Monday, February 28, 2011

Managerial Economics - 6

Managerial Economics - 6


Multiple Choice Single Answer
Question
In economics the question related to the selection of methods with which commodities are produced is a subject matter of
Correct Answer
theory of production

Multiple Choice Single Answer
Question
In economics the questions related to the division of society’s output of goods and services among its members are topics in
Correct Answer
theory of distribution



Multiple Choice Single Answer
Question
In economics the questions related to the dynamic or static ( otherwise) capacity of the economy to produce goods and services are topics in the
Correct Answer
theory of economic growth



Multiple Choice Single Answer
Question
All the free gifts of nature which are commonly called natural resources are known to economists as
Correct Answer
Land


Multiple Choice Single Answer
Question
All the man made resources which are used in the process of making other goods and services are called
Correct Answer
capital


Multiple Choice Single Answer
Question
Managerial economics aims at providing help in the firms is
Correct Answer
decision making


True/False
Question
Economic problem is faced by poor countrys only.
Correct Answer
False


Multiple Choice Single Answer
Question
An industry is a group of firms dealing in the same line of
Correct Answer
business



True/False
Question
Micro-economics is primarily concerned with the problem of what, how and for whom to produce
Correct Answer
True



True/False
Question
Pure public goods must be in the hands of public sector only.
Correct Answer
True



Select The Blank
Question
The goods become ________ only when each individual has an access to the entire amount of it and its use by the individual does not reduce its availability to others.
Correct Answer
indivisible


Select The Blank
Question
The externality which causes an economic gain or an economic loss to other economic units is also referred to as ________ externality.
Correct Answer
Pecuniary



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

Match The Following
Question
Correct Answer


Managerial economics
Decision making and forward planning

Resources
Scarce

Commodities
Goods and services

Human wants
Unlimited



Match The Following
Question
Correct Answer

General theory of employment, interest and money
J. M. Keynes

Inflation
Reduction in purchasing power

Services
Intangible goods

Methods of production of commodities
Theory of production


Multiple Choice Multiple Answer
Question
The characteristics of a sole proprietorship firm is
Correct Answer
Unlimited Capital , Ownership by a single person , Easy to form

Multiple Choice Multiple Answer
Question
Different types of business organizations are
Correct Answer
private sector , public sector , joint sector


Select The Blank
Question
Reasonable profit target as an alternative to the objective of profit maximization was suggested by ________.
Correct Answer
Joel Dean




Select The Blank
Question
The form of organization which is best for self employment is ________.
Correct Answer
Sole trader



Multiple Choice Single Answer
Question
Economic Profit takes in to account the
Correct Answer
implicit cost



True/False
Question
In any business, while formulating a profit policy, the possibility of emergence of rival firms must be taken in to account
Correct Answer
True

Multiple Choice Multiple Answer
Question
The payments made out of the Gross Profit are
Correct Answer
Remuneration to factors of production , Depreciation , Maintenance Charges


Multiple Choice Multiple Answer
Question
reasonable profit' are
Correct Answer
Capital Attraction , Plough Back , Normal earnings


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


Multiple Choice Single Answer
Question
Emergence of close substitutes to the commodity in question may bring about demand to
Correct Answer
decrease



Multiple Choice Single Answer
Question
The demand for a commodity depends on the prices of its substitutes which are
Correct Answer
relative



True/False
Question
Demand curve slopes downwards from left to right.
Correct Answer
True


Select The Blank
Question
The index numbers which measure the changes in the general price level of a country refers to ________
Correct Answer
Wholesale prices index



Multiple Choice Multiple Answer
Question
Different types of Elasticity of Demand are
Correct Answer
Price elasticity of demand , Income elasticity of demand , Cross elasticity of demand


Multiple Choice Single Answer
Question
If the increase in all factors leads to a less than proportionate increase in output, then the returns to scale are
Correct Answer
decreasing


True/False
Question
The supply of factory made goods of daily consumption is inelastic.
Correct Answer
False


Multiple Choice Multiple Answer
Question
Major types of costs are
Correct Answer
Accounting costs , Economic costs , Opportunity costs


Select The Blank
Question
Output rises in a lesser proportion to that of the increase in input, under the case of ________.
Correct Answer
decreasing returns to scale



Select The Blank
Question
If the output rises in the greater proportion than that of the increase in factor inputs, it is referred to as ________.
Correct Answer
increasing returns to scale.


Multiple Choice Single Answer
Question
Under monopoly the demand curve slopes
Correct Answer
downward

Multiple Choice Single Answer
Question
Dalal Street in Bombay is known as
Correct Answer
Bombay Stock Exchange

Multiple Choice Single Answer
Question
The city of Banaras has specialized in the manufacture of
Correct Answer
silk



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


True/False
Question
Long period supply is relatively inelastic.
Correct Answer
False



Multiple Choice Multiple Answer
Question
Features of the firm are
Correct Answer
It is a business unit organized under one ownership , It is a sole proprietorship , It is a partnership or joint stock company



Multiple Choice Multiple Answer
Question
Equilibrium is the stage of
Correct Answer
maximum satisfaction , balance , stationary


True/False
Question
The Keynesian theory emphasizes effective supply as a crucial factor in determining the level of income and employment.
Correct Answer
False


Multiple Choice Single Answer
Question
According to the Government, the buildup of inflationary pressure during the Nineties was attributed to
Correct Answer
Higher Fiscal deficit



True/False
Question
The government also fixes minimum procurement prices for major crops on the recommendation of the Agricultural Prices Commission (APC).
Correct Answer
True


True/False
Question
There is considerable slush money with politicians & Government servants.
Correct Answer
True



Multiple Choice Multiple Answer
Question
Government intervention is needed in free market mechanism to
Correct Answer
To provide employment to all who willing to work at prevailing wage rate , Factors of production are optimally allocated between the various industries , All will get sufficient income to meet their basic needs


Multiple Choice Multiple Answer
Question
Defects of market system:
Correct Answer
Inequalities of income and wealth , Emergence of monopolies , Failure to provide full employment


Managerial Economics - 5
LIST OF ATTEMPTED QUESTIONS AND ANSWERS

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 Answer
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 concept of just distribution of national product is a
Correct Answer
normative



True/False
Question
Resources are said to be involuntarily un employed when their wastage occur.
Correct Answer
True



Match The Following
Question
Correct Answer


Managerial economics
Decision making and forward planning

Resources
scarce

Commodities
goods and services

Human wants
unlimited

General Theory of Employment, Interest and Money
J. M. Keynes


Multiple Choice Single Answer
Question
In cost - benefit analysis, after the step of appraisal and selection of the project is the step of
Correct Answer
comparison of the cash flow

True/False
Question
Social costs cannot be included in a firm's account book.
Correct Answer
True



Multiple Choice Multiple Answer
Question
Steps in cost benefit analysis
Correct Answer
Identification of a project , Formulation of the project , Appraisal and selection of the project


Multiple Choice Multiple Answer
Question
The advantage of cost-benefit analysis are
Correct Answer
Maximization of social welfare , Objective measurement of the trade-off , Maximization of difference between total benefits & total costs

Select The Blank
Question
Cost-Benefit analysis aims at ________ of social wealth.
Correct Answer
maximization



Select The Blank
Question
Modern economists treat social cost and benefits as ________ of private investment and production decisions.
Correct Answer
externalities



Multiple Choice Single Answer
Question
According to many economists, the root cause of economic problem is
Correct Answer
scarcity



Multiple Choice Single Answer
Question
Managerial economics aims at providing guidance to the firms for
Correct Answer
decision making




Multiple Choice Single Answer
Question
In case of a Joint-Stock Company, the liability of share holders is
Correct Answer
limited



Multiple Choice Single Answer
Question
For an economist, Tata Eng & Locomotive Company Ltd is a
Correct Answer
firm


Multiple Choice Multiple Answer
Question
Preference Shares can be classified as
Correct Answer
Simple Shares , Cumulative Shares , Redeemable Shares

Multiple Choice Multiple Answer
Question
The promoters of a company can get incorporated by filing with the registrarof companies various documents such as
Correct Answer
Memorandum of Association , Articles of Association , Prospectus


Multiple Choice Multiple Answer
Question
Forms of Public Enterprises
Correct Answer
departmental management , company management or management by boards , public corporations

Select The Blank
Question
Baumol has suggested as an alternative objective for profit maximization , the maximization of ________
Correct Answer
sales

Select The Blank
Question
The partnership between private sector & government is called ________
Correct Answer
Joint sector enterprise


Select The Blank
Question
The minimum number of directors which public limited should have is ________.
Correct Answer
3


Multiple Choice Single Answer
Question
The profit which is surplus of revenue over and above all paid out cost is
Correct Answer
Accounting Profit

True/False
Question
Measurement of profit becomes difficult because of the difficulty involved in the calculation of depreciation.
Correct Answer
True


Multiple Choice Single Answer
Question
In economics, demand means desire backed by adequate
Correct Answer
purchasing power



Multiple Choice Single Answer
Question
When more units of a commodity are purchased in response to decline in price of that commodity, it is called as expansion of
Correct Answer
demand

Multiple Choice Single Answer
Question
Demand for products like tea, betel, tobacoo, sigaratte is a matter of
Correct Answer
habit

Multiple Choice Single Answer
Question
If the substitutes are relatively cheaper then the demand for the commodity in question will be
Correct Answer
less


True/False
Question
A shift in the demand curve to the left shows increase in demand.
Correct Answer
False


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


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



Select The Blank
Question
A normal demand curve has ________+B299
Correct Answer
negative slope

Multiple Choice Multiple Answer
Question
Cost function denotes
Correct Answer
The prices of such inputs as labour and capital material , The rate of output , The size of the plant


Select The Blank
Question
The law of constant returns to scale is depicted by the marginal output curve which is ________.
Correct Answer
horizontal

Select The Blank
Question
In the 3rd stage of operation of the law of variable proportions, the marginal product becomes ________.
Correct Answer
negative



Select The Blank
Question
The costs which cover the cost of advertising is ________.
Correct Answer
Selling cost

Multiple Choice Multiple Answer
Question
Features of Oligopoly Market are
Correct Answer
Few sellers , Restriction to entry of new firms , Price leadership


Multiple Choice Single Answer
Question
Saving is a
Correct Answer
private virtue



True/False
Question
During periods of inflation, the income of farmers as a class decreases.
Correct Answer
True


True/False
Question
To solve the unemployment problem , the level of effective demand must decrease.
Correct Answer
False



Match The Following
Question
Correct Answer


Prosperity
Expansion of credit

The general theory of employment, Interest and money
J.M. Keynes

Trade cycle
Wave like movement

Statutory reserve ratio
Quantitative credit control measure


Multiple Choice Multiple Answer
Question
The characteristics of Inflation are
Correct Answer
Excess of demand , Sustained rise in prices , Cannot be anticipated


True/False
Question
Market system or market economy suffers from time to time from economic depressions.
Correct Answer
True


Multiple Choice Multiple Answer
Question
Main aims of the New Industrial Policy (1991) are
Correct Answer
To unshackle the indian industrial economy from the cobwebs of unnecessary bureaucratic control , To introduce liberalization with a view to integrate the indian economy with the world economy , To remove restrictions on direct foreign investment as also to free the domestic entrepreneur from the restriction of MRTP act

Managerial Economics - 4
LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Multiple Choice Single Answer
Question
Economists call all human resources as
Correct Answer
labor

True/False
Question
Economic problem arises only in case of an overpopulated country.
Correct Answer
False

Multiple Choice Single Answer
Question
All the buyers and sellers operating under perfect competition have knowledge
Correct Answer
perfect


True/False
Question
The meaning of the word “economic” is most closely associated with the word unlimited
Correct Answer
True


Multiple Choice Single Answer
Question
The conditions of equilibrium of a firm are applicable to all markets
Correct Answer
None

True/False
Question
In case of the co-operative societies supplying cheap inputs or supplying consumer products at fair prices, a system of subsidized pricing is followed
Correct Answer
True




Multiple Choice Single Answer
Question
The price of a good and the exclusion princople together is
Correct Answer
divisibility


Multiple Choice Single Answer
Question
The liability of a sole proprietary firm is
Correct Answer
unlimited



True/False
Question
Institution of private property is not an essential feature of Capitalism
Correct Answer False

True/False
Question
There never was in any country at any time ‘pure capitalism’ or ‘pure communism
Correct Answer
True


True/False
Question
The railways using a lot of coal in firing the steam locomotives put the residential and other areas near the loco – shades to a lot of sufferings on account of smoke nuisance, is an example of pr
Correct Answer
False


True/False
Question
A Joint stock company has perpetual succession.
Correct Answer
True





True/False
Question
The management of the cooperative form of business organization is totalitarian in nature.
Correct Answer
False


Multiple Choice Single Answer
Question
In Trade cycles the economic activity are
Correct Answer
ups and downs




True/False
Question
In macro – economic analysis the behavior of economic agents such as firms, households and government is seen in total, disregarding details at particular level
Correct Answer
True

Multiple Choice Single Answer
Question
Market economy or private enterprise economy is a economy which is
Correct Answer
planless

Multiple Choice Single Answer
Question
New commodities due to technotogical progress may result in demand for traditional type of goods
Correct Answer
decrease



Multiple Choice Single Answer
Question
If a person is habituated to the consumption of a commodity and if he cannot easily give up its use, demand for it is generally
Correct Answer
inelastic

Match The Following
Question
Correct Answer


Normal demand curve
Downwards to right

Income consumption curve
Upwards to the right

Inelastic demand curve
Vertical straight line


Cross elasticity of demand between two perfect substitute will be
Infinity

A demand curve, which takes the form of a horizontal line parallelto the quantity axis illustrates elasticity
Infinity.


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 in case of essential goods, adopted by the government, the weaker sections of the community are supplied these goods through fair price shops whi
Correct Answer
fair



Multiple Choice Single Answer
Question
The Government attempts to increase supplies of food grains and other essential goods in times of internal shortage through larger
Correct Answer
imports



True/False
Question
External economies are the advantages of large scale production enjoyed exclusively an individual firm alone.
Correct Answer
False


Multiple Choice Multiple Answer
Question
Equilibrium is
Correct Answer
The stage of maximum satisfaction , The stage of balance , The stage of stationary



Multiple Choice Multiple Answer
Question
Conditions of equilibrium
Correct Answer
Marginal Revenue should be equal to Marginal Cost , The Marginal cost curve should cut the marginal revenue curve from below at the equilibrium point , Marginal cost curve should be increasing at equilibrium point



Select The Blank
Question
Cost-benefit analysis refers to the analysis undertaken to judge any projects ________ whether government or private and find out its ________ and facilities its comparison with other available oppor
Correct Answer
investments, worth


Multiple Choice Multiple Answer
Question
Aggregate supply function
Correct Answer
Refers to that price at which the seller is willing to supply , Refers to show the varying level of supply at different prices , Explains the level of out put varies with the level of employment



Multiple Choice Multiple Answer
Question
Characteristics of Depression
Correct Answer
Decrease in economic activities , The growth rate becomes negative , The level of national income declines rapidly


Multiple Choice Multiple Answer
Question
Recession includes
Correct Answer
The demand is halted , Increase in production of goods , Inventories piling up in stocks


Multiple Choice Multiple Answer
Question
The causes of inflation
Correct Answer
Increase in public expenditure , Increase in private expenditure , Increase in foreign demand



Select The Blank
Question
In the ________ terminology, the ________ demand function refers to the schedule of maximum sales proceeds, which the entrepreneurial community actually does expect to be received from the sale of
Correct Answer
Keynesian, aggregate


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




Multiple Choice Multiple Answer
Question
Reasons for need of public distribution system
Correct Answer
To maintain stable price conditions , An efficient management of the supply , To supply the necessary goods to people at reasonable price


Multiple Choice Multiple Answer
Question
The consumer protection Act includes
Correct Answer
Protection from hazardous commodities , Right to a competitive price , Right to information regarding protection

Multiple Choice Multiple Answer
Question
Objectives of economic policy
Correct Answer
To increase the efficiency and international competitiveness of industrial production , To improve the performance and rationalize the scope of the public sector , To reform and modernize the financial sector


Multiple Choice Multiple Answer
Question
Scope of Managerial Economics deals with:
Correct Answer
Demand analysis and forecasting. , Production function & cost analysis. , Inventory management adverting, price system.


Multiple Choice Multiple Answer
Question
Assumptions of the Law of Demand are:
Correct Answer
No change in consumer’s income , No change in consumer’s preferences , No change in fashion

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


Select The Blank
Question
Managerial ________s generally refers to the integration of economic theory with ________ practice.
Correct Answer
economic, business


Select The Blank
Question
The problem of unlimited wants and limited ________ with ________ uses has been forever confronting mankind.
Correct Answer
means, alternative


Select The Blank
Question
As per the International Labour Organisation (ILO), _ ________ is a ________ association of individuals with limited income on the basis of equal rights and responsibilities for achieving certa
Correct Answer
Co-operation, voluntary



Select The Blank
Question
Like all organism, the ________ , too is an organism, according to the ________ theory.
Correct Answer
firm, life-cycle theory

Select The Blank
Question
The ________-taking theory was developed by the ________ . According to him, profit arises because considerable amount of risk is involved in business.
Correct Answer
American economist Hawley, risk


Select The Blank
Question
The extent of the change of demand for a commodity to a given change in ________ , other demand determinants remaining constant, is termed as the ________ of demand.
Correct Answer
price, price elasticity


Select The Blank
Question
Indices constructed for one ________ should not be ________ for other purposes where they not be fully appropriate and given erroneous conclusions.
Correct Answer
purpose, used


Select The Blank
Question
The law of diminishing returns states that, ‘as the proportion of one factor in a combination of factors is ________ after a point, first the ________ and then the average product of that factor w
Correct Answer
increased, marginal



Match The Following
Question
Correct Answer

Statutory Reserve Ratio
Quantitative credit Control Measure


Trade cycle
Wave – like movement

Keynesian theory
Short – Period Analysis

Aggregate Demand Function
Maximum sale proceeds expected by entrepreneurs

Effective Demand
J. M. Keynes

Managerial Economics - 4
LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Multiple Choice Single Answer
Question
Economists call all human resources as
Correct Answer
labor
True/False
Question
Economic problem arises only in case of an overpopulated country.
Correct Answer
False



Multiple Choice Single Answer
Question
All the buyers and sellers operating under perfect competition have knowledge
Correct Answer
perfect


True/False
Question
The meaning of the word “economic” is most closely associated with the word unlimited
Correct Answer
True


Multiple Choice Single Answer
Question
The conditions of equilibrium of a firm are applicable to all markets
Correct Answer
None


True/False
Question
In case of the co-operative societies supplying cheap inputs or supplying consumer products at fair prices, a system of subsidized pricing is followed
Correct Answer
True

Multiple Choice Single Answer
Question
The price of a good and the exclusion princople together is
Correct Answer
divisibility


Multiple Choice Single Answer
Question
The liability of a sole proprietary firm is
Correct Answer
unlimited



True/False
Question
Institution of private property is not an essential feature of Capitalism
Correct Answer
False



True/False
Question
There never was in any country at any time ‘pure capitalism’ or ‘pure communism
Correct Answer
True


True/False
Question
The railways using a lot of coal in firing the steam locomotives put the residential and other areas near the loco – shades to a lot of sufferings on account of smoke nuisance, is an example of pr
Correct Answer
False

True/False
Question
A Joint stock company has perpetual succession.
Correct Answer
True




True/False
Question
The management of the cooperative form of business organization is totalitarian in nature.
Correct Answer
False
Multiple Choice Single Answer
Question
In Trade cycles the economic activity are
Correct Answer
ups and downs


True/False
Question
In macro – economic analysis the behavior of economic agents such as firms, households and government is seen in total, disregarding details at particular level
Correct Answer
True


Multiple Choice Single Answer
Question
Market economy or private enterprise economy is a economy which is
Correct Answer
planless



Multiple Choice Single Answer
Question
New commodities due to technotogical progress may result in demand for traditional type of goods
Correct Answer
decrease



Multiple Choice Single Answer
Question
If a person is habituated to the consumption of a commodity and if he cannot easily give up its use, demand for it is generally
Correct Answer
inelastic



Match The Following
Question
Correct Answer

Normal demand curve
Downwards to right

Income consumption curve
Upwards to the right


Inelastic demand curve
Vertical straight line


Cross elasticity of demand between two perfect substitute will be
Infinity

A demand curve, which takes the form of a horizontal line parallelto the quantity axis illustrates elasticity
Infinity.


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 in case of essential goods, adopted by the government, the weaker sections of the community are supplied these goods through fair price shops whi
Correct Answer
fair

Multiple Choice Single Answer
Question
The Government attempts to increase supplies of food grains and other essential goods in times of internal shortage through larger
Correct Answer
imports


True/False
Question
External economies are the advantages of large scale production enjoyed exclusively an individual firm alone.
Correct Answer
False



Multiple Choice Multiple Answer
Question
Equilibrium is
Correct Answer
The stage of maximum satisfaction , The stage of balance , The stage of stationary

Multiple Choice Multiple Answer
Question
Conditions of equilibrium
Correct Answer
Marginal Revenue should be equal to Marginal Cost , The Marginal cost curve should cut the marginal revenue curve from below at the equilibrium point , Marginal cost curve should be increasing at equilibrium point


Select The Blank
Question
Cost-benefit analysis refers to the analysis undertaken to judge any projects ________ whether government or private and find out its ________ and facilities its comparison with other available oppor
Correct Answer
investments, worth



Multiple Choice Multiple Answer
Question
Aggregate supply function
Correct Answer
Refers to that price at which the seller is willing to supply , Refers to show the varying level of supply at different prices , Explains the level of out put varies with the level of employment


Multiple Choice Multiple Answer
Question
Characteristics of Depression
Correct Answer
Decrease in economic activities , The growth rate becomes negative , The level of national income declines rapidly



Multiple Choice Multiple Answer
Question
Recession includes
Correct Answer
The demand is halted , Increase in production of goods , Inventories piling up in stocks

Multiple Choice Multiple Answer
Question
The causes of inflation
Correct Answer
Increase in public expenditure , Increase in private expenditure , Increase in foreign demand


Select The Blank
Question
In the ________ terminology, the ________ demand function refers to the schedule of maximum sales proceeds, which the entrepreneurial community actually does expect to be received from the sale of
Correct Answer
Keynesian, aggregate



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



Multiple Choice Multiple Answer
Question
Reasons for need of public distribution system
Correct Answer
To maintain stable price conditions , An efficient management of the supply , To supply the necessary goods to people at reasonable price

Multiple Choice Multiple Answer
Question
The consumer protection Act includes
Correct Answer
Protection from hazardous commodities , Right to a competitive price , Right to information regarding protection

Multiple Choice Multiple Answer
Question
Objectives of economic policy
Correct Answer
To increase the efficiency and international competitiveness of industrial production , To improve the performance and rationalize the scope of the public sector , To reform and modernize the financial sector


Multiple Choice Multiple Answer
Question
Scope of Managerial Economics deals with:
Correct Answer
Demand analysis and forecasting. , Production function & cost analysis. , Inventory management adverting, price system.


Multiple Choice Multiple Answer
Question
Assumptions of the Law of Demand are:
Correct Answer
No change in consumer’s income , No change in consumer’s preferences , No change in fashion


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


Select The Blank
Question
Managerial ________s generally refers to the integration of economic theory with ________ practice.
Correct Answer
economic, business


Select The Blank
Question
The problem of unlimited wants and limited ________ with ________ uses has been forever confronting mankind.
Correct Answer
means, alternative

Select The Blank
Question
As per the International Labour Organisation (ILO), _ ________ is a ________ association of individuals with limited income on the basis of equal rights and responsibilities for achieving certa
Correct Answer
Co-operation, voluntary



Select The Blank
Question
Like all organism, the ________ , too is an organism, according to the ________ theory.
Correct Answer
firm, life-cycle theory

Select The Blank
Question
The ________-taking theory was developed by the ________ . According to him, profit arises because considerable amount of risk is involved in business.
Correct Answer
American economist Hawley, risk


Select The Blank
Question
The extent of the change of demand for a commodity to a given change in ________ , other demand determinants remaining constant, is termed as the ________ of demand.
Correct Answer
price, price elasticity


Select The Blank
Question
Indices constructed for one ________ should not be ________ for other purposes where they not be fully appropriate and given erroneous conclusions.
Correct Answer
purpose, used


Select The Blank
Question
The law of diminishing returns states that, ‘as the proportion of one factor in a combination of factors is ________ after a point, first the ________ and then the average product of that factor w
Correct Answer
increased, marginal



Match The Following
Question
Correct Answer

Statutory Reserve Ratio
Quantitative credit Control Measure

Trade cycle
Wave – like movement

Keynesian theory
Short – Period Analysis

Aggregate Demand Function
Maximum sale proceeds expected by entrepreneurs


Effective Demand
J. M. Keynes

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