Business Economics MCQs With Answers

 

Business Economics

191. Allocation of available resources among alternatives is based on the principle

1. Opportunity cost principle
2. Discounting principle
3. Equi‐marginal principle
4. None of these

Correct answer: (C)
Equi‐marginal principle

192. Which of the following is included in specific functions of managerial economists

1. Economic analysis of competing companies
2. Advice on pricing problems of industry
3. Environmental forecasting
4. All of the above

Correct answer: (D)
All of the above

193. ______________ principle is closely related to the marginal costs and marginal revenue of economic theory

1. Principle of time perspective
2. Equi‐marginal principle
3. Incremental principle
4. None of these

Correct answer: (C)
Incremental principle

194. ______________ is known as the ‘first law in market”

1. Law of supply
2. Law of consumption
3. Law of demand
4. Law of production

Correct answer: (C)
Law of demand

195. D= f(P,Y,T,Ps,U), where the letter U stands for

1. Utility
2. Units of consumption
3. Usage
4. Consumer expectation & others

Correct answer: (D)
Consumer expectation & others

196. Generally demand curve have ______________

1. Negative slope
2. Positive slope
3. Horizontal line
4. Vertical line

Correct answer: (A)
Negative slope

19718. The Giffen goods are ______________ Goods

1. Inferior goods
2. Superior goods
3. Related goods
4. Same goods

Correct answer: (A)
Inferior goods

188. Demand for electricity is an example of

1. Composite demand
2. Derivative demand
3. Joint demand
4. Direct demand

Correct answer: (A)
Composite demand

189. Which of the following is not an exception to the downward sloping of demand curve

1. Giffen paradox
2. Veblen effects
3. Necessaries
4. Income effect

Correct answer: (D)
Income effect

200. Perfect elasticity is known as

1. Finite elastic
2. Infinite elastic
3. Unitary elastic
4. Zero elastic

Correct answer: (B)
Infinite elastic

Business Economics

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