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Economic Analysis for Business Decisions MCQ With Answers

1. Economics is a study of mankind in the ordinary business of life. This definition is given by ______.

A. Lionel Robbins

B. Alfred Marshall

C. Adam smith

D. Samuelson

Answer: Alfred Marshall

2. Normative economics is also known as _______

A. Decisional Economics

B. Positive Economics

C. Applied Economics

D. Prescriptive economics

Answer: Prescriptive economics

3. Increase in national income indicates _______ of an economy.

A. Loss

B. Stagnancy

C. Growth

D. Liability

Answer: Growth

4. Accounting profit can be calculated using ________ & explicit costs.

A. Total Revenue

B. Actual Costs

C. Implicit Costs

D. Exclusive Costs

Answer: Implicit Costs

5. The word ‘economics’ comes from two ________words, ‘eco’ & ‘nomos’.

A. Latin

B. English

C. Greek

D. French

Answer: Greek

6. Money Flow is also known as_______

A. Margin Flow

B. Profit Flow

C. Cash Flow

D. Income Flow

Answer: Income Flow

7. ________ is considered the father of modern economics.

A. Adam Smith

B. J M Keynes

C. Karl Marx

D. Warren Buffet

Answer: Adam Smith

8. ________ is known as the father of modern economics in India.

A. Amartya Sen

B. M. G. Ranade

C. Manmohan Singh

D. Raghuram Rajan

Answer: M. G. Ranade

9. Product flow is also known as_______

A. Real Flow

B. Output Flow

C. Profit Flow

D. Both A & B

Answer: Both A & B

10. _______is a situation where a few large firms compete against each other and there is an element of interdependence in the decision-making of these firms.

A. Monopoly

B. Perfect Competition

C. Oligopoly

D. Duopoly

Answer: Oligopoly

11. ________is a market situation in which there is only one seller of a product with barriers to entry of others.

A. Monopoly

B. Oligopoly

C. Duopoly

D. Perfect Competition

Answer: Monopoly

12. The term _______refers to a particular place where goods are purchased and sold.

A. Warehouse

B. Market

C. Infrastructure

D. Exchange

Answer: Market

13. A large number of buyers and sellers in a homogeneous market, free entry, and exit are the characteristics of ________

A. Duopoly

B. Oligopoly

C. Monopoly

D. Perfect Competition

Answer: Perfect Competition

14. Demand for a commodity refers to______

A. Need for the commodity

B. Quantity of the commodity demanded at a certain price during any particular period of time

C. Desire for the commodity

D. Quantity demanded of that commodity

Answer: Quantity of the commodity demanded at a certain price during any particular period of time

15. Demand for a commodity depends on________

A. Income

B. Price of related goods

C. Price of that commodity

D. All of the above

Answer: All of the above

16._______ the outflows in economic activities.

A. Savings

B. Investments

C. Government spending

D. Personal spending

Answer: Savings

17. Market demand is aggregation of individual demand_______

A. Horizontally

B. Vertically

C. Diagonaly

D. Both A & B

Answer: Horizontally

18. Accounting profit is equal to ________ Cost – Explicit Costs

A. Total

B. Implicit

C. Intrinsic

D. Total Revenue

Answer: Total Revenue

19. A firm and industry are one and the same under_____

A. Monopoly

B. Duopoly

C. Oligopoly

D. Perfect Competition

Answer: Monopoly

20. In case of perfect competition, elasticity will be _____

A. Infinite

B. 0

C. 2

D. 3

Answer: Infinite

21. ______ is not an economic cost.

A. Rents

B. Payments

C. Wages

D. Economic profits

Answer: Economic profits

22. Implicit Cost added in ____ cost.

A. Economic

B. Accounting

C. Simple

D. None of the above

Answer: Accounting

23. Full form of PV in Unit number one is _____

A. Past Value

B. Present Value

C. Perfect Value

D. Program Value

Answer: Present Value

24. How many branches of economics are there?

A. 5

B. 2

C. 4

D. 3

Answer: 2

25. ______ is the central problem in economics.

A. Scarcity

B. Production

C. Revenue

D. Capital

Answer: Scarcity

26. Indian economy is a _______ type of economy.

A. Socialist

B. Socialist

C. Mixed

D. Idealistic

Answer: Mixed

27. Business economics is also known_______

A. Decisional Economics

B. Analytical Economics

C. Managerial Economics

D. Decision Science

Answer: Managerial Economics

28. Economics is______

A. A positive science which deals with economics only

B. A negative science which deals with economical analysis only

C. Neither positive nor negative science but a normative science

D. An art or science depend upon uses – who uses, how uses and for what purpose

Answer: An art or science depend upon uses – who uses, how uses and for what purpose

29. _________is the father of Economics.

A. Peter Drucker

B. Philip Kotler

C. Adam Smith

D. Michael Porter

Answer: Adam Smith

30. Economics is a______

A. Positive Science

B. Relative Science

C. Normative Science

D. Both A & C

Answer: Both A & C

31. The relationship between price and demand is______

A. Normative

B. Positive

C. Negative

D. Horizontal

Answer: Negative

32. Law of demand shows ___________ between price and demand (Quantity Demanded).

A. Positive Relationship

B. Direct Relationship

C. Normative Relationship

D. Negative Relationship

Answer: Negative Relationship

33. The formula (Potential price – Actual price) shows ______

A. Consumer Deficit

B. Consumer Surplus

C. Demand Supply Gap

D. Profit Gap

Answer: Consumer Surplus

34. Economics is a ________ which deals with human wants and their satisfaction.

A. Natural Science

B. Social Science

C. Physical Science

D. Political Science

Answer: Social Science

35. ________is the branch of economics wherein mathematics and statistics are used to measure and analyse economic activities.

A. Econometrics

B. Econography

C. Statistical Economics

D. Ecotronics

Answer: Econometrics

36. ______is the opportunity cost of a machine that can produce only one product.

A. Low

B. Average

C. High

D. Zero

Answer: Low

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