Business Economics
11. Perfect competition is characterized by
- large number of buyers and sellers
- homogeneous product
- free entry and exit of firms
- all the above
Correct answer: (D)
all the above
12. The distinction between variable cost and fixed cost is relevant only in
- long period
- short period
- medium term
- mixed period
Correct answer: (B)
short period
13. Purposes of Short term Demand forecasting doesn’t includes;
- Making a suitable production policy.
- To reduce the cost of purchasing raw materials and to control inventory.
- Deciding suitable price policy
- Planning of a new unit or expansion of existing unit
Correct answer: (D)
Planning of a new unit or expansion of existing unit
14. In ______________ approach, the demand for new product is estimated on the basis demand of existing product
- Growth curve approach
- Evolutionary approach.
- Opinion polling approach
- Vicarious approach.
Correct answer: (B)
Evolutionary approach.
15. The proportionate change in the quantity demanded of a commodity in response to change in the price of another related commodity is called
- Price elasticity
- Related elasticity
- Cross elasticity
- Income elasticity
Correct answer: (C)
Cross elasticity
16. Which one is the method for measurement of elasticity
- Proportional or Percentage Method
- Outlay Method
- Geometric method
- All the above
Correct answer: (D)
All the above
17. ______________ Method is also known as Sales-Force – Composite method or collective opinion method
- Opinion survey
- Expert opinion
- Delphi method
- Consumer interview method
Correct answer: (A)
Opinion survey
18. Which of the following is not a method of demand forecasting of new products
- Trend projection
- Substitute approach
- Evolutionary approach
- Sales experience approach
Correct answer: (A)
Trend projection
19. Psychological pricing is also called as;
- Penetration pricing
- Skimming pricing
- Odd pricing
- None of these
Correct answer: (C)
Odd pricing
20. Customary pricing is also known as
- Consumer pricing
- Conventional pricing
- Cost plus pricing
- Full cost pricing
Correct answer: (B)
Conventional pricing
Thursday, December 30, 2021