Managerial Economics - 4

LIST OF ATTEMPTED QUESTIONS AND ANSWERS

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

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

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

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

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

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



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

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

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

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

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

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




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

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

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

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

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

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





Match The Following
Question
Correct Answer
Your Answer
Normal demand curve
Downwards to right
Downwards to right
Income consumption curve
Upwards to the right
Upwards to the right
Inelastic demand curve
Vertical straight line
Vertical straight line
Cross elasticity of demand between two perfect substitute will be
Infinity
Infinity
A demand curve, which takes the form of a horizontal line parallelto the quantity axis illustrates elasticity
Infinity.
Infinity.

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

Multiple Choice Single Answer
Question
Under the system of dual prices in case of essential goods, adopted by the government, the weaker sections of the community are supplied these goods through fair price shops whi
Correct Answer
fair
Your Answer
neo –rich

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







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

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

Multiple Choice Multiple Answer
Question
Conditions of equilibrium
Correct Answer
Marginal Revenue should be equal to Marginal Cost , The Marginal cost curve should cut the marginal revenue curve from below at the equilibrium point , Marginal cost curve should be increasing at equilibrium point
Your 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 Blank
Question
Cost-benefit analysis refers to the analysis undertaken to judge any projects ________ whether government or private and find out its ________ and facilities its comparison with other available oppor
Correct Answer
investments
Your Answer
investments
Correct Answer
worth
Your Answer
profit

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



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

Multiple Choice Multiple Answer
Question
Recession includes
Correct Answer
The demand is halted , Increase in production of goods , Inventories piling up in stocks
Your Answer
The demand is halted , Inventories piling up in stocks , The growth of discrepancy between supply and demand is very fast

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

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
total

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




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

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

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

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

Multiple Choice Multiple Answer
Question
Assumptions of the Law of Demand are:
Correct Answer
No change in consumer’s income , No change in consumer’s preferences , No change in fashion
Your 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 Answer
Question
Types of income elasticity of demand
Correct Answer
Negative income elasticity , Zero income elasticity , Unit income elasticity
Your Answer
Negative income elasticity , Zero income elasticity , Unit income elasticity

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

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

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









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

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

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

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




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

Match The Following
Question
Correct Answer
Your Answer
Statutory Reserve Ratio
Quantitative credit Control Measure
Quantitative credit Control Measure
Trade cycle
Wave – like movement
Wave – like movement
Keynesian theory
Short – Period Analysis
J. M. Keynes
Aggregate Demand Function
Maximum sale proceeds expected by entrepreneurs
Short – Period Analysis
Effective Demand
J. M. Keynes
Maximum sale proceeds expected by entrepreneurs