Business Economics

1. Forward planning goes hand in hand with

                  

• a. decision making

• b. capital

•       c. stock 

•   d. sales

2.The famous book on economics “An Enquiry into the Nature and Cause of Wealth of Nation” was written by 

• a. Marshal

• b. Ricardo

   

•       c. Robins

•   d.Adam Smith

3. Wealth definition of economics is given by  

  

  

 

• a. J B Say

• b. Lionel Robbins

• c. Adam Smith

• d. Alfred Marshall

4. If the income elasticity of demand is that one, the good is a

• a. Necessity

• b. Luxury

• c. Substitute

• d. Complement

5.The income elasticity of demand is negative for a

• a. complement good

• b. normal good

• c. superior good

• d. inferior good

6. What effect is working when the price of a good falls and consumers tend to buy it instead of other goods.

• a. Income effect

• b. Substitution effect

• c. Price effect

• d. complementary effect

7.Two goods that are used jointly to provide satisfaction are called

 

 

• a. Inferior goods

• b. Normal goods

• c. Complementary goods

• d. Substitute goods

8. Demand curve slopes downwards because of

• a. The law of diminishing marginal utility

• b. The income effect

• c. Substitution effect

• d. All of the above

9. If the income and substitution effect of a price increase works in the same direction the good whose price has changed is a

• a. Giffen goods

•  b. Inferior goods

• c. Normal goods

• d. Superior one of these

10.Which one is not a property of isoquant

• a. Downward sloping

• b. Convex

• c. Negative slope

• d. Positive slope