Managerial Economics - 18

LIST OF ATTEMPTED QUESTIONS AND ANSWERS ME2

Question A responsible factor for inflation is
Correct Answer hike in prices
Your Answer hike in prices

Question Economists call all human resources as
Correct Answer labor
Your Answer labor

Question The wage and salary earners who get fixed income in terms of money are benefited during inflation.
Correct Answer False
Your Answer False

Question Over the years in India the govt. expenditure is
Correct Answer increasing
Your Answer increasing

Question Given the price, if the cost of production increases because of higher price of raw materials, the supply
Correct Answer decreases
Your Answer decreases

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 capital

Question Micro-economics is primarily concerned with the problem of what, how and for whom to produce?
Correct Answer False
Your Answer False

Question Inflation is characterized by excess of demand.
Correct Answer True
Your Answer True

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

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

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

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 True

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

Question The persons who own the ________hip concern are called Partners.
Correct Answer Partners
Your Answer Partners

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

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

Question Correct Answer Your Answer

Resource allocation decisions in free market economy Theory of price Theory of price

Economic problem Universal Universal

Managerial Economics Applied branch of knowledge Applied branch of knowledge

Inflation Reduction in purchasing power Reduction in purchasing power

Waste of resources Involuntary unemployment Involuntary unemployment

Question In the context of externalities, driving the smoke-emitting buses and trucks in the cities is an example of ________ cost.
Correct Answer social
Your Answer environmental

Question Correct Answer Your Answer

Variable cost can refer to operating costs alone. operating costs alone.

The relationship between price and the quantity supplied of a product is indicated by upward sloping curve. upward sloping curve.

Elasticity of supply means change in supply due to change in price of commodity. price of commodity.

Fixed cost is known as prime cost. prime cost.

Question Cost-benefit analysis refers to the analysis undertaken to judge any projects ________ whether government or private and find out its worth.
Correct Answer investments
Your Answer investments

Question Variable cost are those costs which vary with the level of
Correct Answer output
Your Answer output

Question An individual consumer or particular market for a given commodity are the subject matter of
Correct Answer Micro Economics
Your Answer Micro Economics

Question In the Dynamic Theory of Profit, Prof. Clark has pointed out the types of changes, which are
Correct Answer Changes in the supply of capital , Changes in population , Changes in the techniques of production
Your Answer Changes in the supply of capital , Changes in population , Changes in the techniques of production

Question Given the price, if the cost of production of a commodity decreases because of the use of improved technique of production, there will be increase in supply.
Correct Answer True
Your Answer True

Question True inflation starts only after reaching the level of full
Correct Answer Employment
Your Answer Employment

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

Question Reasons for need of public distribution system are
Correct Answer To maintain stable price conditions , To bring an efficient management of the supply , To supply the necessary goods to people at reasonable price
Your Answer To maintain stable price conditions , To bring an efficient management of the supply , To supply the necessary goods to people at reasonable price

Question Production Function implies relationship between
Correct Answer input & output
Your Answer input & output

Question The important determinants of supply are
Correct Answer Always referred to in relation to price & time , Government policy , Availability of factors of production
Your Answer Always referred to in relation to price & time , Government policy , Availability of factors of production

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

Question Demand for a commodity depends on the relative price of its ________
Correct Answer substitute goods
Your Answer substitute goods

Question In case of the co-operative societies supplying cheap inputs or supplying consumer products at fair prices, a system of subsidized pricing is followed.
Correct Answer True
Your Answer False

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

Question By ' profits', the accountant means total revenue minus________.
Correct Answer Explicit costs
Your Answer Sunk cost

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 Commodity prices index

Question The study of the working and allocation of resources in the free market economies is the topic in the
Correct Answer theory of price
Your Answer theory of price

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

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 economic growth

Question Increasing Returns explains
Correct Answer Total product increases at an increasing rate , Marginal product increasing and it is maximum , Average product is increasing but it is below MP
Your Answer Total product increases at an increasing rate , Marginal product increasing and it is maximum , Average product is increasing but it is below MP

Question Implicit costs are
Correct Answer Cost on self owned resources , Costs of salary of the proprietor , Interest on the entrepreneur's own investment
Your Answer Cost on self owned resources , Costs of salary of the proprietor , Interest on the entrepreneur's own investment

Question Characteristics of the phase of Depression are
Correct Answer Decrease in economic activities , The growth rate becomes negative , The level of national income declines rapidly
Your Answer Decrease in economic activities , The growth rate becomes negative , The level of national income declines rapidly

Question Micro-economic theory studies how a free enterprise economy determines the price of economic resources
Correct Answer False
Your Answer True

Question Economists like A.C.Harberger have shown that the cost benefit analysis can be applied to ________ analysis.
Correct Answer general equilibrium
Your Answer general equilibrium

Question Break-Even analysis is derived by
Correct Answer Fixed cost , Average variable cost , Quantity of goods and price
Your Answer Fixed cost , Average variable cost , Quantity of goods and price

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 , The use of economic modes of thought to analyze business solution