Top 1000+ Solved Fundamentals of Economics and Management MCQ Questions Answer
Q. Bread and butter have………..
a. Negative cross price elasticity of demand
b. Positive cross elasticity of demand
c. Positive income elasticity of demand
d. Negative income elasticity of demand
Q. Omlet and cakes have
a. Negative cross price elasticity of demand
b. Positive cross elasticity of demand
c. Positive income elasticity of demand
d. Negative income elasticity of demand
Q. Point elasticity of demand can be useful in which of the following cases
a. A departmental store is thinking of increasing the price of gift packs
b. A service station is considering to lower the service charges
c. A health club is considering to lower the monthly membership fee
d. An airlines company is considering to lower holiday packages
Q. The coefficient of price elasticity of demand is calculated as………..
a. The change in price divided by the change in quantity demand
b. The percentage change in quantity demand by the percentage change in price
c. The change in quantity demanded by the change in price
d. The percentage change in price by the percentage change in demand
Q. Price elasticity of demand is not affected by
a. Nature of the commodity
b. Availability of close substitute
c. Cost of production
d. Consumption habits
Q. Demand of salt is inelastic because
a. Of low price
b. No substitute
c. Absence of it makes food tasteless
d. All the three
Q. The quantity of a commodity which an individual is willing to purchase over a specific period of time is a function of
a. Price of the product
b. Disposal income
c. Taste and price of other commodities
d. All the three
Q. Which of the following is not a factor is market supply of product
a. Cost of production
b. Number of buyers
c. Market price of the product
d. Price of related products
Q. Market demand curve for a commodity is………………
a. Horizontal summation of the individual demand curve for the commodity
b. Summation of individual demand curve for 3 years
c. Demand curve of complementary goods
d. Demand curve of supplementary goods
Q. Equilibrium state is achieved at …………………
a. The peak point of supply curve
b. The bottom point of demand curve
c. The inflation point of demand curve
d. The intersection of demand and supply curve
Q. If the cross elasticity between two products is positive then we can say that
a. The products are perfectly substitute of each other
b. The products are complementary to each other
c. Both the products are unrelated
d. Both are luxury items
Q. If the price elasticity of a product is greater than 1, we can say that
a. The products demand is sensitive to price variation
b. Product demand is insensitive to price variation
c. Demand and price move in same directions
d. None of this
Q. If the price elasticity of demand for wine is estimated to be -.6, then a 20% increase in price of wine willlead to ………………….in quantity demanded of wine at that price
a. 12% increase
b. 12% decrease
c. 19.6% increase
d. 20.6% decrease