MCQs > Finance & Management > Business Economics MCQs > Basic Business Economics MCQs

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.

Answer

Correct Answer: Linear

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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 _____.

Answer

Correct Answer: Exports

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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.

Answer

Correct Answer: No

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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.

Answer

Correct Answer: Low

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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 ________.

Answer

Correct Answer: Upward

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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 ____________ .

Answer

Correct Answer: Russia.

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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 _____.

Answer

Correct Answer: Prices

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

Answer

Correct Answer: The arts

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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.

Answer

Correct Answer: Indexed

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

Answer

Correct Answer: GDP

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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.

Answer

Correct Answer: Galatea

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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.

Answer

Correct Answer: 80%

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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

Answer

Correct Answer: Basic

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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.

Answer

Correct Answer: MPS

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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.

Answer

Correct Answer: Price

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

Answer

Correct Answer: Monopoly

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

Answer

Correct Answer: Variable

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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.

Answer

Correct Answer: Profit

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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.

Answer

Correct Answer: Relevant

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79. Advertising is ________ promotion through media outlets.

Answer

Correct Answer: Paid

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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.

Answer

Correct Answer: Price

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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 ________.

Answer

Correct Answer: Benefits

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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.

Answer

Correct Answer: Broader

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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.

Answer

Correct Answer: Variable

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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.

Answer

Correct Answer: Flatter

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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: Not​change; not change

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

Answer

Correct Answer: Equal to

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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.

Answer

Correct Answer: Greater

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

Answer

Correct Answer: Negative

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

Answer

Correct Answer: Low

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

Answer

Correct Answer: Cost

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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 ________.

Answer

Correct Answer: AR, AC

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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?

Answer

Correct Answer: Cardinal

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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

Answer

Correct Answer: Vertical

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166. When price rises, quantity supplied

Answer

Correct Answer: Expands

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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?

Answer

Correct Answer: 0

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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

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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

Answer

Correct Answer: Duopoly

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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 ____.

Answer

Correct Answer: e p = 1

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183. Relatively inelastic demand is ____.

Answer

Correct Answer: e p > 1

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

Answer

Correct Answer: E ∞

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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 ________.

Answer

Correct Answer: Positive

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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.

Answer

Correct Answer: Monopoly

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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 _____.

Answer

Correct Answer: e=0

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195. Relatively elastic demand is ____.

Answer

Correct Answer: e p <1

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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

Answer

Correct Answer: Negative

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198. The relationship between price and demand is ____________.

Answer

Correct Answer: Negative

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199. Economics is a ________.

Answer

Correct Answer: Both

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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

Answer

Correct Answer: JR Hicks

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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.

Answer

Correct Answer: utility

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

Answer

Correct Answer: Stock

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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.

Answer

Correct Answer: Greater

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

Answer

Correct Answer: negative

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

Answer

Correct Answer: low

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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.

Answer

Correct Answer: cross

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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.

Answer

Correct Answer: income

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

Answer

Correct Answer: Decrease

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

Answer

Correct Answer: Movement

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

Answer

Correct Answer: Inverse

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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

Answer

Correct Answer: Mixed

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

Answer

Correct Answer: Both A&B

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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?

Answer

Correct Answer: debtors

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

Answer

Correct Answer: WPI

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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 ________

Answer

Correct Answer: AR, AC

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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

Answer

Correct Answer: Duopoly

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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?

Answer

Correct Answer: Ordinal

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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

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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?

Answer

Correct Answer: Cardinal

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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

Answer

Correct Answer: vertical

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273. .When price rises, quantity supplied

Answer

Correct Answer: expands

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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

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283. The demand for necessities is usually

Answer

Correct Answer: highly inelastic

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

Answer

Correct Answer: 0

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

Answer

Correct Answer: Reduce the demand

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286. An exceptional demand curve is one that moves

Answer

Correct Answer: upward to the right

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

Answer

Correct Answer: Demand schedule

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

Answer

Correct Answer: Both a&b

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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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