Business Economics — Practice

Question 1

Business economics (managerial economics) is best described as

Accepted Answer

C

Question 2

Which of the following is classified as an exception to the law of demand, where quantity demanded may rise even as the good's own price rises?

Accepted Answer

A

Question 3

The price of a good rises from ₹100 to ₹120, and quantity demanded falls from 500 units to 450 units. What is the price elasticity of demand (in absolute value), and how should demand be classified?

Accepted Answer

A

Question 4

The law of supply states that, other factors remaining constant

Accepted Answer

B

Question 5

Under the law of variable proportions, the stage at which marginal product is positive but declining, and at which a rational producer chooses to operate, is

Accepted Answer

C

Question 6

When a firm doubles all of its inputs — labour, capital, and land — simultaneously, and its output more than doubles as a result, this illustrates

Accepted Answer

D

Question 7

A firm's Total Fixed Cost is ₹800. At 15 units of output, Total Variable Cost is ₹3,000; at 16 units, Total Variable Cost rises to ₹3,180. What is the marginal cost of the 16th unit?

Accepted Answer

A

Question 8

In a perfectly competitive market, at a firm's profit-maximising equilibrium output, price is equal to

Accepted Answer

A

Question 9

A profit-maximising monopolist sets output where marginal revenue equals marginal cost. At this output, the price charged is

Accepted Answer

C

Question 10

Monopolistic competition, as modelled by Edward Chamberlin, is characterised by

Accepted Answer

D

Question 11

The kinked demand curve model, associated with Paul Sweezy, is used to explain which observed real-world pricing pattern?

Accepted Answer

A

Question 12

A consumer's income rises from ₹20,000 to ₹25,000, and their quantity demanded of a good rises from 40 units to 46 units. What is the income elasticity of demand, and how should the good be classified?

Accepted Answer

B

Question 13

Charging different prices to different consumer groups for an identical product, based on differences in their willingness to pay, is known as

Accepted Answer

C

Question 14

In economic theory, the short run is defined as the period in which

Accepted Answer

D

Practice — Business Economics

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