Explore topic-wise MCQs in Business Economics.

This section includes 6 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.

Arrange the following products in the increasing order of price elasticities(A) Homogeneous products(B) Differentiated products(C) Necessities(D) Durable goodsChoose the correct answer from the options given below:

A. (C), (B), (D) and (A)
B. (A), (B), (C) and (D)
C. (A), (C), (B) and (D)
D. (C), (A), (B) and (D)
Answer» C. (A), (C), (B) and (D)
Discussion
2.

Match the items of List I with the items of List II and choose the correct answer from the code given below.List - IList - ii(a) Income elasticity less than unity(i) Competitive goods(b) Cross elasticity less than unity(ii) Inferior goods(c) Cross elasticity less than zero(iii) Superior goods(d) Income elasticity less than zero(iv) Complementary goods

A. (a) - (i), (b) - (ii), (c) - (iii), (D) - (iv)
B. (a) - (iv), (b) - (iii), (c) - (i), (d) - (ii)
C. (a) - (iii), (b) - (i), (c) - (iv), (d) - (ii)
D. (a) - (iv), (b) - (i), (c) - (ii), (d) - (iii)
Answer» D. (a) - (iv), (b) - (i), (c) - (ii), (d) - (iii)
Discussion
3.

A Production function expressed as\(Q=A[α K^{-β}+(1-α) L^{-β}]^{\frac{-1}{β}}\) or \(Q=A[α L^{-β} + (1-α) K^{-β}]^{\frac{-1}{β}}\) When A > 0, 0 -1Where L = Labour, K = Capital and A, α and β are three parameters is called1. Constant elasticity substitution function2. Variable elasticity substitution function3. Leontief - type function4. Cobb - Douglas function

A. 1
B. 2
C. 3
D. 4
Answer» B. 2
Discussion
4.

Normally, there will not be a shift in the demand curve when ____________.

A. price of a commodity falls
B. consumers want to buy more at any given prize
C. average income rises
D. population grows
Answer» B. consumers want to buy more at any given prize
Discussion
5.

Find the marginal revenue of a firm that sells a product at a price of Rs. 10 and the price elasticity of demand for the product is (-) 2.

A. Rs. 5
B. Rs. 10
C. Rs. 30
D. Rs. 15
Answer» B. Rs. 10
Discussion
6.

For a decline in price, Total Revenue (TR) increases if demand is ___________

A. Elastic
B. Inelastic
C. Unitary elastic
D. Zero elastic
Answer» B. Inelastic
Discussion