Managerial Economics - 5

LIST OF ATTEMPTED QUESTIONS AND ANSWERS

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

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

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

Multiple Choice Single Answer
Question
The type economic problem is
Correct Answer
universal
Your Answer
universal

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

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

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

True/False
Question
Resources are said to be involuntarily un employed when their wastage occur.
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
scarce
Commodities
goods and services
goods and services
Human wants
unlimited
unlimited
General Theory of Employment, Interest and Money
J. M. Keynes
J. M. Keynes

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

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






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

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

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

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

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

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

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

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

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

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

Multiple Choice Multiple Answer
Question
Forms of Public Enterprises
Correct Answer
departmental management , company management or management by boards , public corporations
Your Answer
departmental management , public corporations , non-profit organization

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

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

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

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

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

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

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

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

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

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

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

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

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

Multiple Choice Multiple Answer
Question
Cost function denotes
Correct Answer
The prices of such inputs as labour and capital material , The rate of output , The size of the plant
Your 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 Blank
Question
The law of constant returns to scale is depicted by the marginal output curve which is ________.
Correct Answer
horizontal
Your Answer
upward sloping

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

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

Multiple Choice Multiple Answer
Question
Features of Oligopoly Market are
Correct Answer
Few sellers , Restriction to entry of new firms , Price leadership
Your Answer
Few sellers , Restriction to entry of new firms , No Advertisement cost

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

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

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

Match The Following
Question
Correct Answer
Your Answer
Prosperity
Expansion of credit
Contraction of credit
The general theory of employment, Interest and money
J.M. Keynes
J.M. Keynes
Trade cycle
Wave like movement
Wave like movement
Statutory reserve ratio
Quantitative credit control measure
Quantitative credit control measure

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

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