Explore topic-wise MCQs in Business Economics.

This section includes 2 Mcqs, each offering curated multiple-choice questions to sharpen your Business Economics knowledge and support exam preparation. Choose a topic below to get started.

1.

Given below are two statements. one labelled as Assertion (A) and the other labelled as Reason (R). Assertion (A): Auto companies and other consumer goods companies offer cash rebates to encourage purchase of the manufacturer's products within a specified period Reason (R): The same product is priced differently at different times In the context of the two statements above related to pricing strategy, which one of the following options is correct?

A. Both (A) and (R) are correct
B. Both (A) and (R) are not correct
C. (A) is correct, but (R) is not correct
D. (A) is not correct, but (R) is correct
Answer» D. (A) is not correct, but (R) is correct
Discussion
2.

In which of the following commodities, when a consumer spends so much that negative income effect overhelms the positive substitution effect so as the underlying demand curve is positively sloped?

A. Inferior goods
B. Superior goods
C. Giffen goods
D. Normal goods
Answer» D. Normal goods
Discussion