Managerial Economics - 6

LIST OF ATTEMPTED QUESTIONS AND ANSWERS

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Match The Following
Question
Correct Answer
Your Answer
General theory of employment, interest and money
J. M. Keynes
J. M. Keynes
Inflation
Reduction in purchasing power
Reduction in purchasing power
Services
Intangible goods
Intangible goods
Methods of production of commodities
Theory of production
Theory of production

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Multiple Choice Multiple Answer
Question
Features of the firm are
Correct Answer
It is a business unit organized under one ownership , It is a sole proprietorship , It is a partnership or joint stock company
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 Multiple Answer
Question
Equilibrium is the stage of
Correct Answer
maximum satisfaction , balance , stationary
Your Answer
maximum satisfaction , balance , stationary

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

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

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

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

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

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