FYBCOM

MCQ
1) The market supply schedule shows Direct relationship between price and quantity
supplied
2) In case of normal goods, demand curve is Downward sloping
3) Kinked demand curve is observed in Oligopoly market.
4) Short run production function includes Both fixed and variable factors
5) Microeconomics studies the economic behavior of individual
6) Macroeconomics studies the functioning of an economy as a whole.
7) One of the most important areas of study in business economics is the Market
8) Demand = desire + ability to pay + willingness to buy
9) The relationship between price and demand is Inverse
10) Some factors of production or inputs remain constant. They are called Fixed factors
11) When TP is maximum, MP is Zero
12) TC = TFC + TVC
13) ATC = AFC + AVC
14) TR = P x Q
15) At the break – even point, the price is equal to Total cost.
16) The most important factor determining demand is the Price of the commodity
17) AR = TR/Q
18) TC = TP – C
19) Kinked isoquant assumes only Limited substitutability
20) The Greek words ‘Mikros and Makros’ meaning ‘Small’ and Large respectively.

True and False.

1) Demand is desire backed by willingness and ability to pay – True
2) Technology is variable in long run production function – True
3) MRTS is measured as ∆ K /∆ L = True
4) Opportunity costs can always be measured in terms of money = False
5) Long term forecasts are required for capital investments = False
6) Demand curve under monopoly is perfectly inelastic = False
7) MC = AC when AC is minimum = True
8) TR = P x Q = True
9) Kinked isoquant assumes only limited substitutability = True
10) The market supply schedule shows indirect relationship between price and quantity
supplied = False
11) Opportunity cost is the Value of the non-alternative sacrificed = False
12) Demand is relatively inelastic when Ed = 1 = False
13) Delphi method is survey method = True
14) Break – even point is reached when a firm covers fixed cost = False
15) Iso cost line is price line = True
16) Implicit cost is also called Indirect cost = True
Shorts notes
1) Historical cost and replacement
2) Expansion path
3) Macro economics
4) Accounting cost and economics cost
5) Shift in demand curve
6) Consumer survey
7) Market experiments
8) Smooth convex isoquant
9) Three phases of Low of variable proportions

Questions
1) Define business economics? Discuss its scope
2) Define economics and bring out the differences between microeconomics and
macroeconomics
3) Explain the change in demand curve
4) Explain the change in supply curve
5) Explain the market equilibrium
6) Discuss the determinants of demand
7) Explain the factors affecting price elasticity of demand
8) Discuss the importance of elasticity of demand
9) Discuss the any two relationships between price elasticity of demand and revenue
concepts
10) Discuss the types of demand forecasts
11) Discuss the types of Isoquants any two
12) Explain the Expansion path
13) Explain Fixed proportion production function
14) Explain the variable proportion production functions
15) Explain the short – run production analysis
16) Types of cost of concept
17) Equation Problem 2 - 3
18) Explain the short run average cost and output
19) Explain the BEP
20) Discuss the application of BEA

Shorts notes
1) Macroeconomics
2) Demand
3) Concept of Revenue
4) Cost of concept