1/27/2020 172.16.1.50/printqp.php?

heading=I BBA [2019 - 2022], SEMESTER -II, CORE: BUSINESS ECONOMICS- 216A&qname=216A

Dr.G.R.Damodaran College of Science

(Autonomous, affiliated to the Bharathiar University, recognized by the UGC)Re-
accredited at the 'A' Grade Level by the NAAC and ISO 9001:2008 Certified
CRISL rated 'A' (TN) for MBA and MIB Programmes

I BBA [2019 - 2022]

SEMESTER -II
CORE: BUSINESS ECONOMICS- 216A
Multiple Choice Questions.

1. The manager tries to produce at _____ scale.

A. minimum.
B. maximum.
C. optimum.
D. ideal.
ANSWER: C

2. The constituent of Business economics are______.

A. economics.
B. Mathematics and Statistics
C. Accountancy
D. All of the above
ANSWER: D

3. Economics, according to______is the science of wealth.

A. marshall.
B. adam smith.
C. robbin.
D. pigon.
ANSWER: B

4. Business economics is also known as______.

A. economics.
B. economics of enterprises.
C. economic analysis for business decisions .
D. analysis.
ANSWER: C

5. A market can accurately be described as _____________.

A. a place to buy things.
B. a place to sell things.
C. the process by which prices adjust to reconcile the allocation of resources.
D. a place where buyers and sellers meet.
ANSWER: D

6. Business economics is broadly based upon______.

A. application of economic principles to decision making.
B. achievement of organizational goal through efficient use of resources.
C. decision making and achievement of organizational goal.
D. mathematics.
ANSWER: C

7. Business economics is close to_____economics.

A. micro.
172.16.1.50/printqp.php?heading=I BBA [2019 - 2022], SEMESTER -II, CORE: BUSINESS ECONOMICS- 216A&qname=216A 1/19
1/27/2020 172.16.1.50/printqp.php?heading=I BBA [2019 - 2022], SEMESTER -II, CORE: BUSINESS ECONOMICS- 216A&qname=216A

B. macro.
C. world.
D. company.
ANSWER: A

8. Business economics is _______ by nature.

A. prescriptive.
B. descriptive .
C. vivid.
D. flamboyant.
ANSWER: A

9. Economic fore-castes _____ risk.

A. minimize.
B. maximize.
C. marginal.
D. utility based.
ANSWER: A

10. Business economics is concerned with the allocation of resources in a _______.

A. particular organization.
B. whole society.
C. the entire market.
D. a particular department.
ANSWER: A

11. Managerial economic provides_____solution to managerial problems.

A. optimum.
B. ideal.
C. whole.
D. particular.
ANSWER: A

12. Business economics is the application of _____ to business decision making process.
A. scarce resources.
B. economic principles.
C. small resources.
D. marginal resources.
ANSWER: B

13. The resources of managerial economics are ______.

A. scarce
B. unlimited.
C. handful.
D. abundant.
ANSWER: A

14. Change in the demand of apples due to increase in its price is _____ of demand.
A. contraction.
B. extension.
C. increase.
D. decrease.
ANSWER: A

15. Change in the demand due to increase in the income of the consumer is known as ____ of demand.
A. increase.
B. decrease.
C. extension.
172.16.1.50/printqp.php?heading=I BBA [2019 - 2022], SEMESTER -II, CORE: BUSINESS ECONOMICS- 216A&qname=216A 2/19
1/27/2020 172.16.1.50/printqp.php?heading=I BBA [2019 - 2022], SEMESTER -II, CORE: BUSINESS ECONOMICS- 216A&qname=216A

D. contraction.
ANSWER: A

16. Increase in the price of petrol will ____ demand of car.

A. increase.
B. decrease.
C. keep constant.
D. not affect the.
ANSWER: B

17. In case of _____ demand, a slight change in the price will make greater change in demand.
A. perfectly elastic.
B. perfectly inelastic.
C. elastic.
D. inelastic.
ANSWER: C

18. The demand will be _____ if there is no change in the demand of the commodity, in spite of the change
in the price of the commodity.
A. perfectly elastic.
B. perfectly inelastic.
C. elastic.
D. inelastic.
ANSWER: B

19. If the demand of the commodity changes at faster rates than the change in the price of the commodity,
the demand of the commodity will be known as ______.
A. perfectly elastic.
B. inelastic.
C. perfectly inelastic.
D. elastic.
ANSWER: D

20. Change in the commodity due to change in the price of the substitute is an example of _____.
A. cross elasticity.
B. price elasticity.
C. income elasticity.
D. elasticity.
ANSWER: A

21. It is a case of _____ demand of the commodity changes with the change in price.
A. income elasticity.
B. price elasticity.
C. cross elasticity.
D. elasticity.
ANSWER: B

22. If change in the demand of the commodity is proportionate to the change in price, the demand of the
commodity will be _______.
A. unit elasticity.
B. less than unit elasticity.
C. perfectly elasticity.
D. perfectly in elastic.
ANSWER: A

23. If a price increase of good A increases the quantity demanded of good B, then good B is a
____________.
A. substitute good.
172.16.1.50/printqp.php?heading=I BBA [2019 - 2022], SEMESTER -II, CORE: BUSINESS ECONOMICS- 216A&qname=216A 3/19
1/27/2020 172.16.1.50/printqp.php?heading=I BBA [2019 - 2022], SEMESTER -II, CORE: BUSINESS ECONOMICS- 216A&qname=216A

B. complementary good.
C. bargain.
D. inferior good.
ANSWER: A

24. Under law of demand ________.

A. Price of commodity is an independent variable.
B. Quantity demanded is a dependent variable.
C. Reciprocal relationship is found between price and quantity demanded.
D. All of the above.
ANSWER: D

25. Product obtained by additional dose of factor of product is known as____product.

A. marginal.
B. average.
C. total.
D. entire.
ANSWER: A

26. _____ return to said to apply, if the marginal product is increasing.

A. Increasing.
B. Decreasing.
C. Constant.
D. All the above.
ANSWER: A

27. If increasing return is applicable law of _____ cost will also apply.
A. increasing.
B. decreasing.
C. constant.
D. same.
ANSWER: B

28. If law of constant return is applicable marginal product will be ____ average product.
A. more than.
B. lesser than.
C. equal to.
D. the same
ANSWER: C

29. Law of increasing return applies because of ____.

A. indivisibility of factor.
B. increase in price.
C. decrease in the cost.
D. decreased price.
ANSWER: A

30. Iso quant is ______.

A. Downward sloping.
B. Convex to origin.
C. L shaped.
D. All of the above
ANSWER: D

31. Given the price, if the cost of production increases because of higher price of raw materials, the supply
___________________.
A. Decreases.
B. Increases.
172.16.1.50/printqp.php?heading=I BBA [2019 - 2022], SEMESTER -II, CORE: BUSINESS ECONOMICS- 216A&qname=216A 4/19
1/27/2020 172.16.1.50/printqp.php?heading=I BBA [2019 - 2022], SEMESTER -II, CORE: BUSINESS ECONOMICS- 216A&qname=216A

C. Remains same.
D. Any of the above.
ANSWER: A

32. The quantities of output throughout the given Isoquant are _____
A. equal.
B. unequal.
C. same.
D. varying.
ANSWER: A

33. Past cost is also known as _____________.

A. Historical cost
B. Committed Cost
C. fixed cost.
D. same cost.
ANSWER: A

34. Output is a _____ variable.

A. dependent.
B. independent.
C. fixed.
D. varying.
ANSWER: A

35. Shape of isoquant curve is ______

A. convex from below.
B. paved by axis.
C. concave.
D. straight.
ANSWER: A

36. Isoquant is also known as ____ curve

A. iso product.
B. iso cost.
C. convex.
D. concave.
ANSWER: A

37. Market period and very short period are ______.

A. same.
B. different.
C. unique.
D. uniform.
ANSWER: A

38. TPP and EMPP are _____

A. Same.
B. Different.
C. uniform.
D. unique.
ANSWER: A

39. In case of increasing return production increase at _____.

A. increasing rate.
B. decreasing rate.
C. internal rate.
D. external rate.
172.16.1.50/printqp.php?heading=I BBA [2019 - 2022], SEMESTER -II, CORE: BUSINESS ECONOMICS- 216A&qname=216A 5/19
1/27/2020 172.16.1.50/printqp.php?heading=I BBA [2019 - 2022], SEMESTER -II, CORE: BUSINESS ECONOMICS- 216A&qname=216A

ANSWER: A

40. Technical economics are part of _____ economics

A. internal.
B. external.
C. micro.
D. macro.
ANSWER: A

41. Economics of concentration are part of _____ economics.

A. internal.
B. external.
C. micro.
D. macro.
ANSWER: B

42. In the long period all factor are ________.

A. fixed.
B. variable.
C. same.
D. varying.
ANSWER: B

43. In the short period only _____ input can be changed.

A. Variable.
B. Fixed.
C. same.
D. varying.
ANSWER: A

44. Inputs are _____ variable.

A. dependent.
B. independent.
C. variable.
D. fixed.
ANSWER: B

45. There are _____ stages of laws of return.

A. two.
B. three.
C. four.
D. five.
ANSWER: B

46. Expansion path is also called _________.

A. scale line.
B. broad path.
C. narrow path.
D. straight path.
ANSWER: A

47. Cross elasticity of demand between tea and sugar is _____________.

A. Positive.
B. Zero.
C. Infinity.
D. Negative.
ANSWER: D

172.16.1.50/printqp.php?heading=I BBA [2019 - 2022], SEMESTER -II, CORE: BUSINESS ECONOMICS- 216A&qname=216A 6/19
1/27/2020 172.16.1.50/printqp.php?heading=I BBA [2019 - 2022], SEMESTER -II, CORE: BUSINESS ECONOMICS- 216A&qname=216A

48. Past cost is also known as ________.

A. Historical cost.
B. Committed cost.
C. Both (a) and (b).
D. None of the above.
ANSWER: C

49. Economic cost consists of ________.

A. Explicit cost.
B. Implicit cost.
C. Both (a) and (b).
D. None of the above.
ANSWER: C

50. _______ increase and decrease with the volume of output.

A. Fixed cost.
B. Variable cost.
C. Total cost.
D. Money cost.
ANSWER: B

51. _______ cannot be changed in the short period.

A. Fixed cost.
B. Variable cost.
C. Total cost.
D. Money cost.
ANSWER: A

52. Cost of material is ______cost of production.

A. fixed.
B. variable.
C. opportunity.
D. marginal.
ANSWER: B

53. Average fixed cost _____.

A. never becomes zero.
B. curve never touches x axis.
C. curve never touches y axis.
D. all the above.
ANSWER: D

54. ____ are short run cost.

A. Ac.
B. Mc.
C. Tc.
D. All the above
ANSWER: D

55. The cost that cannot be altered by present decision is known as________.
A. sunk cost.
B. variable cost.
C. implicit cost.
D. marginal cost.
ANSWER: A

56. The cost of additional unit of production is known as ______.

A. incremental cost.
172.16.1.50/printqp.php?heading=I BBA [2019 - 2022], SEMESTER -II, CORE: BUSINESS ECONOMICS- 216A&qname=216A 7/19
1/27/2020 172.16.1.50/printqp.php?heading=I BBA [2019 - 2022], SEMESTER -II, CORE: BUSINESS ECONOMICS- 216A&qname=216A

B. total cost.
C. marginal cost.
D. no cost.
ANSWER: C

57. Average Fixed Cost

A. Never becomes zero
B. Curve never touches X axis
C. Curve never touches Y axix
D. All of the above
ANSWER: D

58. The value of elasticity of demand ranges from

A. Zero to one
B. One to infinity
C. Zero to infinity
D. None of these
ANSWER: C

59. ______ is the point of sales at which there is neither profit nor loss.
A. Marginal point.
B. Breakeven point.
C. Initial point.
D. None of the above.
ANSWER: B

60. With the expansion of scale of production benefit enjoyed by all firms are known as ___.
A. external economics.
B. internal economics.
C. business economics.
D. economics.
ANSWER: A

61. Division of lab our which leads to _____ is another cause of internal economics.
A. indivisibilities.
B. specialization.
C. external economics.
D. internal economics.
ANSWER: B

62. Break even analysis helps in deciding probable ______.

A. cost.
B. profit.
C. benefit.
D. loss.
ANSWER: B

63. The cost of the best foregone alternative is termed as ______.

A. opportunity cost.
B. incremental cost.
C. fixed cost.
D. variable cost.
ANSWER: A

64. The fixed costs in the short run are _____.

A. fixed.
B. variable.
C. incremental.
172.16.1.50/printqp.php?heading=I BBA [2019 - 2022], SEMESTER -II, CORE: BUSINESS ECONOMICS- 216A&qname=216A 8/19
1/27/2020 172.16.1.50/printqp.php?heading=I BBA [2019 - 2022], SEMESTER -II, CORE: BUSINESS ECONOMICS- 216A&qname=216A

D. opportunity.
ANSWER: A

65. Breakeven point is also called _______.

A. no profit, no loss point.
B. maximum profit point.
C. maximum profit.
D. minimum loss.
ANSWER: A

66. The cost of material is _____cost.

A. variable.
B. uncontrollable.
C. controlled.
D. invariable.
ANSWER: A

67. There is ____ relationship between cost and profit.

A. direct.
B. inverse.
C. indirect.
D. adverse.
ANSWER: B

68. After breakeven point total revenue would be ______.

A. more than fixed cost.
B. equal to fixed cost.
C. less than equal cost.
D. more than equal cost.
ANSWER: B

69. At breakeven point contribution would be ____.

A. more than fixed cost.
B. equal to fixed cost.
C. more than equal cost.
D. less than equal cost.
ANSWER: A

70. If the percentage increase in quantity of a commodity demanded is its price, the coefficient of price
elasticity of demand is ________.
A. Greater than 1.
B. Equal to 1 .
C. Less than 1.
D. Zero.
ANSWER: D

71. With the increases in price the breakeven point _____.

A. goes up.
B. comes down.
C. stays still.
D. steady.
ANSWER: A

72. AFC=TFC/?
A. TQ.
B. TVC.
C. AVC.
D. AR.
172.16.1.50/printqp.php?heading=I BBA [2019 - 2022], SEMESTER -II, CORE: BUSINESS ECONOMICS- 216A&qname=216A 9/19
1/27/2020 172.16.1.50/printqp.php?heading=I BBA [2019 - 2022], SEMESTER -II, CORE: BUSINESS ECONOMICS- 216A&qname=216A

ANSWER: A

73. Real Cost is

A. Pain and Sacrifice
B. Subjective Concept
C. Efforts and foregoing leisure
D. All the above
ANSWER: A

74. A consumers demand curve can be obtained from ___________.

A. ICC.
B. Engel curve.
C. Lorence curve.
D. PCC.
ANSWER: D

75. TFC+? /TQ=AC

A. TVC.
B. X.
C. AVC.
D. TFC.
ANSWER: A

76. TFC=AFC?T Q
A. X
B. /
C. -
D. All the above
ANSWER: A

77. Which of the following is not a fixed cost?

A. Payment of interest on borrowed capital
B. Charges for fuel and electricity
C. Depreciation charges on equipment and buildings
D. Contractual rent for equipment or building
ANSWER: B

78. Typically the supply curve _______________-

A. Slopes upward
B. Slopes downward
C. Is horizontally straight
D. Is vertically straight
ANSWER: A

79. TR=?*p
A. TQ.
B. TVC.
C. AR.
D. TC.
ANSWER: A

80. Isoquant is also known as

A. Production indifference curve
B. Cost Indifference curve
C. Planning curve
D. Indifference curve
ANSWER: A

172.16.1.50/printqp.php?heading=I BBA [2019 - 2022], SEMESTER -II, CORE: BUSINESS ECONOMICS- 216A&qname=216A 10/19
1/27/2020 172.16.1.50/printqp.php?heading=I BBA [2019 - 2022], SEMESTER -II, CORE: BUSINESS ECONOMICS- 216A&qname=216A

81. ?=AFC+AVC
A. TC.
B. TVC.
C. TQ.
D. AR.
ANSWER: A

82. When average product is falling, it is __________________.

A. Less than the marginal product.
B. Not measurable in this case.
C. Greater than the marginal product.
D. Equal to the marginal product.
ANSWER: C

83. All the costs are variable in ______.

A. short period .
B. long period.
C. average period.
D. regional period.
ANSWER: B

84. The cost of material is _____.

A. Fixed.
B. Variable.
C. Negative
D. None of the above.
ANSWER: B

85. In the long period cost curve is _______.

A. U-shaped.
B. X-shaped.
C. Z-shaped.
D. V-shaped.
ANSWER: A

86. Average cost is always _____ to the cost of the commodity.

A. equal.
B. unequal.
C. equality.
D. inequality.
ANSWER: A

87. All cost ______in terms of money is explicit cost.

A. unpaid.
B. payment.
C. paid.
D. half paid.
ANSWER: C

88. A cost function determines the behavior of costs with change in ------------
A. Output
B. Input
C. Technology
D. Wages
ANSWER: A

89. Which one is not an exception to the Law of Demand?

A. Normal good.
172.16.1.50/printqp.php?heading=I BBA [2019 - 2022], SEMESTER -II, CORE: BUSINESS ECONOMICS- 216A&qname=216A 11/19
1/27/2020 172.16.1.50/printqp.php?heading=I BBA [2019 - 2022], SEMESTER -II, CORE: BUSINESS ECONOMICS- 216A&qname=216A

B. Articles of Distinction.
C. Ignorance.
D. Inferior good.
ANSWER: A

90. Average fixed cost curve takes the shape of ____ hyperbola.
A. rectangular.
B. square.
C. hexagonal.
D. diamond.
ANSWER: A

91. Average cost is equal to ______.

A. AFC+AVC.
B. AFC.
C. AVC.
D. None of the above.
ANSWER: A

92. A fall in the price of a commodity leads to ______.

A. A shift in demand.
B. A fall in demand.
C. A rise in the consumer real income.
D. A fall in the consumer real income.
ANSWER: C

93. In _____ market goods are sold at uniform price.

A. perfect competition.
B. monopoly.
C. oligopoly.
D. duopoly.
ANSWER: A

94. Unitary elasticity of demand is ____________.

A. Zero.
B. Equal to one.
C. Greater than 1.
D. Less than 1.
ANSWER: B

95. Fresh vegetable market is ____ market.

A. very short period.
B. short period.
C. long period.
D. very long period.
ANSWER: A

96. Market of gold and silver is____market.

A. short period.
B. long period.
C. very long period.
D. international.
ANSWER: D

97. The demand curve of monopoly is _____.

A. inelastic.
B. elastic.
C. perfectly elastic.
172.16.1.50/printqp.php?heading=I BBA [2019 - 2022], SEMESTER -II, CORE: BUSINESS ECONOMICS- 216A&qname=216A 12/19
1/27/2020 172.16.1.50/printqp.php?heading=I BBA [2019 - 2022], SEMESTER -II, CORE: BUSINESS ECONOMICS- 216A&qname=216A

D. perfectly in elastic.
ANSWER: A

98. In case of _____ market the policy of product differentiation is adopted by producers.
A. perfect competition.
B. imperfect competition.
C. short period.
D. very short period
ANSWER: B

99. A monopolist will determine very____price for a commodity having inelastic demand.
A. different.
B. low.
C. normal.
D. high.
ANSWER: A

100. In a perfectly competitive market _____ price for a commodity prevails.

A. different.
B. uniform.
C. very high.
D. very low.
ANSWER: B

101. A firm can fix independent price under _____ market.

A. perfect competition.
B. pure competition.
C. imperfect competition.
D. fixed.
ANSWER: C

102. Classifying market as open market and black market is based upon _____.
A. competition.
B. time period.
C. legality.
D. area.
ANSWER: C

103. Market price and normal price ____ same

A. are.
B. are not.
C. not.
D. never.
ANSWER: B

104. The price, on which demand and supply are ____, is called normal price.
A. equal.
B. unequal.
C. more.
D. less.
ANSWER: A

105. Profit is ____at normal price.

A. normal.
B. abnormal.
C. huge.
D. less.
ANSWER: A
172.16.1.50/printqp.php?heading=I BBA [2019 - 2022], SEMESTER -II, CORE: BUSINESS ECONOMICS- 216A&qname=216A 13/19
1/27/2020 172.16.1.50/printqp.php?heading=I BBA [2019 - 2022], SEMESTER -II, CORE: BUSINESS ECONOMICS- 216A&qname=216A

106. The supply can be adjusted according to the tastes of consumers in ____ period.
A. short.
B. long.
C. middle
D. None of the above
ANSWER: B

107. If there is a single buyer, it is called ________.

A. monopoly.
B. monopsony
C. oligopoly.
D. duopoly.
ANSWER: B

108. If there are few sellers it is called ________.

A. oligopoly.
B. duopoly.
C. monopoly.
D. monophony.
ANSWER: A

109. Under market period the supply is ________.

A. elastic.
B. in elastic.
C. static.
D. fixed.
ANSWER: D

110. The producer under monopoly is _______.

A. price taker.
B. price maker.
C. price.
D. maker.
ANSWER: B

111. A monopolist cannot continue to sell as long as his marginal revenue is ____than the marginal cost.
A. more.
B. less.
C. high.
D. very less.
ANSWER: A

112. The main feature of monopolistic competition is _______.

A. product differentiation.
B. price discrimination.
C. product.
D. price.
ANSWER: A

113. ______ is the main feature of monopoly.

A. Product differentiation.
B. Price discrimination.
C. Product.
D. Price.
ANSWER: B

114. In monopolistic competition the policy of _____ is wisely adopted.

172.16.1.50/printqp.php?heading=I BBA [2019 - 2022], SEMESTER -II, CORE: BUSINESS ECONOMICS- 216A&qname=216A 14/19
1/27/2020 172.16.1.50/printqp.php?heading=I BBA [2019 - 2022], SEMESTER -II, CORE: BUSINESS ECONOMICS- 216A&qname=216A

A. advertisement.
B. sales promotion.
C. publicity
D. All of the above
ANSWER: D

115. he short run Average Cost curve is __ shaped.

A. V.
B. U.
C. L.
D. Any of the above.
ANSWER: B

116. In black marketing goods are sold at a price_____ that the maximum price fixed by the government.
A. lower.
B. higher.
C. very low.
D. very high.
ANSWER: B

117. ______ are the example of oligopoly.

A. Petrol pumps.
B. Pumps.
C. Diesels pumps.
D. Water hoses.
ANSWER: A

118. ________ is not possible in competition which has elastic demand.

A. Monopoly.
B. Oligopoly.
C. Triply.
D. Duopoly.
ANSWER: A

119. In real life neither perfect competition nor ______ situation are found.
A. monopoly.
B. oligopoly.
C. duopoly.
D. triopoly.
ANSWER: A

120. Perfect competition is ______ concept than pure competition.

A. broader.
B. shorter.
C. longer.
D. wider.
ANSWER: A

121. There is ______ in the whole market in case of pure and perfect competition.
A. same price.
B. un equal price.
C. uniform price.
D. no change.
ANSWER: C

122. ______Statement tell us how one should behave.

A. Normative.
B. Positive.
172.16.1.50/printqp.php?heading=I BBA [2019 - 2022], SEMESTER -II, CORE: BUSINESS ECONOMICS- 216A&qname=216A 15/19
1/27/2020 172.16.1.50/printqp.php?heading=I BBA [2019 - 2022], SEMESTER -II, CORE: BUSINESS ECONOMICS- 216A&qname=216A

C. Negative.
D. Neutral.
ANSWER: A

123. Law of constant return applies because of _____.

A. optimum utilization of variable factor.
B. ideal factor.
C. financial factor.
D. marketing factor.
ANSWER: A

124. Law of diminishing return applies because of _____.

A. certain factor remains fixed.
B. certain factor remains scare.
C. achievement of optimum capacity.
D. certain factor remain fixed, certain factor remain scare and achievement of optimum capacity.
ANSWER: D

125. Marginal utility curve of a give n consumer is also his _________.

A. Indifference curve.
B. Total utility curve.
C. Demand curve.
D. Supply curve.
ANSWER: C

126. Production can be measured in terms of ______.

A. total productivity.
B. marginal productivity.
C. average productivity.
D. total, marginal and average.
ANSWER: D

127. Five does of input produce 24units. Production increase to 30 units by introduction of six dose
.marginal output in this case will be _____.
A. 24.
B. 30.
C. 6.
D. 5.
ANSWER: C

128. Returns to scale apply during _____ period.

A. Long.
B. short.
C. medieval.
D. shortest.
ANSWER: A

129. Economics is a study of ______.

A. wealth.
B. science.
C. arts.
D. science and arts.
ANSWER: A

130. According to Marshall, the primary object and end of economics is the promotion of ____.
A. social welfare.
B. material welfare.
C. economic welfare.
172.16.1.50/printqp.php?heading=I BBA [2019 - 2022], SEMESTER -II, CORE: BUSINESS ECONOMICS- 216A&qname=216A 16/19
1/27/2020 172.16.1.50/printqp.php?heading=I BBA [2019 - 2022], SEMESTER -II, CORE: BUSINESS ECONOMICS- 216A&qname=216A

D. normal welfare.
ANSWER: B

131. Business economics is _______ in approach.

A. normative.
B. subjective.
C. partial.
D. equilibrium
ANSWER: A

132. Risk is generally taken as _______ between the actual and expected outcomes.
A. normal deviation.
B. partial deviation.
C. standard deviation.
D. deviation.
ANSWER: C

133. Business economics details with the application of economics principles to the ____ of business
firms.
A. opportunities.
B. strength.
C. weakness.
D. problems.
ANSWER: D

134. Economic theory avoids many _____ and makes simplified assumptions.
A. simple problems.
B. complicated solution.
C. complex ones.
D. complexities.
ANSWER: D

135. The utility may be defined as _________.

A. The desire for a commodity.
B. The usefulness of a commodity.
C. The necessity of a commodity.
D. The power of a commodity to satisfy wants.
ANSWER: D

136. The demand curve slopes _____________________

A. Downward from left to right
B. Upward from left to right
C. Upward from right to left
D. Downward from right to left
ANSWER: A

137. ________ helps in estimating the numerical values for economic activities and testing of various
hypotheses
A. Operational research.
B. Statistical tools.
C. Theory of games.
D. Models.
ANSWER: B

138. _______ is a popular quantitative technique.

A. Input technique.
B. Output technique.
C. Input-output technique.
172.16.1.50/printqp.php?heading=I BBA [2019 - 2022], SEMESTER -II, CORE: BUSINESS ECONOMICS- 216A&qname=216A 17/19
1/27/2020 172.16.1.50/printqp.php?heading=I BBA [2019 - 2022], SEMESTER -II, CORE: BUSINESS ECONOMICS- 216A&qname=216A

D. Planning technique.
ANSWER: C

139. Operational research was first developed in ______ industry.

A. medical.
B. manufacturing.
C. key.
D. defense.
ANSWER: D

140. _______ is a mathematical device, which explains economic behavior of players in a market
environment.
A. Operational research.
B. Statistical tools.
C. Theory of games.
D. Models.
ANSWER: C

141. The horizontal demand curve for a commodity shows that its demand is ___________.
A. Per fectly elastic.
B. Highly elastic .
C. Perfectly inelastic.
D. Moderately elastic.
ANSWER: A

142. ______ statements record the financial operations of a firm and constitute the language of business.
A. Accounting.
B. Profit and loss.
C. Profit.
D. Loss.
ANSWER: A

143. Economists use many _______concepts such as indifference curves, isoquants.

A. trade-in.
B. accounting.
C. trade-off.
D. managerial.
ANSWER: C

144. Demand function gives the relation between the____demand and the factors affecting it.
A. quality.
B. quantity.
C. price.
D. price& quality.
ANSWER: B

145. ______ is the process of finding the values for demand in future time period.
A. Demand forecasting.
B. Inventory forecasting.
C. Quality forecasting.
D. Quantity forecasting.
ANSWER: A

146. Which one of the following is also known as planning curve?

A. Long run average cost curve
B. Short-run average cost curve
C. Average variable cost curve
D. Average total cost curve
172.16.1.50/printqp.php?heading=I BBA [2019 - 2022], SEMESTER -II, CORE: BUSINESS ECONOMICS- 216A&qname=216A 18/19
1/27/2020 172.16.1.50/printqp.php?heading=I BBA [2019 - 2022], SEMESTER -II, CORE: BUSINESS ECONOMICS- 216A&qname=216A

ANSWER: A

147. Marginal cost curve

A. Has the shape of an inverted U
B. Has the shape of an alphabet U
C. Has the shape of a rectangular hyperbola
D. None of these
ANSWER: A

148. Returns to scale apply _____________

A. In the long run
B. When all the factors can be changed
C. In both (a) and (b) conditions
D. In none of the above conditions
ANSWER: D

149. Demand is always defined with reference to _______.

A. quality.
B. price.
C. quantity.
D. quality and quantity.
ANSWER: B

150. Opportunity costs are a result of ______________________

A. Scarcity
B. Overproduction
C. Technology obsolesce
D. Abundance of resources
ANSWER: A

Staff Name
Deepa.J.

172.16.1.50/printqp.php?heading=I BBA [2019 - 2022], SEMESTER -II, CORE: BUSINESS ECONOMICS- 216A&qname=216A 19/19