Classical

Business Economics - Business Economics Questions

31:  
When the demand of a commodity also depends upon prices of the substitutes & complementaries or relative prices then it is called
A.

Price-demand

B.

Income-Demand

C.

Cross-Demand

D.

None of the above

 
 

Option: C

Explanation :


32:  

Assertion (A). Business Economic is tool facilitating decision making in business.

Reason (R). It provides an analytical under standing of economic activities.

A.

Both (A) and (R) are not correct.

B.

Both (A) and (R) are correct.

C.

(A) is true, but (R) is false

D.

(R) is true but (A) is false.

 
 

Option: B

Explanation :


33:  
In case of utility theory, as income increases, marginal utility of money
A.

Decreases

B.

Increases

C.

Remains constant

D.

None of these

 
 

Option: C

Explanation :


34:  
Which one of the following is not matched properly.
 
List-I                                                                   List-II
l. High initial price to be lowered later on           1. Product line pricing
II. Price to be proportional to cost.                    2. Differential pricing
Ill. Price to be increased for providing profit       3.pioneer pricing
IV. Price to be different in different markets.       4. Incremental pricing.
A.

I and 3

B.

III and 4

C.

II and 1

D.

IV and 2

 
 

Option: C

Explanation :


35:  
For the relationship between AC and MC, which of the following statement is wrong?
A.

Both AC & MC are calculated from TC

B.

If AC Falls, MC will rise

C.

If AC rises, MC also rises

D.
For the minimum point of AC, average cost is equal to marginal cost.
 
 

Option: B

Explanation :




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