F.Y.B.com business economics sem 1 mcq with answers pdf
FYBCOM – BUSINESS ECONOMICS EXAM SEN 1. MCQ QUESTION BANK 1. The monopoly firm faces a _____ demand curve. a. veritcle b. Upward slopping c. Kinked d. downward sloping ANS: D 2. An _____ firm does not face a definite demand curve. a. Monopolistic competition b. Monopoly c. Perfect Competitiond. Oligopoly ANS: D 3. All of the following are determinants of demand except _____ a. Consumer income b. Price related to goods c. Quantity supplied d. Size of population ANS: C 4. A perfect competitive firm faces a _____ demand curve for its product. a. upward sloping b. downward sloping c. vertical straight lined. horizontal straight line ANS: D 5. The demand curve under monopoly is a _____ curve. a. upward sloping b. downward sloping c. horizontal straight line d. None of the above ANS: B 6. When demand is perfectly elastic, the demand curve is _____. a. horizontal straight line b. vertical straight linec. Steep d. None of the above ANS: A 7. _____ is the desire for a commodity which is backed by ability and willingness to pay its price. a. Demand b. Supply c. Demand function d. Supply function ANS: A 8. Under oligopoly the firm faces a _____ demand curve. a. horizontal b. vertical c. upward sloping d. Kinked (Indeterminate) ANS: D 9. An endless demand at the given price is the case of ______ demand. a. Relatively elastic b. Unitary elastic c. perfectly elastic d. None of these ANS: C 10. A steeper demand curve represent relatively ______ demand. a. elasticb. perfectlyc. elastic inelastic d. unitary ANS: C 11. If income rise by 10%, demand too rise by 10%, then income elasticity of demand is ______. a. Unitary elastic b. Relatively elastic c. unitary d. perfectly elastic ANS: C 12. If two goods are unrelated to each other, then it is ______ cross elasticity of demand. a. None of the above b. Positivec. Negative d. zero ANS: D 13. Advertisement elasticity of demand is always ______. a. Negative b. positive c. zero d. None of the above ANS: B 14. Different ______ are indicated by differently sloping income demand curve. a. price elasiticity b. Income elasticities c. Elasticity of substitutiond. None of these ANS: B 15. A vertical straight line demand curve implies ______ degree of price elasticity. a. Positive b. Negative c. None ot these d. zero ANS: D 16. Commodities which requires a large portion of consumer’s income tend to have ______ demand. a. perfectly elasticb. Zero c. inelastic d. elastic ANS: D 17. Jointly demanded goods tend to have ______ demand. a. inelastic b. perfectly elasticc. Relatively inelastic d. inelastic ANS: D 18. A flatter demand curve represent relatively ______ demand. a. elasticb. Relatively elastic c. None ot the above d. inelastic ANS: A 19. If elasticity of demand = 1, the marginal revenue is ______. a. zero b. Infinity c. Positive d. Negative ANS: A 20. Which could be a positive cross elasticity demand between Butter and Jam? a. 1 b. – 0.9 c. 0.9 d. 2 ANS: B 21. When demand is perfectly elastic, the demand curve is : a. Steep b. Non-linear c. Lineard. Horizontal straight line ANS: D 22. A product’s market demand tends to be inelastic when : a. There are many suppliers b. There are several substitutes c. Less substitutesd. All of the above ANS: C 23. On a linear horizontal demand curve :a. Elasticity is zero b. Elasticity is infinity c. Elasticity is low towards origin d. All of the above ANS: B 24. Unitary elastic demand is represented by : a. Horizontal demand curve b. Downward sloping demand curve c. Vertical demand curve d. Hyperbola slope demand curve … Read more