Quiznetik

Economics of Business and Finance | Set 1

1. Business economics is the application of ------- to business management

Correct : C. economics

2. Risks that cannot be insured is called -----

Correct : A. uncertainty

3. Market in which securities are issued for the first time is ---------

Correct : A. secondary market

4. Market in which prices of shares are going up is called-------

Correct : A. bull market

5. Market in which prices of shares are going down is called-------

Correct : B. bear market

6. For substitutes, cross elasticity is --------

Correct : A. positive

7. For complementary goods, cross elasticity is --------

Correct : A. positive

8. Entry preventing price is called --------

Correct : C. penetration price

9. Long run theory of production is known as ----

Correct : A. law of variable proportion

10. An example of cartel is-------

Correct : C. saarc

11. Other things remaining the same, the quantity of a product demanded increases with ------------ in price

Correct : A. increase

12. For necessary goods, the income elasticity of demand

Correct : A. more than 1

13. Relation between price of a commodity and demand for another commodity is measured by

Correct : C. cross elasticity

14. When Q = f (P), the elasticity coefficient is measured by

Correct : C. Δq/Δp * p/q

15. Income elasticity of demand for inferior goods is

Correct : A. negative

16. In the case of luxury goods, the income elasticity of demand will be

Correct : A. less than unity

17. Income elasticity is positive, but less than unity in the case of

Correct : C. inferior

18. The price is kept artificially low in

Correct : C. full cost pricing

19. In drawing an individual demand curve for a commodity, all but which of the following are kept constant

Correct : A. individual’s money income

20. A fall in the price of the commodity holding everything else constant results in

Correct : D. decrease in quantity demanded

21. When an individual’s income falls, when everything else remains the same, his demand for inferior goods

Correct : A. increases

22. When the price of the substitute commodity of X falls, the demand for X

Correct : A. rises

23. When both the price of a substitute and the price of complement of X rises, the demand for X

Correct : B. falls

24. Most rare type of price discrimination is

Correct : D. fourth degree

25. The price which is initially low is called --------

Correct : C. penetration price

26. A fall in the price of the commodity whose demand curve is a rectangular hyperbola causes total expenditure on the commodity

Correct : D. none of the above

27. If the quantity demanded remains unchanged as the price of the commodity falls, the coefficient of price elasticity of demand is

Correct : D. zero

28. An increase in the price of the commodity when demand is inelastic causes the total expenditure of consumers of the commodity to

Correct : D. any of the above

29. A negative income elasticity of demand for a commodity indicates that as income falls, the amount of the commodity purchased

Correct : A. rises

30. Most common form of price discrimination is

Correct : A. first degree price discrimination

31. If the income elasticity of demand is greater than one, then the commodity is

Correct : A. necessity

32. If the income elasticity of demand for a commodity is found to be 0.4, then the commodity concerned is

Correct : C. giffen’s goods

33. A fall in income of the consumer, other things being equal, causes

Correct : D. decease in quantity demanded

34. Which of the following Elasticities measure movement along a curve, rather than a shift in the curve

Correct : D. none of the above

35. Cross elasticity of demand in the case of substitutes

Correct : C. positive

36. A movement down the given demand curve shows

Correct : D. contraction in demand

37. Which of the following results in an increase in an increase in demand

Correct : B. increase in price of complementary goods

38. When total product is maximum, marginal product is

Correct : C. zero

39. Who popularized the degrees of price discrimination

Correct : B. pigou

40. As a result of a fall in the price total expenditure on the commodity decreases, the coefficient of elasticity will be

Correct : A. equal to one

41. If a small change in price leads to infinitely large change in quantity demanded, then the demand is

Correct : C. elastic

42. When demand curve is rectangular hyperbola, the value of price elasticity of demand will be

Correct : B. one

43. Consumers are denied of any consumer surplus in ------- degree of price discrimination

Correct : A. first

44. On a linear demand curve, the coefficient of price elasticity is unity, then the value of MR will be

Correct : B. zero

45. Business economics lie at the borderline between economics and ------

Correct : A. political science

46. Planning for future is also called

Correct : A. logistic planning

47. Economics is concerned with allocation of --------- resources

Correct : C. scarce

48. The cost of next best alternative is called ---------

Correct : C. total cost

49. The most important objective of the producer is -----

Correct : A. maximum sales

50. Who is the author Principles of Economics

Correct : A. adam smith

51. Production function shows -------- relation between input and output

Correct : B. functional

52. Value of money --------- when there is inflation

Correct : A. increase

53. The operating period in which at least one factor of production is fixed is called

Correct : A. short run

54. The operating period in which all factors of production are variable is called

Correct : B. long run

55. Uninsured risk are called

Correct : A. uncertainty

56. An example of negative externality is

Correct : C. pollution

57. Computation of present value is called

Correct : C. adding up

58. Computation of future value of money is called

Correct : D. forecasting

59. In financial sense, investment is

Correct : A. net addition to capital stock

60. The assets known as gilt edged securities

Correct : C. bonds

61. The privilege of issuing company to call back bonds is known as

Correct : A. call

62. ------ is also called after market

Correct : A. primary market

63. Which of the following is a non-negotiable instrument?

Correct : D. bank deposit