Basic Business Economics MCQ
1. A claim that is consistent with the facts as we know them should be regarded as __________.
Answer
Correct Answer:
Probably true but not necessarily true
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2. In a(n) _______ trend, the values change by a constant amount.
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3. In many cases, it is reasonable to refer to the ________________ as the price
Answer
Correct Answer:
Opportunity cost
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4. The current rate of unemployment of 9% is too high. this is a ________ statement.
Answer
Correct Answer:
Normative
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5. The court decided in pierce v. society of sisters that an oregon public school law _____.
Answer
Correct Answer:
Was unconstitutional.
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6. The cost that a firm pays in money to hire a resource is referred to as ________ cost.
Answer
Correct Answer:
An explicit
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7. Japan sells cars to the united states. japan considers the cars as japanese _____.
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8. Income is a _______ variable, and financial wealth is a _______ variable.
Answer
Correct Answer:
Stock; stock
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9. In the performing stage of group development, members _____.
Answer
Correct Answer:
Concentrate on solving problems and completing tasks
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10. In the above figure, curve a is the ________ curve and curve b is the ________ curve.
Answer
Correct Answer:
Total cost; total variable cost
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11. In perfect competition, sellers have _____ control over price.
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12. Other things constant, a higher price for corn tends to increase _____
Answer
Correct Answer:
The quantity supplied of corn.
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13. Only a ________ shift of the ________ curve can reduce unemployment and inflation at the same time.
Answer
Correct Answer:
Rightward; AS.
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14. The elasticity of supply of roses is 1.8. in the market for roses, ________________.
Answer
Correct Answer:
A 10 percent increase in the price increases the quantity of roses supplied by 18 percent.
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15. In the figure above, this product is price ___________ between point e and point f.
Answer
Correct Answer:
Inelastic
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16. A firm operating in an oligopolistic market has __________ market power compared to a __________.
Answer
Correct Answer:
Less; monopolist
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17. A depository institution takes deposits from ______ and earns most of its income by _______.
Answer
Correct Answer:
Households and firms; making loans and buying securities that earn a higher interest rate than that paid to depositors
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18. The short-run version of aggregate supply assumes that product prices are _____.
Answer
Correct Answer:
Flexible while resource prices are fixed.
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19. The restaurant industry is characterized by a ______________ barrier to entry.
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20. One can determine producers surplus if the minimum selling price and the _____________ are known.
Answer
Correct Answer:
Price received
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21. On the diagram shown above, a movement from a to c represents __________.
Answer
Correct Answer:
An increase in demand.
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22. Neoclassical growth theory does not emphasize how __________ contribute to growth.
Answer
Correct Answer:
Technological changes
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23. Negative television ads __________.
Answer
Correct Answer:
Attack opposing candidates for office
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24. Moving ________ along the marginal cost curve, the ________.
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25. Motivation is not ________.
Answer
Correct Answer:
A permanent personal trait
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26. Members of the european parliament are _______.
Answer
Correct Answer:
Represent the people
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27. Medicare part c is a ___________ option known as medicare advantage.
Answer
Correct Answer:
MANAGED CARE
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28. Marxist economics led to the creation of a communist state in ____________ .
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29. An economic agent ________ when he accounts for the full costs and benefits of his actions.
Answer
Correct Answer:
Internalizes an externality
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30. A third-degree price-discriminating pure monopoly will follow a system where _____.
Answer
Correct Answer:
Book buyers with relatively more inelastic demands are charged higher prices than buyers with relatively more elastic demands
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31. A tariff has the effect of granting ____ a larger share of the domestic market.
Answer
Correct Answer:
Domestic Producers
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32. A supply curve for the car industry would show the quantity of cars supplied at different _____.
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33. A successful photographers main area of interest would be _____.
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34. A security dilemma occurs when __________.
Answer
Correct Answer:
The actions take by a state to ensure its own security threaten the security of other states
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35. A rise in the price of sawdust _______.
Answer
Correct Answer:
Increase the supply of lumber
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36. A prolonged period of budget deficits may lead to ___________________.
Answer
Correct Answer:
Lower economic growth
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37. A profit-maximizing monopoly never produces output in the _______ range of its _______ curve.
Answer
Correct Answer:
Inelastic; demand
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38. A payment is said to be ________________ if it is automatically adjusted for inflation.
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39. A nation's prosperity is sometimes measured in terms of ___________.
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40. In terms of packaging functions, tiffany & co.'s robin egg blue boxes ________.
Answer
Correct Answer:
Create immediate consumer recognition
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41. In the short run, a monopolistically competitive firm ______.
Answer
Correct Answer:
Might incur an economic loss
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42. Built-in (or automatic) stabilizers work by changing ______ so that changes in gdp are reduced.
Answer
Correct Answer:
A cut in government spending.
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43. The introduction of diet coke by the coca-cola company is an example of ________.
Answer
Correct Answer:
Line extension
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44. The time lag for monetary policy is typically ________________ the time lag for fiscal policy.
Answer
Correct Answer:
Shorter than
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45. The pygmalion effect is also called the ________ effect.
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46. A flexible exchange rate is one that _______. it works _______.
Answer
Correct Answer:
Is determined by demand and supply in the foreign exchange market; with no direct intervention by the central bank
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47. ____ does not represent a line of credit.
Answer
Correct Answer:
Debit card
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48. Other factors constant, a change in _____ will cause a shift in a firms demand curve.
Answer
Correct Answer:
The general income level of consumers
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49. Economist thomas malthus believed that ______________ would limit economic progress.
Answer
Correct Answer:
Overpopulation
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50. An exchange rate of ?117.87/$ indicates ________.
Answer
Correct Answer:
That 117.87 yen buys one dollar
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51. _____ is rival and _____ is nonrival.
Answer
Correct Answer:
A seat on a bus at rush hour, national defense
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52. Prestige pricing is considered to be a __________ approach to pricing.
Answer
Correct Answer:
Demand-oriented
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53. To encourage purchases of additional products, manufacturers provide ______________ coupons.
Answer
Correct Answer:
Cross-ruffing
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54. Employers should have at least _____ to be covered by the osha.
Answer
Correct Answer:
One employee
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55. Employee benefits ______.
Answer
Correct Answer:
Increase total employment compensation
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56. Economic growth is a _____ in the nation's production of goods and services.
Answer
Correct Answer:
Continual increase
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57. ______ of traffic fatalities occur within 25 miles of home and below 40 mph.
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58. Medicines are a good way to treat health issues because __________.
Answer
Correct Answer:
They can provide relief from mild to serious symptoms
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59. Americans average _______ calories of foods with no important nutrients per day.
Answer
Correct Answer:
800 calories
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60. _______ health insurance coverage pays for at least part of hospital costs and fees
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61. Joseph took a class in macroeconomics, which means that he was studying the behavior of ________.
Answer
Correct Answer:
The overall economy
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62. The multiplier factor is given by 1 divided by the ________ or similarly 1 divided by 1-mpc.
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63. Keynes argued for ______________ government spending in a recession to increase ad (shift right).
Answer
Correct Answer:
Increasing
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64. The demand for dvd players does not change when a change in _______ occurs.
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65. The _____________ firm's demand curve is the same as the market demand for the product.
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66. Raw materials are an example of a firm's ____ costs.
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67. Data collected at the same, or approximately the same, point in time are _____ data.
Answer
Correct Answer:
Cross-sectional
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68. The term ______ refers to the economic situation in which a few firms dominate an industry.
Answer
Correct Answer:
Oligopoly
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69. The amount of the ____________ effect will depend on the type of fiscal policy created.
Answer
Correct Answer:
Multiplier
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70. Supply is provided by ____________ and demand is created by consumers.
Answer
Correct Answer:
Producers
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71. Monopolies result in a(n) __________ level of output and provide __________ choice to consumers.
Answer
Correct Answer:
Inefficient; less
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72. Money functions as a _______________ when it is used to make purchases.
Answer
Correct Answer:
Medium of exchange
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73. Making a decision at the margin is possible only in situations where _____.
Answer
Correct Answer:
The available alternatives can be divided into increments
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74. If the ___________ for automobiles is __________ then automobiles are an inferior good .
Answer
Correct Answer:
Income elasticity of demand; negative
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75. If people decide to purchase more at every price level, __________ (shift right) will result.
Answer
Correct Answer:
An increase in demand
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76. If marginal cost equals price, then _____ is at a maximum.
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77. Despite federal laws that prohibit wage discrimination, men and women often still receive _____.
Answer
Correct Answer:
Unequal pay
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78. ________ information is information that directly pertains both to the context and to the subject.
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79. Advertising is ________ promotion through media outlets.
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80. _____ costs do not change as output is increased or decreased.
Answer
Correct Answer:
Fixed cost
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81. The term demand chain is considered limited because it ________.
Answer
Correct Answer:
Takes a step-by-step, linear view of purchase-production-consumption activities
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82. The marginal propensity to import is equal to _______.
Answer
Correct Answer:
The change in imports divided by the change in real GDP, other things remaining the same
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83. Marginal decisions are said to be made on the ________ unit(s) under consideration.
Answer
Correct Answer:
Additional
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84. For any given product, _____ is determined by what the market will bear.
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85. Corporate social responsibility is mainly concerned with how a company affects the ________.
Answer
Correct Answer:
Community
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86. According to the job characteristics model, autonomy is defined as the degree to which ________.
Answer
Correct Answer:
A job provides the worker freedom, independence, and discretion
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87. A state might hold a primary instead of a caucus because a primary is ________.
Answer
Correct Answer:
Transparent and engages local voters
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88. A marketer focuses on a product's ________.
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89. ________ can describe a product class, a product form, or a brand.
Answer
Correct Answer:
The product life cycle concept
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90. When the total fixed costs increase, the breakeven point ________.
Answer
Correct Answer:
Increases.
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91. When the sales price per unit decreases, the breakeven point ________.
Answer
Correct Answer:
Increases
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92. Buying an existing business _____.
Answer
Correct Answer:
Allows the owner to build upon the goodwill of previous customers
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93. Businesses use _____ to develop leadership skills within the company.
Answer
Correct Answer:
Management development
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94. A price ceiling creates ________ when it is set ________ the equilibrium price.
Answer
Correct Answer:
Excess demand -- below
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95. A raise in the price of a product causes _____.
Answer
Correct Answer:
Quantity demanded to decrease.
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96. A consumer uses goods and services to _____.
Answer
Correct Answer:
Satisfy economic wants
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97. Barter ______ a means of payment. when trading on e-bay, barter _______.
Answer
Correct Answer:
is not as efficient as money because barter requires a double coincidence of wants
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98. We use a time-series graph to show ______.
Answer
Correct Answer:
The distribution of income among various age groups
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99. Balance of payments is a ____ concept than balance of trade.
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100. Economies experience capital deepening when they have _________. select all answers that apply.
Answer
Correct Answer:
A greater amount of equipment and machines per worker
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101. A routine decision _____.
Answer
Correct Answer:
Is made frequently and requires little thought
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102. Knowledge that gives a producer an economic advantage over other producers is called a _____.
Answer
Correct Answer:
Trade secret
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103. The nash equilibrium of a prisoners' dilemma game is that ______.
Answer
Correct Answer:
Both players have another outcome that does not occur but is more favorable.
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104. Between the data lag and the legislative lag falls the __________ lag.
Answer
Correct Answer:
Wait-and-see
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105. Total cost of goods sold per unit consists of ________.
Answer
Correct Answer:
Materials cost per unit plus labor cost per unit
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106. Strategic alliances and ____ are very similar.
Answer
Correct Answer:
Joint ventures
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107. _____ will most likely increase the economy's long-run aggregate supply.
Answer
Correct Answer:
Advances in technology
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108. ________ costs are the costs a company incurs as it makes sales.
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109. A ________ demand curve for shampoo would be caused by a change in the price of shampoo.
Answer
Correct Answer:
Movement along the
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110. When demand is elastic, a price increase will cause __________ total revenues.
Answer
Correct Answer:
A decrease in
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111. A corrective subsidy induces the ________ to the socially optimal level.
Answer
Correct Answer:
Consumers of a positive externality to increase the quantity consumed
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112. When there are more substitutes for a product, the ________ for the product is ________.
Answer
Correct Answer:
Demand; more price elastic
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113. A firm in perfect competition is a price taker because _______.
Answer
Correct Answer:
It produces a tiny proportion of the total output of a particular good and buyers are well informed about the prices of other firms
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114. The unemployment rate is defined as the ________ divided by the ________.
Answer
Correct Answer:
Number of people unemployed;labor force, then multiplied by 100.
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115. To a producer of goods, a greater number of channel levels means ________.
Answer
Correct Answer:
Less control
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116. The fed directly sets _____.
Answer
Correct Answer:
Neither the federal funds rate nor the prime interest rate.
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117. The _____ for an accountant is between $40,000 and $50,000.
Answer
Correct Answer:
Salary range
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118. The rate of unemployment that occurs when the economy is producing its potential gdp _____.
Answer
Correct Answer:
Natural rate of unemployment
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119. In monopolistic competition, the long-run equilibrium price _____ marginal cost because _____.
Answer
Correct Answer:
Exceeds; firms face downward-sloping demand curves
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120. During a recession, spending on ________ tends to fall more dramatically than spending on ________.
Answer
Correct Answer:
Durable goods; nondurable goods
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121. All other things equal, according to the law of demand, when the price of a good falls, ________.
Answer
Correct Answer:
The quantity demanded of the good rises
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122. A supply curve that has a __________ slope represents a more elastic supply curve.
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123. A long-standing charge against intermediaries is that they mark up prices beyond the ________.
Answer
Correct Answer:
Value of their services
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124. Wage discrimination exists when individuals of __________ are paid different wage rates.
Answer
Correct Answer:
B, c, and d
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125. To _____ the money supply, the federal reserve could _____.
Answer
Correct Answer:
Increase; lower the reserve requirements
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126. The manager's fiduciary duty refers to _____.
Answer
Correct Answer:
The moral duty managers have to act as responsible agents to the owners
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127. Raising taxes shifts the _____ curve to the _____.
Answer
Correct Answer:
Aggregate demand; left
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128. Providing training for unemployed individuals is primarily intended to reduce_________.
Answer
Correct Answer:
Structural unemployment.
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129. In the _________, the perfectly competitive firm will seek out ________________________ .
Answer
Correct Answer:
Short run; the quantity of output where profits are highest
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130. When a nation imports a good, its ________ surplus increases and its ________ surplus increases.
Answer
Correct Answer:
Total; consumer
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131. Three equivalent ways to measure gdp are total _____, total _____, and total ______.
Answer
Correct Answer:
Production; income; expenditure
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132. The supply-side effects of an income tax cut ________ potential gdp and ________ aggregate supply.
Answer
Correct Answer:
increase; increase
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133. In a housing market with an effective rent ceiling, _______.
Answer
Correct Answer:
Consumers who do find housing at the controlled rent gain
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134. If credit card balances rise in the economy, then m1 will ________ and m2 will ________.
Answer
Correct Answer:
Notchange; not change
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135. For simple loans, the simple interest rate is ________ the yield to maturity.
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136. Assumptions of a regression model can be evaluated by plotting and analyzing the ____________.
Answer
Correct Answer:
Error terms
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137. Any commercial transaction that crosses the borders of two or more nations is known as ________.
Answer
Correct Answer:
International business
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138. Advertising, personal selling, coupons, and sweepstakes are forms of _____.
Answer
Correct Answer:
Promotion
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139. Gatekeepers are important in the b2b buying process because ____________.
Answer
Correct Answer:
They limit the number of vendors in a given buying process
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140. Systematic desensitization is to classical conditioning as ________ is to operant conditioning.
Answer
Correct Answer:
A token economy
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141. Interview with marielle tsukamoto is an example of __________.
Answer
Correct Answer:
A primary source
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142. In a simultaneous move game, ________.
Answer
Correct Answer:
Each player has to make his choice without knowing his rival's choice
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143. As your income rises, _______.
Answer
Correct Answer:
The amount of taxes you pay increases
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144. Market ----------- occurs where demand and supply are equal.
Answer
Correct Answer:
Equilibrium
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145. When as a result of increase in price of goods, total expenditure made on goods falls, price elasticity of demand is ------- than unity.
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146. In the case of inferior goods, the income elasticity of demand is -------------- ---
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147. Low price of a good generally keeps its price elasticity of demand as -------- ---.
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148. A Firm’s profitability depends much on its ----------------- of production.
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149. ---------------------- deals with the behavior of individual decision makings units such as consumers, resource owners and so on.
Answer
Correct Answer:
Micro economics
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150. The discriminating monopoly can be categorized as_______.
Answer
Correct Answer:
All of the above
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151. In perfect competition a firm increases profit when _____ exceeds ________.
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152. The point where TR curve cuts TC curve is called
Answer
Correct Answer:
Break even point.
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153. The shape of TFC curve is
Answer
Correct Answer:
Horizontal line
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154. When the output produced is maximum for the given level of input the firms achieve
Answer
Correct Answer:
Technical efficiency
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155. Internal economies is related to
Answer
Correct Answer:
All of the above
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156. The process of capital formation includes,
Answer
Correct Answer:
All of the above
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157. Indifference curve slopes,
Answer
Correct Answer:
Downward to the right.
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158. Which shows various combinations of two products that give same amount of satisfaction?
Answer
Correct Answer:
Indifference curve
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159. Consumer’s surplus is also known as
Answer
Correct Answer:
Buyer’s surplus
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160. At what point does total utility starts diminishing?
Answer
Correct Answer:
When marginal utility is negative.
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161. ---------------------- of a commodity is the additional utility derived by a consumer, by consuming one more unit of that commodity.
Answer
Correct Answer:
Marginal utility
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162. Which utility approach suggests that utility can be measured and quantified?
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163. When supply of a commodity decreases on a fall in its price, its is called
Answer
Correct Answer:
Contraction of supply
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164. When a percentage in price results in equal change in quantity supplied, it is called,
Answer
Correct Answer:
Unitary elastic suppl
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165. In case of perfectly inelastic supply the supply curve will be
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166. When price rises, quantity supplied
Note: This Question is unanswered, help us to find answer for this one
167. The law which studies the direct relationship between price and quantity supplied of a commodity is
Answer
Correct Answer:
Law of supply
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168. Which is not a statistical method in forecasting?
Answer
Correct Answer:
Consumer survey
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169. The responsiveness of demand to the change in income is known as
Answer
Correct Answer:
Income elasticity of demand
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170. The demand for necessities is usually
Answer
Correct Answer:
Highly inelastic
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171. What would be the value of elasticity of demand, if the demand for the good is perfectly inelastic?
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172. . In the case of a Giffen good, a fall in its price tends to
Answer
Correct Answer:
Reduce the demand
Note: This Question is unanswered, help us to find answer for this one
173. An exceptional demand curve is one that moves
Answer
Correct Answer:
Upward to the right
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174. Extension and contraction of demand for a good occurs as a result of
Answer
Correct Answer:
Change in the price of a good
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175. _________represents the tabular form of quantity demanded of a particular product during a given period of time
Answer
Correct Answer:
Demand schedul
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176. Market which has two firms is known as
Note: This Question is unanswered, help us to find answer for this one
177. Few sellers is the feature of
Answer
Correct Answer:
Oligopoly
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178. Firms in perfect competition face a ________.
Answer
Correct Answer:
Perfectly elastic demand curve
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179. The price elasticity of demand measures _______.
Answer
Correct Answer:
The responsiveness of the quantity demanded to changes in price.
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180. Macroeconomics is the theory of ________.
Answer
Correct Answer:
Price Theory
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181. The kinked demand curve explains
Answer
Correct Answer:
Price rigidity
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182. Unitary inelastic demand is ____.
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183. Relatively inelastic demand is ____.
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184. If demand is perfectly elastic then e is _____.
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185. Perfectly elastic demand curve is a _________ curve.
Answer
Correct Answer:
Horizontal
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186. Relationship between price and supply is ________.
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187. _________ is the total value of all final goods and services produced by the country in certain year
Answer
Correct Answer:
National Income
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188. The average income of the people of a country in a particular year is _____
Answer
Correct Answer:
National income
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189. _______ is absence of competition.
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190. The main characteristic of monopoly market structure is_________.
Answer
Correct Answer:
Single seller
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191. The long run average cost curve is also called as_________.
Answer
Correct Answer:
Planning curve
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192. Production refers to ___.
Answer
Correct Answer:
Creation of utility
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193. Indifference curve approach was given by ___________
Answer
Correct Answer:
Hicks and R.G.D. Allen
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194. If demand is perfectly inelastic then e is _____.
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195. Relatively elastic demand is ____.
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196. Consumer surplus is ____.
Answer
Correct Answer:
Potential price - actual price
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197. Law of demand shows ___________ relationship between price and quantity demanded
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198. The relationship between price and demand is ____________.
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199. Economics is a ________.
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200. Who is the father of Economics?
Answer
Correct Answer:
Adam Smith
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201. When demand is slack and market is highly competitive the following method of pricing may be adopted
Answer
Correct Answer:
marginal cost pricing
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202. A firm that produces substitute goods can adopt the following pricing strategy
Answer
Correct Answer:
going rate pricing
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203. There is a single seller of a commodity which has no close substitutes can be termed as
Answer
Correct Answer:
Pure monopoly
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204. Perfect competition has the following features except
Answer
Correct Answer:
selling and transport cost occur
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205. In which stage of production would a rational producer like to operate
Answer
Correct Answer:
I State –BothMP&AP are decreasing but positive
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206. Which of the following is considered production in economics?
Answer
Correct Answer:
Teaching for a fee
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207. The book “Value and capital”was written by
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208. The IC analysis explains the demand for inferior goods and solves
Answer
Correct Answer:
Giffen paradox
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209. The assumption of ----------------- implies that an individual consumer’s preferences are always consistent.
Answer
Correct Answer:
transitivity
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210. Cardinal utility approach is based on the -------- school of thought.
Answer
Correct Answer:
Marshallian
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211. Cardinal utility approach is based on the -------- school of thought.
Answer
Correct Answer:
Marshallian
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212. -------------- is equal to the difference between the price a consumer is willing to pay and the price actually he pays for a commodity.
Answer
Correct Answer:
consumer surplus
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213. when total utility is maximum, marginal utility is zero, it is called ----------- point.
Answer
Correct Answer:
saturation
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214. --------------- is the measure of satisfaction a consumer derives out of consumption of a commodity.
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215. -------------- of a commodity is the total quantity that is available in a market at a certain time.
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216. When a supply of a commodity decreases on a fall in its price, it is called ----------
Answer
Correct Answer:
Contraction of supply
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217. When a supply of a commodity decreases on a fall in its price, it is called ----------
Answer
Correct Answer:
Contraction of supply
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218. Commodities which are perishable in nature have ---------------- supply.
Answer
Correct Answer:
inelastic
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219. Market ----------- occurs where demand and supply are equal.
Answer
Correct Answer:
Equilibrium
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220. The law of supply states that firms will ----------- of the commodity when prices are high and vice versa.
Answer
Correct Answer:
sell more
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221. ----------------------- establishes the relationship between quantity demanded and one or more independent variables
Answer
Correct Answer:
Regression method. model buildings.
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222. The past data is arranged chronologically with regular intervals of time. This type of data is called----------------------
Answer
Correct Answer:
time series
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223. collective opinion method is also known as the --------------
Answer
Correct Answer:
sales force opinion
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224. --------------- refers to the opinion of the buyers, sales force to have the knowledge of emerging trend in market demand.
Answer
Correct Answer:
Survey/opinion method
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225. ---------------- is the scientific and analytical estimation of demand for a product for a particular period of time
Answer
Correct Answer:
Demand forecasting
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226. when as a result of increase in price of goods, total expenditure made on goods falls, price elasticity of demand is ------- than unity.
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227. in the case of inferior goods, the income elasticity of demand is -----------------
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228. . Low price of a good generally keeps its price elasticity of demand as -------------
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229. ------------ elasticity of demand measures changes in the quality demanded of good x due to change in the price of good y.
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230. Elasticity of demand tells the -------- of change in demand to the change in price
Answer
Correct Answer:
Rate/quantum
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231. There is a direct relationship between ------------- of the consumer and his demand.
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232. Assuming that bread and jam are complements. If the price of jam increase, the equilibrium quantity for bread will--------------
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233. A ------------------ along the demand curve is caused by a change in the price of the good only.
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234. The law of demand states that there is an ------------- relationship between price and quantity demanded
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235. The guiding principle of business economics is not -----------------but avoiding loss.
Answer
Correct Answer:
Profit maximization
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236. Generally, ----------------- are the primary measure of the success of any business.
Answer
Correct Answer:
Profit and Loss
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237. ------------------- means the process of choosing one action from two or more alternatives available.
Answer
Correct Answer:
Decision Making
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238. Business economics is a science which deals with the application of ----------------- in business practices.
Answer
Correct Answer:
Economic theory
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239. Capitalism is the system that advocates --------------- to solve the basic economic problems.
Answer
Correct Answer:
Price Mechnanism
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240. Ina ---------------------- economy, public and private sectors exist by side
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241. There are two methods of constructing an economics theory, they are ------- and ------ methods.
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242. --------------------- deals with the behavior of individual decision makings units such as consumers, resource owners and so on.
Answer
Correct Answer:
Micro economics
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243. Economics deals with what is and normative economics deals with ---------------------
Answer
Correct Answer:
Positive, what ought to be
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244. Who gains in inflation?
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245. which is the most preferred methods of measuring inflation?
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246. the fluctuations or movement in economic activity are commonly classified as
Answer
Correct Answer:
all of the above
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247. which is not an instrument of fiscal policy in controlling business cycle?
Answer
Correct Answer:
investment
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248. which is not a phase of business cycle?
Answer
Correct Answer:
Accumulation
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249. the discriminating monopoly can be categorized as
Answer
Correct Answer:
all of the above.
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250. In perfect competition a fiem increases profit when _____ exceeds ________
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251. supply curve of a perfectly competitive firm is
Answer
Correct Answer:
Upward sloping
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252. which item is not included in public utilities?
Answer
Correct Answer:
Accessories
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253. Market which have two firms are known as
Note: This Question is unanswered, help us to find answer for this one
254. few sellers is the feature of
Answer
Correct Answer:
oligopoly
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255. Indicate which of the following is a variable cost?
Answer
Correct Answer:
Cost of raw materials
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256. the shape of TFC curve is
Answer
Correct Answer:
Horizontal line
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257. the point where TR curve cuts TC curve is called
Answer
Correct Answer:
Break even point.
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258. Which of the following cost curve is U shaped?
Answer
Correct Answer:
Average variable cost curve
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259. internal economies is related to
Answer
Correct Answer:
All of the above.
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260. the process of capital formation includes,
Answer
Correct Answer:
all of the above
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261. Indifference curve slopes,
Answer
Correct Answer:
Upward to the left.
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262. Which shows various combinations of two products that give same amount of satisfaction?
Answer
Correct Answer:
Indifference curve.
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263. Which utility measuring approach, is utility ranked in order of preference, but not measured?
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264. Which of the following is called Gossen’s first law?
Answer
Correct Answer:
Law of diminishing marginal
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265. Consumer’s surplus is also known as
Answer
Correct Answer:
buyer’s surplus
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266. At what point does total utility starts diminishing?
Answer
Correct Answer:
when marginal utility is negative.
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267. ---------------------- of a commodity is the additional utility derived by a consumer, by consuming one more unit of that commodity.
Answer
Correct Answer:
Marginal utilit
Note: This Question is unanswered, help us to find answer for this one
268. ---------------------- of a commodity is the additional utility derived by a consumer, by consuming one more unit of that commodity.
Answer
Correct Answer:
Marginal utilit
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269. which utility approach suggests that utility can be measured and quantified?
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270. when supply of a commodity decreases on a fall in its price, its is called
Answer
Correct Answer:
Contraction of supply
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271. When a percentage in price results in equal change in quantity supplied, it is called,
Answer
Correct Answer:
unitary elastic supply.
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272. In case of perfectly inelastic supply the supply curve will be
Note: This Question is unanswered, help us to find answer for this one
273. .When price rises, quantity supplied
Note: This Question is unanswered, help us to find answer for this one
274. The law which studies the direct relationship between price and quantity supplied of a commodity is
Answer
Correct Answer:
Law of supply
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275. A simultaneous equation model may consists of all the following except
Answer
Correct Answer:
Undefined equation
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276. A time series can be calculated through
Answer
Correct Answer:
all the above
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277. east square method
Answer
Correct Answer:
Simultaneous equation method
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278. Which is not a statistical method in forecasting?
Answer
Correct Answer:
consumer survey
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279. Demand forecasting can be categorized on the basis of
Answer
Correct Answer:
All the above
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280. which of the following statements regarding cross elasticity holds good?
Answer
Correct Answer:
it can be either positive or negative
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281. Which one of the following is not a method of measuring elasticity of demand?
Answer
Correct Answer:
none of these
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282. The responsiveness of demand to the change in income is known as
Answer
Correct Answer:
income elasticity of demand
Note: This Question is unanswered, help us to find answer for this one
283. The demand for necessities is usually
Answer
Correct Answer:
highly inelastic
Note: This Question is unanswered, help us to find answer for this one
284. What would be the value of elasticity of demand, if the demand for the good is perfectly inelastic?
Note: This Question is unanswered, help us to find answer for this one
285. In the case of a Giffen good, a fall in its price tends to
Answer
Correct Answer:
Reduce the demand
Note: This Question is unanswered, help us to find answer for this one
286. An exceptional demand curve is one that moves
Answer
Correct Answer:
upward to the right
Note: This Question is unanswered, help us to find answer for this one
287. Extension and contraction of demand for a good occurs as a result of
Answer
Correct Answer:
Change in the price of a good
Note: This Question is unanswered, help us to find answer for this one
288. -------------represents the tabular form of quantity demanded of a particular product during a given period of time
Answer
Correct Answer:
Demand schedule
Note: This Question is unanswered, help us to find answer for this one
289. What type of relationship exists between the price and quantity demanded?
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290. Organizational efficiency does not include
Answer
Correct Answer:
technical efficiency
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291. A decision is not profitable if
Answer
Correct Answer:
it increases costs more than revenue
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292. which is not the assumption of production possibility curve?
Answer
Correct Answer:
prices of factors fluctuates
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293. The business economic theory is concerned with the management technique to achieve
Answer
Correct Answer:
all the above
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294. Micro economics is also known as
Answer
Correct Answer:
price theory
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295. The subject of economics is
Answer
Correct Answer:
A social science
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296. when we go form particular to general, this method is called as
Answer
Correct Answer:
Inductive method
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297. which branch of economics studies about unemployment, illiteracy, National income tax?
Answer
Correct Answer:
Macro economics
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298. Economics is neutral between ends is said by
Answer
Correct Answer:
Adam smith
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Business Economics MCQs | Topic-wise