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
Competition
d.    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 line
d.    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 line
c.    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.    elastic
b.    perfectly
c.    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.    Positive
c.    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 substitution
d.    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
elastic
b.    Zero   
c.    inelastic        
d.    elastic                        
ANS: D
 
17. Jointly
demanded goods tend to have ______ demand.   
a.    inelastic        
b.    perfectly
elastic
c.    Relatively
inelastic 
d.    inelastic                                
ANS:  D
 
18. A
flatter demand curve represent relatively ______ demand.       
a.    elastic
b.    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.    Linear
d.    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
substitutes
d.    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                           
ANS: D
 
25. The
demand for a product is referred to as price-inelastic, if :     
a.    The
elasticity coefficient is less than unity        
b.    The
buyers do not respond much to the price variation in the market          
c.    The
fall in price is accompanied by the decrease of demand
d.    Both
(a) and (b)                               
ANS: D

 

COMMERCE

https://www.mumbaiuniversityidol.com/2021/04/commerce-fybcom-mcq-pdf-fybcom-sem-2.html

 

BUSINESS ECONOMIC

https://www.mumbaiuniversityidol.com/2021/04/fybcom-mcq-for-business-economics.html

 

FOUNDATION COURSE

1)  https://www.mumbaiuniversityidol.com/2021/05/foundation-course-mcq-questions-and.html

2)  https://www.mumbaiuniversityidol.com/2021/05/fybcom-foundation-course-mcq-pdf.html

 

ENVIRONMENTAL STUDIES

https://www.mumbaiuniversityidol.com/2021/04/fybcom-environmental-studies-mcq-pdf.html

 

MATHEMATICAL AND STATISTICAL TECHNIQUES

https://www.mumbaiuniversityidol.com/2021/04/fybcom-mathematical-mcq-pdf.html