MCQ on Business Economics Pdf

Multiple Choice Questions on Business Economics Pdf  : 

We are providing here the chapter-wise important MCQ on Business Economics. Students can practice these questions and answers to revise the key concepts. Since the business economics paper in the Term 1 Exam will comprise MCQs only, students should do a lot of practice to score well on these questions. 

Get Chapter Wise MCQ Questions on Business Economics with Answers PDF Free Download of all subjects is prepared here according to the latest syllabus and curriculum. Students can practice Business Economics Multiple Choice Questions with Answers to score good marks in the examination.

MCQ on Business Economics

MCQ on Business Economics with Answers Pdf

1. In economics, desire backed by purchasing power is known as______________

a) Utility

b) Demand

c) Consumption

d) Scarcity

Answer: b

2. Which of the following is not an economic activity?

a) Production

b) Social service

c) Professional

d) Trading in goods

Answer: b

3. Which option is not a business activity?

a) Production of goods

b) Transportation

c) Exchange of goods

d) Work in a factory for wages

Answer: d

4. The kinked demand curve explains____________

a) Price rigidity

b) Price flexibility

c) Demand rigidity

d) Demand flexibility

Answer: a

5. Imperfect competition was introduced by____________

a) Marshall

b) Chamberlin

c) Keynes

d) None

Answer: b

6. Which of the following is the characteristic of a business?

a) Production

b) Exchange or sale

c) Risk element

d) All the above

Answer: d

7. What do you mean by the supply of goods?

a) Stock available for sale

b) Total stock in the warehouse

c) The actual production of the goods

d) Quantity of the goods offered for sale at a particular price per unit of time

Answer: d

8. A situation in which the number of competing firms is relatively small is known as___________

a) Monopoly

b) Perfect competition

c) Monopsony

d) Oligopoly

Answer: d

9. When the firm charges each customer the maximum price that the customer is willing to pay, the firm_________

a) engages in a discrete pricing strategy.

b) charges the average reservation price.

c) engages in second-degree price discrimination.

d) engages in first-degree price discrimination

Answer: d

10. Which of the following strategies are used by business firms to capture consumer surplus?

a) price discrimination

b) bundling

c) Two-par tariff

d) All of the above

Answer: d

11. Bilateral monopoly is a situation where…………………………… seller faces buyer?

a) monopoly,  monopsony

b) monopsony,  monopoly

c) monopsony, duopoly

d) monopsony, oligopoly

Answer: a

12. Price effect in indifference curve analysis arises____________

a) When the consumer becomes either better off or worse off because price change is not compensated by income change.

b) When the consumer is better off due to a change in income and price

c) When income and price change

d) None of the above

Answer: a

13. Higher the price of certain luxurious articles, the higher will be the demand, this concept is called__________

a) Giffen effects

b) Veblen effects

c) Demonstration effects

d) Both b & c

Answer: b

14. What do you mean by ‘under conditions of perfect competition in the product market’?

a) MRP = VMP

b) MRP > VMP

c) VMP > MRP

d) None of the above

Answer: a

15. What do you mean by a mixed economy?

a) Modern and traditional industries

b) Public and private sectors

c) Foreign and domestic investments

d) Commercial and subsistence farming

Answer: b

16. A situation where there is only one buyer is called__________

a) Monopoly

b) Oligopoly

c) Monopsony

d) Perfect competition

Answer: c

17. A market in which only two firms exist is_________

a) Oligopoly

b) Duopoly

c) Duopsony

d) Oligopsony

Answer: b

18. Elasticity of demand measures the__________

a) Sensitivity of sales to changes in a particular causal factor

b) Sensitivity of production to changes in a particular cost

c) Value of price and cost

d) Volume of product

Answer: A

19. What do you mean by the demand for a commodity?

a) Desire for the commodity

b) Need for the commodity

c) Quantity demanded of that commodity

d) Quantity that consumers are able and willing to buy at various prices during any particular period of time

Answer: d

20. What do you mean by Gross National Product?

a) The total value of goods and services produced in the country

b) The total value of all the transactions in the country

c) The depreciation in the total value of goods and services produced in the country

d) The total value of goods and services produced in the country and the net factor income from abroad

Answer: d

21. Which of the following is the reason for the decline in the child sex ratio in India? 

a) Low fertility rate.

b) Female foeticide

c) Incentives for a boy child from the government

d) None of the above

Answer: b

22. What factors are taken into consideration while revising the poverty line periodically?

a) By conducting a survey every five years

b) Survey carried out by National Sample Survey Organisation

c) Both a and b

d) None of the above

Answer: c

23. Starting from the time of independence, why did India follow a planned economy?

1. India followed a five-year plan and required an outlook.

2. Directive Principles of the Indian Constitution indicated the planned vision of India.

3. There was no indication whatsoever from the five-year plans regarding how much of each and every good and service is to be produced.

Choose the correct statements from the given options

a) Only 2

b) 2 and 3

c) 1 and 3

d) All of the above

Answer: b

24. Why is the unemployment rate low in India statistically?

1. Unemployment is calculated only from the age group of 15 years to 59 years.

2. Unemployment survives only when an individual cannot find a job.

3. People are not interested in working outside the domestic area.

Choose the correct option.

a) Only 3

b) 2 and 3

c) Only 2

d) All of the above

Answer: c

25. What does the bowed-out shape of the production possibilities curve illustrate?

a) Law of increasing opportunity cost

b) The production is inefficient

c) The production is unattainable

d) The demand is relatively elastic

Answer: a

26. One of the reasons for the existence of natural monopoly is_________

a) Economies of scale

b) Lower fixed cost requirement

c) Diminishing marginal rate of productivity

d) Formation of cartels

Answer: c

27. All the major airlines have been experiencing declining sales revenues as fares are increased. From there, it can be inferred that_________

a) The demand for air travel is perfectly inelastic

b) The demand for air travel is relatively inelastic

c) The demand for air travel is relatively price elastic

d) The demand for air travel is unitary price elastic

Answer: c 

28. Debt weight loss refers to____________

a) The transfer of resources from buyers to sellers

b) The increase in producer surplus that results from a tax

c) The decrease in consumer surplus that results from a tax

d) The decrease in government revenue that occurs when a tax rate is increased beyond its optimum

Answer: d

29. An entrepreneur wants to maximize profits without affecting his price. He must produce an output where_____________ 

a) Marginal cost is equal to the average variable cost

b) Average variable cost is minimum

c) Average fixed cost is minimum

d) Average cost is minimum 

Answer: a

30. What is the main economic problem faced by society?

a) Unemployment

b) Inequality

c) Poverty

d) Scarcity

Answer: d

31. Which of the following is the relation that the law of demand defines?

a) Income and price of a commodity

b) Price and quantity of a commodity

c) Income and quantity demanded

d) Quantity demanded and quantity supplied

Answer: b

32. What does “Capitalism” refer to?

a) The use of market

b) Government ownership of capital

c) Private ownership of capital goods

d) Private ownership of homes and& cars

Answer: c

33. The goal of a pure market economy is to meet the desire of______

a) Consumers

b) Companies

c) Workers

d) The government

Answer: a

34. Which of the following curve is called the planning curve?

a) Long run average variable cost curve

b) Long run average total cost curve

c) Long-run total cost curve

d) Long-run marginal cost curve

Answer: b

35. The marginal rate of technical substitution is equal to the___________

a) slope of the total product curve

b) change in output minus change in labor

c) change in output divided by change in labor

d) Ratio of the marginal products of the input.

Answer: c

36. An entrepreneur wants to maximize profits without affecting his price. He must produce an output where;

a) Average variable cost is minimum

b) Average fixed cost is minimum

c) Average cost is minimum

d) marginal cost is minimum.

Answer: c

37. The scale of economics index (SCI) is equal to__________

a) The cost output elasticity

b) one minus cost output elasticity.

c) 100 times the degree of the economics of scope.

d) marginal cost divided by average cost.

Answer: a

38. What does the law of demand mean?

a) As the quantity demanded rises, the price rises.

b) As the price rises, the quantity demanded rises.

c) As the price rises, the quantity demanded falls.

d) As the supply rises, the demand rises.

Answer: c

39. Which of the following is an example of an agricultural price support program?

a) A price ceiling

b) A price floor

c) Equilibrium pricing

d) None of the above

Answer: b

How to Prepare for Business Economics MCQ Paper

There is a lot of time for B.Com exam preparation throughout the academic year and the entire timetable of students appearing for the exam is changed. But if due for some reason you are not able to study properly or you feel that your business economics MCQ preparation is not going according to the syllabus, then these study tips will help you a lot. Actually, it is very important to understand the importance of smart work along with hard work before your exam. By trying them, you can prepare well for the exam in less time.

1. Study  Syllabus: Before start preparing for the business economics subject take the latest syllabus and previous year’s papers. Discuss this topic and must See the following points.
  • From which chapter most questions were asked
  • From which concept questions were asked almost every year in exams.
  • From which Chapter Fewest questions were asked.
  • In which chapter easy questions and hard Questions were asked.

2. Revision: The role of revision is important in the preparation of the business economics Question Papers To improve the quality of preparation it is worth mentioning that it is revised. So repeated topics, chapters, and MCQ from time to time.

3. Asked Questions: Studying by asking questions has a big positive point for business economics Preparation: the facility to identify the points that went wrong and that need to be improved. Once you’ve finished asking a certain amount of questions on a particular topic check the ones you missed and highlight them differently. This will help to find them in the future when you revise them again.

4. Gather Study Materials: One thing is for sure: you will need a lot of business economics MCQ questions bank to train. As such as it is important that you gather a good Set of MCQ questions before starting the marathon. Gather questions from handouts, websites, books, study materials, etc.

5. Write down Important MCQs on Business Economics: Every day write down the number of questions you asked, the ones you got right, and the ones you missed. Leave this information in a visible place, as it is extremely important that you start to observe the progress of the work. In two or three weeks, it is important that the number of questions asked has increased, without saying that the number of correct answers should also evolve, while the number of mistakes should drop.

6. Performance analysis: Analyze your own performance while solving business economics sample papers or previous year’s papers. Pay attention to which subject is taking more or less time. This will let you know how much time needs to be given to which subject. Along with the analysis of the subjects, keep in mind their chapters as well. Some chapters will be very easy and will be prepared quickly. Whereas in some you have to work harder. As soon as you know the right target, then you will easily complete it.

By reading the above tips and starting to implement them in your daily life, I guarantee that studying in this way becomes easier and your performance will reach another level of Preparation.

FAQs about Business Economics MCQ Chapter Wise Pdf 

Why is it necessary to practice MCQ for business economics?
Answer: As we know business economics has an immense impact on To score high in the Business Economics Chapter-wise  MCQ Questions are the base for competitive exam. In this scenario, what is needed is to have a proper understanding of the concepts behind the topics and chapters included in the exam. Most of the time, students do not get it in the classroom or during self-study. In such cases our MCQ act as recorded help to students looking out to clear their concepts and can just download the PDF and consult it whenever required. 

Where and how can I download Business Economics Multiple Choice Questions in pdf format?
Answer. For the ease of students, we at provided Chapter wise Business Economics MCQ questions in PDF format for free. It covers all concepts and all topics for all Aspirants. These MCQs are prepared by our senior and experienced faculty which gives students an in-depth understanding of the concepts rather than the particular question.

Why ybstudy MCQ on Business Economics Chapter Wise Pdf are Recommended?
Answer: Well, it’s a fact that our MCQ Questions are the best for business economics exam preparation. It is not just because we recommend itself but the content and syllabus of BE books are the best across the country. Our MCQ Syllabus and Topics class are curated after thorough research keeping in mind the development perspective of students which helps them excel in exams. Thus, Chapter-wise MCQ questions on Business  Economics pdf free download it gets extremely important for students to thoroughly go through the recommended for B.Com Aspirants.

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