Managerial Economics - 9

Multiple Choice Single Answer
Question
The study of the working and allocation of resources in the free market economies is the topic in the
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theory of price
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theory of production

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

True/False
Question
The federal government of U.S.A. does not face the basic economic problem.
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False
Your Answer
False

Multiple Choice Single Answer
Question
In equilibrium analysis of a firm, it is assumed that every individual proprietor exhibits rational economic
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behavior
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behavior

Match The Following
Question
Correct Answer
Your Answer
Managerial Economics
Prescriptive in nature
The theory of distribution
Resources
Alternative uses
Alternative uses
Division of society’s output of goods and services
The theory of distribution
Prescriptive in nature
Motor cars
Tangible goods
Tangible goods
Wants
Insatiable
Insatiable

True/False
Question
Market price fluctuates very often
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True
Your Answer
False

Multiple Choice Single Answer
Question
The firm is the unit that makes the decisions regarding employment of and the output of commodities are
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factors of production
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factors of production

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The principle of exclusion cannot be applied to the goods which are
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indivisible
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invisible

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In the cost – benefit analysis, the firm step involved is that the investor has to choose a few project alternatives promising a rate of return which is
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high
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high

Multiple Choice Single Answer
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Market system of economy is characterized by consumer’s
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sovereignty
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demand

Multiple Choice Single Answer
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In case of a joint stock company, the liability of share holders is
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limited
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limited

True/False
Question
The divisible goods, whose benefits can be priced, are called pure public goods
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False
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True

True/False
Question
In case of a proprietary firm the liability of the proprietor is limited
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False
Your Answer
False

True/False
Question
During the phase of depression, the level of national income and expenditure rises rapidly
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False
Your Answer
False

Multiple Choice Single Answer
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According J.B.Clark, profit is the reward paid for
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dynamism
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risk bearing

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

Multiple Choice Single Answer
Question
In general, the demand for necessaries is relatively
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inelastic
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elastic

True/False
Question
Demand for food grains is inelastic but the demand for wheat is elastic.
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True
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False

Match The Following
Question
Correct Answer
Your Answer
Excess supply can be defined as
Quantity supplied minus quantity demanded
Quantity supplied minus quantity demanded
If demand remain unchanged on increase in supply will result in
A rise in equilibrium quantity
The supply is perfectly elastic
Market Price is a situation which
The supply is perfectly elastic
A rise in equilibrium quantity
The responsiveness of demand to change in price is measured
Elasticity of demand
In the same proportion
Unit income elasticity implies that asincome rises demand for a commodity rises
In the same proportion
Elasticity of demand

Select The Blank
Question
Greater scope for the ________ sector may mean incremental ________ , which connotes the expansion of public sector undertakings, can be left to some private companies
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private
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investment
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disinvestments
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growth

Multiple Choice Single Answer
Question
Goods produced on small scale of supply is
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inelastic
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zero elastic

True/False
Question
The sum of total fixed costs and total variable costs is the total cost.
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True
Your Answer
True

True/False
Question
Contraction of supply is traced by the downward movement on the supply curve.
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True
Your Answer
True

True/False
Question
The laws of returns to scale explain the behavior of output in response to changes in scale.
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True
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True

True/False
Question
In the stage I of the law of diminishing returns, the marginal product goes on increasing
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True
Your Answer
False

Multiple Choice Multiple Answer
Question
Features of monopolistic Competition
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Fairly Large number of firms , Product differentiation , Selling costs are existed
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Fairly Large number of firms , Product differentiation , Selling costs are existed

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Question
Where ________ is charging a ________ in the home market and a lower price in the international market, it is called Dumping
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monopolist
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a firm
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higher price
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higher price

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Question
The number of sellers operating under this type of competition is ________ under oligopoly, but less than under ________
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larger than
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complementary
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perfect ompetition
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perfect ompetition

Multiple Choice Multiple Answer
Question
Marginal Propensity to consume
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It is defined as the ratio of the change in consumption to the change in income , It is rate of change in the average propensity to consume as income changes , It is derived by the formula mpc= change in C/change in Y
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It is defined as the ratio of the change in consumption to the change in income , It is derived by the formula mpc= change in C/change in Y , It is derived by dividing the change in income by change in the consumption expenditure

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Question
Investment
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It adds to capital equipments , It leads to increase in level of income , It includes new plant and equipment
Your Answer
It adds to capital equipments , It leads to increase in level of income , It includes new plant and equipment

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

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

Multiple Choice Multiple Answer
Question
Recession includes
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The demand is halted , Increase in production of goods , Inventories piling up in stocks
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The demand is halted , Inventories piling up in stocks

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

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

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Question
In the words of ________ , “inflation occurs when the ________ of prices and cost is rising”.
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Prof. Samuelson
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Prof. Samuelson
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general level
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general level

Multiple Choice Multiple Answer
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Forms of Public Enterprises
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Public Corporations , Departmental management , Company Management or management by boards
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Departmental management , Public Corporations

Multiple Choice Multiple Answer
Question
Specific organizational goals of Firms are:
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Maximisation of profit , Reasonable Profit Target , Sales revenue Maximization
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Maximisation of profit , Reasonable Profit Target , Sales revenue Maximization

Multiple Choice Multiple Answer
Question
Individual Demand Schedule:
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Is in tabular form , It shows the prices of goods , It shows the quantities of a commodity purchased
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Is in tabular form , It shows the prices of goods , It shows the quantities of a commodity purchased

Multiple Choice Multiple Answer
Question
The production function can be explained by:
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Law of variable proportions , Laws of returns to scale , Optimum combinations of inputs
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Law of variable proportions , Laws of returns to scale , Optimum combinations of inputs

Multiple Choice Multiple Answer
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Implicit costs are:
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Cost on self owned resources , Costs of salary of the proprietor , Interest on the entrepreneur's own investment
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Cost on self owned resources , Interest on the entrepreneur's own investment

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Question
Managerial ________s generally refers to the integration of economic theory with ________ practice.
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economic
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economic
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business
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business

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Question
In a competitive industry, there is a large number of firms so that the action of ________ firm has ________ on the price and output of the whole industry.
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a single
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a single
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no effect
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no effect

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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
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Co-operation
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Co-operation
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voluntary
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voluntary

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Question
The word ________ has different meanings to businessmen, ________ , tax collectors, workers and economists and it is often used in a loose sense that buries its real significance
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Profit
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Profit
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accountants
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accountants

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Question
The demand curve is ________ representation of a demand schedule, demand curve slopes ________ ward from left to right.
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graphical
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graphical
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down
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down

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Question
The ________ that is ________ is the opportunity cost of the commodity produced.
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sacrificed
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commodity
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commodity
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sacrificed