Managerial Economics - 8

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
sufficient

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
Inflation reduces the purchasing power of money and savings.
Correct Answer
True
Your Answer
False

Multiple Choice Single Answer
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

Multiple Choice Single Answer
Question
All firms producing the same or similar product together make
Correct Answer
an industry
Your Answer
an industry

Multiple Choice Single Answer
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

Multiple Choice Single Answer
Question
Macro – economics provides an exploration to the functioning of an economy in
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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

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

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
constant

Multiple Choice Single Answer
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

Multiple Choice Single Answer
Question
Slope of supply curve is
Correct Answer
positive
Your Answer
positive

Multiple Choice Single Answer
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

Multiple Choice Multiple Answer
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

Multiple Choice Multiple Answer
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

Multiple Choice Multiple Answer
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

Multiple Choice Multiple Answer
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

Multiple Choice Multiple Answer
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

Multiple Choice Multiple Answer
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

Multiple Choice Multiple Answer
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.

Multiple Choice Multiple Answer
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.

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

Multiple Choice Multiple Answer
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.

Multiple Choice Multiple Answer
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

Multiple Choice Multiple Answer
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 .