Managerial Economics SCDL Assignments

Managerial Economics SCDL Assignments

SCDL Assignment on Managerial Economics

List Of Attempted Questions And Answers

Select The BlankQuestion The sum of all individual demands constitutes________Correct Answer market demandYour Answer market demand

True/FalseQuestion Under perfect competition, price is determined by the interaction of total demand and total supply in the market.Correct Answer FalseYour Answer True

Multiple Choice Single AnswerQuestion Price of a product under perfect competition is determined by the interaction of total supply andCorrect Answer total demandYour Answer total demand

Select The BlankQuestion The cost which enter the accounts book of the firm are referred as ________.Correct Answer Accounting costYour Answer Accounting cost

Multiple Choice Multiple AnswerQuestion Keynes’s theory of employment explainsCorrect Answer Effective demand , Aggregate supply , Aggregate demandYour Answer Effective demand , Aggregate supply , Aggregate demand

Multiple Choice Single AnswerQuestion The type economic problem isCorrect Answer universalYour Answer universal

Multiple Choice Single AnswerQuestion An individual consumer or particular market for a given commodity are the subject matter ofCorrect Answer Micro EconomicsYour Answer Micro Economics

Multiple Choice Multiple Answer

Question Features of the firm areCorrect Answer It is a business unit organized under one ownership , It is a sole proprietorship , It is a partnership or joint stock companyYour 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 Single AnswerQuestion Whether the economy's capacity to produce goods and services is growing from year to year or remaining static is studied under theCorrect Answer Theory of economic growthYour Answer Theory of economic growth

Multiple Choice Multiple AnswerQuestion Co-operative organizations isCorrect Answer voluntary organization , managed by democratic principle , organization, which performs its business within the membersYour Answer voluntary organization , managed by democratic principle , non profit motive organization

Multiple Choice Multiple AnswerQuestion Assumptions underlying the law of Supply areCorrect Answer The cost of production is unchanged , No change in technique of production , Government policies are unchangedYour Answer The cost of production is unchanged , No change in technique of production , Government policies are unchanged

True/FalseQuestion Macro-economies is a policy oriented science.Correct Answer TrueYour Answer True

Multiple Choice Single AnswerQuestion Expansion of supply is shown by the movement in the supply curve which isCorrect Answer upwardYour Answer upward

Multiple Choice Single AnswerQuestion Liability of a sole trader isCorrect Answer unlimitedYour Answer unlimited

Select The BlankQuestion 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.Your Answer increasing returns to scale.

Select The BlankQuestion An upward sloping demand curve is called ________Correct Answer exceptional demand curveYour Answer exceptional demand curve

Multiple Choice Single AnswerQuestion 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 areCorrect Answer insufficientYour Answer insufficient

Multiple Choice Single AnswerQuestion The act of making goods and services is calledCorrect Answer productionYour Answer production

Multiple Choice Single AnswerQuestion Question related to the efficient production and allocation belong to the branch of economic theory calledCorrect Answer Welfare EconomicsYour Answer Welfare Economics

Multiple Choice Single AnswerQuestion The act of using goods and services to satisfy wants is calledCorrect Answer consumptionYour Answer consumption

Multiple Choice Multiple AnswerQuestion Explicit costs areCorrect Answer Out of pocket costs , These are firms accounting expenses , Expenditure costsYour Answer Out of pocket costs , These are firms accounting expenses , Expenditure costs

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

True/False

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

Multiple Choice Single AnswerQuestion The things that are produced by factors of production are calledCorrect Answer commoditiesYour Answer commodities

Select The BlankQuestion By ' profits', the accountant means total revenue minus________.Correct Answer Explicit costsYour Answer Explicit costs

Multiple Choice Single AnswerQuestion All the buyers and sellers operating under perfect competition have knowledge which isCorrect Answer perfectYour Answer perfect

Match The FollowingQuestion Correct Answer Your Answer

Resource allocation decisions in free market economy Theory of price Theory of priceEconomic problem Universal UniversalManagerial Economics Applied branch of knowledge Applied branch of knowledgeInflation Reduction in purchasing power Theory of priceWaste of resources Involuntary unemployment Involuntary unemployment

Multiple Choice Multiple AnswerQuestion 16. The phase of recovery denotesCorrect Answer More employment opportunities , Increase in profitability , Wage rate increaseYour Answer More employment opportunities , Increase in profitability , Wage rate increase

Select The BlankQuestion Supply is predominantly determined by ________.Correct Answer stockYour Answer demand

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

Multiple Choice Single AnswerQuestion The suggestion of maximization of balanced growth rate as another alternative objective of a firm's profit is suggested byCorrect Answer Prof. MorrisYour Answer Baumol

True/FalseQuestion Under perfect competition,firms are free to enter and exit in the market.Correct Answer TrueYour Answer True

Multiple Choice Single AnswerQuestion J.M. Keynes, on the basis of a fundamental psychological law of consumption, observed that as income increases, consumption also increases, but proportionatelyCorrect Answer lessYour Answer less

Multiple Choice Single AnswerQuestion The Risk theory of profit was developed byCorrect Answer HawleyYour Answer Hawley

True/FalseQuestion The congress government led by Narsimha Rao announced the New Industrial Policy in July 1991.Correct Answer TrueYour Answer True

Select The BlankQuestion Perfectly elastic demand curve is ________Correct Answer horizontalYour Answer horizontal

True/FalseQuestion The distinction between fixed costs and variable costs is relevant in the short period only.Correct Answer True

Your Answer True

Multiple Choice Multiple AnswerQuestion The term externalities may also be referred as:Correct Answer Spill-over effects , Neighborhood effects , Third party effectsYour Answer Spill-over effects , Neighborhood effects , Third party effects

Multiple Choice Multiple AnswerQuestion Methods of forecasting demand for new products areCorrect Answer Product life cycle analysis , Test marketing , Evolutionary approachYour Answer Evolutionary approach

Multiple Choice Single AnswerQuestion Often monopolies purposely keep certain factors of production idle creating artificial scarcities of their products as a result the pricesCorrect Answer riseYour Answer rise

Multiple Choice Multiple AnswerQuestion The methods of calculating depreciation isCorrect Answer Diminishing Balance Method , Annuity Method , Service Unit MethodYour Answer Diminishing Balance Method , Annuity Method , Service Unit Method


Human wants unlimited unlimitedGeneral Theory of Employment, Interest and Money J. M. Keynes J. M. KeynesManagerial economics Decision making and forward planning Decision making and forward planningResources scarce scarceCommodities goods and services goods and services

Select The BlankQuestion In the context of formulating an investment project, ________ feasibility means the availability of supervisors for implementing and running the project smoothly and professionally.Correct Answer managementYour Answer management

True/FalseQuestion The sum of total fixed costs and total variable costs is the total cost.Correct Answer TrueYour Answer True

Multiple Choice Multiple AnswerQuestion Features of Market areCorrect Answer Place where buyers and sellers meet each other , A building where a number of shops dealing in a particular commodity exist , A place where transaction of goods and services is undertakenYour Answer Place where buyers and sellers meet each other , A building where a number of shops dealing in a particular commodity exist , A place where transaction of goods and services is undertaken

Multiple Choice Single AnswerQuestion Managerial economics is also understood to refer toCorrect Answer applied economicsYour Answer applied economics

SCDL Assignment on Managerial Economics Set IV

Managerial Economics Set IV SCDL Assignments

Multiple Choice Single Answer

Question

Managerial economics generally refers to the integration of economic theory

with business

Correct Answer

Practice

Your Answer

Practice


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

Your Answer

sufficient


Question

All the buyers and sellers operating under perfect competition have

knowledge

Correct Answer

perfect

Your Answer

perfect

True/False

Question

Inflation reduces the purchasing power of money and savings.

Correct Answer

True

Your Answer

False


Question

The supply curve during market period is perfectly

Correct Answer

inelastic

Your Answer

inelastic

True/False

Question

Micro-economics is primarily concerned with the problem of what, how and

for whom to produce

Correct Answer

True

Your Answer

True

Match The Following

Question

Correct Answer

Your Answer

Managerial economics

Decision making and forward planning

Decision making and forward planning

Resources

scarce

goods and services

Commodities

goods and services

scarce

Human wants

unlimited

unlimited

General Theory of Employment, Interest and Money

J. M. Keynes

J. M. Keynes

True/False

Question

The price policy under monopolistic competition is dependent on the prices

charged by other rival firms

Correct Answer

True

Your Answer

False


Question

All firms producing the same or similar product together make

Correct Answer

an industry

Your Answer

an industry


Question

Joint Stock Company succession is

Correct Answer

perpetual

Your Answer

perpetual

True/False

Question

Private profit motive is an essential feature of Capitalism

Correct Answer

True

Your Answer

True

True/False

Question

‘Free riders’ is a term associated with the people who would like to have

benefit of a good without sharing the cost of its supply

Correct Answer

True

Your Answer

False


Question

Macro – economics provides an exploration to the functioning of an economy

in

Correct Answer

general

Your Answer

general

True/False

Question

Inflation is a great opportunity for merchants to benefit more.

Correct Answer

True

Your Answer

True

True/False

Question

The various phases of business cycles are shown by the line of cycle which

moves up and down the steady growth line

Correct Answer

True

Your Answer

True

True/False

Question

In the measurement of profit, the differences in the concept of profit arise out

of the differences in cost concepts

Correct Answer

True

Your Answer

False


Question

In economics demand means desire backed by adequate

Correct Answer

purchasing power

Your Answer

ability to pay


Question

The law of diminishing returns is applicable to agriculture provided the state

of technology is given and

Correct Answer

constant

Your Answer

constant


Question

Under the monetary measures to control inflation, the R. B. I relies heavily on

selective credit controls on bank loans against food grains, sugar, oils,

oilseeds, cotton etc so as to discourage

Correct Answer

Speculative hoarding

Your Answer

Speculative hoarding


Question

Slope of supply curve is

Correct Answer

positive

Your Answer

positive


Question

Costs which increase because of the expansion of a firm are called costs

Correct Answer

incremental

Your Answer

incremental

True/False

Question

The opportunity cost of a product is the opportunity gained of being able to

produce some other product.

Correct Answer

False

Your Answer

False

True/False

Question

The supply curve in case of unitary elastic supply is rectangular hyperbola.

Correct Answer

False

Your Answer

False


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

Your Answer

Is a group of firms , All firms dealing in the same line of business , The

ownership and management of each firm is different

Select The Blank

Question

Under monopoly, there is ________ seller who controls the entire ________ in

the market

Correct Answer

only one

Your Answer

only one

Correct Answer

supply

Your Answer

supply

Select The Blank

Question

Under monopsony, there are ________ sellers but ________ buyer

Correct Answer

many

Your Answer

many

Correct Answer

only one

Your Answer

only one

Match The Following

Question

Correct Answer

Your Answer

Marginal utility

Addition to total utility

Addition to total utility

Total utility increases marginal

Posative and declining

Marginal utility is zero

At the saturation point for a commodity x the Mux is

Zero

Demand curve of a commodity

Marginal utilities are

Demand curve of a commodity

Posative and declining

Total utility is

Marginal utility is zero

Zero

Select The Blank

Question

By using cost-benefit analysis we can show the ________ necessary for

attaining maximum ________ and optimal policy aiming at this goal

Correct Answer

measures

Your Answer

Gross Domestic Product

Correct Answer

net wealth

Your Answer

gross wealth


Question

Average propensity to consume

Correct Answer

It is defined as the ratio of consumption expenditure to any particular level of

income , It is found by dividing consumption expenditure by income , It is

expressed as the percentage of income consumed

Your Answer

It is derived by dividing income by consumption expenditure


Question

Inflation means

Correct Answer

It is a phenomenon of rising prices , It is a general and dynamic

phenomenon , It includes an excess of demand

Your Answer

It is a phenomenon of rising prices

Select The Blank

Question

Aggregate supply function refers to a ________ of the various minimum

amounts of proceeds or ________ , which must be expected to be received by

the entrepreneur class from the sale of output result

Correct Answer

schedule

Your Answer

demand

Correct Answer

revenues

Your Answer

revenues

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

Your Answer

Keynesian

Correct Answer

aggregate

Your Answer

aggregate


Question

The fiscal policy includes

Correct Answer

Formation of taxation policy , It is an instrument for economic stabilization ,

Monitoring of public expenditure

Your Answer

Formation of taxation policy , It is an instrument for economic stabilization ,

Monitoring of public expenditure


Question

The meaning of monetary policy

Correct Answer

It is programme of the central bank , It controls the total supply of money ,

The basic objective is to achieve economic stability

Your Answer

It is programme of the central bank , It controls the total supply of money ,

The basic objective is to achieve economic stability


Question

Causes for rise in prices in India

Correct Answer

Mounting government expenditure , Deficit financing and increase in money

supply , Role of black money

Your Answer

Mounting government expenditure , Deficit financing and increase in money

supply , Role of black money


Question

Managerial economics deals with

Correct Answer

Integration of economic theory with business practice , Using logic of

economics, mathematics & statistics. , The use of economic modes of

thought to analyze business solution.

Your Answer

Integration of economic theory with business practice , Using logic of

economics, mathematics & statistics.


Question

The sources of economic problems are:

Correct Answer

Man has unlimited wants or ends , The means or resources to satisfy them

are limited. , These resources are not specific but have alternative uses.

Your Answer

Man has unlimited wants or ends , The means or resources to satisfy them

are limited. , These resources are not specific but have alternative uses.


Question

Different types of business organizations are;

Correct Answer

Private sector. , Public sector. , Joint sector.

Your Answer

Joint sector.


Question

Proprietary firm is

Correct Answer

Owned by a single person. , Easy to form. , An organization of single person.

Your Answer

Owned by a single person.


Question

Methods of measurement of elasticity

Correct Answer

Percentage Method , Point elasticity Method , Total outlay expenditure

method

Your Answer

Percentage Method , Point elasticity Method , Total outlay expenditure

method


Question

Demand forecasts are necessary for:

Correct Answer

Fulfillment of objective of the plans , Preparation of a budget , Expansion of

firms

Your Answer

Preparation of a budget , Expansion of firms

Select The Blank

Question

Economic theory provides the basis for the ________ _ making process, there

is some difference between the generalization based on abstraction and

actual practices. Besides economic theory, mat

Correct Answer

decision making

Your Answer

optimal

Correct Answer

statistics

Your Answer

Select The Blank

Question

The resources of a society consist not only of the free gifts of nature such as

________ but also of ________ and of all sorts of man made aids to further

production.

Correct Answer

land and minerals

Your Answer

land and minerals

Correct Answer

human capacity

Your Answer

human capacity

Select The Blank

Question

Individual or sole ________ , which is also called sole- ________ , or single

entrepreneurship is the most common, the simplest and the oldest form of

business organisation.

Correct Answer

proprietorship

Your Answer

proprietorship

Correct Answer

trader ship

Your Answer

trader ship

Select The Blank

Question

Nominal cost is the ________ cost of production, it is also called expenses of

production. The real cost is the ________ cost of production.

Correct Answer

money

Your Answer

opportunity

Correct Answer

opportunity

Your Answer

gross

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

Your Answer

Production costs

Correct Answer

Selling costs

Your Answer

Selling costs

Select The Blank

Question

The costs of self owned resources, which are employed by the ________ , are

non- expenditure or , ________

Correct Answer

firm

Your Answer

firm

Correct Answer

implicit costs .

Your Answer

implicit costs .

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Managerial Economics SCDL Assignments, SCDL Assignment on Managerial Economics

Managerial Economics SCDL Assignments

SCDL Assignment on Managerial Economics


Select The Blank

Question The sum of all individual demands constitutes________

Correct Answer market demand

Your Answer market demand

True/False

Question Under perfect competition, price is determined by the interaction of

total demand and total supply in the market.

Correct Answer False

Your Answer True


Question Price of a product under perfect competition is determined by the

interaction of total supply and

Correct Answer total demand

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http://www.blogger.com/post-edit.g?blogID=6798970863385436352&postID=6206846365169570010

Your Answer total demand

Select The Blank

Question The cost which enter the accounts book of the firm are referred as

________.

Correct Answer Accounting cost

Your Answer Accounting cost


Question Keynes’s theory of employment explains

Correct Answer Effective demand , Aggregate supply , Aggregate demand

Your Answer Effective demand , Aggregate supply , Aggregate demand


Question The type economic problem is

Correct Answer universal

Your Answer universal


Question An individual consumer or particular market for a given commodity

are the subject matter of

Correct Answer Micro Economics

Your Answer Micro Economics


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

Your Answer It is a business unit organized under one ownership , It is a sole

proprietorship , It is a partnership or joint stock company


Question Whether the economy's capacity to produce goods and services is

growing from year to year or remaining static is studied under the

Correct Answer Theory of economic growth

Your Answer Theory of economic growth


Question Co-operative organizations is

Correct Answer voluntary organization , managed by democratic principle ,

organization, which performs its business within the members

Your Answer voluntary organization , managed by democratic principle , non

profit motive organization


Question Assumptions underlying the law of Supply are

Correct Answer The cost of production is unchanged , No change in technique

of production , Government policies are unchanged

Your Answer The cost of production is unchanged , No change in technique of

production , Government policies are unchanged

True/False

Question Macro-economies is a policy oriented science.

Correct Answer True

Your Answer True


Question Expansion of supply is shown by the movement in the supply curve

which is

Correct Answer upward

Your Answer upward


Question Liability of a sole trader is

Correct Answer unlimited

Your Answer unlimited

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.

Your Answer increasing returns to scale.

Select The Blank

Question An upward sloping demand curve is called ________

Correct Answer exceptional demand curve

Your Answer exceptional demand curve


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

Your Answer insufficient


Question The act of making goods and services is called

Correct Answer production

Your Answer production


Question Question related to the efficient production and allocation belong to

the branch of economic theory called

Correct Answer Welfare Economics

Your Answer Welfare Economics


Question The act of using goods and services to satisfy wants is called

Correct Answer consumption

Your Answer consumption


Question Explicit costs are

Correct Answer Out of pocket costs , These are firms accounting expenses ,

Expenditure costs

Your Answer Out of pocket costs , These are firms accounting expenses ,

Expenditure costs

Select The Blank

Question In the 3rd stage of operation of the law of variable proportions, the

marginal product becomes ________.

Correct Answer negative

Your Answer negative

True/False

Question The Keynesian theory emphasizes effective supply as a crucial

factor in determining the level of income and employment.

Correct Answer False

Your Answer False


Question The things that are produced by factors of production are called

Correct Answer commodities

Your Answer commodities

Select The Blank

Question By ' profits', the accountant means total revenue minus________.

Correct Answer Explicit costs

Your Answer Explicit costs


Question All the buyers and sellers operating under perfect competition have

knowledge which is

Correct Answer perfect

Your Answer perfect

Match The Following

Question Correct Answer Your Answer

Resource allocation decisions in free market economy Theory of price Theory

of price

Economic problem Universal Universal

Managerial Economics Applied branch of knowledge Applied branch of

knowledge

Inflation Reduction in purchasing power Theory of price

Waste of resources Involuntary unemployment Involuntary unemployment


Question 16. The phase of recovery denotes

Correct Answer More employment opportunities , Increase in profitability ,

Wage rate increase

Your Answer More employment opportunities , Increase in profitability , Wage

rate increase

Select The Blank

Question Supply is predominantly determined by ________.

Correct Answer stock

Your Answer demand

Select The Blank

Question The form of organization which is best for self employment is

________.

Correct Answer Sole trader

Your Answer Sole trader


Question The suggestion of maximization of balanced growth rate as another

alternative objective of a firm's profit is suggested by

Correct Answer Prof. Morris

Your Answer Baumol

True/False

Question Under perfect competition,firms are free to enter and exit in the

market.

Correct Answer True

Your Answer True


Question J.M. Keynes, on the basis of a fundamental psychological law of

consumption, observed that as income increases, consumption also

increases, but proportionately

Correct Answer less

Your Answer less


Question The Risk theory of profit was developed by

Correct Answer Hawley

Your Answer Hawley

True/False

Question The congress government led by Narsimha Rao announced the New

Industrial Policy in July 1991.

Correct Answer True

Your Answer True

Select The Blank

Question Perfectly elastic demand curve is ________

Correct Answer horizontal

Your Answer horizontal

True/False

Question The distinction between fixed costs and variable costs is relevant in

the short period only.

Correct Answer True

Your Answer True


Question The term externalities may also be referred as:

Correct Answer Spill-over effects , Neighborhood effects , Third party effects

Your Answer Spill-over effects , Neighborhood effects , Third party effects


Question Methods of forecasting demand for new products are

Correct Answer Product life cycle analysis , Test marketing , Evolutionary

approach

Your Answer Evolutionary approach


Question Often monopolies purposely keep certain factors of production idle

creating artificial scarcities of their products as a result the prices

Correct Answer rise

Your Answer rise


Question The methods of calculating depreciation is

Correct Answer Diminishing Balance Method , Annuity Method , Service Unit

Method

Your Answer Diminishing Balance Method , Annuity Method , Service Unit

Method

Match The Following


Human wants unlimited unlimited

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

Managerial economics Decision making and forward planning Decision

making and forward planning

Resources scarce scarce

Commodities goods and services goods and services

Select The Blank

Question In the context of formulating an investment project, ________

feasibility means the availability of supervisors for implementing and running

the project smoothly and professionally.

Correct Answer management

Your Answer management

True/False

Question The sum of total fixed costs and total variable costs is the total cost.

Correct Answer True

Your Answer True


Question Features of Market are

Correct Answer Place where buyers and sellers meet each other , A building

where a number of shops dealing in a particular commodity exist , A place

where transaction of goods and services is undertaken

Your Answer Place where buyers and sellers meet each other , A building

where a number of shops dealing in a particular commodity exist , A place

where transaction of goods and services is undertaken


Question Managerial economics is also understood to refer to

Correct Answer applied economics

Your Answer applied economics


Select The BlankQuestion The sum of all individual demands constitutes________Correct Answer market demandYour Answer market demand

True/FalseQuestion Under perfect competition, price is determined by the interaction of total demand and total supply in the market.Correct Answer FalseYour Answer True

Multiple Choice Single AnswerQuestion Price of a product under perfect competition is determined by the interaction of total supply andCorrect Answer total demandYour Answer total demand


Multiple Choice Multiple AnswerQuestion Keynes’s theory of employment explainsCorrect Answer Effective demand , Aggregate supply , Aggregate demand Your Answer Effective demand , Aggregate supply , Aggregate demand


Multiple Choice Single AnswerQuestion An individual consumer or particular market for a given commodity are the subject matter ofCorrect Answer Micro EconomicsYour Answer Micro Economics

Multiple Choice Multiple AnswerQuestion Features of the firm areCorrect Answer It is a business unit organized under one ownership , It is a sole proprietorship , It is a partnership or joint stock company Your 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 Single AnswerQuestion Whether the economy's capacity to produce goods and services is growing from year to year or remaining static is studied under theCorrect Answer Theory of economic growthYour Answer Theory of economic growth

Multiple Choice Multiple AnswerQuestion Co-operative organizations isCorrect Answer voluntary organization , managed by democratic principle , organization, which performs its business within the members Your Answer voluntary organization , managed by democratic principle , non profit motive organization

Multiple Choice Multiple AnswerQuestion Assumptions underlying the law of Supply areCorrect Answer The cost of production is unchanged , No change in technique of production , Government policies are unchanged Your Answer The cost of production is unchanged , No change in technique of production , Government policies are unchanged

True/FalseQuestion Macro-economies is a policy oriented science.Correct Answer TrueYour Answer True

Multiple Choice Single AnswerQuestion Expansion of supply is shown by the movement in the supply curve which isCorrect Answer upwardYour Answer upward

Multiple Choice Single AnswerQuestion Liability of a sole trader isCorrect Answer unlimitedYour Answer unlimited

Select The BlankQuestion 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.Your Answer increasing returns to scale.

Select The BlankQuestion An upward sloping demand curve is called ________Correct Answer exceptional demand curveYour Answer exceptional demand curve

Multiple Choice Single AnswerQuestion 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 areCorrect Answer insufficient

Your Answer insufficient


Multiple Choice Single AnswerQuestion Question related to the efficient production and allocation belong to the branch of economic theory calledCorrect Answer Welfare EconomicsYour Answer Welfare Economics


Multiple Choice Multiple AnswerQuestion Explicit costs areCorrect Answer Out of pocket costs , These are firms accounting expenses , Expenditure costs Your Answer Out of pocket costs , These are firms accounting expenses , Expenditure costs


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


Select The BlankQuestion By ' profits', the accountant means total revenue minus________.Correct Answer Explicit costsYour Answer Explicit costs

Multiple Choice Single AnswerQuestion All the buyers and sellers operating under perfect competition have knowledge which isCorrect Answer perfectYour Answer perfect


Resource allocation decisions in free market economy Theory of price Theory of priceEconomic problem Universal UniversalManagerial Economics Applied branch of knowledge Applied branch of knowledgeInflation Reduction in purchasing power Theory of priceWaste of resources Involuntary unemployment Involuntary unemployment

Multiple Choice Multiple AnswerQuestion 16. The phase of recovery denotesCorrect Answer More employment opportunities , Increase in profitability , Wage rate increase Your Answer More employment opportunities , Increase in profitability , Wage rate increase

Select The BlankQuestion Supply is predominantly determined by ________.Correct Answer stockYour Answer demand


Multiple Choice Single AnswerQuestion The suggestion of maximization of balanced growth rate as another alternative objective of a firm's profit is suggested byCorrect Answer Prof. MorrisYour Answer Baumol

True/FalseQuestion Under perfect competition,firms are free to enter and exit in the market.Correct Answer TrueYour Answer True

Multiple Choice Single AnswerQuestion J.M. Keynes, on the basis of a fundamental psychological law of consumption, observed that as income increases, consumption also increases, but proportionatelyCorrect Answer less

Your Answer less

Multiple Choice Single AnswerQuestion The Risk theory of profit was developed byCorrect Answer HawleyYour Answer Hawley

True/FalseQuestion The congress government led by Narsimha Rao announced the New Industrial Policy in July 1991.Correct Answer TrueYour Answer True


True/FalseQuestion The distinction between fixed costs and variable costs is relevant in the short period only.Correct Answer TrueYour Answer True

Multiple Choice Multiple AnswerQuestion The term externalities may also be referred as:Correct Answer Spill-over effects , Neighborhood effects , Third party effects Your Answer Spill-over effects , Neighborhood effects , Third party effects

Multiple Choice Multiple AnswerQuestion Methods of forecasting demand for new products areCorrect Answer Product life cycle analysis , Test marketing , Evolutionary approach Your Answer Evolutionary approach

Multiple Choice Single AnswerQuestion Often monopolies purposely keep certain factors of production idle creating artificial scarcities of their products as a result the pricesCorrect Answer riseYour Answer rise

Multiple Choice Multiple AnswerQuestion The methods of calculating depreciation isCorrect Answer Diminishing Balance Method , Annuity Method , Service Unit Method Your Answer Diminishing Balance Method , Annuity Method , Service Unit Method

Match The Following


Human wants unlimited unlimitedGeneral Theory of Employment, Interest and Money J. M. Keynes J. M. KeynesManagerial economics Decision making and forward planning Decision making and forward planningResources scarce scarceCommodities goods and services goods and services



Multiple Choice Multiple AnswerQuestion Features of Market areCorrect Answer Place where buyers and sellers meet each other , A building where a number of shops dealing in a particular commodity exist , A place where transaction of goods and services is undertaken Your Answer Place where buyers and sellers meet each other , A building where a number of shops dealing in a particular commodity exist , A place where transaction of goods and services is undertaken


True/FalseQuestion Private profit motive is an essential feature of Capitalism.Correct Answer TrueYour Answer True

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Labels: Managerial Economics

Monday, February 4, 2008Managerial Economics - 1 LIST OF ATTEMPTED QUESTIONS AND ANSWERS

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

Multiple Choice Multiple AnswerQuestion Accounting profit includes :-Correct Answer Wages , Rent , InterestYour Answer Interest , Total revenue

True/FalseQuestion In experimental price approach the firms takes some cognizance of the demand for the product and proceeds to fix a price by a trial and error method.Correct Answer TrueYour Answer True

Multiple Choice Multiple AnswerQuestion Defects of market system:-Correct Answer Inequalities of income and wealth , Emergence of monopolies , Failure to provide full employmentYour Answer Emergence of monopolies , Failure to provide full employment , Prevailing of barter system

Multiple Choice Single AnswerQuestion In case of perfectly elastic supply, the supply curve is :-Correct Answer HorizontalYour Answer

Vertical



Multiple Choice Single AnswerQuestion Economists have pointed out that the real world is full of :-Correct Answer Imperfect competitionYour Answer Pure competition

Multiple Choice Multiple AnswerQuestion Characteristics of Pure Public goods are:-Correct Answer They are completely indivisible , Their marginal cost would be zero or close to zero , Their benefits cannot be pricedYour Answer They are completely indivisible , Their benefits cannot be priced

Multiple Choice Multiple AnswerQuestion 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 actYour 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

Multiple Choice Single AnswerQuestion Under perfect competition, generally demand and supply act and react upon each other and determine the priceCorrect Answer equilibriumYour Answer equilibrium

Multiple Choice Multiple AnswerQuestion Factors leading to differences in the economic & the traditional concepts of valuation are :-Correct Answer Inventory Valuation , Depreciation , Unaccounted value changes in the assets & liabilitiesYour Answer Inventory Valuation , Depreciation , Unaccounted value changes in the assets & liabilities

Select The BlankQuestion Super-normal profit is also called ________.Correct Answer Excess profitYour Answer Excess profit

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

Match The FollowingQuestionCorrect AnswerYour AnswerHuman wantsunlimited

unlimitedGeneral Theory of Employment, Interest and MoneyJ. M. KeynesJ. M. KeynesManagerial economicsDecision making and forward planningDecision making and forward planningResourcesscarcescarceCommoditiesgoods and servicesgoods and services

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

Select The BlankQuestion When Government repays old loans, the purchasing power at the disposal of the people ________.Correct Answer IncreasesYour Answer Becomes negative

True/FalseQuestion The law of supply is not hypothetical.Correct Answer FalseYour Answer True

Multiple Choice Single AnswerQuestion A firm gets an opportunity to produce multiple products because changes in business activity in a firms is :-Correct Answer CyclicalYour Answer

Cyclical

True/FalseQuestion When a change in income has no effect upon the quantity demanded of a product, the income elasticity of demand is zero.Correct Answer TrueYour Answer True

Multiple Choice Single AnswerQuestion Managerial economics generally refers to the integration of economic theory with businessCorrect Answer PracticeYour Answer Practice

Select The BlankQuestion Propensity to consume is defined as the relationship between consumption and ________.Correct Answer IncomeYour Answer Income

True/FalseQuestion Public enterprises have shown a very high rate of return of the capital invested.Correct Answer FalseYour Answer False

Select The BlankQuestion ________ effects are those externalities which flow from the production or use of the good to other parties or economic units.Correct Answer Third partyYour Answer External

True/False

Question In the traditional concept of equilibrium, a firm attains the equilibrium when the firm’s Total Revenue (T.R.) =Total Cost (T.C.).Correct Answer FalseYour Answer True

Multiple Choice Single AnswerQuestion The method of inventory valuation in which, the cost of production is calculated on the assumption that the material which was last to enter the inventory of the company was used first is :-Correct Answer LIFOYour Answer LIFO

True/FalseQuestion Supply management is related to the volume of supply & its distribution system.Correct Answer TrueYour Answer True

Multiple Choice Multiple AnswerQuestion Demand is determined by :-Correct Answer Price of the product , Relative prices of other goods , Tastes and habitsYour Answer Price of the product , Relative prices of other goods , Tastes and habits

Multiple Choice Multiple AnswerQuestion Different types of Elasticity of Demand are :-Correct Answer Cross elasticity of demand , Price elasticity of demand , Income elasticity of demandYour Answer Price elasticity of demand , Income elasticity of demand , Cross elasticity of demand

Multiple Choice Single AnswerQuestion In case of a Joint-Stock Company, the liability of share holders is :-

Correct Answer LimitedYour Answer Limited

Multiple Choice Single AnswerQuestion Expansion of supply is shown by the movement in the supply curve which is :-Correct Answer UpwardYour Answer Upward

Multiple Choice Single AnswerQuestion Saving is a :-Correct Answer Private virtueYour Answer Private virtue

Multiple Choice Single AnswerQuestion According to the Government, the building up of inflationary pressure during the Nineties was attributed to :-Correct Answer Higher Fiscal deficitYour Answer Higher Fiscal deficit

Multiple Choice Multiple AnswerQuestion A competitive industry has three basic characteristics :-Correct Answer Large Number of Firms , Homogeneous Product , Free entry and exitYour Answer Large Number of Firms , Homogeneous Product , Free entry and exit

Multiple Choice Single AnswerQuestion The income which a businessman might expect from the second best alternative use of his resources is called as :-Correct Answer Opportunity costYour Answer

Opportunity cost

Select The BlankQuestion Advertising forms an integral part of decision-making and________.Correct Answer Forward - planningYour Answer Forward - planning

Multiple Choice Multiple AnswerQuestion Exceptions to the Law of Demand are :-Correct Answer Griffin goods , Articles of snob appeal , SpeculationYour Answer Griffin goods , Articles of snob appeal , Speculation

Select The BlankQuestion True inflation starts only after reaching ________.Correct Answer Level of full employmentYour Answer Level of full employment

Select The BlankQuestion The financing of ________ goods is done through Public expenditure.Correct Answer PublicYour Answer Public

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

Multiple Choice Multiple AnswerQuestion Types of Share capital of Joint-Stock Company are :-

Correct Answer Registered or authorized capital , Issued capital , Paid-up capitalYour Answer Registered or authorized capital , Issued capital , Paid-up capital


True/FalseQuestion During the period of depression, a large part of a country’s resources lie involuntarily idle.Correct Answer TrueYour Answer True

True/FalseQuestion Under the New Industrial Policy, in order to invite foreign investment in high priority industries, it was decided to provide approval for direct foreign investment upto 51% equity in such industries.Correct Answer TrueYour Answer True


Labels: Managerial Economics

Thursday, January 24, 2008Managerial Economics - 1 LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Multiple Choice Single AnswerQuestion The concept of Perfect competition includes all the features of :-Correct Answer

Pure competitionYour Answer Pure competition

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


Multiple Choice Multiple AnswerQuestion Features of Dumping are :-Correct Answer It is possible in the case of monopoly market , Selling same good at higher price in home market and at lower price in international market , It is encouraged with a view to promote the exportsYour Answer It is possible in the case of monopoly market , It is encouraged with a view to promote the exports


True/FalseQuestion 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 TrueYour Answer

True

True/FalseQuestion Changes in the value of money because of inflation, make inventory valuation of finished products difficult.Correct Answer TrueYour Answer True

Multiple Choice Single AnswerQuestion The method of inventory valuation in which, the cost of production is calculated on the assumption that the material which was last to enter the inventory of the company was used first is :-Correct Answer LIFOYour Answer LIFO


Select The BlankQuestion The partnership between private sector & government is called ________.Correct Answer Joint sector enterpriseYour Answer Joint sector enterprise

Multiple Choice Multiple AnswerQuestion According to Keynes there are three motives for holding cash for liquidity preference :-Correct Answer The speculative motive , The transactions motive , The precautionary motiveYour Answer The transactions motive , The precautionary motive , The speculative motive

Multiple Choice Single AnswerQuestion If the substitutes are relatively costly then the demand for the commodity in question will be :-Correct Answer MoreYour Answer More

Multiple Choice Multiple AnswerQuestion The Laws of Returns to scale are :-Correct Answer Law of Increasing Returns to Scale , Law of Constant Returns to Scale , Law of Decreasing Returns to scaleYour Answer Law of Decreasing Returns to scale

Multiple Choice Multiple AnswerQuestion Increasing Returns explains :-Correct Answer Total product increases at an increasing rate , Marginal product increasing and it is maximum , Average product is increasing but it is below MPYour Answer Total product increases at an increasing rate , Marginal product increasing and it is maximum , Average product is increasing but it is below MP

Multiple Choice Single AnswerQuestion An individual consumer or particular market for a given commodity are the subject matter of :-Correct Answer Micro EconomicsYour Answer Micro Economics

True/FalseQuestion The prosperity phase is characterized by rise in the level of employment.Correct Answer TrueYour Answer True

Select The BlankQuestion

Baumol has suggested as an alternative objective for profit maximization, the maximization of ________.Correct Answer SalesYour Answer Sales

Multiple Choice Single AnswerQuestion The profit which is surplus of revenue over and above all paid out cost is :-Correct Answer Accounting ProfitYour Answer Gross Profit

Select The BlankQuestion In perfect competition various factors of production are assumed to be ________.Correct Answer Perfectly mobileYour Answer Perfectly mobile

Select The BlankQuestion Keynes, on the basis of a fundamental psychological law, observed that as income ________, consumption Increases.Correct Answer IncreasesYour Answer Increases

True/FalseQuestion During the period of depression, a large part of a country’s resources lie involuntarily idle.Correct Answer TrueYour Answer True

True/FalseQuestion Pure private goods are completely divisible and to them the principle of exclusion applies in full measure.Correct Answer

TrueYour Answer False

Select The BlankQuestion The taxation & public expenditure policies are called as ________ ..Correct Answer Budgetary PolicyYour Answer Budgetary Policy

Multiple Choice Multiple AnswerQuestion The disinvestments of industries is needed for :-Correct Answer Phased privatization , Reducing deficit , Capital support to plansYour Answer Phased privatization , Reducing deficit , Capital support to plans



Select The BlankQuestion In the context of externalities, driving the smoke-emitting buses and trucks in the cities is an example of ________ cost.Correct Answer SocialYour Answer Social

Multiple Choice Single AnswerQuestion The concept of just distribution of national product is aCorrect Answer normativeYour Answer normative

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

Multiple Choice Multiple AnswerQuestion According to Lionel Robbins definition of economics, "Economics is a science which :-Correct Answer Studies human behaviour , Relationship between ends and scares resources , Scarce means have alternate usesYour Answer Studies human behaviour , Relationship between ends and scares resources , Scarce means have alternate uses

Select The BlankQuestion Under perfect competition, price is determined by the interaction of total demand and ________.Correct Answer Total supplyYour Answer Total selling cost

Multiple Choice Multiple AnswerQuestion Features of monopolistic Competition are :-Correct Answer Fairly large number of firms , Product differentiation , Selling costs are existedYour Answer Fairly large number of firms , Product differentiation , Selling costs are existed

Multiple Choice Multiple AnswerQuestion

Steps in cost benefit analysis are :-Correct Answer Identification of a project , Formulation of the project , Appraisal and selection of the projectYour Answer Identification of a project , Formulation of the project , Appraisal and selection of the project

True/FalseQuestion There is no separation of ownership and management in case of a Joint Stock Company.Correct Answer FalseYour Answer False

Multiple Choice Single AnswerQuestion During a period of rising prices (inflation), the goods and services are :-Correct Answer ScarceYour Answer Scarce

Multiple Choice Single AnswerQuestion The cost recorded in the books of accounts are considered as :-Correct Answer Explicit costsYour Answer Explicit costs

Multiple Choice Single AnswerQuestion Variable cost are those costs which vary with the level of :-Correct Answer OutputYour Answer Output

Select The BlankQuestion Open market operations measures are ________.Correct Answer Quantitative credit controlYour Answer Quantitative credit control

Select The BlankQuestion Managerial ________ lies on the borderline of management and Economics.Correct Answer EconomicsYour Answer Economics

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


Match The FollowingQuestionCorrect AnswerYour AnswerResource allocation decisions in free market economyTheory of priceTheory of priceEconomic problemUniversalUniversalManagerial EconomicsApplied branch of knowledgeApplied branch of knowledgeInflationReduction in purchasing powerReduction in purchasing powerWaste of resourcesInvoluntary unemploymentInvoluntary unemployment

Multiple Choice Single AnswerQuestion According J.B.Clark, profit is the reward paid for :-Correct Answer DynamismYour Answer Risk bearing

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

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

Match The FollowingQuestionCorrect AnswerYour AnswerHuman wantsunlimitedunlimitedGeneral Theory of Employment, Interest and MoneyJ. M. KeynesJ. M. KeynesManagerial economicsDecision making and forward planningDecision making and forward planningResourcesscarcescarceCommoditiesgoods and servicesgoods and services


6LIST OF ATTEMPTED QUESTIONS AND ANSWERS

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

Multiple Choice Single AnswerQuestion

In economics the questions related to the division of society’s output of goods and services among its members are topics inCorrect Answer theory of distributionYour Answer theory of distribution

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

Multiple Choice Single AnswerQuestion All the free gifts of nature which are commonly called natural resources are known to economists asCorrect Answer LandYour Answer capital

Multiple Choice Single AnswerQuestion All the man made resources which are used in the process of making other goods and services are calledCorrect Answer capitalYour Answer labor

Multiple Choice Single AnswerQuestion Managerial economics aims at providing help in the firms isCorrect Answer decision makingYour Answer decision making

True/FalseQuestion Economic problem is faced by poor countrys only.

Correct Answer FalseYour Answer False

Multiple Choice Single AnswerQuestion An industry is a group of firms dealing in the same line ofCorrect Answer businessYour Answer business

True/FalseQuestion Micro-economics is primarily concerned with the problem of what, how and for whom to produceCorrect Answer TrueYour Answer True

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

Select The BlankQuestion 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 indivisibleYour Answer public

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

Economic

Select The BlankQuestion In a market economy ________ is the best judge of personal interest.Correct Answer individualYour Answer firm

Match The FollowingQuestionCorrect AnswerYour AnswerManagerial economicsDecision making and forward planningDecision making and forward planningResourcesScarceScarceCommoditiesGoods and servicesGoods and servicesHuman wantsUnlimitedUnlimited

Match The FollowingQuestionCorrect AnswerYour AnswerGeneral theory of employment, interest and moneyJ. M. KeynesJ. M. KeynesInflationReduction in purchasing powerReduction in purchasing powerServicesIntangible goodsIntangible goodsMethods of production of commoditiesTheory of productionTheory of production


Question The characteristics of a sole proprietorship firm isCorrect Answer Unlimited Capital , Ownership by a single person , Easy to formYour Answer Ownership by a single person , Easy to form

Multiple Choice Multiple AnswerQuestion Different types of business organizations areCorrect Answer private sector , public sector , joint sectorYour Answer private sector , public sector , joint sector

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


Multiple Choice Single AnswerQuestion Economic Profit takes in to account theCorrect Answer implicit costYour Answer implicit cost

True/FalseQuestion In any business, while formulating a profit policy, the possibility of emergence of rival firms must be taken in to accountCorrect Answer

TrueYour Answer True

Multiple Choice Multiple AnswerQuestion The payments made out of the Gross Profit areCorrect Answer Remuneration to factors of production , Depreciation , Maintenance ChargesYour Answer Remuneration to factors of production , Depreciation , Maintenance Charges

Multiple Choice Multiple AnswerQuestion reasonable profit' areCorrect Answer Capital Attraction , Plough Back , Normal earningsYour Answer Capital Attraction , Plough Back , Normal earnings

Multiple Choice Single AnswerQuestion Complementary goods are demandedCorrect Answer jointlyYour Answer separately

Multiple Choice Single AnswerQuestion Emergence of close substitutes to the commodity in question may bring about demand toCorrect Answer decreaseYour Answer decrease

Multiple Choice Single AnswerQuestion The demand for a commodity depends on the prices of its substitutes which areCorrect Answer relativeYour Answer relative

True/False

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

Select The BlankQuestion The index numbers which measure the changes in the general price level of a country refers to ________Correct Answer Wholesale prices indexYour Answer Wholesale prices index

Multiple Choice Multiple AnswerQuestion Different types of Elasticity of Demand areCorrect Answer Price elasticity of demand , Income elasticity of demand , Cross elasticity of demandYour Answer Price elasticity of demand , Income elasticity of demand , Cross elasticity of demand

Multiple Choice Single AnswerQuestion If the increase in all factors leads to a less than proportionate increase in output, then the returns to scale areCorrect Answer decreasingYour Answer decreasing

True/FalseQuestion The supply of factory made goods of daily consumption is inelastic.Correct Answer FalseYour Answer True

Multiple Choice Multiple AnswerQuestion Major types of costs areCorrect Answer

Accounting costs , Economic costs , Opportunity costsYour Answer Accounting costs , Economic costs , Opportunity costs

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

Select The BlankQuestion 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.Your Answer increasing returns to scale.

Multiple Choice Single AnswerQuestion Under monopoly the demand curve slopesCorrect Answer downwardYour Answer downward

Multiple Choice Single AnswerQuestion Dalal Street in Bombay is known asCorrect Answer Bombay Stock ExchangeYour Answer Bombay Stock Exchange

Multiple Choice Single AnswerQuestion The city of Banaras has specialized in the manufacture ofCorrect Answer silkYour Answer silk

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

True/FalseQuestion Long period supply is relatively inelastic.Correct Answer FalseYour Answer True

Multiple Choice Multiple AnswerQuestion Features of the firm areCorrect Answer It is a business unit organized under one ownership , It is a sole proprietorship , It is a partnership or joint stock companyYour 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 AnswerQuestion Equilibrium is the stage ofCorrect Answer maximum satisfaction , balance , stationaryYour Answer maximum satisfaction , balance , stationary

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


According to the Government, the buildup of inflationary pressure during the Nineties was attributed toCorrect Answer Higher Fiscal deficitYour Answer Higher Fiscal deficit

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

True/FalseQuestion There is considerable slush money with politicians & Government servants.Correct Answer TrueYour Answer True

Multiple Choice Multiple AnswerQuestion Government intervention is needed in free market mechanism toCorrect 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 needsYour 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 AnswerQuestion Defects of market system:Correct Answer Inequalities of income and wealth , Emergence of monopolies , Failure to provide full employmentYour Answer Inequalities of income and wealth , Emergence of monopolies , Failure to provide full employment


Labels: Managerial Economics (Set II)

Managerial Economics - 5 LIST OF ATTEMPTED QUESTIONS AND ANSWERS





Multiple Choice Single AnswerQuestion The act of making goods and services is calledCorrect Answer production

Your Answer production


Multiple Choice Single AnswerQuestion The concept of just distribution of national product is aCorrect Answer normativeYour Answer objective

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

Match The FollowingQuestionCorrect AnswerYour AnswerManagerial economicsDecision making and forward planningDecision making and forward planningResourcesscarcescarceCommoditiesgoods and servicesgoods and servicesHuman wantsunlimitedunlimitedGeneral Theory of Employment, Interest and MoneyJ. M. Keynes

J. M. Keynes

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

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

Multiple Choice Multiple AnswerQuestion Steps in cost benefit analysisCorrect Answer Identification of a project , Formulation of the project , Appraisal and selection of the projectYour Answer Identification of a project , Formulation of the project , Appraisal and selection of the project

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

Select The BlankQuestion Cost-Benefit analysis aims at ________ of social wealth.Correct Answer

maximizationYour Answer maximization

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

Multiple Choice Single AnswerQuestion According to many economists, the root cause of economic problem isCorrect Answer scarcityYour Answer scarcity

Multiple Choice Single AnswerQuestion Managerial economics aims at providing guidance to the firms forCorrect Answer decision makingYour Answer decision making

Multiple Choice Single AnswerQuestion In case of a Joint-Stock Company, the liability of share holders isCorrect Answer limitedYour Answer limited

Multiple Choice Single AnswerQuestion For an economist, Tata Eng & Locomotive Company Ltd is aCorrect Answer firmYour Answer firm

Multiple Choice Multiple AnswerQuestion Preference Shares can be classified asCorrect Answer Simple Shares , Cumulative Shares , Redeemable SharesYour Answer Simple Shares , Cumulative Shares , Redeemable Shares

Multiple Choice Multiple AnswerQuestion The promoters of a company can get incorporated by filing with the registrarof companies various documents such asCorrect Answer Memorandum of Association , Articles of Association , ProspectusYour Answer Memorandum of Association , Articles of Association

Multiple Choice Multiple AnswerQuestion Forms of Public EnterprisesCorrect Answer departmental management , company management or management by boards , public corporationsYour Answer departmental management , public corporations , non-profit organization

Select The BlankQuestion Baumol has suggested as an alternative objective for profit maximization , the maximization of ________Correct Answer salesYour Answer sales

Select The BlankQuestion The partnership between private sector & government is called ________Correct Answer Joint sector enterpriseYour Answer Joint sector enterprise


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

Multiple Choice Single AnswerQuestion The profit which is surplus of revenue over and above all paid out cost isCorrect Answer Accounting ProfitYour Answer Gross Profit

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

Multiple Choice Single AnswerQuestion In economics, demand means desire backed by adequateCorrect Answer purchasing powerYour Answer purchasing power

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

Multiple Choice Single AnswerQuestion Demand for products like tea, betel, tobacoo, sigaratte is a matter ofCorrect Answer habit

Your Answer habit

Multiple Choice Single AnswerQuestion If the substitutes are relatively cheaper then the demand for the commodity in question will beCorrect Answer lessYour Answer less

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

True/FalseQuestion Demand for luxury goods is inelasticCorrect Answer FalseYour Answer False

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

Select The BlankQuestion A normal demand curve has ________+B299Correct Answer negative slopeYour Answer negative slope

Multiple Choice Multiple AnswerQuestion

Cost function denotesCorrect Answer The prices of such inputs as labour and capital material , The rate of output , The size of the plantYour Answer The prices of such inputs as labour and capital material , The rate of output , The size of the plant , The cost of technology

Select The BlankQuestion The law of constant returns to scale is depicted by the marginal output curve which is ________.Correct Answer horizontalYour Answer upward sloping


Select The BlankQuestion The costs which cover the cost of advertising is ________.Correct Answer Selling costYour Answer Selling cost

Multiple Choice Multiple AnswerQuestion Features of Oligopoly Market areCorrect Answer Few sellers , Restriction to entry of new firms , Price leadershipYour Answer Few sellers , Restriction to entry of new firms , No Advertisement cost

Multiple Choice Single AnswerQuestion Saving is aCorrect Answer private virtue

Your Answer social virtue

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

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

Match The FollowingQuestionCorrect AnswerYour AnswerProsperityExpansion of creditContraction of creditThe general theory of employment, Interest and moneyJ.M. KeynesJ.M. KeynesTrade cycleWave like movementWave like movementStatutory reserve ratioQuantitative credit control measureQuantitative credit control measure

Multiple Choice Multiple AnswerQuestion The characteristics of Inflation areCorrect Answer Excess of demand , Sustained rise in prices , Cannot be anticipatedYour Answer Sustained rise in prices , Cannot be anticipated , It is limited to some geographical areas

True/False

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

Multiple Choice Multiple AnswerQuestion Main aims of the New Industrial Policy (1991) areCorrect 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 actYour 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




Multiple Choice Single AnswerQuestion Economists call all human resources asCorrect Answer laborYour Answer labor

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

Multiple Choice Single AnswerQuestion All the buyers and sellers operating under perfect competition have knowledgeCorrect Answer perfectYour Answer perfect

True/FalseQuestion The meaning of the word “economic” is most closely associated with the word unlimitedCorrect Answer TrueYour Answer True

Multiple Choice Single AnswerQuestion The conditions of equilibrium of a firm are applicable to all marketsCorrect Answer NoneYour Answer particular

True/FalseQuestion In case of the co-operative societies supplying cheap inputs or supplying consumer products at fair prices, a system of subsidized pricing is followedCorrect Answer TrueYour Answer True

Multiple Choice Single AnswerQuestion The price of a good and the exclusion princople together isCorrect Answer divisibilityYour Answer indivisibility


The liability of a sole proprietary firm isCorrect Answer unlimitedYour Answer unlimited

True/FalseQuestion Institution of private property is not an essential feature of CapitalismCorrect Answer FalseYour Answer False

True/FalseQuestion There never was in any country at any time ‘pure capitalism’ or ‘pure communismCorrect Answer TrueYour Answer True

True/FalseQuestion 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 prCorrect Answer FalseYour Answer True

True/FalseQuestion A Joint stock company has perpetual succession.Correct Answer TrueYour Answer True

True/FalseQuestion The management of the cooperative form of business organization is totalitarian in nature.

Correct Answer FalseYour Answer True

Multiple Choice Single AnswerQuestion In Trade cycles the economic activity areCorrect Answer ups and downsYour Answer ups and downs

True/FalseQuestion In macro – economic analysis the behavior of economic agents such as firms, households and government is seen in total, disregarding details at particular levelCorrect Answer TrueYour Answer True

Multiple Choice Single AnswerQuestion Market economy or private enterprise economy is a economy which isCorrect Answer planlessYour Answer planned

Multiple Choice Single AnswerQuestion New commodities due to technotogical progress may result in demand for traditional type of goodsCorrect Answer decreaseYour Answer decrease

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

Your Answer inelastic

Match The FollowingQuestionCorrect AnswerYour AnswerNormal demand curveDownwards to rightDownwards to rightIncome consumption curveUpwards to the rightUpwards to the rightInelastic demand curveVertical straight lineVertical straight lineCross elasticity of demand between two perfect substitute will beInfinityInfinityA demand curve, which takes the form of a horizontal line parallelto the quantity axis illustrates elasticityInfinity.Infinity.

Multiple Choice Single AnswerQuestion The law of diminishing returns is applicable to agriculture provided the state of technology is given andCorrect Answer constantYour Answer resources

Multiple Choice Single AnswerQuestion 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 whiCorrect Answer fairYour Answer neo –rich

Multiple Choice Single AnswerQuestion The Government attempts to increase supplies of food grains and other essential goods in times of internal shortage through largerCorrect Answer importsYour Answer borrowings

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

Multiple Choice Multiple AnswerQuestion Equilibrium isCorrect Answer The stage of maximum satisfaction , The stage of balance , The stage of stationaryYour Answer The stage of balance

Multiple Choice Multiple AnswerQuestion Conditions of equilibriumCorrect 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 pointYour 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 , Average cost curve should cut the Average Revenue curve

Select The BlankQuestion 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 opporCorrect Answer investmentsYour Answer investmentsCorrect Answer worthYour Answer profit

Multiple Choice Multiple AnswerQuestion Aggregate supply functionCorrect 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 employmentYour Answer Refers to show the varying level of supply at different prices

Multiple Choice Multiple AnswerQuestion Characteristics of DepressionCorrect Answer Decrease in economic activities , The growth rate becomes negative , The level of national income declines rapidlyYour Answer Decrease in economic activities , The growth rate becomes negative , The level of national income declines rapidly

Multiple Choice Multiple AnswerQuestion Recession includesCorrect Answer The demand is halted , Increase in production of goods , Inventories piling up in stocksYour Answer The demand is halted , Inventories piling up in stocks , The growth of discrepancy between supply and demand is very fast


Question The causes of inflationCorrect Answer Increase in public expenditure , Increase in private expenditure , Increase in foreign demandYour Answer Increase in public expenditure , Increase in foreign demand , Increase in taxation

Select The BlankQuestion 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 ofCorrect Answer KeynesianYour Answer KeynesianCorrect Answer aggregateYour Answer total

Select The BlankQuestion The rate of interest, according to ________ , depends upon two factors: (i) ________ and (ii) the quantity of moneyCorrect Answer KeynesYour Answer KeynesCorrect Answer the liquidity preference functionYour Answer speculative

Multiple Choice Multiple AnswerQuestion Reasons for need of public distribution systemCorrect Answer To maintain stable price conditions , An efficient management of the supply , To supply the necessary goods to people at reasonable priceYour 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 AnswerQuestion The consumer protection Act includesCorrect Answer Protection from hazardous commodities , Right to a competitive price , Right to information regarding protectionYour Answer Protection from hazardous commodities , Right to information regarding protection , Protest against price discrimination

Multiple Choice Multiple AnswerQuestion Objectives of economic policyCorrect 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 sectorYour 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 AnswerQuestion Scope of Managerial Economics deals with:Correct Answer Demand analysis and forecasting. , Production function & cost analysis. , Inventory management adverting, price system.Your Answer Demand analysis and forecasting. , Production function & cost analysis. , Inventory management adverting, price system.

Multiple Choice Multiple AnswerQuestion Assumptions of the Law of Demand are:Correct Answer No change in consumer’s income , No change in consumer’s preferences , No change in fashionYour Answer No change in consumer’s income , No change in consumer’s preferences , No change in fashion , No Change in government policy.

Multiple Choice Multiple AnswerQuestion Types of income elasticity of demandCorrect Answer Negative income elasticity , Zero income elasticity , Unit income elasticityYour Answer Negative income elasticity , Zero income elasticity , Unit income elasticity

Select The BlankQuestion Managerial ________s generally refers to the integration of economic theory with ________ practice.Correct Answer economicYour Answer economicCorrect Answer businessYour Answer business

Select The BlankQuestion The problem of unlimited wants and limited ________ with ________ uses has been forever confronting mankind.Correct Answer meansYour Answer meansCorrect Answer alternativeYour Answer alternative

Select The BlankQuestion 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 certaCorrect Answer Co-operation

Your Answer Co-operationCorrect Answer voluntaryYour Answer voluntary

Select The BlankQuestion Like all organism, the ________ , too is an organism, according to the ________ theory.Correct Answer firmYour Answer firmCorrect Answer life-cycle theoryYour Answer homeostatic theory

Select The BlankQuestion 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 HawleyYour Answer riskCorrect Answer riskYour Answer American economist Hawley

Select The BlankQuestion 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

priceYour Answer priceCorrect Answer price elasticityYour Answer price elasticity

Select The BlankQuestion Indices constructed for one ________ should not be ________ for other purposes where they not be fully appropriate and given erroneous conclusions.Correct Answer purposeYour Answer purposeCorrect Answer usedYour Answer used

Select The BlankQuestion 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 wCorrect Answer increasedYour Answer increasedCorrect Answer marginalYour Answer marginal

Match The FollowingQuestionCorrect AnswerYour AnswerStatutory Reserve RatioQuantitative credit Control MeasureQuantitative credit Control MeasureTrade cycle

Wave – like movementWave – like movementKeynesian theoryShort – Period AnalysisJ. M. KeynesAggregate Demand FunctionMaximum sale proceeds expected by entrepreneursShort – Period AnalysisEffective DemandJ. M. KeynesMaximum sale proceeds expected by entrepreneurs




Multiple Choice Single AnswerQuestion Economists call all human resources asCorrect Answer laborYour Answer labor

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


True/False

Question The meaning of the word “economic” is most closely associated with the word unlimitedCorrect Answer TrueYour Answer True

Multiple Choice Single AnswerQuestion The conditions of equilibrium of a firm are applicable to all marketsCorrect Answer NoneYour Answer particular

True/FalseQuestion In case of the co-operative societies supplying cheap inputs or supplying consumer products at fair prices, a system of subsidized pricing is followedCorrect Answer TrueYour Answer True

Multiple Choice Single AnswerQuestion The price of a good and the exclusion princople together isCorrect Answer divisibilityYour Answer indivisibility

Multiple Choice Single AnswerQuestion The liability of a sole proprietary firm isCorrect Answer unlimitedYour Answer unlimited

True/FalseQuestion Institution of private property is not an essential feature of Capitalism

Correct Answer FalseYour Answer False

True/FalseQuestion There never was in any country at any time ‘pure capitalism’ or ‘pure communismCorrect Answer TrueYour Answer True

True/FalseQuestion 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 prCorrect Answer FalseYour Answer True

True/FalseQuestion A Joint stock company has perpetual succession.Correct Answer TrueYour Answer True

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

Multiple Choice Single AnswerQuestion In Trade cycles the economic activity areCorrect Answer

ups and downsYour Answer ups and downs

True/FalseQuestion In macro – economic analysis the behavior of economic agents such as firms, households and government is seen in total, disregarding details at particular levelCorrect Answer TrueYour Answer True

Multiple Choice Single AnswerQuestion Market economy or private enterprise economy is a economy which isCorrect Answer planlessYour Answer planned

Multiple Choice Single AnswerQuestion New commodities due to technotogical progress may result in demand for traditional type of goodsCorrect Answer decreaseYour Answer decrease

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

Match The FollowingQuestion

Correct AnswerYour AnswerNormal demand curveDownwards to rightDownwards to rightIncome consumption curveUpwards to the rightUpwards to the rightInelastic demand curveVertical straight lineVertical straight lineCross elasticity of demand between two perfect substitute will beInfinityInfinityA demand curve, which takes the form of a horizontal line parallelto the quantity axis illustrates elasticityInfinity.Infinity.

Multiple Choice Single AnswerQuestion The law of diminishing returns is applicable to agriculture provided the state of technology is given andCorrect Answer constantYour Answer resources

Multiple Choice Single AnswerQuestion 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 whiCorrect Answer fairYour Answer neo –rich

Multiple Choice Single AnswerQuestion The Government attempts to increase supplies of food grains and other essential goods in times of internal shortage through largerCorrect Answer importsYour Answer borrowings

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

Multiple Choice Multiple AnswerQuestion Equilibrium isCorrect Answer The stage of maximum satisfaction , The stage of balance , The stage of stationaryYour Answer The stage of balance

Multiple Choice Multiple AnswerQuestion Conditions of equilibriumCorrect 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 pointYour 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 , Average cost curve should cut the Average Revenue curve

Select The BlankQuestion 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 opporCorrect Answer investmentsYour Answer investments

Correct Answer worthYour Answer profit

Multiple Choice Multiple AnswerQuestion Aggregate supply functionCorrect 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 employmentYour Answer Refers to show the varying level of supply at different prices

Multiple Choice Multiple AnswerQuestion Characteristics of DepressionCorrect Answer Decrease in economic activities , The growth rate becomes negative , The level of national income declines rapidlyYour Answer Decrease in economic activities , The growth rate becomes negative , The level of national income declines rapidly

Multiple Choice Multiple AnswerQuestion Recession includesCorrect Answer The demand is halted , Increase in production of goods , Inventories piling up in stocksYour Answer The demand is halted , Inventories piling up in stocks , The growth of discrepancy between supply and demand is very fast

Multiple Choice Multiple AnswerQuestion The causes of inflationCorrect Answer Increase in public expenditure , Increase in private expenditure , Increase in foreign demandYour Answer Increase in public expenditure , Increase in foreign demand , Increase in taxation


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 ofCorrect Answer KeynesianYour Answer KeynesianCorrect Answer aggregateYour Answer total

Select The BlankQuestion The rate of interest, according to ________ , depends upon two factors: (i) ________ and (ii) the quantity of moneyCorrect Answer KeynesYour Answer KeynesCorrect Answer the liquidity preference functionYour Answer speculative

Multiple Choice Multiple AnswerQuestion Reasons for need of public distribution systemCorrect Answer To maintain stable price conditions , An efficient management of the supply , To supply the necessary goods to people at reasonable priceYour 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 AnswerQuestion The consumer protection Act includesCorrect Answer Protection from hazardous commodities , Right to a competitive price , Right to information regarding protectionYour Answer

Protection from hazardous commodities , Right to information regarding protection , Protest against price discrimination

Multiple Choice Multiple AnswerQuestion Objectives of economic policyCorrect 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 sectorYour 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 AnswerQuestion Scope of Managerial Economics deals with:Correct Answer Demand analysis and forecasting. , Production function & cost analysis. , Inventory management adverting, price system.Your Answer Demand analysis and forecasting. , Production function & cost analysis. , Inventory management adverting, price system.

Multiple Choice Multiple AnswerQuestion Assumptions of the Law of Demand are:Correct Answer No change in consumer’s income , No change in consumer’s preferences , No change in fashionYour Answer No change in consumer’s income , No change in consumer’s preferences , No change in fashion , No Change in government policy.

Multiple Choice Multiple AnswerQuestion Types of income elasticity of demandCorrect Answer Negative income elasticity , Zero income elasticity , Unit income elasticity

Your Answer Negative income elasticity , Zero income elasticity , Unit income elasticity

Select The BlankQuestion Managerial ________s generally refers to the integration of economic theory with ________ practice.Correct Answer economicYour Answer economicCorrect Answer businessYour Answer business

Select The BlankQuestion The problem of unlimited wants and limited ________ with ________ uses has been forever confronting mankind.Correct Answer meansYour Answer meansCorrect Answer alternativeYour Answer alternative

Select The BlankQuestion 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 certaCorrect Answer Co-operationYour Answer Co-operationCorrect Answer voluntaryYour Answer voluntary

Select The BlankQuestion Like all organism, the ________ , too is an organism, according to the ________ theory.Correct Answer firmYour Answer firmCorrect Answer life-cycle theoryYour Answer homeostatic theory

Select The BlankQuestion 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 HawleyYour Answer riskCorrect Answer riskYour Answer American economist Hawley

Select The BlankQuestion 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 priceYour Answer priceCorrect Answer price elasticityYour Answer price elasticity


Indices constructed for one ________ should not be ________ for other purposes where they not be fully appropriate and given erroneous conclusions.Correct Answer purposeYour Answer purposeCorrect Answer usedYour Answer used

Select The BlankQuestion 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 wCorrect Answer increasedYour Answer increasedCorrect Answer marginalYour Answer marginal

Match The FollowingQuestionCorrect AnswerYour AnswerStatutory Reserve RatioQuantitative credit Control MeasureQuantitative credit Control MeasureTrade cycleWave – like movementWave – like movementKeynesian theoryShort – Period AnalysisJ. M. KeynesAggregate Demand FunctionMaximum sale proceeds expected by entrepreneursShort – Period AnalysisEffective DemandJ. M. Keynes

Maximum sale proceeds expected by entrepreneurs

LIST OF ATTEMPTED QUESTIONS AND ANSWERS


Multiple Choice Single AnswerQuestion 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 areCorrect Answer insufficient

Your Answer sufficient


True/FalseQuestion Inflation reduces the purchasing power of money and savings.Correct Answer TrueYour Answer False

Multiple Choice Single AnswerQuestion The supply curve during market period is perfectlyCorrect Answer inelasticYour Answer inelastic

True/FalseQuestion Micro-economics is primarily concerned with the problem of what, how and for whom to produceCorrect Answer TrueYour Answer True

Match The FollowingQuestionCorrect AnswerYour AnswerManagerial economicsDecision making and forward planningDecision making and forward planningResourcesscarcegoods and services

Commoditiesgoods and servicesscarceHuman wantsunlimitedunlimitedGeneral Theory of Employment, Interest and MoneyJ. M. KeynesJ. M. Keynes

True/FalseQuestion The price policy under monopolistic competition is dependent on the prices charged by other rival firmsCorrect Answer TrueYour Answer False

Multiple Choice Single AnswerQuestion All firms producing the same or similar product together makeCorrect Answer an industryYour Answer an industry

Multiple Choice Single AnswerQuestion Joint Stock Company succession isCorrect Answer perpetualYour Answer perpetual

True/FalseQuestion Private profit motive is an essential feature of CapitalismCorrect Answer TrueYour Answer True

True/FalseQuestion

‘Free riders’ is a term associated with the people who would like to have benefit of a good without sharing the cost of its supplyCorrect Answer TrueYour Answer False

Multiple Choice Single AnswerQuestion Macro – economics provides an exploration to the functioning of an economy inCorrect Answer generalYour Answer general

True/FalseQuestion Inflation is a great opportunity for merchants to benefit more.Correct Answer TrueYour Answer True

True/FalseQuestion The various phases of business cycles are shown by the line of cycle which moves up and down the steady growth lineCorrect Answer TrueYour Answer True

True/FalseQuestion In the measurement of profit, the differences in the concept of profit arise out of the differences in cost conceptsCorrect Answer TrueYour Answer False

Multiple Choice Single AnswerQuestion In economics demand means desire backed by adequateCorrect Answer

purchasing powerYour Answer ability to pay

Multiple Choice Single AnswerQuestion The law of diminishing returns is applicable to agriculture provided the state of technology is given andCorrect Answer constantYour Answer constant

Multiple Choice Single AnswerQuestion Under the monetary measures to control inflation, the R. B. I relies heavily on selective credit controls on bank loans against food grains, sugar, oils, oilseeds, cotton etc so as to discourageCorrect Answer Speculative hoardingYour Answer Speculative hoarding

Multiple Choice Single AnswerQuestion Slope of supply curve isCorrect Answer positiveYour Answer positive

Multiple Choice Single AnswerQuestion Costs which increase because of the expansion of a firm are called costsCorrect Answer incrementalYour Answer incremental

True/FalseQuestion The opportunity cost of a product is the opportunity gained of being able to produce some other product.Correct Answer FalseYour Answer

False

True/FalseQuestion The supply curve in case of unitary elastic supply is rectangular hyperbola.Correct Answer FalseYour Answer False

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

Select The BlankQuestion Under monopoly, there is ________ seller who controls the entire ________ in the marketCorrect Answer only oneYour Answer only oneCorrect Answer supplyYour Answer supply

Select The BlankQuestion Under monopsony, there are ________ sellers but ________ buyerCorrect Answer manyYour Answer manyCorrect Answer only oneYour Answer only one

Match The Following

QuestionCorrect AnswerYour AnswerMarginal utilityAddition to total utilityAddition to total utilityTotal utility increases marginalPosative and decliningMarginal utility is zeroAt the saturation point for a commodity x the Mux isZeroDemand curve of a commodityMarginal utilities areDemand curve of a commodityPosative and decliningTotal utility isMarginal utility is zeroZero

Select The BlankQuestion By using cost-benefit analysis we can show the ________ necessary for attaining maximum ________ and optimal policy aiming at this goalCorrect Answer measuresYour Answer Gross Domestic ProductCorrect Answer net wealthYour Answer gross wealth

Multiple Choice Multiple AnswerQuestion Average propensity to consumeCorrect Answer It is defined as the ratio of consumption expenditure to any particular level of income , It is found by dividing consumption expenditure by income , It is expressed as the percentage of income consumedYour Answer It is derived by dividing income by consumption expenditure

Multiple Choice Multiple AnswerQuestion Inflation means

Correct Answer It is a phenomenon of rising prices , It is a general and dynamic phenomenon , It includes an excess of demandYour Answer It is a phenomenon of rising prices

Select The BlankQuestion Aggregate supply function refers to a ________ of the various minimum amounts of proceeds or ________ , which must be expected to be received by the entrepreneur class from the sale of output resultCorrect Answer scheduleYour Answer demandCorrect Answer revenuesYour Answer revenues

Select The BlankQuestion 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 ofCorrect Answer KeynesianYour Answer KeynesianCorrect Answer aggregateYour Answer aggregate

Multiple Choice Multiple AnswerQuestion The fiscal policy includesCorrect Answer Formation of taxation policy , It is an instrument for economic stabilization , Monitoring of public expenditureYour Answer Formation of taxation policy , It is an instrument for economic stabilization , Monitoring of public expenditure


Question The meaning of monetary policyCorrect Answer It is programme of the central bank , It controls the total supply of money , The basic objective is to achieve economic stabilityYour Answer It is programme of the central bank , It controls the total supply of money , The basic objective is to achieve economic stability

Multiple Choice Multiple AnswerQuestion Causes for rise in prices in IndiaCorrect Answer Mounting government expenditure , Deficit financing and increase in money supply , Role of black moneyYour Answer Mounting government expenditure , Deficit financing and increase in money supply , Role of black money

Multiple Choice Multiple AnswerQuestion Managerial economics deals withCorrect Answer Integration of economic theory with business practice , Using logic of economics, mathematics & statistics. , The use of economic modes of thought to analyze business solution.Your Answer Integration of economic theory with business practice , Using logic of economics, mathematics & statistics.

Multiple Choice Multiple AnswerQuestion The sources of economic problems are:Correct Answer Man has unlimited wants or ends , The means or resources to satisfy them are limited. , These resources are not specific but have alternative uses.Your Answer Man has unlimited wants or ends , The means or resources to satisfy them are limited. , These resources are not specific but have alternative uses.

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

Joint sector.

Multiple Choice Multiple AnswerQuestion Proprietary firm isCorrect Answer Owned by a single person. , Easy to form. , An organization of single person.Your Answer Owned by a single person.

Multiple Choice Multiple AnswerQuestion Methods of measurement of elasticityCorrect Answer Percentage Method , Point elasticity Method , Total outlay expenditure methodYour Answer Percentage Method , Point elasticity Method , Total outlay expenditure method

Multiple Choice Multiple AnswerQuestion Demand forecasts are necessary for:Correct Answer Fulfillment of objective of the plans , Preparation of a budget , Expansion of firmsYour Answer Preparation of a budget , Expansion of firms

Select The BlankQuestion Economic theory provides the basis for the ________ _ making process, there is some difference between the generalization based on abstraction and actual practices. Besides economic theory, matCorrect Answer decision makingYour Answer optimalCorrect Answer statisticsYour Answer

Select The BlankQuestion The resources of a society consist not only of the free gifts of nature such as ________ but also of ________ and of all sorts of man made aids to further production.Correct Answer

land and mineralsYour Answer land and mineralsCorrect Answer human capacityYour Answer human capacity

Select The BlankQuestion Individual or sole ________ , which is also called sole- ________ , or single entrepreneurship is the most common, the simplest and the oldest form of business organisation.Correct Answer proprietorshipYour Answer proprietorshipCorrect Answer trader shipYour Answer trader ship

Select The BlankQuestion Nominal cost is the ________ cost of production, it is also called expenses of production. The real cost is the ________ cost of production.Correct Answer moneyYour Answer opportunityCorrect Answer opportunityYour Answer gross

Select The BlankQuestion 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 chCorrect Answer Production costsYour Answer Production costsCorrect Answer Selling costsYour Answer

Selling costs

Select The BlankQuestion The costs of self owned resources, which are employed by the ________ , are non- expenditure or , ________Correct Answer firmYour Answer firmCorrect Answer implicit costs .Your Answer implicit costs .


Labels: Managerial Economics (Set IV)


True/FalseQuestion A monopolist in a price maker.Correct Answer TrueYour Answer True

Multiple Choice Single AnswerQuestion The city of Faridabad has specialized in the manufacture ofCorrect Answer banglesYour Answer bangles

Multiple Choice Multiple AnswerQuestion Demand is determined byCorrect Answer

Price of the product , Relative prices of other goods , Tastes and habitsYour Answer Price of the product , Relative prices of other goods , Tastes and habits

Multiple Choice Multiple AnswerQuestion Baumol has pointed out three main contributions of economic theory. They areCorrect Answer Economic theory offers clarity to various concepts used in the business anlayses , Economic theory contributes in building anlyatical model to rocognize managerial problems , Economic theory contributes to ,'a set of analytical methods' which enhance the analytical capabilities of business analyasisYour Answer Economic theory offers clarity to various concepts used in the business anlayses , Economic theory contributes in building anlyatical model to rocognize managerial problems , Economic theory contributes to ,'a set of analytical methods' which enhance the analytical capabilities of business analyasis

True/FalseQuestion In case of indivisible goods, which are not priced, the decisions regarding their demand preferences are taken through price mechanism.Correct Answer FalseYour Answer True

True/FalseQuestion A shift in the demand curve to the left shows increase in demand.Correct Answer FalseYour Answer True



With decline in price of a commodity, total expenditure spent on the commodity is less than before, then elasticity of demand for the commodity isCorrect Answer < 1Your Answer < 1

Match The FollowingQuestionCorrect AnswerYour AnswerN.G.O.SVoluntary social workVoluntary social workSole proprietorshipUnlimited liabilityUnlimited liabilityPreference sharesFixed rate of dividendFixed rate of dividendPublic enterprisesState controlState control

True/FalseQuestion Pure private goods are completely divisible and to them the principle of exclusion applies in full measure.Correct Answer TrueYour Answer True


True/FalseQuestion External economies are the advantages of large scale production enjoyed exclusively an individual firm alone.

Correct Answer FalseYour Answer True

Multiple Choice Single AnswerQuestion Market mechanism is characterized byCorrect Answer instabilityYour Answer stability

Multiple Choice Multiple AnswerQuestion Features of Pure Competition areCorrect Answer Large number of buyers and sellers , Homogeneous products , Free entry and free exit of firmsYour Answer Large number of buyers and sellers , Homogeneous products , Free entry and free exit of firms

Multiple Choice Single AnswerQuestion The things that are produced by factors of production are calledCorrect Answer commoditiesYour Answer free goods

True/FalseQuestion Generally, the larger the income of a consumer, his demand for overall commodities tends to be relatively elastic.Correct Answer FalseYour Answer False

Multiple Choice Multiple AnswerQuestion The production function studiesCorrect Answer Input and out put relation , Factors of production and final production , Technology used in productionYour Answer

Input and out put relation , Factors of production and final production , Demand for production

Select The BlankQuestion The externality which causes an economic gain or an economic loss to other economic units is also referred to as ________ externality.Correct Answer PecuniaryYour Answer Social

Select The BlankQuestion The index numbers which are compiled to measure the changes in retail prices of various commodities refers to ________Correct Answer Retail prices indexYour Answer Retail prices index


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

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

Multiple Choice Single AnswerQuestion The concept of just distribution of national product is aCorrect Answer normativeYour Answer neutral

True/FalseQuestion Supply management is related to the volume ofsupply & its distribution system.Correct Answer TrueYour Answer True


Multiple Choice Single AnswerQuestion Under monopoly entry of new firms isCorrect Answer prohibitedYour Answer prohibited

Multiple Choice Multiple AnswerQuestion Specific organizational goals of Firms areCorrect Answer maximization of profit , reasonable profit target , sales revenue maximizationYour Answer maximization of profit , sales revenue maximization , to cover risk and uncertainty

Multiple Choice Multiple AnswerQuestion Government intervention is needed in free market mechanism toCorrect 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 needsYour Answer To provide employment to all who willing to work at prevailing wage rate , Factors of production are optimally allocated between the various industries , Control the market mechanism by charging license fees, commissions, etc

Multiple Choice Single AnswerQuestion The firm is a center, where all the decisions are taken aboutCorrect Answer productionYour Answer production

Multiple Choice Single AnswerQuestion Under the imperfect market, the market in which few firms exists is called asCorrect Answer OligopolyYour Answer Oligopoly

True/FalseQuestion There are no real exceptions to the law of demandCorrect Answer FalseYour Answer False


True/FalseQuestion The prosperity phase is characterized by rise in the level of employment.Correct Answer

TrueYour Answer True

Multiple Choice Multiple AnswerQuestion The characteristics of a sole proprietorship firm isCorrect Answer Unlimited Capital , Ownership by a single person , Easy to formYour Answer Ownership by a single person , Easy to form

Select The BlankQuestion Sole Proprietorship which is also called sole ________Correct Answer tradershipYour Answer tradership

Multiple Choice Single AnswerQuestion The method of inventory valuation in which , the cost of production is calculated on the assumption that the material which was last to enter the inventory of the company was used first isCorrect Answer LIFOYour Answer LIFO

Multiple Choice Single AnswerQuestion In economics, demand means desire backed by adequateCorrect Answer purchasing powerYour Answer purchasing power


Multiple Choice Single AnswerQuestion A group of firms dealing in the same line of business are called asCorrect Answer IndustryYour Answer Industry


Match The FollowingQuestionCorrect AnswerYour AnswerNon-price competitionadvertisement.advertisement.Prestige pricehigh price on account of prestige considerations.high price on account of prestige considerations.Administered pricespublic sector undertaking.state government.Pricing in cooperative societiesstate government.public sector undertaking.

Multiple Choice Single AnswerQuestion The demand curve (A.R.) of a firm under perfect competition isCorrect Answer perfectly elasticYour Answer inelastic

Multiple Choice Multiple AnswerQuestion 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 costsYour Answer Maximization of social welfare , Maximization of difference between total benefits & total costs , Applicable only in partial equilibrium framework.

Select The BlankQuestion By using cost-benefit analysis we can show the measures necessary for attaining maximum ________ and optimal policy aiming at this goal.Correct Answer net wealthYour Answer net domestic product

Multiple Choice Multiple AnswerQuestion The causes of inflation areCorrect Answer Increase in public expenditure , Increase in private expenditure , Increase in foreign demandYour Answer Increase in public expenditure , Increase in foreign demand , Increase in taxation

Select The BlankQuestion The partnership between private sector & government is called ________Correct Answer Joint sector enterpriseYour Answer Joint sector enterprise

Multiple Choice Multiple AnswerQuestion Features of short run period areCorrect Answer Supply of goods can be adjusted to the demand to some extent , Supply and demand determine the price , Some factors can be changedYour Answer Supply of goods can be adjusted to the demand to some extent , Supply and demand determine the price , Some factors can be changed


Labels: Managerial Economics (Set IV)


True/FalseQuestion A supply schedule is a graphical presentation of supply patterns.Correct Answer FalseYour Answer True

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

Select The BlankQuestion When demand for the product increases in the same proportion in which income increases, Income elasticity of demand will be equal to________Correct Answer unityYour Answer unity

Multiple Choice Multiple AnswerQuestion Features of stage of expansion in business cycle areCorrect Answer Rise in national output , Rise in consumer and capital expenditure , Bank advances grow rapidlyYour Answer Rise in national output , Rise in consumer and capital expenditure , Bank advances grow rapidly

Multiple Choice Multiple AnswerQuestion Explicit costs areCorrect Answer

Out of pocket costs , These are firms accounting expenses , Expenditure costsYour Answer Out of pocket costs , These are firms accounting expenses , Expenditure costs

Multiple Choice Single AnswerQuestion Demand for products like tea, betel, tobacoo, sigaratte is a matter ofCorrect Answer habitYour Answer habit

Multiple Choice Single AnswerQuestion If the substitutes are relatively cheaper then the demand for the commodity in question will beCorrect Answer lessYour Answer less

Multiple Choice Single AnswerQuestion An assembly of several machines, linked together either physically or by processes, capable of producing a given quantity of a product per day isCorrect Answer plantYour Answer plant

Multiple Choice Single AnswerQuestion The Risk Taking Theory was developed by Hawley, who was anCorrect Answer American EconomistYour Answer American Economist


Select The BlankQuestion The persons who own the ________hip concern are called Partners.Correct Answer PartnersYour Answer Partners


Select The BlankQuestion While discussing the product divisibility of public and private goods, the principle of ________ may be applied in case of only those people who do not agree to pay or who cannot pay the market priceCorrect Answer exclusionYour Answer exclusion

Multiple Choice Multiple AnswerQuestion Features of the firm areCorrect Answer It is a business unit organized under one ownership , It is a sole proprietorship , It is a partnership or joint stock companyYour 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 AnswerQuestion The causes of inflation areCorrect Answer Increase in public expenditure , Increase in private expenditure , Increase in foreign demandYour Answer Increase in public expenditure , Increase in private expenditure , Increase in foreign demand

True/False

Question Inflation is a great opportunity for merchants to earn more profit.Correct Answer TrueYour Answer True

Match The FollowingQuestionCorrect AnswerYour AnswerHuman wantsunlimitedunlimitedGeneral Theory of Employment, Interest and MoneyJ. M. KeynesJ. M. KeynesManagerial economicsDecision making and forward planningDecision making and forward planningResourcesscarcescarceCommoditiesgoods and servicesgoods and services

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

Select The BlankQuestion Sole Proprietorship which is also called sole ________Correct Answer tradershipYour Answer tradership

True/FalseQuestion A plant is an economic unit which takes various decisions related to production and distribution.Correct Answer FalseYour Answer False

Multiple Choice Multiple AnswerQuestion Features of an Industry areCorrect Answer All firms dealing in the same line of business , The ownership and management of each firm is different , Is a group of firmsYour Answer All firms dealing in the same line of business , The ownership and management of each firm is different , Is a group of firms


True/FalseQuestion During recession, on account of decline in investment by producers, there is decline in income and consumption.Correct Answer TrueYour Answer True

Multiple Choice Multiple AnswerQuestion The fiscal policy includesCorrect Answer Monitoring of public expenditure , Formation of taxation policy , It is an instrument for economic stabilizationYour Answer Formation of taxation policy , It is an instrument for economic stabilization , Monitoring of public expenditure

Multiple Choice Single AnswerQuestion Forecasts made either through experience or through methodigistic areCorrect Answer statisticalYour Answer statistical


Select The BlankQuestion The externality which causes an economic gain or an economic loss to other economic units is also referred to as ________ externality.Correct Answer PecuniaryYour Answer Social

Multiple Choice Single AnswerQuestion According to Prof. F.H. Knight, profit is a reward forCorrect Answer uncertainty bearingYour Answer uncertainty bearing

Multiple Choice Single AnswerQuestion The principle of full employment equilibrium was stated byCorrect Answer Say's Law of MarketYour Answer Law of Demand

Multiple Choice Multiple AnswerQuestion Phases of business cycleCorrect Answer

Expansion , Peak , RecessionYour Answer Expansion , Peak , Recession , Trough

True/FalseQuestion In case of a Joint Stock Company the liability of the share holders is unlimited.Correct Answer FalseYour Answer False

Multiple Choice Single AnswerQuestion Goods which are completely divisible and to them the principle of exclusion applies in full measure, are calledCorrect Answer Pure public goodsYour Answer Private goods

Multiple Choice Multiple AnswerQuestion Assumptions underlying the law of Supply areCorrect Answer The cost of production is unchanged , No change in technique of production , Government policies are unchangedYour Answer The cost of production is unchanged , No change in technique of production , Government policies are unchanged

Multiple Choice Multiple AnswerQuestion The payments made out of the Gross Profit areCorrect Answer Remuneration to factors of production , Depreciation , Maintenance ChargesYour Answer Remuneration to factors of production , Depreciation , Maintenance Charges

Select The BlankQuestion The indivisible goods to which the principle exclusion does not apply are called ________ goods.Correct Answer pure publicYour Answer

pure public

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

Multiple Choice Single AnswerQuestion Gross profit is the excess of total revenue of a firm over totalCorrect Answer expenditureYour Answer expenditure

True/FalseQuestion During period of depression various factors of production lie unutilized.Correct Answer TrueYour Answer True

Multiple Choice Multiple AnswerQuestion Co-operative organizations isCorrect Answer voluntary organization , managed by democratic principle , organization, which performs its business within the membersYour Answer voluntary organization , managed by democratic principle , organization, which performs its business within the members , non profit motive organization

Multiple Choice Single AnswerQuestion Macro economics is the study of theCorrect Answer aggregate behavior of economyYour Answer aggregate behavior of economy

True/False

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

Multiple Choice Single AnswerQuestion The public sector is owned & controlled byCorrect Answer state enterprisesYour Answer state enterprises

Select The BlankQuestion Demand for safety pins is ________Correct Answer inelasticYour Answer relatively inelastic

Multiple Choice Single AnswerQuestion Under perfect competition, generally demand and supply act and react upon each other and determine the priceCorrect Answer equilibriumYour Answer equilibrium

True/FalseQuestion During the period of recession there is increase in incomes of wage and interest earners.Correct Answer FalseYour Answer False

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

Your Answer firm

FlashManagerial Economics Question Paper – 1 LIST OF ATTEMPTED QUESTIONS AND ANSWERS Select The Blank Question By ' profits', the accountant means total revenue minus________. Correct AnswerExplicit costs Your Answer Fixed costs


Question According to Lionel Robbins definition of economics, "Economics is a

science whichCorrect Answerstudies human behaviour , relationship between ends and scarse

resources , scarce means have alternate uses

Your Answer studies human behaviour , relationship between ends and scarse

resources , scarce means have alternate usesSelect The Blank Question Under the decreasing returns to scale, the marginal output curve slopes ________. Correct Answerdownward Your Answer downward Multiple Choice Single Answer Question Managerial economics is also understood to refer to Correct Answerapplied economics Your Answer applied economics Multiple Choice Single Answer Question Q = f ( N, L, K, T ) , this algebraic expression is used for Correct AnswerProduction Function Your Answer Production Function Multiple Choice Multiple Answer Question The production function can be studied in three ways Correct AnswerLaw of variable proportion , Laws to return to scale , Optimum

combination of inputs

Your Answer Law of variable proportion , Laws to return to scale , Optimum

combination of inputsMultiple Choice Multiple Answer Question The term externalities may also be referred as: Correct AnswerSpill-over effects , Neighborhood effects , Third party effects Your Answer Spill-over effects , Neighborhood effects , Third party effects


Question Managerial economics generally refers to the integration of economic theory

with business

Flash

Managerial Economics Your Answer substitutes goods Multiple Choice Multiple Answer Question Types of imperfect competition are Correct Answer Monopoly , Duopoly , Oligopoly Your Answer Monopoly , Duopoly , Oligopoly 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 Your Answer Wholesale prices index Multiple Choice Single Answer Question During a period of rising prices (inflation), the goods and services are Correct Answer scarce Your Answer scarce Multiple Choice Multiple Answer Question Features of Dumping are

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

international market , It is encouraged with a view to promote the exports Your Answer

Selling same good at higher price in home market and lower at

price in international market , It is encouraged with a view to

promote the exportsTrue/False Question Pure inflation starts only after reaching the full employment level. Correct Answer True Your Answer False Multiple Choice Single Answer Question The assumption of perfect competition in all the analytical theories is made by Correct Answer Classical economists Your Answer Classical economists Multiple Choice Single Answer Question For an economist, Tata Eng & Locomotive Company Ltd is a

Managerial Economics Question Paper – 5 LIST OF ATTEMPTED QUESTIONS AND ANSWERS

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