Managerial Economics - 19

LIST OF ATTEMPTED QUESTIONS AND ANSWERS ME3

Question In the context of formulation of an investment project, ________ feasibility means the availability of land, plant, machinery, raw materials and technical know how etc.
Correct Answer technical
Your Answer infrastructure

Question Scarcity of resources is the root cause of economic problem.
Correct Answer True
Your Answer True

Question Inflation reduces the purchasing power of people's income and savings.
Correct Answer True
Your Answer True

Question Demand for safety pins is ________
Correct Answer inelastic
Your Answer relatively inelastic

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

Question Correct Answer Your Answer

Motor cars Tangible goods Tangible goods

Wants Insatiable Insatiable

Managerial Economics Prescriptive in nature Prescriptive in nature

Resources Alternative uses Alternative uses

Division of society’s output of goods and services The theory of distribution The theory of distribution

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

Question Social costs cannot be included in a firm's account book.
Correct Answer True
Your Answer False

Question Economic problem arises only in case of an overpopulated country.
Correct Answer False
Your Answer False

Question The cost which enter the accounts book of the firm are referred as ________.
Correct Answer Accounting cost
Your Answer Accounting cost

Question The question regarding the nature and quantities of commodities to be produced is solely restricted to capitalist economies.
Correct Answer False
Your Answer True

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

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

Question The subject matter of managerial economics covers two important areas namely decision-making and
Correct Answer forward Planning
Your Answer forward Planning

Match The Following
Question Correct Answer Your Answer

Decrease in Demand Leftward shift of the demand curve Leftward shift of the demand curve

Contraction of Demand Upward movement on the demand curve Upward movement on the demand curve

Increase in demand Upward shift of the demand curve Upward shift of the demand curve

Extension of demand Downward movement on the demand curve Downward movement on the demand curve

Question The promoters of a company can get incorporated by filing with the registrarof companies various documents such as
Correct Answer Memorandum of Association , Articles of Association , Prospectus
Your Answer Articles of Association , Prospectus

Question Features of public sector enterprises
Correct Answer it is controlled by the state , separate funds to undertake their activity , they are accountable to public
Your Answer it is controlled by the state , separate funds to undertake their activity , they are accountable to public

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

Question In the 3rd stage of operation of the law of variable proportions, the marginal product becomes ________.
Correct Answer negative
Your Answer negative

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

Question All the buyers and sellers operating under perfect competition have knowledge which is
Correct Answer perfect
Your Answer perfect

Question In a market system of an economy, producers are guided by ________ motive.
Correct Answer profit
Your Answer profit

Question The cost recorded in the books of accounts are considered as
Correct Answer explicit costs
Your Answer explicit costs

Question Demand forecasts are necessary for
Correct Answer Fulfillment of objective of the plans , Preparation of a budget , Expansion of firms
Your Answer Fulfillment of objective of the plans , Preparation of a budget , Expansion of firms

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

Question Features of an Industry are
Correct Answer All firms dealing in the same line of business , The ownership and management of each firm is different , Is a group of firms
Your Answer All firms produce different goods , All firms dealing in the same line of business , The ownership and management of each firm is different

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

Question Normally, a larger quantity is demanded at
Correct Answer lower price
Your Answer lower price

Question When a company rasies additional finance by borrowing from the public for a specific period of time at a particular rate of interest, it is called as
Correct Answer Debentures
Your Answer Debentures

Question In cost benefit analysis, in the valuation of costs and benefits, for finding the present value, one has to make use of
Correct Answer discount rate
Your Answer discount rate

Question Like a particular street in a city , the entire city may sometimes specialize in the production of a particular commodity . The city acquire the status of a
Correct Answer national market
Your Answer capital market

Question Types of Share capital of Joint-Stock Company are
Correct Answer registered or authorized capital , issued capital , paid-up capital
Your Answer registered or authorized capital , issued capital , paid-up capital

Question An upward sloping demand curve is called ________
Correct Answer exceptional demand curve
Your Answer exceptional demand curve

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

Question Cournot' , the economists who defined the term 'market' different from that of the traditional sense is an
Correct Answer French economists
Your Answer French economists

Question Demand forecasting is predicting for the demand of a firm’s product in
Correct Answer future
Your Answer future

Question Pure inflation starts only after reaching the full employment level.
Correct Answer True
Your Answer True

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

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

Question Managerial economics aims at providing guidance to the firms for
Correct Answer decision making
Your Answer decision making

Question In case of defense services, all the sections of the society are equally protected and benefited. The defense services in other words is
Correct Answer indivisible in character , cannot be priced in the market , a public good
Your Answer indivisible in character , cannot be priced in the market

Question A fall in quantity demanded without a fall in price shows decrease in demand.
Correct Answer True
Your Answer True

Question The subject matter of macro - economics includes the theory of income and employment at an individual level.
Correct Answer False
Your Answer False