Business Economics - Questions and Answers for Competitive Exams | GkSeries

13. Which of the following is an economic activity

• [A] To teach son at home.
• [B] Teaching teacher in the school.
• [C] To serve her child by mother.
• [D] To play football by a student

Answer: Option [B]

14. Demand is a function of __________

• [A] Income
• [B] Advertisement
• [C] Consumers
• [D] Price

Answer: Option [D]

15. Which will cause a change in the demand for commodity X

• [A] A Change In Tastes
• [B] A Change In Income
• [C] A Change In Price Of Complementary Product
• [D] A Change In The Price of X

Answer: Option [D]

16. When one speaks of "demand" in a particular market, this refers to __________

• [A] the quantity demanded at a given price.
• [B] only one price-quantity combination on the demand schedule.
• [C] the whole demand curve.
• [D] only one point on the entire demand curve.

Answer: Option [C]

17. Law of demand does not include

• [A] Price of commodity is an independent variable.
• [B] Quantity demanded is a dependent variable.
• [C] Reciprocal relationship is found between price and quantity demanded.
• [D] cost of product

Answer: Option [D]

18. In Relatively Elastic Demand ED is = _________

• [A] E=1
• [B] E=0
• [C] E>1
• [D] E<1

Answer: Option [C]

19. When prediction about future is based on the assumption that the firm does not change the course of its action is ______________ forecast

• [A] Passive Forecast
• [B] Active Forecast
• [C] Short run forecast
• [D] Long run forecast

Answer: Option [A]

20. The demand for a good is highly inelastic if __________________

• [A] the price elasticity of the good is close to zero
• [B] the income elasticity of the good is close to one
• [C] if it is a necessity
• [D] both A and C.

Answer: Option [D]

21. People demand more of product X when the price of product Y decreases. This means X and Y are _______________.

• [A] complements.
• [B] substitutes
• [C] not related.
• [D] both inexpensive

Answer: Option [B]

22. Demand curve is a _____________.

• [A] falling curve.
• [B] rising curve.rising curve.
• [C] downward sloping curve.
• [D] upward sloping curve

Answer: Option [C]

23. A positive cross elasticity of demand coefficient indicates that ___________

• [A] A product is an inferior good
• [B] A product is a normal good
• [C] Two products are substitute goods
• [D] Two products are complementary goods

Answer: Option [C]

24. One purpose of short-range forecasts is to determine ___________________

• [A] production planning
• [B] inventory budgets.
• [C] research and development plans.
• [D] facility location.

Answer: Option [D]