Top 80+ Solved Economics of Business and Finance MCQ Questions Answer
Q. If the income elasticity of demand for a commodity is found to be 0.4,then the commodity concerned is
a. luxury
b. necessity
c. giffen’s goods
d. independent good
Q. A fall in income of the consumer, other things being equal, causes
a. increase in demand
b. decrease in demand
c. increase in quantity demanded
d. decease in quantity demanded
Q. Which of the following Elasticities measure movement along a curve,rather than a shift in the curve
a. price elasticity of demand
b. income elasticity of demand
c. cross elasticity of demand
d. none of the above
Q. Cross elasticity of demand in the case of substitutes
a. zero
b. negative
c. positive
d. infinity
Q. A movement down the given demand curve shows
a. increase in demand
b. decrease in demand
c. extension in demand
d. contraction in demand
Q. Which of the following results in an increase in an increase in demand
a. fall in prices of substitutes
b. increase in price of complementary goods
c. fall in consumer’s income
d. none of the above
Q. Who popularized the degrees of price discrimination
a. alfred marshall
b. pigou
c. keynes
d. jevons
Q. As a result of a fall in the price total expenditure on the commoditydecreases, the coefficient of elasticity will be
a. equal to one
b. greater than one
c. less than one
d. cannot sa
Q. If a small change in price leads to infinitely large change in quantitydemanded, then the demand is
a. perfectly elastic
b. perfectly inelastic
c. elastic
d. inelastic
Q. When demand curve is rectangular hyperbola, the value of priceelasticity of demand will be
a. zero
b. one
c. greater than one
d. infinity
Q. Consumers are denied of any consumer surplus in ------- degree of pricediscrimination
a. first
b. second
c. third
d. fourth degree price discrimination
Q. On a linear demand curve, the coefficient of price elasticity is unity, thenthe value of MR will be
a. positive
b. zero
c. negative
d. one
Q. Business economics lie at the borderline between economics and ------
a. political science
b. commerce
c. management
d. statistics
Q. Planning for future is also called
a. logistic planning
b. capital planning
c. forward planning
d. none of the above