
Penetration price strategy
C
Both a & b
D
None of these
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✅ Correct Answer: 3
29
The architect of the theory of monopolistic competition
A
Rosenstein Roden
B
JR Hicks
C
Karl Marx
D
Chamberlin
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✅ Correct Answer: 4
30
The function of combining the other factors of production is done by
A
land
B
labour
C
Capital
D
Entrepreneurship
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✅ Correct Answer: 4
31
_____ means the total receipts from sales divided by the number of unit sold.
A
Average revenue
B
Total revenue
C
Marginal revenue
D
Incremental revenue
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✅ Correct Answer: 1
32
Ep=0in the case of ______________ elasticity
A
Perfectly elastic demand
B
Perfectly inelastic demand
C
Relative elastic demand
D
Unitary elastic demand
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✅ Correct Answer: 2
33
Law of demand shows the functional relationship between ______________ and quantity demanded
A
Supply
B
Cost
C
Price
D
Requirements
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✅ Correct Answer: 3
34
When the change in demand is exactly equal to the change in price, it is called
A
Perfectly elastic demand
B
Perfectly inelastic demand
C
Relative elastic demand
D
Unitary elastic demand
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✅ Correct Answer: 4
35
Tea and coffee are
A
Complimentary goods
B
Substitute goods
C
Supplementary goods
D
Reserve goods
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✅ Correct Answer: 2
36
Survey method of demand forecasting includes
A
Opinion survey
B
Expert opinion
C
Delphi method
D
All the above.
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✅ Correct Answer: 4
37
In ______________ pricing fixed cost are excluded.
A
skimming pricing
B
going rate pricing
C
administered pricing
D
marginal cost pricing
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✅ Correct Answer: 4
38
The market with a single producer''
A
perfect competition
B
monopolistic competition
C
oligopoly
D
monopoly
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✅ Correct Answer: 4
39
The short run production function is called;
A
Returns to scale
B
law of variable proportion
C
Production possibility frontier
D
None of these
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✅ Correct Answer: 2
40
Which are the characteristics of monopoly?
A
Single seller or producer
B
No close substitutes
C
Inelastic demand curve
D
All of these
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✅ Correct Answer: 4
41
Whenever ______________ is greater than average total cost, average total cost is rising.
A
Marginal cost
B
Variable cost
C
Fixed cost
D
Full cost
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✅ Correct Answer: 1
42
Which of the following is not a macroeconomic concept?
A
Business cycle
B
National income
C
Government policy
D
None of these
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✅ Correct Answer: 4
43
Iso-cost line indicate the price of
A
Output
B
Inputs
C
Finished goods
D
Raw material
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✅ Correct Answer: 2
44
Who classified economies of scale into internal and external?
A
Robinson
B
Marshall
C
Edward west
D
Pigue
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✅ Correct Answer: 2
45
Product differentiation is the important feature of
A
monopoly
B
perfect competition
C
monopolistic competition
D
monophony
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✅ Correct Answer: 3
46
13th Finance Commission has been constituted under the chairmanship of:
A
C.Rangarajan
B
Vijay L Kelkar
C
Deepak Parekh
D
Indira Bhargara
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✅ Correct Answer: 2
47
Method of demand forecasting is also called "economic model building"
A
Opinion survey
B
Complete enumeration
C
Correlation and regression
D
Delphi method
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✅ Correct Answer: 3
48
The responsiveness of demand due to a change in promotional expenses is called
A
Expenditure elasticity
B
Advertisement elasticity
C
Promotional elasticity
D
Above b or c
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✅ Correct Answer: 4
49
Want satisfying power of commodity is called
A
Demand
B
Utility
C
Satisfaction
D
Consumption
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✅ Correct Answer: 2
50
The relationship between price and quantity demanded is
A
Direct
B
Inverse
C
Linear
D
Nonâ€linear
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✅ Correct Answer: 2
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