Monday, February 28, 2011

Managerial Economics - 29

Managerial Economics - 29

Multiple Choice Single Answer
Question Managerial economics generally refers to the integration of economic theory with business
Correct Answer Practice


Multiple Choice Single Answer
Question Every nation’s resources which are used to produce the quantities of goods and services that would be required to satisfy all its citizen’s wants are
Correct Answe insufficient


Multiple Choice Single Answer
Question Managerial economics is also understood to refer to
Correct Answer applied economics


Multiple Choice Single Answer
Question The type economic problem is
Correct Answer Universal


Multiple Choice Single Answer
Question The act of making goods and services is called
Correct Answer production


Multiple Choice Single Answer
Question The act of using goods and services to satisfy wants is called
Correct Answer Consumption


Multiple Choice Single Answer
Question The things that are produced by factors of production are called
Correct Answer Commodities

Multiple Choice Single Answer
Question The concept of just distribution of national product is a
Correct Answer normative

True/False
Question A firm under perfect competition is a price maker
Correct Ans False

True/False
Question When demand and supply rise and fall in the same proportion, the equilibrium price changes.
Correct AnswerFalse

True/False
Question Market means a particular area where buyers and sellers meet
Correct Answer False

Multiple Choice Single Answer
Question Goods which are completely divisible and to them the principle of exclusion applies in full measure are
Correct Answer Pure private goods

Multiple Choice Single Answer
Question Market system of economy is characterized by consumer’s
Correct Answer sovereignty

True/False
Question In case of a proprietary firm the liability of the proprietor is limited
Correct Answer False

Multiple Choice Single Answer
Question Macro – economics provides an exploration to the functioning of an economy in
Correct Answer general

True/False
Question The subject matter of macro – economics includes the theory of income and employment at an individual level
Correct Answer False

Match The Following
Question Correct Answer
Dual prices Two different prices
Inflation Deficit financing
P.D.S. Essential commodities
R.B.I. General and selective credit control measures
The consumers’ Protection Act 1986 Right to information

Multiple Choice Single Answer
Question Depreciation is the value caused by the continuous use of a capital asset is
Correct Answer loss

True/False
Question Accounting profit takes in to account opportunity cost.
Correct Answer False

True/False
Question According to Prof Knight, profit is the reward for uncertainty bearing.
Correct Answer True

True/False
Question According to J.B. Clark, profit is the reward paid to the entrepreneur for dynamism.
Correct Answer True

Multiple Choice Single Answer
Question Complementary goods are demanded
Correct Answer jointly

Match The Following
Question Correct Answer
Cross demand is the change in the quantity demanded of a given commodity in response to the Change in the price of anothercommodity
Incase there were no changes in the quantity of food sold even when its price had fallen we would know that Demand was entirely inelastic
The elasticity of demand for product will be higher The more available are substitutes for that product
The law of demand indicates Relationship between the price of a commodity and the quantity Demanded
The law of demand states When price falls demand rises

Multiple Choice Single Answer
Question As per the law marginal product becomes negative when total product
Correct Answer falls

Multiple Choice Single Answer
Question The law of diminishing returns is applicable to agriculture provided the state of technology is given and
Correct Answer constant

Multiple Choice Single Answer
Question Under the system of dual prices adopted by the Government for essential goods, the weaker sections of the community are supplied those goods through fair price shops which are
Correct Answer fair

Select The Blank
Question Quantitative credit control measures such as ________ operations, change in the bank rate, and changes in the ________ ratios
Correct Answer open market
Correct Answer statutory reserve

Multiple Choice Single Answer
Question AVC is the per unit variable cost of
Correct Answer production

True/False
Question Given the price, if the cost of production of a commodity decreases because of the use of improved technique of production, there will be increase in supply.
Correct Answer True

True/False
Question The laws of returns to scale explain the behavior of output in response to changes in scale.
Correct Answer True

Multiple Choice Multiple Answer
Question An Industry
Correct Answer Is a group of firms , All firms dealing in the same line of business , The ownership and management of each firm is different

Multiple Choice Multiple Answer
Question Dumping
Correct Answer It is possible in the case of Monopoly Market , Selling same good at higher price in home market and lower at price in the international market , It is encourage with a view to promote the exports

Select The Blank
Question Under perfect competition, ________ is determined by the interaction of total ________ and total supply in the market
Correct Answer price
Correct Answer demand

Multiple Choice Multiple Answer
Question Advantages of Cost-Benefit Analysis
Correct Answer It aims at maximization of social welfare , In following this principle, the problem of infinite target value does not arise , It shows the measures necessary for attaining maximum net wealth

Multiple Choice Multiple Answer
Question Effective Demand
Correct Answer Determine the level of income and output in an economy , Is total expenditure is equal to total income in an economy , Study of aggregate demand and aggregate supply

Select The Blank
Question According to Prof. Ackley, “________ economics deals with economic affairs in the large it concerns the ________ of economic life”.
Correct Answer macro
Correct Answer overall dimensions

Multiple Choice Multiple Answer
Question Different types of business organizations are;
Correct Answer Private sector. , Public sector. , Joint sector.

Multiple Choice Multiple Answer
Question Distinction between private sector and public sector is determined
Correct Answer On the basis of economic system , On the basis of motive , On the basis of principle of pricing

Multiple Choice Multiple Answer
Question Methods of Demand forecasting for new Products are:
Correct Answer Product life Cycle Analysis , Test Marketing , Evolutionary Approach
Multiple Choice Multiple Answer
Question Index numbers may broadly be classified as:
Correct Answer Price indices , Quantity Indices , Special purpose indices

Select The Blank
Question Economics is a ________ , which studies human behaviour as a relationship between ________ , which have alternative uses.
Correct Answer science
Correct Answer ends and scarce means

Select The Blank
Question The production function is the name given to the ________ between the rates of ________ of productive services and rate of output of a product
Correct Answer relationship
Correct Answer input

Select The Blank
Question Internal economies are those advantages of large- scale ________ , which accrue to a ________ on account of its superior techniques and management
Correct Answer production
Correct Answer firm

Select The Blank
Question Elasticity of supply may be defined as the ratio of the percentage ________ or the ________ change in quantity supplied to the percentage or proportionate change in Price.
Correct Answer proportionate
Correct Answer change

Select The Blank
Question Costs may be classified as : (a) ________ , including material costs, wage cost and interest cost (b) ________ , including costs of advertising and (c) other costs, including insurance ch
Correct Answer Production costs
Correct Answer Selling costs

Managerial Economics - 28


Multiple Choice Single Answer
Question The externality in which the consumption or production levels of an economic unit affect the other economic units in the economy is called :-
Correct Answer Technological externality

Select The Blank
Question By ' profits', the economist means total revenue minus ________.
Correct Answer All costs

Multiple Choice Single Answer
Question The act of using goods and services available in the market to satisfy wants is called :-
Correct Answer Consumption

True/False
Question Marginal Cost (M.C.) is the rate of change of fixed cost.
Correct Answer False

Select The Blank
Question The factors of production are called inputs and may be combined to yield the maximum ________.
Correct Answer Output

Multiple Choice Single Answer
Question Depreciation is the value caused by the continuous use of a capital asset, which indicates :-
Correct Answer Loss

True/False
Question The externalities or economic effects, which flow from the production or use of the goods to other parties or economic units, are termed as 'neighborhood effects.'
Correct Answer True

Multiple Choice Single Answer
Question When a company raises additional finance by borrowing from the public for a specific period of time at a particular rate of interest, it is called as :-
Correct Answer Debentures

Multiple Choice Multiple Answer
Question At the level of the society, the macro economic objectives are :-
Correct Answer Economic stabilization , Employment generation , Poverty reduction

True/False
Question Any point on the production possibility curve indicates under utilization of resources.
Correct Answer False

Multiple Choice Multiple Answer
Question Index numbers may broadly be classified as :-
Correct Answer Special purpose indices , Price indices , Quantity indices

Multiple Choice Single Answer
Question In case of a pure public good, its marginal cost is :-
Correct Answer Zero

Multiple Choice Single Answer
Question An entrepreneur may earn high profits just by luck, say because of outbreak of war. This is known as :-
Correct Answer Chance Profits

Multiple Choice Multiple Answer
Question Methods of measurement of elasticity are :-
Correct Answer Percentage method , Point elasticity method , Total outlay expenditure method

Multiple Choice Single Answer
Question The firm is an economic unit that makes the decisions regarding employment of :-
Correct Answer Factors of production

Multiple Choice Multiple Answer
Question Reasons for change in Demand (Increase or Decrease in Demand) are :-
Correct Answer Change income of consumer , Change in population , Change in fashion and customs

True/False
Question A firm is a technical unit of a given capacity of output.
Correct Answer False

Multiple Choice Single Answer
Question During the period of depression various factors of production are :-
Correct Answer Unutilized

Select The Blank
Question The rate of interest, according to Keynes depends upon two factors: the liquidity preference function and ________.
Correct Answer The quantity of money.

Select The Blank
Question By what methods are commodities produced and the consequences of choices about ________ and the consequences of choice about production methods are topics in Theory of Production.
Correct Answer Production

True/False
Question The demand for life saving drugs is elastic.
Correct Answer False

Select The Blank
Question The minimum number of directors which private limited should have is ________.
Correct Answer 2

Multiple Choice Single Answer
Question The market which deals with all the goods as a whole are considered as :-
Correct Answer Commodity Market

Multiple Choice Single Answer
Question In case of increase in the income, the rich person's demand for goods will be :-
Correct Answer More

Select The Blank
Question The supply of agricultural goods is ________.
Correct Answer Inelastic

Select The Blank
Question The products sold by different sellers under pure competition are ________.
Correct Answer Homogeneous

Select The Blank
Question Fiscal Policy refers to variations in ________.
Correct Answer Levels of taxation

Multiple Choice Multiple Answer
Question Price discrimination is possible in case of :-
Correct Answer Public utilities with legal sanction , Personnel services sold , Geographical barriers

True/False
Question Consumer’s protection involves protection to the consumers from unfair trade practices.
Correct Answer True

Multiple Choice Single Answer
Question In the Long run, perfect competition and monopolistic competition, the firm make profits which are :-
Correct Answer Normal

True/False
Question In case of decrease in supply, the supply curve shifts to left side of the original supply curve.
Correct Answer True

Multiple Choice Multiple Answer
Question In case of defense services, all the sections of the society are equally protected and benefited. The defense services in other words is :-
Correct Answer Indivisible in character , Cannot be priced in the market , A public good

True/False
Question Demand for luxury goods is inelastic.
Correct Answer False

Select The Blank
Question A normal demand curve has ________.
Correct Answer Negative slope

Match The Following
Question Correct Answer

Experimental pricing Trial and error method

A.C.> A.R Two firms

Monopoly Low cross elasticity of demand

Excess capacity Multiple products


Select The Blank
Question If there is reduction in the taxes levied by the Government, people are left with ________.
Correct Answer More money

Select The Blank
Question In a market economy ________ is the best judge of personal interest.
Correct Answer Individual

Multiple Choice Multiple Answer
Question Under cost plus pricing :-
Correct Answer The price is set to cover material, labour cost , Actual costs, standard costs are included , Certain percentage of profit also included

Multiple Choice Multiple Answer
Question The criteria to be taken into account while setting the standards for a 'reasonable profit' are :-
Correct Answer Capital Attraction , Plough Back , Normal earnings

Multiple Choice Multiple Answer
Question Quantitative credit control measures are :-
Correct Answer Open market operations , Changes in bank rates , Changes in statutory reserve ratio

Multiple Choice Multiple Answer
Question Features of public sector enterprises are as follows :-
Correct Answer It is controlled by the state , Separate funds to undertake their activity , They are accountable to public

True/False
Question Complementary goods are jointly demanded but jointly demanded goods may not be Complementary.
Correct Answer True

Multiple Choice Multiple Answer
Question Types of income elasticity of demand :-
Correct Answer Negative income elasticity , Zero income elasticity , Unit income elasticity

True/False
Question In case of a partnership firm, the liability of a partner is limited.
Correct Answer False

Match The Following
Question Correct Answer

Break even point T.R. = T.C.

Normal profit Implicit cost

Average variable cost (A.V.C.) Short run cost

Change in supply Increase and decrease in supply


Multiple Choice Single Answer
Question Prof. Samuelson calls the air and water pollution or dangers from drunken drivers as economies that are :-
Correct Answer Negative

Multiple Choice Multiple Answer
Question The sole proprietorship type of organization is found in :-
Correct Answer Agriculture , Retail trade , Hotel



No comments:

Post a Comment

Post a Comment