Classical

Business Economics - Business Economics Multiple Choice Questions

16:  
The % change in demand for a product A divided by the % change in price of product B indicates the degree of
A.

Price Elasticity of Demand

B.

Cross Elasticity of Demand

C.

Ionic Elasticity of Demand

D.

Advertising Elasticity of Demand

 
 

Option: B

Explanation :


17:  

Demand has the following elements

A.

Quantity

B.

Price

C.

Time

D.

All of these

 
 

Option: D

Explanation :


18:  
Which of the following is correct Statement
A.

Under perfect competition a firm determine its price where AR = IVIR

B.

 In perfect competitive industry a firm is in equilibrium in the short run only when its AC = AR = IVIR = MC.

C.
The short-run supply curve has a negative slope
D.

A firm is price-taker under perfect competition.

 
 

Option: D

Explanation :


19:  
Which of the following is the best general definition of the study of economics
A.
lnflation and employment in a growing economy.
B.

The best way to invest in the stock market

C.
Business decision making under foreign competition
D.
Individual and social choice in the face of scarcity.
 
 

Option: D

Explanation :


20:  
As per indifference curve and price line, a consumer will not be in equilibrium when
A.
Ratios of marginal utilities and price of the respective goods are equal
B.
Ratio of marginal utilities of the two goods is equal to the ratio of their respective prices
C.
The marginal rate of substitution is equal to the ratio of prices of the two goods.
D.

The marginal rate of substitution is decreasing.

 
 

Option: D

Explanation :




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