General Business Economics MCQs

1. Economics is neutral between ends is said by

2. which branch of economics studies about unemployment, illiteracy, National income tax?

3. when we go form particular to general, this method is called as

4. The subject of economics is

5. Micro economics is also known as

6. The business economic theory is concerned with the management technique to achieve

7. Which is not included in the welfare goal to the society by the firm?

8. which is not the assumption of production possibility curve?

9. A decision is not profitable if

10. Organizational efficiency does not include

11. What type of relationship exists between the price and quantity demanded?

12. -------------represents the tabular form of quantity demanded of a particular product during a given period of time

13. Extension and contraction of demand for a good occurs as a result of

14. An exceptional demand curve is one that moves

15. In the case of a Giffen good, a fall in its price tends to

16. What would be the value of elasticity of demand, if the demand for the good is perfectly inelastic?

17. The demand for necessities is usually

18. The responsiveness of demand to the change in income is known as

19. Which one of the following is not a method of measuring elasticity of demand?

20. which of the following statements regarding cross elasticity holds good?

21. Demand forecasting can be categorized on the basis of

22. Which is not a statistical method in forecasting?

23. east square method

24. A time series can be calculated through

25. A simultaneous equation model may consists of all the following except

26. The law which studies the direct relationship between price and quantity supplied of a commodity is

27. .When price rises, quantity supplied

28. In case of perfectly inelastic supply the supply curve will be

29. When a percentage in price results in equal change in quantity supplied, it is called,

30. when supply of a commodity decreases on a fall in its price, its is called

31. which utility approach suggests that utility can be measured and quantified?

32. ---------------------- of a commodity is the additional utility derived by a consumer, by consuming one more unit of that commodity.

33. ---------------------- of a commodity is the additional utility derived by a consumer, by consuming one more unit of that commodity.

34. At what point does total utility starts diminishing?

35. Consumer’s surplus is also known as

36. Which of the following is called Gossen’s first law?

37. Which utility measuring approach, is utility ranked in order of preference, but not measured?

38. Which shows various combinations of two products that give same amount of satisfaction?

39. Indifference curve slopes,

40. the process of capital formation includes,

41. internal economies is related to

42. Which of the following cost curve is U shaped?

43. the point where TR curve cuts TC curve is called

44. the shape of TFC curve is

45. Indicate which of the following is a variable cost?

46. few sellers is the feature of

47. Market which have two firms are known as

48. which item is not included in public utilities?

49. supply curve of a perfectly competitive firm is

50. In perfect competition a fiem increases profit when _____ exceeds ________

51. the discriminating monopoly can be categorized as

52. which is not a phase of business cycle?

53. which is not an instrument of fiscal policy in controlling business cycle?

54. the fluctuations or movement in economic activity are commonly classified as

55. which is the most preferred methods of measuring inflation?

56. Who gains in inflation?

57. Economics deals with what is and normative economics deals with ---------------------

58. --------------------- deals with the behavior of individual decision makings units such as consumers, resource owners and so on.

59. There are two methods of constructing an economics theory, they are ------- and ------ methods.

60. Ina ---------------------- economy, public and private sectors exist by side

61. Capitalism is the system that advocates --------------- to solve the basic economic problems.

62. Business economics is a science which deals with the application of ----------------- in business practices.

63. ------------------- means the process of choosing one action from two or more alternatives available.

64. A Firm’s profitability depends much on its ----------------- of production.

65. Generally, ----------------- are the primary measure of the success of any business.

66. The guiding principle of business economics is not -----------------but avoiding loss.

67. The law of demand states that there is an ------------- relationship between price and quantity demanded

68. A ------------------ along the demand curve is caused by a change in the price of the good only.

69. Assuming that bread and jam are complements. If the price of jam increase, the equilibrium quantity for bread will--------------

70. There is a direct relationship between ------------- of the consumer and his demand.

71. Elasticity of demand tells the -------- of change in demand to the change in price

72. ------------ elasticity of demand measures changes in the quality demanded of good x due to change in the price of good y.

73. . Low price of a good generally keeps its price elasticity of demand as -------------

74. in the case of inferior goods, the income elasticity of demand is -----------------

75. when as a result of increase in price of goods, total expenditure made on goods falls, price elasticity of demand is ------- than unity.

76. ---------------- is the scientific and analytical estimation of demand for a product for a particular period of time

77. --------------- refers to the opinion of the buyers, sales force to have the knowledge of emerging trend in market demand.

78. collective opinion method is also known as the --------------

79. The past data is arranged chronologically with regular intervals of time. This type of data is called----------------------

80. ----------------------- establishes the relationship between quantity demanded and one or more independent variables

81. The law of supply states that firms will ----------- of the commodity when prices are high and vice versa.

82. Market ----------- occurs where demand and supply are equal.

83. Commodities which are perishable in nature have ---------------- supply.

84. When a supply of a commodity decreases on a fall in its price, it is called ----------

85. When a supply of a commodity decreases on a fall in its price, it is called ----------

86. -------------- of a commodity is the total quantity that is available in a market at a certain time.

87. --------------- is the measure of satisfaction a consumer derives out of consumption of a commodity.

88. when total utility is maximum, marginal utility is zero, it is called ----------- point.

89. -------------- is equal to the difference between the price a consumer is willing to pay and the price actually he pays for a commodity.

90. Cardinal utility approach is based on the -------- school of thought.

91. Cardinal utility approach is based on the -------- school of thought.

92. The assumption of ----------------- implies that an individual consumer’s preferences are always consistent.

93. The IC analysis explains the demand for inferior goods and solves

94. The book “Value and capital”was written by

95. Which of the following is considered production in economics?

96. In which stage of production would a rational producer like to operate

97. Perfect competition has the following features except

98. Markets are being classified on the basis of

99. There is a single seller of a commodity which has no close substitutes can be termed as

100. A firm that produces substitute goods can adopt the following pricing strategy

101. When demand is slack and market is highly competitive the following method of pricing may be adopted

102. Who is the father of Economics?

103. Economics is a ________.

104. The relationship between price and demand is ____________.

105. Law of demand shows ___________ relationship between price and quantity demanded

106. Consumer surplus is ____.

107. Relatively elastic demand is ____.

108. If demand is perfectly inelastic then e is _____.

109. Indifference curve approach was given by ___________

110. Production refers to ___.

111. The long run average cost curve is also called as_________.

112. The main characteristic of monopoly market structure is_________.

113. _______ is absence of competition.

114. The average income of the people of a country in a particular year is _____

115. _________ is the total value of all final goods and services produced by the country in certain year

116. Relationship between price and supply is ________.

117. Perfectly elastic demand curve is a _________ curve.

118. If demand is perfectly elastic then e is _____.

119. Relatively inelastic demand is ____.

120. Unitary inelastic demand is ____.

121. The kinked demand curve explains

122. Macroeconomics is the theory of ________.

123. The price elasticity of demand measures _______.

124. Firms in perfect competition face a ________.

125. Few sellers is the feature of

126. Market which has two firms is known as

127. _________represents the tabular form of quantity demanded of a particular product during a given period of time

128. Extension and contraction of demand for a good occurs as a result of

129. An exceptional demand curve is one that moves

130. . In the case of a Giffen good, a fall in its price tends to

131. What would be the value of elasticity of demand, if the demand for the good is perfectly inelastic?

132. The demand for necessities is usually

133. The responsiveness of demand to the change in income is known as

134. Which is not a statistical method in forecasting?

135. The law which studies the direct relationship between price and quantity supplied of a commodity is

136. When price rises, quantity supplied

137. In case of perfectly inelastic supply the supply curve will be

138. When a percentage in price results in equal change in quantity supplied, it is called,

139. When supply of a commodity decreases on a fall in its price, its is called

140. Which utility approach suggests that utility can be measured and quantified?

141. ---------------------- of a commodity is the additional utility derived by a consumer, by consuming one more unit of that commodity.

142. At what point does total utility starts diminishing?

143. Consumer’s surplus is also known as

144. Which shows various combinations of two products that give same amount of satisfaction?

145. Indifference curve slopes,

146. The process of capital formation includes,

147. Internal economies is related to

148. When the output produced is maximum for the given level of input the firms achieve

149. The shape of TFC curve is

150. The point where TR curve cuts TC curve is called

151. In perfect competition a firm increases profit when _____ exceeds ________.

152. The discriminating monopoly can be categorized as_______.

153. ---------------------- deals with the behavior of individual decision makings units such as consumers, resource owners and so on.

154. A Firm’s profitability depends much on its ----------------- of production.

155. Low price of a good generally keeps its price elasticity of demand as -------- ---.

156. In the case of inferior goods, the income elasticity of demand is -------------- ---

157. When as a result of increase in price of goods, total expenditure made on goods falls, price elasticity of demand is ------- than unity.

158. Market ----------- occurs where demand and supply are equal.

159. As your income rises, _______.

160. In a simultaneous move game, ________.

161. Interest payments are ________.

162. Interview with marielle tsukamoto is an example of __________.

163. Systematic desensitization is to classical conditioning as ________ is to operant conditioning.

164. Gatekeepers are important in the b2b buying process because ____________.

165. Advertising, personal selling, coupons, and sweepstakes are forms of _____.

166. Any commercial transaction that crosses the borders of two or more nations is known as ________.

167. Assumptions of a regression model can be evaluated by plotting and analyzing the ____________.

168. For simple loans, the simple interest rate is ________ the yield to maturity.

169. If credit card balances rise in the economy, then m1 will ________ and m2 will ________.

170. In a housing market with an effective rent ceiling, _______.

171. The supply-side effects of an income tax cut ________ potential gdp and ________ aggregate supply.

172. Three equivalent ways to measure gdp are total _____, total _____, and total ______.

173. When a nation imports a good, its ________ surplus increases and its ________ surplus increases.

174. In the _________, the perfectly competitive firm will seek out ________________________ .

175. Providing training for unemployed individuals is primarily intended to reduce_________.

176. Raising taxes shifts the _____ curve to the _____.

177. The manager's fiduciary duty refers to _____.

178. To _____ the money supply, the federal reserve could _____.

179. Wage discrimination exists when individuals of __________ are paid different wage rates.

180. A long-standing charge against intermediaries is that they mark up prices beyond the ________.

181. A supply curve that has a __________ slope represents a more elastic supply curve.

182. All other things equal, according to the law of demand, when the price of a good falls, ________.

183. During a recession, spending on ________ tends to fall more dramatically than spending on ________.

184. In monopolistic competition, the long-run equilibrium price _____ marginal cost because _____.

185. The rate of unemployment that occurs when the economy is producing its potential gdp _____.

186. The _____ for an accountant is between $40,000 and $50,000.

187. The fed directly sets _____.

188. To a producer of goods, a greater number of channel levels means ________.

189. The unemployment rate is defined as the ________ divided by the ________.

190. A firm in perfect competition is a price taker because _______.

191. When there are more substitutes for a product, the ________ for the product is ________.

192. A corrective subsidy induces the ________ to the socially optimal level.

193. When demand is elastic, a price increase will cause __________ total revenues.

194. A ________ demand curve for shampoo would be caused by a change in the price of shampoo.

195. ________ costs are the costs a company incurs as it makes sales.

196. _____ will most likely increase the economy's long-run aggregate supply.

197. Strategic alliances and ____ are very similar.

198. Total cost of goods sold per unit consists of ________.

199. Between the data lag and the legislative lag falls the __________ lag.

200. The nash equilibrium of a prisoners' dilemma game is that ______.

201. Knowledge that gives a producer an economic advantage over other producers is called a _____.

202. A routine decision _____.

203. Economies experience capital deepening when they have _________. select all answers that apply.

204. Balance of payments is a ____ concept than balance of trade.

205. We use a time-series graph to show ______.

206. Barter ______ a means of payment. when trading on e-bay, barter _______.

207. A consumer uses goods and services to _____.

208. A raise in the price of a product causes _____.

209. A price ceiling creates ________ when it is set ________ the equilibrium price.

210. Businesses use _____ to develop leadership skills within the company.

211. Buying an existing business _____.

212. When the sales price per unit decreases, the breakeven point ________.

213. When the total fixed costs increase, the breakeven point ________.

214. ________ can describe a product class, a product form, or a brand.

215. A marketer focuses on a product's ________.

216. A state might hold a primary instead of a caucus because a primary is ________.

217. According to the job characteristics model, autonomy is defined as the degree to which ________.

218. Corporate social responsibility is mainly concerned with how a company affects the ________.

219. For any given product, _____ is determined by what the market will bear.

220. Marginal decisions are said to be made on the ________ unit(s) under consideration.

221. The marginal propensity to import is equal to _______.

222. The term demand chain is considered limited because it ________.

223. _____ costs do not change as output is increased or decreased.

224. Advertising is ________ promotion through media outlets.

225. ________ information is information that directly pertains both to the context and to the subject.

226. Despite federal laws that prohibit wage discrimination, men and women often still receive _____.

227. If marginal cost equals price, then _____ is at a maximum.

228. If people decide to purchase more at every price level, __________ (shift right) will result.

229. If the ___________ for automobiles is __________ then automobiles are an inferior good .

230. Making a decision at the margin is possible only in situations where _____.

231. Money functions as a _______________ when it is used to make purchases.

232. Monopolies result in a(n) __________ level of output and provide __________ choice to consumers.

233. Supply is provided by ____________ and demand is created by consumers.

234. The amount of the ____________ effect will depend on the type of fiscal policy created.

235. The term ______ refers to the economic situation in which a few firms dominate an industry.

236. Data collected at the same, or approximately the same, point in time are _____ data.

237. Raw materials are an example of a firm's ____ costs.

238. The _____________ firm's demand curve is the same as the market demand for the product.

239. The demand for dvd players does not change when a change in _______ occurs.

240. Keynes argued for ______________ government spending in a recession to increase ad (shift right).

241. The multiplier factor is given by 1 divided by the ________ or similarly 1 divided by 1-mpc.

242. Joseph took a class in macroeconomics, which means that he was studying the behavior of ________.

243. _______ health insurance coverage pays for at least part of hospital costs and fees

244. Americans average _______ calories of foods with no important nutrients per day.

245. Medicines are a good way to treat health issues because __________.

246. ______ of traffic fatalities occur within 25 miles of home and below 40 mph.

247. Economic growth is a _____ in the nation's production of goods and services.

248. Employee benefits ______.

249. Employers should have at least _____ to be covered by the osha.

250. To encourage purchases of additional products, manufacturers provide ______________ coupons.

251. Prestige pricing is considered to be a __________ approach to pricing.

252. _____ is rival and _____ is nonrival.

253. An exchange rate of ?117.87/$ indicates ________.

254. Economist thomas malthus believed that ______________ would limit economic progress.

255. Other factors constant, a change in _____ will cause a shift in a firms demand curve.

256. ____ does not represent a line of credit.

257. A flexible exchange rate is one that _______. it works _______.

258. The pygmalion effect is also called the ________ effect.

259. The time lag for monetary policy is typically ________________ the time lag for fiscal policy.

260. The introduction of diet coke by the coca-cola company is an example of ________.

261. Built-in (or automatic) stabilizers work by changing ______ so that changes in gdp are reduced.

262. In the short run, a monopolistically competitive firm ______.

263. In terms of packaging functions, tiffany & co.'s robin egg blue boxes ________.

264. A nation's prosperity is sometimes measured in terms of ___________.

265. A payment is said to be ________________ if it is automatically adjusted for inflation.

266. A profit-maximizing monopoly never produces output in the _______ range of its _______ curve.

267. A prolonged period of budget deficits may lead to ___________________.

268. A rise in the price of sawdust _______.

269. A security dilemma occurs when __________.

270. A successful photographers main area of interest would be _____.

271. A supply curve for the car industry would show the quantity of cars supplied at different _____.

272. A tariff has the effect of granting ____ a larger share of the domestic market.

273. A third-degree price-discriminating pure monopoly will follow a system where _____.

274. An economic agent ________ when he accounts for the full costs and benefits of his actions.

275. Marxist economics led to the creation of a communist state in ____________ .

276. Medicare part c is a ___________ option known as medicare advantage.

277. Members of the european parliament are _______.

278. Motivation is not ________.

279. Moving ________ along the marginal cost curve, the ________.

280. Negative television ads __________.

281. Neoclassical growth theory does not emphasize how __________ contribute to growth.

282. On the diagram shown above, a movement from a to c represents __________.

283. One can determine producers surplus if the minimum selling price and the _____________ are known.

284. The restaurant industry is characterized by a ______________ barrier to entry.

285. The short-run version of aggregate supply assumes that product prices are _____.

286. A depository institution takes deposits from ______ and earns most of its income by _______.

287. A firm operating in an oligopolistic market has __________ market power compared to a __________.

288. In the figure above, this product is price ___________ between point e and point f.

289. The elasticity of supply of roses is 1.8. in the market for roses, ________________.

290. Only a ________ shift of the ________ curve can reduce unemployment and inflation at the same time.

291. Other things constant, a higher price for corn tends to increase _____

292. In perfect competition, sellers have _____ control over price.

293. In the above figure, curve a is the ________ curve and curve b is the ________ curve.

294. In the performing stage of group development, members _____.

295. Income is a _______ variable, and financial wealth is a _______ variable.

296. Japan sells cars to the united states. japan considers the cars as japanese _____.

297. The cost that a firm pays in money to hire a resource is referred to as ________ cost.

298. The court decided in pierce v. society of sisters that an oregon public school law _____.

299. The current rate of unemployment of 9% is too high. this is a ________ statement.

300. In many cases, it is reasonable to refer to the ________________ as the price

301. In a(n) _______ trend, the values change by a constant amount.

302. A claim that is consistent with the facts as we know them should be regarded as __________.