Introduction to Business Economics 1 Introduction to Business Economics 1 / 30 Q.30 Positive economics deals with— What is What ought to be Both 'a' 'b' None of these 2 / 30 Q.29 Which of the following is not correct? Micro and Macro economics are complementary to each other Every macro-economic problem requires micro-economic analysis for its proper understanding Micro-economic behavior can be added-up to derive macro-economic behavior. What is macro from the national angle is micro from world angle 3 / 30 Q.28 The central problems relating to allocation of resources are— What to produce? How to produce? For whom to produce? All the above. 4 / 30 Q.27 A capitalist economy consists of Central planning authority A mechanism to decide as to what, how and for whom to produce Both 1 and 2 None of the above 5 / 30 Q.26 ‘Economics is the science of choice making’ it implies:- No choice is to be made Choice to be made between alternative uses Choice to be made between means and ends None of the above. 6 / 30 Q.25 A ………. shows all those combinations of two goods which the consumer can buy spending his given money income on the two goods at their given prices. Diminishing Utility Curve Budget Line Indifference Curve Demand Curve 7 / 30 Q.24 Which of the following is not an assumption of the Theory of Demand based on analysis of Indifference Curves? Given scale of preferences as between different combinations of two goods Diminishing Marginal Rate of Substitution Constant Marginal Utility of money Consumers would always prefer more of particular good to less of it, other things remaining the same 8 / 30 Q.23 If we make the assumption that Utility cannot be expressed in monetary terms, the concept of Consumer's Surplus Will still apply Will not apply Only Producers' Surplus will arise Nothing can be said 9 / 30 Q.22 The concept of Consumer's Surplus is based on the assumption that Marginal Utility of Money is Zero Negative Constant Any of the above 10 / 30 Q.21 ______ is defined as the difference between what the consumer is willing to pay for a product and what he actually pays. Consumer Surplus Consumer Burden Optimum Price Price Gap 11 / 30 Q.20 In which approach is Utility ranked in order of preferences but not measured and quantified? Cardinal Ordinal Independent Variables Approach Both Cardinal and Ordinal 12 / 30 Q.19 As per the Ordinal Approach Measurement of Utility is not possible through money Measurement of Utility is possible but it cannot be ranked Measurement of Utility is not possible in Cardinal Numbers but it can be ranked Measurement and ranking of Utility is possible 13 / 30 Q.18 The Law of Equi-Marginal Utility applies because The Consumer will try to maximize his satisfaction There may be substitutes available in the market for every product Consumer will substitute one item for the other such that his M > PriceU All of the above 14 / 30 Q.17 Utility may be affected by the presence or absence of Substitute Goods Complementary Goods Both (a) and (b) Neither (a) nor (b) 15 / 30 Q.16 The Total Utility derived by Ram by consuming 10 cups of Coffee is 99, whereas the total Utility on consumption of 11th Cup is 95. What is the Marginal Utility for 11th cup of Coffee? -4 4 9 -3 16 / 30 Q.15 Marginal Utility Approach is also called Ordinal Utility Analysis Hicks and Allen Approach Cardinal Utility Analysis All of the above 17 / 30 Q.14 Prices of essential goods are decided by the Government, and prices of normal goods are decided by the market forces of demand and supply. This concept is called Pricing Mechanism Market Mechanism Dual System of Pricing Unregulated Pricing 18 / 30 Q.13 In a Mixed Economy, Industries in Private Sector have ....... as their objective and driving force. profit motive only community welfare only Both (a) and (b) Neither (a) nor (b) 19 / 30 Q.12 Which of the following applies to a Capitalist Economy? Profit Motive Government Regulation Government Regulation Absence of Competition among various producing Firms 20 / 30 Q.11 labour Intensive Technique would get chosen in Labour Surplus Economy Capital Surplus Economy Developed Economy Developing Economy 21 / 30 Q.10 The Central Problems arise in case of Capitalist Economies Socialist Economies Mixed Economies All of the above 22 / 30 Q.9 Integration of Economic theory with business practice is called - Managerial Economics Business Economics Applied Economics All of the above 23 / 30 Q.8 The process of selecting the appropriate alternative, that will provide the most efficient means of attaining specified objectives, from two or more alternative courses of action available is called Problem solving Decision making Economic analysis Managerial Expertise 24 / 30 Q.7 "Ends" refer to Human Wants Resources Both (a) and (b) Neither (a) nor (b) 25 / 30 Q.6 If the demand for a commodity is _____,the entire burden of indirect tax will fall on the consumer. Relatively inelastic Perfectly inelastic Relatively elastic Perfectly elastic 26 / 30 Q.5 As compared to other economic systems, inequalities of incomes is relatively less in economic system Capitalist Socialist Mixed None of the above 27 / 30 Q.4 Normative economics is in nature modern descriptive prescriptive none of the above 28 / 30 Q.3 economics explains cause andeffect relationship between economic phenomena Positive Normative Empirical Applied 29 / 30 State in capitalist economy State in capitalist economy State in socialist economy State in mixed economy Both (b) and (c) 30 / 30 Q.1 The interference of the government is very limited in— Socialist economy Capitalist economy Mixed economy All the above Your score is LinkedIn Facebook Twitter VKontakte