Managerial Economics - 12

LIST OF ATTEMPTED QUESTIONS AND ANSWERS



True/False
Question
A monopolist in a price maker.
Correct Answer
True
Your Answer
True

Multiple Choice Single Answer
Question
The city of Faridabad has specialized in the manufacture of
Correct Answer
bangles
Your Answer
bangles

Multiple Choice Multiple Answer
Question
Demand is determined by
Correct Answer
Price of the product , Relative prices of other goods , Tastes and habits
Your Answer
Price of the product , Relative prices of other goods , Tastes and habits

Multiple Choice Multiple Answer
Question
Baumol has pointed out three main contributions of economic theory. They are
Correct Answer
Economic theory offers clarity to various concepts used in the business anlayses , Economic theory contributes in building anlyatical model to rocognize managerial problems , Economic theory contributes to ,'a set of analytical methods' which enhance the analytical capabilities of business analyasis
Your Answer
Economic theory offers clarity to various concepts used in the business anlayses , Economic theory contributes in building anlyatical model to rocognize managerial problems , Economic theory contributes to ,'a set of analytical methods' which enhance the analytical capabilities of business analyasis

True/False
Question
In case of indivisible goods, which are not priced, the decisions regarding their demand preferences are taken through price mechanism.
Correct Answer
False
Your Answer
True

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

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
With decline in price of a commodity, total expenditure spent on the commodity is less than before, then elasticity of demand for the commodity is
Correct Answer
< 1
Your Answer
< 1

Match The Following
Question
Correct Answer
Your Answer
N.G.O.S
Voluntary social work
Voluntary social work
Sole proprietorship
Unlimited liability
Unlimited liability
Preference shares
Fixed rate of dividend
Fixed rate of dividend
Public enterprises
State control
State control

True/False
Question
Pure private goods are completely divisible and to them the principle of exclusion applies in full measure.
Correct Answer
True
Your Answer
True

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

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

Multiple Choice Single Answer
Question
Market mechanism is characterized by
Correct Answer
instability
Your Answer
stability

Multiple Choice Multiple Answer
Question
Features of Pure Competition are
Correct Answer
Large number of buyers and sellers , Homogeneous products , Free entry and free exit of firms
Your Answer
Large number of buyers and sellers , Homogeneous products , Free entry and free exit of firms

Multiple Choice Single Answer
Question
The things that are produced by factors of production are called
Correct Answer
commodities
Your Answer
free goods

True/False
Question
Generally, the larger the income of a consumer, his demand for overall commodities tends to be relatively elastic.
Correct Answer
False
Your Answer
False

Multiple Choice Multiple Answer
Question
The production function studies
Correct Answer
Input and out put relation , Factors of production and final production , Technology used in production
Your Answer
Input and out put relation , Factors of production and final production , Demand for production

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
Social

Select The Blank
Question
The index numbers which are compiled to measure the changes in retail prices of various commodities refers to ________
Correct Answer
Retail prices index
Your Answer
Retail prices index

Select The Blank
Question
In the context of formulating an investment project, ________ feasibility means the availability of supervisors for implementing and running the project smoothly and professionally.
Correct Answer
management
Your Answer
management

Select The Blank
Question
The minimum number of directors which private limited should have is ________.
Correct Answer
2
Your Answer
2

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

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

True/False
Question
Supply management is related to the volume ofsupply & its distribution system.
Correct Answer
True
Your Answer
True

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

Multiple Choice Single Answer
Question
Under monopoly entry of new firms is
Correct Answer
prohibited
Your Answer
prohibited

Multiple Choice Multiple Answer
Question
Specific organizational goals of Firms are
Correct Answer
maximization of profit , reasonable profit target , sales revenue maximization
Your Answer
maximization of profit , sales revenue maximization , to cover risk and uncertainty

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 , Control the market mechanism by charging license fees, commissions, etc

Multiple Choice Single Answer
Question
The firm is a center, where all the decisions are taken about
Correct Answer
production
Your Answer
production

Multiple Choice Single Answer
Question
Under the imperfect market, the market in which few firms exists is called as
Correct Answer
Oligopoly
Your Answer
Oligopoly

True/False
Question
There are no real exceptions to the law of demand
Correct Answer
False
Your Answer
False

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

True/False
Question
The prosperity phase is characterized by rise in the level of employment.
Correct Answer
True
Your Answer
True

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

Select The Blank
Question
Sole Proprietorship which is also called sole ________
Correct Answer
tradership
Your Answer
tradership

Multiple Choice Single Answer
Question
The method of inventory valuation in which , the cost of production is calculated on the assumption that the material which was last to enter the inventory of the company was used first is
Correct Answer
LIFO
Your Answer
LIFO

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

Multiple Choice Single Answer
Question
A group of firms dealing in the same line of business are called as
Correct Answer
Industry
Your Answer
Industry

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

Match The Following
Question
Correct Answer
Your Answer
Non-price competition
advertisement.
advertisement.
Prestige price
high price on account of prestige considerations.
high price on account of prestige considerations.
Administered prices
public sector undertaking.
state government.
Pricing in cooperative societies
state government.
public sector undertaking.

Multiple Choice Single Answer
Question
The demand curve (A.R.) of a firm under perfect competition is
Correct Answer
perfectly elastic
Your Answer
inelastic

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 , Maximization of difference between total benefits & total costs , Applicable only in partial equilibrium framework.

Select The Blank
Question
By using cost-benefit analysis we can show the measures necessary for attaining maximum ________ and optimal policy aiming at this goal.
Correct Answer
net wealth
Your Answer
net domestic product

Multiple Choice Multiple Answer
Question
The causes of inflation are
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
The partnership between private sector & government is called ________
Correct Answer
Joint sector enterprise
Your Answer
Joint sector enterprise

Multiple Choice Multiple Answer
Question
Features of short run period are
Correct Answer
Supply of goods can be adjusted to the demand to some extent , Supply and demand determine the price , Some factors can be changed
Your Answer
Supply of goods can be adjusted to the demand to some extent , Supply and demand determine the price , Some factors can be changed