Tag: business economics and quantitative methods

Questions Related to business economics and quantitative methods

What is dual pricing?

  1. Wholesale price and Retail pricning

  2. Pricing by agents and Pricing by retailers

  3. Price fixed by Government and Price in open market

  4. Daily prices and Weekly prices


Correct Option: C

As per indifference curve and price line, a consumer will not be in equilibrium when

  1. Ratios of marginal utilities and prices of the respective goods are equal

  2. Ratio of marginal utilities of the two goods is equal to the ratio of their respective prices

  3. The marginal rate of substitution is equal to the ratio of prices of the two goods

  4. The marginal rate of substitution is decreasing


Correct Option: A

The difference between the minimum price the producer is willing to accept and the equilibrium price is called ________.

  1. price

  2. profit

  3. producers surplus

  4. consumers surplus


Correct Option: C

Graphically, when is the supply curve is below the demand curve?

  1. Excess demand

  2. Excess supply

  3. Equilibrium

  4. None of these


Correct Option: A

Graphically, an equilibrium is a point where _____.

  1. supply curve is above the demand curve

  2. supply curve is below the demand curve

  3.  market supply curve intersects the market demand curve

  4. none of these


Correct Option: C

At any price lower than equilibrium price, there is _____.

  1. excess supply

  2. excess demand

  3. deficient supply

  4. deficient demand


Correct Option: B

An industry which is fighting hard to increase its market share in the existing market (with new popular products) is known as:

  1. Market vendor

  2. Market operator

  3. Market leader

  4. Market challenger


Correct Option: D

Aggregate demand consists of consumption and investment demand. 

  1. True

  2. False


Correct Option: A
Explanation:

True. Aggregate demand consists of consumption and investment demand. Aggregate demand is the demand of total goods and services in the economy as it is impossible to count all the physical quantities the total expenditure on all goods and services are taken into account. Aggregate demand consists of expenditure on household consumption, Private investment, Government expenditure on consumption and investment and imports and exports.  

Demand curve of an Oligopoly firm is characterized by being  _________.

  1. Horizontal to X axis

  2. Kinked at a point

  3. U shaped curve

  4. A linear line


Correct Option: B

The consumer surplus of a product represent.

  1. Excess of demand price over price paid

  2. Excess of price over cost of production

  3. Excess of demand price of equilibrium price

  4. Demand price minus taxes


Correct Option: A