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OBJECTIVE TYPE OF QUESTIONS

Q. 1

Startegy in which the firm charges low price as compared already existing firms it is called A) B) C) D) a.Penetration Strategy b.skimming strategy c.Approach strategy d.Pricing strategy

Q. 2

The inverse relationship between price & quantity demanded is A) B) C) D) Law of Demand Law of supply Law of System Law of Nature

Q. 3

Law of _____ is an old economic principle, which was the first redefined version of Marshall A) B) C) D) Variable Proportion Return to Scale Economies of Scale None of the above

Q. 4

Payment which is made in excess of what is required to retain an employee in the organisation is A) B) C) D) a.Low payment b.less payment Slack Payment d.Down payment

Q. 5

Tax on airline tickets are _____ tax A) B) C) D) Indirect Lump Sum Ad Valorem Value Added

Q. 6

When the degree of price rise is not more than 3% and not at all dangerous, the inflation is said to be _____ A) B) C) D) Creeping Walking Running Galloping

Q. 7

The process which tells how much the demand will change with the change in price to demand is A) B) Pattern of Demand Elasticity of Demand Ans

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C) D) Q. 8 Point elasticity of Demand Ratio Elasticity

_____ firm will prefer to go for sales maximization via increase in advertisement rather than a price A) B) C) D) Oligopolistic Monopolistic Commercial All of the above

Q. 9

In the law of demands, factors such as income, taste, fashion and preference etc., are _____ A) B) C) D) Variable Constant Either A) or B) None of the above

Q. 10 When the supply decreases due to cjange in factors other than price it is called A) B) C) D) State the True points with regards to Supply 1. Supply refers to various quantities of goods, which a seller is willing and able to sell at a different price in a given market at a particular time, other things remaining constant 2. Su A) B) C) D) Q. 2 1-T, 2-T 1-T, 2-F 1-F, 2-T 1-F, 2-F Increase in Supply Decrease in Supply ans Change in Supply Increase in supply

The correct formula for Short Run Average

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Total Cost is _____ A) B) C) D) Q. 3 SATC = TFC / Q SATC = TVC / Q SATC = SAVC + SAFC SATC = SAVC - SAFC

The bases for Product Differentiation are: 1. Characteristic of the product 2. Condition surrounding the service of the product 3. Condition surrounding the sales of the product A) B) C) D) 1 and 2 2 and 3 1 and 3 1, 2 and 3

Q. 4

The two types of pricing in the pioneering stages are: A) B) C) D) Skimming price and Low penetration pricing Skimming price and High penetration pricing Cost-plus pricing and Low penetration pricing Cost-plus pricing and High penetration pricing

Q. 5

The phases of Business Cycle are: 1. Expansion 2. Contraction 3. Recession 4. Revival or Recovery A) B) C) D) 1 and 2 3 and 4 1, 2 and 3 1, 2, 3 and 4

The different types of Cost are: 1. Opportunity cost 2. Explicit and Implicit cost 3. Sunk, incremental cost and marginal cost 4. Direct and Indirect cost 5. Fixed and Variable cost A) B) 1, 2, 3, 4 1, 2, 3, 5

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C) D) Q. 2 1, 3, 4, 5 1, 2, 3, 4, 5

The criticisms in Marris Growth Maximization Model are: 1. This model does not tell anything about how the prices are determined; it only assumes that the price is given 2. They ignore interdependence in oligopoly market structure A) B) C) D) 1, 2, 3 and 4 3, 4, 5 and 6 1, 2, 5 and 6 All of the above

Q. 3

State the True points with respect to Lags In Fiscal Policy: 1. Fiscal Policy has lags both inside and outside lag 2. Inside lag of fiscal policy is longer than monetary policy, but has shorter outside lag 3. Any significant change A) B) C) D) 1, 2, 3, 4 3, 4, 5, 6 1, 2, 5, 6 All of the above

Q. 4

State the True points with respect to Dead Weight Loss: 1. A Dead Weight Loss is a permanent loss of well being of the society 2. It occurs when equilibrium for a commodity is not Pareto Optimal 3. Monopoly leads to lack of economi A) B) C) D) 1, 2, 3, 4 2, 3, 4, 5 1, 3, 4, 5 1, 2, 3, 4, 5

Q. 5

The Survey Methods of Demand Forecasting are: 1. Experts Opinion Survey 2. Consumers Interview 3. Trend Method 4. Regression Method 5. Leading Indicator 6. Simulation Equation A) B) C) D) 1, 2, 3, 4 3, 4, 5, 6 1, 2, 5, 6 All of the above

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