Veterinary Economics & Business Management MCQs

1. What is the main objective of veterinary economics?
(A) To study animal diseases
(B) To optimize resource use in livestock production
(C) To control wildlife populations
(D) To perform surgery on animals

2. Which branch of economics focuses on individual farm units?
(A) Microeconomics
(B) Macroeconomics
(C) International economics
(D) Development economics

3. Gross Domestic Product (GDP) includes:
(A) Only agricultural production
(B) Total goods and services produced within a country
(C) Only livestock sector income
(D) Imports only

4. In livestock farming, fixed costs include:
(A) Veterinary medicines
(B) Feed and fodder
(C) Buildings and equipment
(D) Seasonal labor

5. Which is an example of a variable cost in animal husbandry?
(A) Barn construction
(B) Machinery purchase
(C) Daily feed expenses
(D) Permanent fencing

6. Break-even analysis is used to determine:
(A) Total losses
(B) Point at which total revenue equals total cost
(C) Maximum profit
(D) Minimum cost

7. Which financial statement shows a farm’s assets and liabilities?
(A) Income statement
(B) Balance sheet
(C) Cash flow statement
(D) Profit and loss account

8. The term “depreciation” refers to:
(A) Increase in asset value
(B) Decrease in asset value over time
(C) Purchase of new equipment
(D) Loan repayment

9. Which is NOT a source of agricultural credit?
(A) Commercial banks
(B) Co-operative societies
(C) Informal moneylenders
(D) Wild animal sales

10. The main role of NABARD in India is:
(A) Animal health research
(B) Regulate veterinary colleges
(C) Provide agricultural and rural finance
(D) Import foreign breeds

11. Opportunity cost means:
(A) Money saved in a bank
(B) Value of the next best alternative forgone
(C) Extra income
(D) Wastage cost

12. Profit is calculated as:
(A) Revenue – Fixed cost
(B) Revenue – Total cost
(C) Total cost – Revenue
(D) Variable cost + Fixed cost

13. Which of these is a direct marketing channel for livestock products?
(A) Retail shop
(B) Farmer to consumer
(C) Wholesaler to market
(D) Export company

14. Demand elasticity refers to:
(A) Change in supply with price
(B) Responsiveness of demand to price changes
(C) Livestock population change
(D) Farm income growth

15. Which is NOT a function of veterinary business management?
(A) Planning
(B) Organizing
(C) Milking animals
(D) Controlling

16. SWOT analysis includes:
(A) Strengths, Weaknesses, Opportunities, Threats
(B) Sales, Work, Organization, Tax
(C) Supply, Wages, Output, Turnover
(D) Stock, Workload, Operations, Testing

17. In livestock economics, “marginal cost” means:
(A) Total cost of production
(B) Cost of producing one additional unit
(C) Minimum fixed cost
(D) Opportunity cost

18. Marketing margin is:
(A) Total cost of production
(B) Difference between consumer price and producer price
(C) Profit from exports
(D) Loan interest rate

19. The main objective of livestock insurance is:
(A) Increase feed cost
(B) Provide financial security against animal loss
(C) Market control
(D) Reduce milk production

20. Which is an example of cooperative society in livestock sector?
(A) Amul
(B) Tata Steel
(C) Infosys
(D) Larsen & Toubro

21. Which of the following is a fixed input in dairy farming?
(A) Milking machine
(B) Green fodder
(C) Veterinary medicine
(D) Temporary labor

22. The law of diminishing returns is related to:
(A) Fixed costs only
(B) Variable inputs and output relationship
(C) Animal health care
(D) Capital depreciation

23. Which factor does NOT affect livestock product pricing?
(A) Supply and demand
(B) Transportation cost
(C) Government policies
(D) Animal breed name only

24. Which is an example of value addition in livestock products?
(A) Raw milk selling
(B) Cheese production
(C) Selling live animals only
(D) Buying fodder

25. Working capital includes:
(A) Land value
(B) Long-term debt
(C) Current assets minus current liabilities
(D) Building depreciation

26. Which is a non-monetary incentive in veterinary practice?
(A) Bonus payment
(B) Praise and recognition
(C) Overtime wages
(D) Profit-sharing

27. Risk management in animal husbandry includes:
(A) Livestock insurance
(B) Diversification
(C) Disease control programs
(D) All of the above

28. The term “livestock entrepreneurship” means:
(A) Traditional subsistence farming
(B) Commercial and innovative animal farming
(C) Selling animal feed only
(D) Veterinary drug monopoly

29. Which of these is a long-term source of agricultural finance?
(A) Cooperative credit
(B) Commercial bank term loans
(C) Moneylender daily loans
(D) Self-help group weekly loans

30. Gross profit is:
(A) Revenue – Variable cost
(B) Revenue – Total cost
(C) Revenue – Fixed cost
(D) Fixed cost + Profit

31. Which is a key feature of a good business plan?
(A) Unrealistic targets
(B) Clear objectives and strategies
(C) Avoiding market analysis
(D) Ignoring risk factors

32. Livestock product marketing is regulated by:
(A) ICAR
(B) APEDA
(C) SEBI
(D) RBI

33. The term “capital budgeting” refers to:
(A) Planning for long-term investments
(B) Calculating daily wages
(C) Deciding on livestock breed
(D) Estimating feed intake

34. The concept of cooperative marketing aims to:
(A) Reduce farmer participation
(B) Eliminate middlemen
(C) Increase transport costs
(D) Limit production

35. Net present value (NPV) is used for:
(A) Future value of costs
(B) Evaluating profitability of investments
(C) Calculating insurance premium
(D) Setting milk prices

36. Herd health economics focuses on:
(A) Reducing herd size
(B) Economic impact of disease prevention
(C) Selling sick animals
(D) Maximizing milk per cow only

37. Which is a key component of farm business analysis?
(A) Soil pH
(B) Cost-benefit analysis
(C) Animal height
(D) Breed name

38. Which is NOT a principle of good business management?
(A) Planning
(B) Organizing
(C) Random decision-making
(D) Controlling

39. Livestock census helps in:
(A) Disease diagnosis
(B) Estimating animal population and production potential
(C) Calculating feed cost only
(D) Fixing export tariffs

40. The term “economies of scale” means:
(A) Higher cost with larger production
(B) Reduced cost per unit with increased production
(C) Decreased production efficiency
(D) Small-scale loss

41. Which is a key indicator of farm profitability?
(A) Milk pH
(B) Net farm income
(C) Fodder weight only
(D) Animal color

42. Business risk in dairy farming can be minimized by:
(A) Using only one breed
(B) Diversification of products
(C) Avoiding marketing
(D) Stopping vaccination

43. The repayment capacity of a farmer is evaluated through:
(A) Credit rating and farm income analysis
(B) Livestock vaccination data
(C) Breed type
(D) Barn design

44. Which pricing method considers both cost and desired profit?
(A) Penetration pricing
(B) Cost-plus pricing
(C) Market-based pricing
(D) Random pricing

45. The term “fixed capital” includes:
(A) Building, land, and machinery
(B) Daily feed
(C) Veterinary medicine
(D) Labor wages

46. Internal rate of return (IRR) helps in:
(A) Calculating animal weight
(B) Evaluating investment profitability
(C) Planning fodder cultivation
(D) Estimating milk fat

47. Livestock supply chain management ensures:
(A) Efficient movement of products from farm to consumer
(B) Increase in animal population only
(C) Decrease in veterinary services
(D) Limit export trade

48. In economics, “inflation” refers to:
(A) Increase in general price levels
(B) Decrease in milk prices only
(C) Increase in animal population
(D) Decline in production

49. Livestock product branding helps in:
(A) Increasing market recognition and value
(B) Reducing quality
(C) Eliminating consumers
(D) Decreasing sales

50. The ultimate goal of veterinary business management is:
(A) Only to increase production
(B) Sustainable profit and farmer welfare
(C) Importing foreign breeds
(D) Reducing market access