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MBA Business Economics MCQ Set 2
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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
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
3
The firm charges price in tune with the industry’s price is called
A
competitive pricing
B
going rate pricing
C
tune pricing
D
target pricing
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
5
Information for pricing decisions involves:
A
Product information
B
Market information
C
Information at the micro level
D
All of these
6
The marginal revenue equation can be derived from the:
A
Demand equation
B
Supply equation
C
Cost equation
D
Price equation
7
Functional relationship between input and output known as
A
Conversion
B
Production function
C
Work in progress
D
Output function
8
in economics ______________ means 'a state of rest 'or 'stability'
A
Depression
B
Equilibrium
C
Maturity
D
growth
9
Selling cost is the feature of the market form
A
monopoly
B
monopolistic competition
C
oligopoly
D
None of these
10
Which is the reason of skimming price?
A
Inelastic demand
B
Diversion of market
C
Safer price policy
D
All of these
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
12
If the commodities are substitute in nature, cross elasticity will be
A
Negative
B
Positive
C
Zero
D
Any of the above
13
Which one of the following is not an internal factor influencing pricing policy
A
cost
B
objectives
C
marketing mix
D
demand
14
For the commodities like salt, sugar etc., the income elasticity will be
A
Zero
B
Negative
C
Positive
D
Unitary
15
In the above function, the letter Y stands for
A
Yield of production
B
Income of consumers
C
Utility
D
Supply
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
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
18
Fixing high price during the introduction is called
A
skimming
B
penetrating
C
full cost pricing
D
target pricing
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
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.
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
22
________ is situation of severely falling prices and lowest level of economic activities
A
Boom
B
Recovery
C
Recession
D
Depression
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
24
Unitary elasticity of demand mean
A
EP =>1
B
EP =<1
C
EP =o
D
EP =1
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
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
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
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.
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
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
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
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
33
_____ Method is also known as Salesâ€Force –Composite method or collective opinion method
A
Opinion survey
B
Expert opinion
C
Delphi method
D
Consumer interview method
34
Which one of the following is an internal factor influencing pricing
A
demand
B
competition
C
distribution channel
D
product life cycle
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
36
Total Revenue will be maximum at the point where Marginal Revenue is
A
One
B
Zero
C
<1
D
>1
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
38
Method of charging low price initially called _______
A
skimming
B
penetrating
C
full cost pricing
D
target pricing
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
40
Under oligopoly a single seller cannot influence significantly
A
market price
B
quantity supplied
C
advertisement cost
D
All the above.
41
Average cost pricing is also called as
A
cost plus pricing
B
marginal cost pricing
C
margin pricing
D
both a & c
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.
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
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
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
46
Consumer Interview method of demand forecasting may undertaken by;
A
Complete enumeration
B
Sample survey
C
Endâ€use method
D
All the above.
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
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.
49
Average revenue is the revenue per
A
unit commodity sold
B
total commodity sold
C
marginal commodity sold
D
None of these
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