Test: Business Economics - 5 - CA Foundation MCQ

The average profit is the difference between

Consider the following and decide which, if any, economy is without scarcity

Which of the following is/are implicit cost(s) of production?

Marginal revenue will be negative if elasticity of demand is

Q. ​What is the total output when 2 hours of labour are employed?

Which of the following concepts of budget deficit has become practically redundant in India?

The law of variable proportions come into being when

After reaching saturation point, consumption of additional units of the commodity causes

Which of the following statements would you consider to be a normative one?

Directions: The following data gives the production possibilities frontier of an economy that produces two types of goods, guns and bread. Read the following table and answer the question that follows:

Given the data in table, one moves successively from point A to points B, C, D, E and F. The opportunity cost of guns

Directions: The following data gives the production possibilities frontier of an economy that produces two types of goods, guns and bread. Read the following table and answer the question:

Q. According to table, the opportunity cost of increasing gun`s production from 20 to 30 units is equal to

Directions: The following data gives the production possibilities frontier of an economy that produces two types of goods, guns and bread. Read the following table and answer the question:

Q. Point D is efficient while point H (30 guns and 45 loaves of bread) is inefficient. Why?

__________ pair of commodities is an example of substitutes.

Directions: In Econoville, there is one grocery shop, Ecoconvenience. It used to sell fresh milk at Rs. 20 per litre, at which price 400 litres of milk were sold per month. After some time, the price was raised to Rs. 30 per litre. Following the price rise:

Only 200 litres of milk was sold every month.
The number of boxes of cereal customers bought went down from 280 to 240.
The number of packets of powered milk customers bought went up from 90 to 220 per month.

The price elasticity of demand when fresh milk's price increases from Rs. 20 per litre to Rs. 30 per litre is equal to

Directions: In Econoville, there is one grocery shop, Ecoconvenience. It used to sell fresh milk at Rs. 20 per litre, at which price 400 litres of milk were sold per month. After some time, the price was raised to Rs. 30 per litre. Following the price rise:

Only 200 litres of milk was sold every month.
The number of boxes of cereal customers bought went down from 280 to 240.
The number of packets of powered milk customers bought went up from 90 to 220 per month.

The cross elasticity of monthly demand for powdered milk when the price of fresh milk increases from Rs. 20 to Rs. 30 per litre is equal to

Directions: In Econoville, there is one grocery shop, Ecoconvenience. It used to sell fresh milk at Rs. 20 per litre, at which price 400 litres of milk was sold per month. After some time, the price was raised to Rs. 30 per litre.

Following the price rise:
Only 200 litres of milk was sold every month.
The number of boxes of cereal customers bought went down from 280 to 240.
The number of packets of powered milk customers bought went up from 90 to 220 per month.

The cross elasticity of monthly demand for cereal when the price of fresh milk increases from Rs. 20 to Rs. 30 is equal to

The main objective of the World Trade Organisation is to secure among others

Money includes

If R point bisects the demand curve in two equal parts, then elasticity at R equals

Bozzo's burgers is a small restaurant and a price taker. The table below provides the data of Bozzo's output and costs in rupees.

Q. What is the total variable cost when 60 burgers are produced?

Bozzo's burgers is a small restaurant and a price taker. The table below provides the data of Bozzo's output and costs in rupees.

Q. Between 10 to 20 burgers, what is the marginal cost (per burger)?

Bozzo's burgers is a small restaurant and a price taker. The table below provides the data of Bozzo's output and costs in rupees.

Q. What is the average fixed cost when 20 burgers are produced?

Bozzo's burgers is a small restaurant and a price taker. The table below provides the data of Bozzo's output and costs in rupees.

Q.  If burgers sell for Rs. 14 each, what is Bozzo`s profit maximizing level of output

The vertical difference between TVC and TC is equal to

If the railways are making losses on passenger traffic they should lower their fares. The suggested remedy would only work if the demand for rail travel had a price elasticity of

The economic analysis expects the consumer to behave in a manner which is

Which of the following is not an objective of Fiscal policy?