A) A rise in the price of the other commodity
B) An upward shift of demand curve
C) No shift in demand for the other commodity
D) A backward shift in demand for the other commodity
Ans: D
2. Willingness to pay minus actual payment is called
A) Consumer’s surplus
B) Producer’s surplus
C) Utility cost
D) Supplier’s surplus
Ans: A
3. The Internal Rate of Return (IRR) is determined where
A) The Net Present Value is positive
B) The Net Present Value is negative
C) The Net Present Value is zero
D) None of the above
Ans: C
4. The Capital Asset Pricing Model (CAPM) establishes the relationship between
A) Risk and EPS
B) Risk and value of the firm
C) Risk and the required rate of return
D) None of the above
Ans: C
4. Which of the following is not the stage of product life cycle?
A) Introduction
B) Growth
C) Market segmentation
D) Decline
Ans: C
5. The term Opportunity Cost refers to
A) Variable Cost
B) Short-run cost
C) The cost forgone in favour of production of another product
D) Cost related to an optimum level of production
Ans: C
6. Cardinal measure of utility is required in
A) Utility Theory
B) Indifference Curve Analysis
C) Revealed Preference
D) Inferior Goods
Ans: A
7. Which of the following is the condition for equilibrium for Monopolist?
A) MR = MC
B) MC = AR
C) MR = MC = Price
D) AC = AR
Ans: A
8. Giffen goods are those goods
A) For which demand increases as price decreases
B) Which is in short supply?
C) Which have high elasticity of demand?
D) Which gives rise to a Cob-Web situation?
Ans: A
9. Which of the following is an important money market instrument?
A) Debentures
B) Commercial Paper
C) Public Deposits
D) None of the above
Ans: B
10. Globalization involves
A) Free flow of technology from one country to another
B) Free flow of investment from one country to the other
C) Free flow of people from one country to the other
D) All the above
Ans: D
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