Quiznetik
Fundamentals of Business Economics-1 | Set 1
1. According to whom, economics is the science of wealth?
A. kautilya
B. Adam smith
C. Marshall
D. Robbins
Correct : B. Adam smith
2. According to whom, economics is a welfare-oriented theory?
A. Marshall
B. Adam smith
C. Hicks
D. Robbins
Correct : A. Marshall
3. How is the concept of scarcity?
A. Absolute
B. Relative
C. Religious
D. Political
Correct : B. Relative
4. Who is the writer of Wealth of Nations?
A. Marshall
B. Robbins
C. Adam smith
D. kautilya
Correct : C. Adam smith
5. BY which other name, economics is known?
A. Policy
B. Society
C. State
D. Science of Economizing
Correct : D. Science of Economizing
6. Who has given the concept that economics is neutral about purpose?
A. Marshall
B. Robbins
C. Adam smith
D. kautilya
Correct : B. Robbins
7. Who is known to be the first economist to have started studying economics as science?
A. kautilya
B. Marshall
C. Robbins
D. Adam smith
Correct : D. Adam smith
8. Who introduced economics as real science?
A. Adam smith
B. Robbins
C. Samuelson
D. Marshall
Correct : B. Robbins
9. Which economist put social preferences and distribution in the centre of economics?
A. kautilya
B. Samuelson
C. Marshall
D. Adam smith
Correct : B. Samuelson
10. Which economist studies the concept of scarcity in economics?
A. kautilya
B. Adam smith
C. Robbins
D. Marshall
Correct : C. Robbins
11. Which examines the study of demand analysis in economics?
A. Consumer
B. Firm
C. Market
D. Production
Correct : A. Consumer
12. What is the third nature of human other than consumer and producer?
A. Customer
B. Users
C. Labour
D. None of other
Correct : C. Labour
13. When products are expensive then how is the demand of prestigious goods of the rich?
A. More
B. Less
C. Zero
D. Negative
Correct : A. More
14. The change in price of substitute good ------- the demand for goods.
A. Decreases
B. Increases
C. Zero
D. Does not affect
Correct : A. Decreases
15. How is the demand curves sloped?
A. Negative
B. Positive
C. Parallel to X axis
D. Parallel to Y axis
Correct : A. Negative
16. How many types of price elasticity of demand are there?
A. Two
B. Four
C. Five
D. Seven
Correct : C. Five
17. What will be the elasticity of demand if percentage change in demand is less than the percentage Change in price?
A. Elastic demand
B. Inelastic demand
C. Perfectly elastic demand
D. Perfectly inelastic demand
Correct : B. Inelastic demand
18. What will be the nature of demand if elasticity of demand is 1?
A. Perfectly elastic demand
B. Perfectly inelastic demand
C. Unit elasticity of demand
D. Elastic demand
Correct : C. Unit elasticity of demand
19. How many types of income elasticity are there?
A. Two
B. Three
C. Four
D. Five
Correct : B. Three
20. What is the meaning of the change in demand due to change in price of related goods?
A. Price elasticity of demand
B. Cross elasticity of demand
C. Income elasticity of demand
D. Price elasticity of supply
Correct : B. Cross elasticity of demand
21. Which relationship of price and demand is explained by elasticity of demand?
A. Correlation
B. Inverse
C. Quantitative
D. Equal
Correct : C. Quantitative
22. What is elasticity of demand in case of perfect competition?
A. Elastic
B. Inelastic
C. Perfectly elastic
D. Perfectly inelastic
Correct : C. Perfectly elastic
23. What is the elasticity of demand for luxury goods?
A. Elastic
B. Inelastic
C. Perfectly elastic
D. Perfectly inelastic
Correct : A. Elastic
24. What is the income elasticity of giffen goods?
A. Unit income elasticity
B. income elasticity is greater than 1
C. Zero income elasticity
D. Negative income elasticity
Correct : A. Unit income elasticity
25. Which of the following goods may have zero income elasticity?
A. Bajara
B. Scooter
C. Niddle
D. Ghee
Correct : C. Niddle
26. What is the slope of demand curve when demand is perfectly inelastic?
A. Negative slope
B. Parallel to vertical axis
C. Parallel to horizontal axis
D. Positively slopped
Correct : B. Parallel to vertical axis
27. How is the elasticity of demand in long run compare to short run?
A. More
B. Equal
C. Less
D. Zero
Correct : A. More
28. How is the demand of most of goods of rich people?
A. Elastic
B. Perfectly Elastic
C. Inelastic
D. Unit Elastic
Correct : C. Inelastic
29. Relationship between which factors are shown by production function?
A. Production and sale
B. Production and purchase
C. Production and factors of production
D. Sales and purchase
Correct : C. Production and factors of production
30. How many forms of production function have?
A. One
B. Two
C. Three
D. Four
Correct : B. Two
31. On whom production function is based?
A. Technology
B. Market demand
C. Market supply
D. Political factor
Correct : A. Technology
32. What is the size of firm in short run production function?
A. Variable
B. Flexible
C. Fixed
D. Uncertain
Correct : C. Fixed
33. In how many stages the effects of one factor of production by increasing proportion and by keeping Other functions of production fixed?
A. One
B. Two
C. Three
D. Many
Correct : B. Two
34. In Which stage of production total, average and marginal production increases?
A. First
B. Second
C. Third
D. Each
Correct : A. First
35. Which law is seen in the third stage of production?
A. Decreasing returns
B. Increasing returns
C. Fixed returns
D. Scale returns
Correct : A. Decreasing returns
36. In which stage of production, total production decreases instead of increases?
A. First
B. Second
C. Third
D. Each
Correct : C. Third
37. At which stage entrepreneur stop to increase the production of functions?
A. Maximum Marginal Production
B. Maximum Average Production
C. Marginal Production = Average Production
D. Zero Marginal Production
Correct : D. Zero Marginal Production
38. To which sector, law of decreasing returns applied first?
A. Agriculture
B. Industry
C. Service
D. Trade
Correct : A. Agriculture
39. In which stage of production, marginal production becomes negative, but average production becomes positive?
A. First
B. Second
C. Third
D. None of the given
Correct : C. Third
40. Which changes are measured in the law of variable proportion?
A. Total Production
B. Marginal Production
C. Average Production
D. All of the given
Correct : D. All of the given
41. Which cost diminishes but never becomes zero?
A. Fixed cost
B. Average fixed cost
C. Variable cost
D. Average Variable cost
Correct : B. Average fixed cost
42. Total production cost + Unit of production = ------------
A. Average cost
B. Marginal cost
C. Average Fixed Cost
D. Average Variable Cost
Correct : B. Marginal cost
43. How is the shape of average cost curve?
A. Hockey stick
B. U
C. V
D. Square
Correct : B. U
44. When proportion of production is zero, then which cost is positive?
A. Variable
B. Fixed
C. Average
D. Marginal
Correct : B. Fixed
45. How is the slope of fixed cost curve?
A. Negative
B. Positive
C. Parallel to X-axis
D. Parallel to Y-axis
Correct : C. Parallel to X-axis
46. Daily wages of labours is the example of which cost?
A. Fixed cost
B. Total cost
C. Variable cost
D. Marginal cost
Correct : A. Fixed cost
47. How all costs become at long run?
A. Fixed
B. Short
C. Long
D. Variable cost
Correct : D. Variable cost
48. Which type of cost curve is parallel to X axis
A. Variable cost
B. Fixed cost
C. Average Variable cost
D. Average Fixed cost
Correct : B. Fixed cost
49. Which type of cost curve has hockey shaped?
A. Average cost
B. Variable cost
C. Marginal cost
D. Total cost
Correct : C. Marginal cost
50. Which cost has no straight relation with units of production?
A. Fixed cost
B. Variable cost
C. Average cost
D. Marginal cost
Correct : A. Fixed cost