asportzone.com – MCQs, Mock Tests | MBA MBA Business Economics MCQ Set 2

1 Decision making and ______________ are the two important functions of executive of business firms

A Forward planning B Directing C Supervising D Administration

✅ Correct Answer: 1

2 _______ shows the change in quantity demanded as a result of a change in consumers' income

A Price elasticity B Cross elasticity C Income elasticity D None of these

✅ Correct Answer: 3

3 The firm charges price in tune with the industryâ€™s price is called

A competitive pricing B going rate pricing C tune pricing D target pricing

✅ Correct Answer: 2

4 Which one of the following is not a reason for adopting skimming price strategy

A When the demand of new product is relatively inelastic. B When there is no close substitutes C Elasticity of demand is not known D Product has high price elasticity in the initial stage

✅ Correct Answer: 4

5 Information for pricing decisions involves:

A Product information B Market information C Information at the micro level D All of these

✅ Correct Answer: 4

6 The marginal revenue equation can be derived from the:

A Demand equation B Supply equation C Cost equation D Price equation

✅ Correct Answer: 1

7 Functional relationship between input and output known as

A Conversion B Production function C Work in progress D Output function

✅ Correct Answer: 2

8 in economics ______________ means 'a state of rest 'or 'stability'

A Depression B Equilibrium C Maturity D growth

✅ Correct Answer: 2

9 Selling cost is the feature of the market form

A monopoly B monopolistic competition C oligopoly D None of these

✅ Correct Answer: 2

10 Which is the reason of skimming price?

A Inelastic demand B Diversion of market C Safer price policy D All of these

✅ Correct Answer: 4

11 Which is the condition of for market penetration?

A High price elasticity of demand in the short run B Savings in production costs C Threat of potential competition D All of these

✅ Correct Answer: 4

12 If the commodities are substitute in nature, cross elasticity will be

A Negative B Positive C Zero D Any of the above

✅ Correct Answer: 2

13 Which one of the following is not an internal factor influencing pricing policy

A cost B objectives C marketing mix D demand

✅ Correct Answer: 4

14 For the commodities like salt, sugar etc., the income elasticity will be

A Zero B Negative C Positive D Unitary

✅ Correct Answer: 2

15 In the above function, the letter Y stands for

A Yield of production B Income of consumers C Utility D Supply

✅ Correct Answer: 2

16 When a small change in price leads to infinite change in quantity demanded, it is called

A Perfectly elastic demand B Perfectly inelastic demand C Relative elastic demand D Relative inelastic demand

✅ Correct Answer: 1

17 An increase in income may lead to an increase in the quantity demanded, it is

A Positive income elasticity B Zero income elasticity C Negative income elasticity D Unitary income elasticity

✅ Correct Answer: 1

18 Fixing high price during the introduction is called

A skimming B penetrating C full cost pricing D target pricing

✅ Correct Answer: 1

19 In a perfectly competitive market, individual firm

A cannot influence the price of its product B can influence the price of its product C can fix the price of its product D can influence the market force

✅ Correct Answer: 1

20 Which is the determinant of the pricing policy of a firm?

A Channel of distribution B Age of product C Consumer association D All of these.

✅ Correct Answer: 4

21 The causes of emergence of monopoly is/are:

A Concentration of ownership of raw materials B State regulation C Public utility services D All of these

✅ Correct Answer: 4

22 ________ is situation of severely falling prices and lowest level of economic activities

A Boom B Recovery C Recession D Depression

✅ Correct Answer: 4

23 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

✅ Correct Answer: 4

24 Unitary elasticity of demand mean

A EP =>1 B EP =<1 C EP =o D EP =1

✅ Correct Answer: 4

25 Quantity remains the same whatever the change in price, this is the case of

A Perfectly elastic demand B Perfectly inelastic demand C Relative elastic demand D Relative inelastic demand

✅ Correct Answer: 2

26 Which of the following is not a function of managerial economists

A Advice on trade and public relations B Economic analysis of agriculture C Investment analysis D Supervision and control

✅ Correct Answer: 4

27 Analysis of long run and short run affects of decisions on revenue as well as costs is based on

A Principle of time perspective B Equiâ€marginal principle C incremental principle D None of these

✅ Correct Answer: 1

28 Which is the characteristics of managerial economics

A Deals with both micro and macro aspects B Both positive and normative science C Deals with theoretical aspects D Deals with practical aspects.

✅ Correct Answer: 4

29 In the case of ______________ Consumer may moves to higher or lower demand curve

A Extension of demand B Contraction of demand C Shift in demand D Slopes in demand

✅ Correct Answer: 3

30 _____ means an attempt to determine the factors affecting the demand of a commodity or service and to measure such factors and their influences

A Demand planning B Demand forecasting C Demand analysis D Demand estimation

✅ Correct Answer: 3

31 In the case of unitary elastic demand, the shape of demand curve is

A Vertical line B Horizontal line C Rectangular hyperbola D Steep

✅ Correct Answer: 3

32 Demand for necessary goods (salt, rice, etc,) is ______________ and demand for comfort and luxury good is

A Elastic, inelastic B Inelastic, elastic C Elastic, elastic D Inelastic, inelastic

✅ Correct Answer: 2

33 _____ Method is also known as Salesâ€Force â€“Composite method or collective opinion method

A Opinion survey B Expert opinion C Delphi method D Consumer interview method

✅ Correct Answer: 1

34 Which one of the following is an internal factor influencing pricing

A demand B competition C distribution channel D product life cycle

✅ Correct Answer: 4

35 _______ forecasting is more important from managerial view point as it helps the management in decision making with regard to the firms demand and production.

A Macro level B Industry level C Firm level D None of these

✅ Correct Answer: 3

36 Total Revenue will be maximum at the point where Marginal Revenue is

A One B Zero C <1 D >1

✅ Correct Answer: 2

37 Under ______________ Method, a panel is selected to give suggestions to solve the problems in hand

A Opinion survey B Expert opinion C Delphi method D Consumer interview

✅ Correct Answer: 3

38 Method of charging low price initially called _______

A skimming B penetrating C full cost pricing D target pricing

✅ Correct Answer: 2

39 Which of the following is/ are the reason for adopting skimming price strategy

A When the buyers are not able to compare the value and utility. B To attract the high income customers. C When the product has distinctive qualities, luxuries D All the above

✅ Correct Answer: 4

40 Under oligopoly a single seller cannot influence significantly

A market price B quantity supplied C advertisement cost D All the above.

✅ Correct Answer: 4

41 Average cost pricing is also called as

A cost plus pricing B marginal cost pricing C margin pricing D both a & c

✅ Correct Answer: 4

42 Which of the following is / are the reason for adopting penetration price strategy

A Economies of large scale production available to firm. B Potential market for the product is large. C Cost of production is low. D All the above.

✅ Correct Answer: 4

43 Purposes of Short term Demand forecasting 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 All the above

✅ Correct Answer: 4

44 Demand for tyres depends on demand of vehicles, the demand for tyres called as

A Composite demand B Derivative demand C Joint demand D Direct demand

✅ Correct Answer: 2

45 when income increases, quantity demanded falls, it is

A Positive income elasticity B Zero income elasticity C Negative income elasticity D Unitary income elasticity

✅ Correct Answer: 3

46 Consumer Interview method of demand forecasting may undertaken by;

A Complete enumeration B Sample survey C Endâ€use method D All the above.

✅ Correct Answer: 4

47 Under which method, the cost is added with the predetermined target rate of return on capital invested

A Cost plus pricing B Target pricing C Mark up pricing D None of these

✅ Correct Answer: 2

48 Prices of Bata shoe as Rs.99.99, this pricing is

A Mark up pricing B Odd pricing C Marginal cost pricing D Follow up pricing.

✅ Correct Answer: 2

49 Average revenue is the revenue per

A unit commodity sold B total commodity sold C marginal commodity sold D None of these

✅ Correct Answer: 1

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MBA Business Economics MCQ Set 2