BCom First Year (Sem 1 & 2) Business Economics (Micro) – Daily Revision MCQ (English Medium)
Timed quiz: 15 seconds per question, the next one loads by itself when time runs out. Or solve without the timer: tap an option, right turns green, wrong turns red. New sets are added regularly.
Or scroll down and solve without the timer.
Who defined economics as the science that studies human behaviour as a relationship between ends and scarce means which have alternative uses?
Chapter 1: Nature and Scope of Business Economics
Show answer
Answer: C. Lionel Robbins
This scarcity definition was given by Lionel Robbins (1932); Marshall gave the welfare definition and Adam Smith the wealth definition.Which of these is an exception to the law of demand, where demand can rise when price rises?
Chapter 2: Demand Analysis and Elasticity of Demand
Show answer
Answer: B. Giffen goods
For Giffen goods (inferior staple foods) a price rise can increase quantity demanded, against the law of demand.When the price of a good falls by 10%, its quantity demanded rises by 20%. What is the price elasticity of demand (numerical value)?
Chapter 2: Demand Analysis and Elasticity of Demand
Show answer
Answer: D. 2
Ed = % change in quantity ÷ % change in price = 20 ÷ 10 = 2, so demand is relatively elastic.According to the law of diminishing marginal utility, when total utility is at its maximum, marginal utility is:
Chapter 3: Consumer Behaviour: Utility and Indifference Curve Analysis
Show answer
Answer: A. Zero
Total utility stops rising exactly when the extra unit adds nothing, i.e. MU = 0; beyond that MU becomes negative.An indifference curve is normally convex to the origin because of:
Chapter 3: Consumer Behaviour: Utility and Indifference Curve Analysis
Show answer
Answer: C. Diminishing marginal rate of substitution
As a consumer gets more of X, he gives up less and less of Y for each extra unit of X (diminishing MRS), which makes the curve convex.At 10 units of output, total fixed cost is ₹200 and total variable cost is ₹300. What is the average cost?
Chapter 5: Cost and Revenue Concepts
Show answer
Answer: C. ₹50
AC = TC ÷ Q = (200 + 300) ÷ 10 = ₹50 (AFC 20 + AVC 30).The marginal cost (MC) curve cuts the average cost (AC) curve at:
Chapter 5: Cost and Revenue Concepts
Show answer
Answer: B. The lowest point of AC
While MC is below AC it pulls AC down, and above AC it pulls AC up, so MC crosses AC at AC's minimum.For a firm under perfect competition, which relation holds?
Chapter 6: Perfect Competition
Show answer
Answer: D. AR = MR = Price
The firm is a price taker and sells every unit at the same market price, so its AR and MR curves are the same horizontal line.The theory of monopolistic competition is mainly associated with:
Chapter 7: Monopoly and Monopolistic Competition
Show answer
Answer: A. Edward Chamberlin
E. H. Chamberlin developed the theory of monopolistic competition (1933), with product differentiation and selling costs.Who described rent as the payment for the 'original and indestructible powers of the soil'?
Chapter 8: Factor Pricing: Rent, Wages, Interest and Profit
Show answer
Answer: B. David Ricardo
This is David Ricardo's classical theory of rent, which explains rent by differences in the fertility of land.
BCom First Year (Sem 1 & 2): MCQ in other subjects
All questions are written by PadhaiNotes in our own words from the common syllabus of Maharashtra universities (NEP). Your own university's syllabus may differ a little.