MCQOPTIONS
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MCQOPTIONS
This section includes 2956 Mcqs, each offering curated multiple-choice questions to sharpen your UPSC IAS Exam knowledge and support exam preparation. Choose a topic below to get started.
| 201. |
Survey method of demand forecasting includes |
| A. | Opinion survey |
| B. | Expert opinion |
| C. | Delphi method |
| D. | All the above |
| Answer» E. | |
| 202. |
Purposes of long term Demand forecasting includes |
| A. | Making a suitable production policy. |
| B. | To reduce the cost of purchasing raw materials and to control inventory. |
| C. | Deciding suitable price policy |
| D. | Planning of a new unit or expansion of existing unit |
| Answer» E. | |
| 203. |
Purposes of long term Demand forecasting doesn’t includes; |
| A. | Planning of a new unit or expansion of existing unit. |
| B. | Planning long term financial requirements. |
| C. | Planning of manpower requirements. |
| D. | Deciding suitable price policy |
| Answer» E. | |
| 204. |
Purposes of Short term Demand forecasting doesn’t includes; |
| A. | Deciding suitable price policy |
| B. | Setting correct sales target on the basis of future demand |
| C. | Forecasting short term financial requirements |
| D. | None of these |
| Answer» E. | |
| 205. |
Purposes of Short term Demand forecasting includes; |
| A. | Making a suitable production policy. |
| B. | To reduce the cost of purchasing raw materials and to control inventory. |
| C. | Deciding suitable price policy |
| D. | All the above |
| Answer» E. | |
| 206. |
……………forecasting is more important from managerial view point as it helps the management indecision making with regard to the firms demand and production. |
| A. | Macro level |
| B. | Industry level |
| C. | Firm level |
| D. | None of these |
| Answer» D. None of these | |
| 207. |
……………… demand forecasting is prepared by different trade association in order to estimate thedemand for particular industries products |
| A. | Macro level |
| B. | Industry level |
| C. | Firm level |
| D. | None of these |
| Answer» C. Firm level | |
| 208. |
………… is an “objective assessment of the future course of demand” |
| A. | Demand Estimation |
| B. | Demand analysis |
| C. | Demand function |
| D. | Demand forecasting |
| Answer» E. | |
| 209. |
………….demand forecasting is related to the business conditions prevailing in the economy as a whole |
| A. | Macro level |
| B. | Industry level |
| C. | Firm level |
| D. | None of these |
| Answer» B. Industry level | |
| 210. |
Tools and techniques for demand estimation includes; |
| A. | Consumer surveys. |
| B. | consumer clinics and focus groups |
| C. | Market Experiment |
| D. | All o the above |
| Answer» E. | |
| 211. |
Demand for necessary goods (salt, rice, etc,) is……….and demand for comfort and luxury good is |
| A. | Elastic, inelastic |
| B. | Inelastic, elastic |
| C. | Elastic, elastic |
| D. | Inelastic, inelastic |
| Answer» C. Elastic, elastic | |
| 212. |
……………..is the process of finding current values of demand for various values of prices and otherdetermining variables. |
| A. | Demand Estimation |
| B. | Demand analysis |
| C. | Demand function |
| D. | Demand forecasting |
| Answer» B. Demand analysis | |
| 213. |
…….method measures elasticity between two points |
| A. | Proportional or Percentage Method |
| B. | Outlay Method |
| C. | Geometric method |
| D. | Arc Method |
| Answer» E. | |
| 214. |
Outlay method of measurement of elasticity is also called as |
| A. | Percentage method |
| B. | Expenditure method |
| C. | Point method |
| D. | Geometric method |
| Answer» C. Point method | |
| 215. |
Which one is the method for measurement of elasticity |
| A. | Proportional or Percentage Method |
| B. | Outlay Method |
| C. | Geometric method |
| D. | All the above |
| Answer» E. | |
| 216. |
The responsiveness of demand due to a change in promotional expenses is called |
| A. | Expenditure elasticity |
| B. | Advertisement elasticity |
| C. | Promotional elasticity |
| D. | Above b or c |
| Answer» E. | |
| 217. |
If the commodities are substitute in nature, cross elasticity will be |
| A. | Negative |
| B. | Positive |
| C. | Zero |
| D. | Any of the above |
| Answer» C. Zero | |
| 218. |
If the commodities are complimentary, cross elasticity will be |
| A. | Negative |
| B. | Positive |
| C. | Zero |
| D. | Any of the above |
| Answer» B. Positive | |
| 219. |
The proportionate change in the quantity demanded of a commodity in response to change in the priceof another related commodity is called |
| A. | Price elasticity |
| B. | Related elasticity |
| C. | Cross elasticity |
| D. | Income elasticity |
| Answer» D. Income elasticity | |
| 220. |
Car and petrol are |
| A. | Complimentary goods |
| B. | Substitute goods |
| C. | Supplementary goods |
| D. | Reserve goods |
| Answer» B. Substitute goods | |
| 221. |
An increase in income may lead to an increase in the quantity demanded, it is |
| A. | Positive income elasticity |
| B. | Zero income elasticity |
| C. | Negative income elasticity |
| D. | Unitary income elasticity |
| Answer» B. Zero income elasticity | |
| 222. |
A positive income elasticity may be |
| A. | Unit income elasticity |
| B. | Income elasticity greater than unity |
| C. | Income elasticity less than unity |
| D. | Any of the above |
| Answer» E. | |
| 223. |
when income increases, quantity demanded falls, it is |
| A. | Positive income elasticity |
| B. | Zero income elasticity |
| C. | Negative income elasticity |
| D. | Unitary income elasticity |
| Answer» D. Unitary income elasticity | |
| 224. |
For the commodities like salt, sugar etc.,the income elasticity will be |
| A. | Zero |
| B. | Negative |
| C. | Positive |
| D. | Unitary |
| Answer» B. Negative | |
| 225. |
……… shows the change in quantity demanded as a result of a change in consumers’ income |
| A. | Price elasticity |
| B. | Cross elasticity |
| C. | Income elasticity |
| D. | None of these |
| Answer» D. None of these | |
| 226. |
Unitary elasticity of demand mean |
| A. | EP =>1 |
| B. | EP =<1 |
| C. | EP = o |
| D. | EP = 1 |
| Answer» E. | |
| 227. |
EP = ………in case of relatively inelastic demand |
| A. | 0 |
| B. | Infinite |
| C. | 1 |
| D. | <1 |
| Answer» E. | |
| 228. |
In the case of unitary elastic demand, the shape of demand curve is |
| A. | Vertical line |
| B. | Horizontal line |
| C. | Rectangular hyperbola |
| D. | Steep |
| Answer» D. Steep | |
| 229. |
EP =………….in the case of relatively elastic demand |
| A. | 1 |
| B. | >1 |
| C. | <1 |
| Answer» C. <1 | |
| 230. |
in the case of perfect inelasticity, the demand curve is |
| A. | Vertical |
| B. | Horizontal |
| C. | Flat |
| D. | Steep |
| Answer» B. Horizontal | |
| 231. |
Ep = 0 in the case of ‐‐‐‐‐‐‐‐‐‐‐elasticity |
| A. | Perfectly elastic demand |
| B. | Perfectly inelastic demand |
| C. | Relative elastic demand |
| D. | Unitary elastic demand |
| Answer» C. Relative elastic demand | |
| 232. |
When the change in demand is exactly equal to the change in price, it is called |
| A. | Perfectly elastic demand |
| B. | Perfectly inelastic demand |
| C. | Relative elastic demand |
| D. | Unitary elastic demand |
| Answer» E. | |
| 233. |
In case of …….. quantity demanded changes less than proportionate to changes in price |
| A. | Perfectly elastic demand |
| B. | Perfectly inelastic demand |
| C. | Relative elastic demand |
| D. | Relative inelastic demand |
| Answer» E. | |
| 234. |
In the case of ………… a small change in price leads to very big change in quantity demanded |
| A. | Perfectly elastic demand |
| B. | Perfectly inelastic demand |
| C. | Relative elastic demand |
| D. | Unit elastic demand |
| Answer» D. Unit elastic demand | |
| 235. |
Quantity remains the same whatever the change in price, this is the case of |
| A. | Perfectly elastic demand |
| B. | Perfectly inelastic demand |
| C. | Relative elastic demand |
| D. | Relative inelastic demand |
| Answer» C. Relative elastic demand | |
| 236. |
When a small change in price leads to infinite change in quantity demanded, it is called |
| A. | Perfectly elastic demand |
| B. | Perfectly inelastic demand |
| C. | Relative elastic demand |
| D. | Relative inelastic demand |
| Answer» B. Perfectly inelastic demand | |
| 237. |
Price Elasticity of demand = |
| A. | Proportionate change in quantity demanded Proportionate change in price |
| B. | Change in Quantity demanded / Quantity demanded Change in Price/price |
| C. | ( Q2‐Q1)/Q1 (P2‐P1) /P1 |
| D. | All the above |
| Answer» E. | |
| 238. |
The concept of Elasticity of Demand was introduced by |
| A. | Alfred Marshall |
| B. | Lionel Robbins |
| C. | Adam smith |
| D. | J M Keynes |
| Answer» B. Lionel Robbins | |
| 239. |
Which of the following is not an exception to the downward sloping of demand curve |
| A. | Giffen paradox |
| B. | Veblen effects |
| C. | Necessaries |
| D. | Income effect |
| Answer» E. | |
| 240. |
Determinants of demand includes |
| A. | Price of a commodity |
| B. | Nature of commodity |
| C. | Income and wealth of consumer |
| D. | All the above |
| Answer» E. | |
| 241. |
Exceptional Demand Curve (Perverse demand curve) |
| A. | Moving upward from left to right |
| B. | Moving upward from right to left |
| C. | Moving horizontally |
| D. | Moving vertically |
| Answer» B. Moving upward from right to left | |
| 242. |
Demand for tyres depends on demand of vehicles, the demand for tyres called as |
| A. | Composite demand |
| B. | Derivative demand |
| C. | Joint demand |
| D. | Direct demand |
| Answer» C. Joint demand | |
| 243. |
Demand for electricity is an example of |
| A. | Composite demand |
| B. | Derivative demand |
| C. | Joint demand |
| D. | Direct demand |
| Answer» B. Derivative demand | |
| 244. |
Higher the price of certain luxurious articles, higher will be the demand, this concept is called |
| A. | Giffen effects |
| B. | Veblen effects |
| C. | Demonstration effects |
| D. | Both b & c above |
| Answer» C. Demonstration effects | |
| 245. |
When the demand changes due to changes in other factors, like taste and preferences, income, priceof related goods etc... , it is called |
| A. | Extension of demand |
| B. | Contraction of demand |
| C. | Shift in demand |
| D. | None of these |
| Answer» D. None of these | |
| 246. |
In the case of …………… Consumer may moves to higher or lower demand curve |
| A. | Extension of demand |
| B. | Contraction of demand |
| C. | Shift in demand |
| D. | Slopes in demand |
| Answer» D. Slopes in demand | |
| 247. |
The change in demand due to change in price only, where other factors remaining constant, it iscalled………. |
| A. | Shift in demand |
| B. | Extension of demand |
| C. | Contraction of demand |
| D. | Both extension and contraction |
| Answer» E. | |
| 248. |
Basic assumptions of law of demand does not include |
| A. | There is no change in consumers’ taste and preference |
| B. | Income should remain constant. |
| C. | Prices of other goods should change. |
| D. | There should be no substitute for the commodity |
| Answer» D. There should be no substitute for the commodity | |
| 249. |
In the above function, the letter T stands for |
| A. | Target price |
| B. | Total supply |
| C. | Total consumption |
| D. | Taste and preference of consumers |
| Answer» E. | |
| 250. |
In the above function, the letter Y stands for |
| A. | Yield of production |
| B. | Income of consumers |
| C. | Utility |
| D. | Supply |
| Answer» C. Utility | |