Bihar Board 12th Business Economics Objective Important Questions Part 1 in English

Bihar Board 12th Business Economics Objective Important Questions Part 1 in English

BSEB 12th Business Economics Objective Important Questions Part 1 in English

Question 1.
The subject matter of economics is being studied under which branches
(a) Micro Economic
(b) Macro Economics
(c) Above two
(d) None of the above
Answer:
(b) Macro Economics

Question 2.
On the basis of the ownership of the resources, economies are
(a) Centrally planned economy
(b) Market economy
(c) Mixed economy
(d) All of the above
Answer:
(d) All of the above

Question 3.
Which are the central problems of an economy?
(a) Allocation of resources
(b) Best use of resources
(c) Economic development
(d) All of the above
Answer:
(d) All of the above

Question 4.
Macro Economics studies
(a) Full employment
(b) Aggregate price level
(c) Gross National Product
(d) All of the above
Answer:
(d) All of the above

Question 5.
This is required for a budget set
(a) Collection of bundles
(b) Prevailing market price
(c) Total income of the consumer
(d) All of the above
Answer:
(d) All of the above

Question 6.
In diminishing rate of substitution
(a) more of goods 1
(b) less of goods 2
(c) more of both 1 and 2
(d) (a) and (b) both
Answer:
(d) (a) and (b) both

Question 7.
Consumer behaviour is studied in
(a) Micro Economics
(b) Macro Economics
(c) Income theory
(d) None of the above
Answer:
(a) Micro Economics

Question 8.
In perfect competition the firms:
(a) Determining the prices
(b) Accepting the prices
(c) (a) and (b) both
(d) None of these
Answer:
(b) Accepting the prices

Question 9.
Indifference curve is
(a) Concave to the origin
(b) Convex to the origin
(c) Both the above true
(d) Both the above false
Answer:
(b) Convex to the origin

Question 10.
The slope of the demand curve is
(a) left to right downward
(b) left to right upward
(c) parallel to x-axis
(d) None of the above
Answer:
(a) left to right downward

Question 11.
Demand function is expressed by which equation?
(a) Px
(b) Dx = Px
(c) Dx = f(Px)
(d) None of the above
Answer:
(c) Dx = f(Px)

Question 12.
Short run production function is explained by which law?
(a) By the law of demand
(b) By law of variable proportions
(c) By law of returns to scale
(d) By elasticity of demand
Answer:
(b) By law of variable proportions

Question 13.
Tick the correct in the following
(a) TVC = TC – TFC
(b) TC = TVC – TFC
(c) TFC = TVC + TC
(d) TC = TVC • TFC
Answer:
(a) TVC = TC – TFC

Question 14.
In very short period the supply will be:
(a) Perfectly elastic
(b) Perfectly inelastic
(c) Elastic
(d) None of these
Answer:
(b) Perfectly inelastic

Question 15.
In monopoly and monopolistic condition
(a) AR = MR
(b) AR > MR
(c) AR < MR
(d) None of the above
Answer:
(b) AR > MR

Question 16.
In every market situation which condition is necessary to be fulfilled for a firm’s equilibrium?
(a) AR = MC
(b) MR = MC
(c) MC curve should cut the MR curve from below
(d) (b) and (c) both
Answer:
(d) (b) and (c) both

Question 17.
Which of the following statement is true?
(a) There is direct relationship between the price of a commodity and its Supply
(b) Supply curve moves left to right upward
(c) Supply is affected by many factors
(d) All of the above
Answer:
(d) All of the above

Question 18.
If the price of a commodity rises by 40% but the supply increases by only 15% supply of such commodity would be
(a) Excessive elastic
(b) Elastic
(c) Inelastic
(d) Completely inelastic
Answer:
(c) Inelastic

Question 19.
In equilibrium position
(a) The amount to be sold is equal to the amount to be purchased
(b) Market supply is equal to market demand
(c) Neither the firm nor the consumer wants to be destabilised
(d) All of the above
Answer:
(d) All of the above

Question 20.
Every firm uses labour up to the point
(a) Where labour’s marginal productivity is equal to the wage rate
(b) Where labour’s marginal productivity is less than the wage rate
(c) Where labour’s marginal productivity is more than the wage rate
(d) None of the above
Answer:
(c) Where labour’s marginal productivity is more than the wage rate

Question 21.
In which market product differentiation is found?
(a) Pure competition
(b) Perfect competition
(c) Monopoly
(d) Monopolistic competition
Answer:
(c) Monopoly

Question 22.
Government decides “Price ceiling”
(a) On necessary goods
(b) Which is less than the price decided by market
(c) To make it affordable to the common man
(d) All of the above
Answer:
(c) To make it affordable to the common man

Question 23.
Price is determined at the point, where
(a) Demand of the commodity is high
(b) Supply of the commodity is high
(c) Demand of the commodity and supply of the commodity is equal
(d) None of the above
Answer:
(c) Demand of the commodity and supply of the commodity is equal

Question 24.
Market price is found in
(a) Short period market
(b) Long period market
(c) Very long period market
(d) none of the above
Answer:
(a) Short period market

Question 25.
British economist John Maynard Keynes famous book “The General Theory” was published in which year?
(a) 1926
(b) 1936
(c) 1946
(d) 1956
Answer:
(b) 1936

Question 26.
Which is a central problem of an economy?
(a) Allocation of Resources
(b) Optimum utilization of Resources
(c) Economics development
(d) All of these
Answer:
(d) All of these

Question 27.
Which of the following is a sources of production?
(a) Land
(b) Labour
(c) Capital
(d) All of these
Answer:
(d) All of these

Question 28.
According to whom Economics is a science of human welfare?
(a) A. Marshall
(b) Paul Sameledron
(c) J. S. Mill
(d) Adam Smith
Answer:
(a) A. Marshall

Question 29.
Which of the following is not a factor of production?
(a) Land
(b) Labour
(c) Money
(d) Capital
Answer:
(c) Money

Question 30.
Consumer’s behaviour is studied in
(a) Micro economics
(b) Income theory
(c) Macro economics
(d) None of these
Answer:
(a) Micro economics

Question 31.
Elasticity of demand for necessary goods is
(a) Zero
(b) Unlimited
(c) Greater than unity
(d) less than unity
Answer:
(a) Zero

Question 32.
Law of demand is a
(a) Qualitative statement
(b) Quantitative statement
(c) Both (a) and (b)
(d) None of these
Answer:
(c) Both (a) and (b)

Question 33.
At which time all the factors of productions may be changed?
(a) Short run
(b) Long run
(c) Very long run
(d) All of these
Answer:
(b) Long run

Question 34.
Which is a characteristic of the market?
(a) One area
(b) Presence of buyers and sellers
(c) Single price of commodity
(d) All of these
Answer:
(d) All of these

Question 35.
Source of production are
(a) Land
(b) Labour
(c) Capital
(d) All of these
Answer:
(d) All of these

Question 36.
Who is the founder of Economics Science?
(a) Kautilya
(b) Karlael
(c) William Moris
(d) Charles Dickens
Answer:
(a) Kautilya

Question 37.
Who said, “Economics is the science of Scarcity?”
(a) Robins
(b) Adam Smith
(c) Marshall
(d) J.S. Mill
Answer:
(a) Robins

Question 38.
Who said, “Economics is the science of material welfare?”
(a) Robins
(b) Marshall
(c) J.B. Say
(d) Seenear
Answer:
(b) Marshall

Question 39.
Who is the write of “General Theory of Employment, Interest and Money?”
(a) Pigue
(b) Malthas
(c) J.M. Keans
(d) Marshall
Answer:
(c) J.M. Keans

Question 40.
Which of the following is Real Investment?
(a) To purchase share
(b) To purchase old factory
(c) To construction of buildings
(d) To open a bank A/c
Answer:
(c) To construction of buildings

Question 41.
Source of production is
(a) 5
(b) 6
(c) 7
(d) None of these
Answer:
(d) None of these

Question 42.
Which of the following is the part of money market?
(a) Commercial Bank
(b) Commercial Letter
(c) Co-operative Bank
(d) All of these
Answer:
(d) All of these

Question 43.
World Trade Organisation is establish in:
(a) Washington
(b) New York
(c) Jeneva
(d) None of these
Answer:
(c) Jeneva

Question 44.
The factor of Balance of payment is:
(a) Current A/c
(b) Capital A/c
(c) Both
(d) None of these
Answer:
(c) Both

Question 45.
Micro-economics is the study of:
(a) National income
(b) National Production
(c) A particular firm
(d) All of these
Answer:
(c) A particular firm

Question 46.
In which of the following, that is co-existence of both private and public sector?
(a) Capitalist economy
(b) Socialist economy
(c) Mixed economy
(d) None of these
Answer:
(c) Mixed economy

Question 47.
The concept of production possibility curve is associated with:
(a) Samuelson
(b) Marshall
(c) Hicks
(d) Robbins
Answer:
(a) Samuelson

Question 48.
Which of the following is the example of service:
(a) Work of doctors
(b) Work of teachers
(c) Work of Lawyers
(d) All of these
Answer:
(d) All of these

Question 49.
Which one is economic good in the following?
(a) Television
(b) Air
(c) Sunlight
(d) Water of river
Answer:
(a) Television

Question 50.
Scarcity problem arises because our resources are:
(a) Unlimited
(b) Limited
(c) Sufficient
(d) Vast
Answer:
(b) Limited

Question 51.
Which type of economy has to face the basic economic problem?
(a) Capitalistic
(b) Socialistic
(c) Mixed
(d) Every
Answer:
(d) Every

Question 52.
All economic problems are due to:
(a) Unlimited wants
(b) Limited means
(c) Different priorities
(d) All of these
Answer:
(d) All of these

Question 53.
Which one is the characteristic of wealth?
(a) Utility
(b) Scarcity
(c) Exchangeability
(d) All of these
Answer:
(d) All of these

Question 54.
What is the central problem of an economy?
(a) Allocation of resources
(b) Optimum use of resources
(c) Economic development
(d) None of these
Answer:
(d) None of these

Question 55.
The production possibility curve slopes:
(a) from below to above
(b) from right to left
(c) from left to right
(d) from above to below
Answer:
(b) from right to left

Question 56.
A country development depends:
(a) Capital resource
(b) Size of market
(c) Natural mines
(d) All of these
Answer:
(d) All of these

Question 57.
The main objective of a socialist economy:
(a) To earn profit
(b) Cut-throat competition
(c) Control free economy
(d) Maximum social welfare
Answer:
(d) Maximum social welfare

Question 58.
Consumer’s behaviour is studied in:
(a) Micro economics
(b) Macro economics
(c) (a) and (b) both
(d) None of the above
Answer:
(a) Micro economics

Question 59.
Utility is measured by:
(a) Exchange of commodities
(b) Sale of commodity
(c) By Money
(d) None of these
Answer:
(c) By Money

Question 60.
Law of equi-marginal utility is propounded by
(a) Gossen
(b) Pigou
(c) Adam Smith
(d) Ricardo
Answer:
(a) Gossen

Question 61.
Market price exists in:
(a) Short period market
(b) Long period market
(c) Very long period market
(d) None of these
Answer:
(a) Short period market

Question 62.
When Total Utility (TU) becomes maximum then marginal utility is:
(a) Positive
(b) Negative
(c) Zero
(d) None of these
Answer:
(b) Negative

Question 63.
Indifference curve is:
(a) Convex to the origin
(b) Concave to the origin
(c) Both (a) and (b)
(d) All of these
Answer:
(a) Convex to the origin

Question 64.
Who gave the cardinal concept of utility?
(a) Marshall
(b) Pigou
(c) Hicks
(d) Ricardo
Answer:
(a) Marshall

Question 65.
As a consumer you will:
(a) Maximize utility
(b) Purchase more and more commodity
(c) Reduce production cost
(d) Not like purchase commodity
Answer:
(a) Maximize utility

Question 66.
For demand it is essential:
(a) Willing for commodity
(b) Resource
(c) Will to spend
(d) All of these
Answer:
(d) All of these

Question 67.
When price of a commodity decreases then:
(a) Demand increases
(b) Demand decreases
(c) Demand constant
(d) Demand increases and also decreases
Answer:
(a) Demand increases

Question 68.
The type of giffen good is:
(a) Special
(b) Superior
(c) Normal
(d) Inferior
Answer:
(d) Inferior

Question 69.
The relationship between demand and price is:
(a) Inverse
(b) Direct
(c) both (a) and (b)
(d) None of these
Answer:
(a) Inverse

Question 70.
The law of demand express:
(a) The relationship between quantity demand and price of commodities
(b) Price relationship of two commodities
(c) The relationship between consumer’s income and quantity demanded
(d) None of these
Answer:
(a) The relationship between quantity demand and price of commodities

Question 71.
The law of demand not applicable on:
(a) Comfort goods
(b) Luxury goods
(c) Necessities
(d) Inferior goods
Answer:
(d) Inferior goods

Question 72.
The law of demand is not applicable when:
(a) Price of other commodities changes
(b) Quality of commodity changes
(c) Change in fashion
(d) All of these
Answer:
(d) All of these

Question 73.
Demand for any commodity is affected from:
(a) Utility
(b) Productivity
(c) Profitability
(d) None of these
Answer:
(d) None of these

Question 74.
When price of coffee increase the demand for tea
(a) increases
(b) decreases
(c) Unchanged
(d) None of these
Answer:
(a) increases

Question 75.
Due to increase in Patrol the demand for car will:
(a) Increase
(b) Decrease
(c) Keep constant
(d) No effect
Answer:
(b) Decrease

Question 76.
Due to increase in pride of apple the demand for apple will:
(a) Decreases
(b) Extend
(c) Increase
(d) No effect
Answer:
(a) Decreases

Question 77.
Increase in the demand for wages due to industrial development is an example of:
(a) Income demand
(b) Cross demand
(c) Derived demand
(d) Competitive demand
Answer:
(c) Derived demand

Question 78.
In short period there is no change in ……….. factors:
(a) Fixed
(b) Variable
(c) Human
(d) Physical
Answer:
(a) Fixed

Question 79.
Modern economics have propounded the law of ………..:
(a) Increasing Return
(b) Decreasing Return
(c) Constant Return
(d) Variable Proportion
Answer:
(d) Variable Proportion

Question 80.
In the ……….. Change in all factors of production is possible:
(a) Short period
(b) Long period
(c) Intermediate period
(d) Market period
Answer:
(b) Long period

Question 81.
If marginal product goes on decreasing it should be understood that law of ……….. is in operation:
(a) Increasing cost
(b) Decreasing cost
(c) Constant cost
(d) Average cost
Answer:
(b) Decreasing cost

Question 82.
Supply means……………..:
(a) Quantity of goods produced
(b) Stock of goods produced
(c) Quantity of goods available for sale
(d) Total of produced and import goods
Answer:
(b) Stock of goods produced

Question 83.
Supply curve presents ………..:
(a) price of the commodity
(b) supply of the commodity
(c) relationship between price and supply of the commodity
(d) demand of the commodity
Answer:
(c) relationship between price and supply of the commodity

Question 84.
Seller is generally not willing to sell commodity below ………..:
(a) Reserve price
(b) Average price
(c) Marginal price
(d) Neither of above
Answer:
(a) Reserve price

Question 85.
……….. increases and decreases with the volume of output:
(a) Fixed cost
(b) Variable cost
(c) Total cost
(d) Monetary cost
Answer:
(b) Variable cost

Question 86.
Wage is ……….. cost of production:
(a) Fixed
(b) Variable
(c) Opportunity
(d) Marginal
Answer:
(b) Variable

Question 87.
Revenue received from the sale of additional unit is termed as ………..
(a) Marginal revenue
(b) Average revenue
(c) Total revenue
(d) Profit
Answer:
(a) Marginal revenue

Question 88.
If the law of diminishing return is in operation average cost ………..:
(a) Decreases
(b) Increases
(c) Remain constant
(d) Decreases
Answer:
(b) Increases

Question 89.
In ……….. market goods are sold at uniform price:
(a) Perfect competition
(b) Monopoly
(c) Oligopoly
(d) Duopoly
Answer:
(a) Perfect competition

Question 90.
The demand curve of monopoly is ………..:
(a) Inelastic
(b) Elastic
(c) Perfectly elastic
(d) Perfectly inelastic
Answer:
(b) Elastic

Question 91.
A monopolist will determine very ……….. price for a commodity having inelastic demand:
(a) High
(b) Low
(c) Normal
(d) None of the above
Answer:
(a) High

Question 92.
……….. plays a dominate role in determining equilibrium price in short period:
(a) Demand
(b) Supply
(c) Demand and Supply
(d) None of the above
Answer:
(a) Demand

Question 93.
Normal price is fixed in the ……….. period:
(a) Market period
(b) Short run
(c) Long run
(d) Very long run
Answer:
(c) Long run

Question 94.
The concept of equilibrium price is ………..:
(a) Theoretical
(b) Practical
(c) Theoretical and practical both
(d) Neither theoretical nor practical
Answer:
(a) Theoretical

Question 95.
The law of demand is:
(a) Quantitative concept
(b) Qualitative concept
(c) (a) and (b)
(d) None of the above
Answer:
(b) Qualitative concept

Question 96.
The elasticity of demand of necessary good is:
(a) Zero
(b) Unlimited
(c) More than unity
(d) Less than unity
Answer:
(a) Zero

Question 97.
Which economist has given the time element factor in price determination:
(a) Pigou
(b) Ricardo
(c) Marshall
(d) J.KI. Mehta
Answer:
(c) Marshall