Top 80+ Solved Economics of Business and Finance MCQ Questions Answer
Q. Income elasticity is positive, but less than unity in the case of
a. necessity
b. luxury
c. inferior
d. substitutes
Q. The price is kept artificially low in
a. price skimmimg
b. limit pricing
c. full cost pricing
d. psychological pricing
Q. In drawing an individual demand curve for a commodity, all but which ofthe following are kept constant
a. individual’s money income
b. the prices of the related commodity
c. price of the commodity under consideration
d. tastes of the consumer
Q. A fall in the price of the commodity holding everything else constantresults in
a. increase in demand
b. decrease in demand
c. increase in quantity demanded
d. decrease in quantity demanded
Q. When an individual’s income falls, when everything else remains thesame, his demand for inferior goods
a. increases
b. decreases
c. remains unchanged
d. cannot say
Q. When the price of the substitute commodity of X falls, the demand for X
a. rises
b. falls
c. remains unchanged
d. all of the above is possible
Q. When both the price of a substitute and the price of complement of Xrises, the demand for X
a. rises
b. falls
c. remains unchanged
d. all of the above is possible
Q. Most rare type of price discrimination is
a. first degree
b. second degree
c. third degree
d. fourth degree
Q. The price which is initially low is called --------
a. limit price
b. full cost price
c. penetration price
d. psychological price
Q. A fall in the price of the commodity whose demand curve is a rectangularhyperbola causes total expenditure on the commodity
a. increases
b. decreases
c. remains unchanged
d. none of the above
Q. If the quantity demanded remains unchanged as the price of thecommodity falls, the coefficient of price elasticity of demand is
a. greater than
b. one equal to one
c. smaller than one
d. zero
Q. An increase in the price of the commodity when demand is inelasticcauses the total expenditure of consumers of the commodity to
a. increase
b. decrease
c. remains unchanged
d. any of the above
Q. A negative income elasticity of demand for a commodity indicates that asincome falls, the amount of the commodity purchased
a. rises
b. falls
c. remains unchanged
d. none of the above
Q. Most common form of price discrimination is
a. first degree price discrimination
b. second degree price discrimination
c. third degree price discrimination
d. fourth degree price discrimination
Q. If the income elasticity of demand is greater than one, then thecommodity is
a. necessity
b. luxury
c. inferior
d. non-related commodity