BEFA MCQ

S No Question
1. _______ is an association of two or more than two person B
to carry out the business jointly.
A. Sole enterprise
B. Partnership firm
C. Limited liability company
D. Joint stock company
2. ________ is the sum of market value of all final goods and B
services that are produced in a country during a given
period of time, usually one year.
A. Gross National Product
B. Gross Domestic Product
C. Gross Value Added
D. Net National Product

3. ________ Phase of business cycle shows the upward D

movement of output and employment from depression
phase.
A. Depression Phase
B. Recovery Phase
C. Prosperity
D. Recession
4. _______ is not a long term sources of finance for a D
company.
A. Debentures
B. Shares
C. Loans
D. Commercial paper
5. GNP stands for B
A. Gross Net Product
B. Gross National Product
C. Gross National Production
D. Gross Net Production
6. A IPO stands for B
A. Initial People Offering
B. Initial Public Offering
C. International People Offering
D. International Public Offering
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7. Technically the whole economic theory is broadly divided D
into two parts
A. Mini and Major economics
B. Micro and Major economics
C. Mini and Macro economics
D. Micro and Macro economics
8. NNP stands for A
A. Net National Product
B. Nation’s Net Production
C. Net National Production
D. None of the above
9. ________ is a company which has a minimum paid up B
capital of Rs 1,00,000 or such higher paid up capital as
may be presented and by its articles.
A. Public limited company
B. Private limited company
C. Partnership firm
D. Sole enterprise
10. _________ is a non- conventional source of finance. A
A. Debenture/ Loans
B. Hire purchases
C. Shares
D. Public deposits
11. ________ is an economic activity started with the sole A
objective of earning profits.
A. Business
B. Partnership firm
C. Profits
D. Public limited company
12. ___________ is also known as joint stock company. C
A. Sole Proprietorships
B. Partnership firms
C. Limited liability company
D. Joint Stock company

13. _________is defined as the total income received by D

individuals of a nation from all the sources of income.
A. Disposable Income
B. Personal Income
C. Net Income
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D. None of the above
14. Perfect competition is characterized by D
A. large number of buyers and sellers
B. homogeneous product
C. free entry and exit of firms

D. all the above

15. The distinction between variable cost and fixed cost is A
relevant only in
A. long period
B. short period
C. medium term

D. mixed period
16. The Written document among the partners is referred to as A
__________
A. Partnership Deed.
B. Document of Partners
C. Memorandum of Understanding
D. Legal Document
17. __________ is the study of aggregates C
A. Micro Economics
B. Mixed Economics
C. Macro Economics
D. All the above
18. __________Inflation occurs when the aggregate demand B
increases much more rapidly than the aggregate supply.
A. Creeping Inflation
B. Demand Pull inflation
C. Recession
D. Cost Pull Inflation
19. who is the father of business economics? C
A. Adam Smith
B. M.G. Ranade
C. Paul Samuelson
D. Bina Agarwal
20. Business Economics is
A. Dealing only micro aspects
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B. Only a normative science
C. Deals with practical aspects D

D. All of the above

21. The Various quantities of a good or a commodity that a A
consumer purchases at different levels of his/her income is
called as________
A. Income demand
B. Cross demand
C. Price demand
D. Diminishing demand
22. When the quantity demanded of a commodity increases C
due to a decrease in price then it is called as_______
A. Contraction of Demand
B. Extension of Demand
C. Both (a) and (b)
D. None of the above
23. Which of the following comes under exceptions to law of D
demand?
A. Giffen goods
B. Prestigious goods
C. Expectations of future prices
D. All the above
24. A commodity is said to have ________ when even a large C
change in price of the commodity causes no change in the
quantity demanded.
A. Perfectly elastic demand
B. Unitary elastic demand
C. Perfectly inelastic demand
D. Relatively elastic demand
25. Basic assumptions of law of demand include B
A. Prices of other goods should change.
B. There should be substitute for the commodity.
C. The commodity should not confer at any distinction.
D. The demand for the commodity should not be
continuous
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26. Which one is not a type of elasticity of demand? C
A. Advertising elasticity of demand
B. Price elasticity of demand
C. Qualitative elasticity of demand
D. Income elasticity of demand.
27. The Diagrammatical or graphical representation of demand C
schedule which shows relationship between price and
demand is _________
A. Demand schedule
B. Demand function
C. Demand curve
D. None of above
28. Elasticity of demand can be measured through_________. D
A. Point Elasticity of Demand Method
B. Arc Elasticity of Demand Method
C. Both( a) and (b)
D. None of the above.
29. __________serves as road map for production plan. D
A. Demand estimation
B. Demand forecasting
C. Demand production
D. Demand analysis
30. Which is not a case in income elasticity of demand B
A. Unitary income elasticity of demand
B. Negative income elasticity of demand
C. Middle income elasticity of demand
D. Zero income elasticity of demand
Which of the following deals with financial relationship
existing between supply of a product and its price?
A. Law of Demand
31. A
B. Law of Production
C. Law of supply
D. None of the above
32. In economics, desire backed by purchasing power is known A
as
A. Utility
B. Demand
C. Consumption
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D. Scarcity
In the case of ______________ a small change in price
leads to very big change in quantity demanded
A. Perfectly elastic demand
33. B. Perfectly inelastic demand C
C. Relative elastic demand

D. Unit elastic demand

Car and petrol are
A. Complimentary goods
B. Substitute goods
34. A
C. Supplementary goods

D. Reserve goods
Criteria for good demand forecasting includes
A. Plausibility
B. Simplicity
35. D
C. Economy

D. All the above.

According to companies act 1956 what is the maximum
limit for non-banking business in case of partnerships
A. 10
36. B. 20 A
C. 2

D. 100
Purposes of Short term Demand forecasting doesn’t
includes
A. Making a suitable production policy.
B. To reduce the cost of purchasing raw materials and
37. to control inventory. D

C. Deciding suitable price policy

D. Planning of a new unit or expansion of existing unit

38. In ______________ approach, the demand for new product B
is estimated on the basis demand of existing product
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A. Growth curve approach
B. Evolutionary approach.
C. Opinion polling approach

D. Vicarious approach.
The proportionate change in the quantity demanded of a
commodity in response to change in the price of another
related commodity is called
A. Price elasticity
39. B. Related elasticity C

C. Cross elasticity

D. Income elasticity
Which one is the statistical method for measurement of
demand forecasting
A. Census method
B. Sample Method
40. D
C. Moving average method
D. Sales force opinions

The function of combining the other factors of production

is done by
A. land
41. B. labour D
C. Capital

D. Entrepreneurship
The market with a single producer
A. perfect competition
B. monopolistic competition
42. D
C. oligopoly

D. monopoly
43. The short run production function is called B
A. Returns to scale
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B. law of variable proportion
C. Production possibility frontier

D. None of these
Which are the characteristics of monopoly?
A. Single seller or producer
B. No close substitutes
44. D
C. Inelastic demand curve

D. All of these
Who classified economies of scale into internal and
external?
A. Robinson
45. B. Marshall B
C. Edward west

D. Pigue
Product differentiation is the important feature of
A. monopoly
B. perfect competition
46. C
C. monopolistic competition

D. monophony
Partner by estoppels means
A. Active contribution
B. In-active contribution
47. B
C. Behavioral contribution

D. No contribution
Functional relationship between input and output known as
A. Conversion
B. Production function
48. C
C. Work in progress

D. Output function
49. in economics ______________ means 'a state of rest 'or B
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'stability'
A. Depression
B. Equilibrium
C. Maturity

D. Growth
Selling cost is the feature of the market form
A. monopoly
B. monopolistic competition
50. B
C. oligopoly

D. none of these