Classical

Business Economics - Business Economics MCQ

6:  
Price effect in indifference curve analysis arises
A.
When the consumer becomes either better off or worse off because price change is not compensated by income change.
B.
When the consumer is betler off due to a change in income and price
C.

When income and price change

D.

None of the above

 
 

Option: A

Explanation :


7:  

A situation where there is only one buyer is called

A.

Monopoly

B.

Oligopoly

C.

Monopsony

D.

Perfect competition

 
 

Option: C

Explanation :


8:  

Elasticity of demand measures the

A.
Sensitivity of sales to changes in a particular causal factor
B.
Sensitivity of production to changes in a particular cost
C.

Value of price and cost

D.

Volume of product

 
 

Option: A

Explanation :


9:  

Factors responsible for creating conditions for emergence and growth of monopoly are

A.

Control over strategic raw materials

B.

Patents

C.

Licensing

D.

All of the above

 
 

Option: D

Explanation :


10:  
In the case of an inferior good, the income effect
A.

Partially offsets the substitution effect

B.

Is equal to the substitution effect

C.

Reinforces the substitution effect

D.

More than offsets the substitution effect

 
 

Option: A

Explanation :




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  • Business Economics mcq can also be used in the preparation of ugc net exams.
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