Classical

Business Economics - Business Economics Objective Type Questions

1:  

In perfectly competitive market

A.
Firm is the price giver and the industry the price-taker
B.
Firm is the price-taker and industry the price maker
C.

Both are the price-takers

D.

None of these

 
 

Option: B

Explanation :


2:  
If a monopolist is producing under decreasing cost conditions, increase in demand is beneficial to the society because
A.

Goods will be sold in many markets

B.

Cost of production falls and hence price

C.

Consumers get better quality goods

D.

None of the above answer is correct

 
 

Option: B

Explanation :


3:  
When the income elasticity of demand is greater than unity, the commodity is
A.

An inferior good

B.

A luxury

C.

A necessity

D.

A non-related good

 
 

Option: B

Explanation :


4:  
Marginal cost is less than the average cost when average cost falls with
A.

An increase in output

B.

A decrease in output

C.

Constant output

D.

None of the above

 
 

Option: A

Explanation :


5:  
In Imperfect competition total revenue rises at ............ upto an output level and then ...... .
A.

A decreasing rate, falls

B.

A decreasing rate, rises

C.

An increasing rate, falls

D.

An increasing rate, rises

 
 

Option: A

Explanation :




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  • This section contain multiple choice questions answers on business economics.
  • Business Economics mcq can also be used in the preparation of ugc net exams.
  • Business Economics objective type questions answers can be used to gain a credit score in various undergraduate and post graduate commerce courses like B com  and Mcom
  • These questions answers can also be used by management students for improving their knowledge in business economics.
  • These multiple choice questions answers can also be used by any student of XI or XII standard who has opted to study commerce to increase his knowledge in Business Economics.
  • This section can be used for the preparation of quizzes by any commerce student.