Managerial Economics - 23

LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Multiple Choice Single Answer
Question Pure public goods are subject to the law of decreasing average cost, because of the
Correct Answer economies of scale
Your Answer economies of scale

Multiple Choice Multiple Answer
Question Features of Long –run market are
Correct Answer It is durable goods market , Supply can be increased or reduced according to the demand , Sellers at least recover minimum price for their goods
Your Answer It is durable goods market , Supply can be increased or reduced according to the demand , Sellers at least recover minimum price for their goods

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

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

True/False
Question A monopolist’s product is a unique product.
Correct Answer True
Your Answer True

Multiple Choice Multiple Answer
Question Important theories of profits are
Correct Answer Uncertainty-bearing theory of profit , Dynamic theory of profit , Life cycle theory
Your Answer Risk taking theory , Uncertainty-bearing theory of profit , Dynamic theory of profit

Multiple Choice Multiple Answer
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 Memorandum of Association , Articles of Association

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

Multiple Choice Single Answer
Question The indivisible goods whose benefits cannot be priced are called
Correct Answer Pure public goods
Your Answer Pure private goods

Select The Blank
Question The partnership between private sector & government is called ________
Correct Answer Joint sector enterprise
Your Answer Joint sector enterprise

Multiple Choice Single Answer
Question The main objective of a co- operative organization is
Correct Answer service
Your Answer service

Multiple Choice Multiple Answer
Question The features of business or trade cycle are
Correct Answer It is a wave like movement , These fluctuations are recurrent in nature , Expansion and contraction in trade cycle are cumulative in effect
Your Answer It is a wave like movement , These fluctuations are recurrent in nature , Expansion and contraction in trade cycle are cumulative in effect

Match The Following
Question Correct Answer Your Answer

Pollution control certificate Government action Government action

Air pollution Negative externality Measure to reduce externality

Radio or TV signal Positive externality Private Action

Negotiation Private Action Perfect Competition in the market


Multiple Choice Single Answer
Question The profits which must be deducted from the gross profits to arrive at net profits are
Correct Answer Monopoly Profits
Your Answer Accounting Profit

True/False
Question The products sold by different sellers under pure competition are heterogeneous.
Correct Answer False
Your Answer True

Match The Following
Question Correct Answer Your Answer

Public Sector Life Insurance Corporation Life Insurance Corporation

Competitive Industry Homogenous Product Non capitalist in nature

Monopoly Firm One Firm One Firm

Plant Technical Unit Technical Unit


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

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

Select The Blank
Question The goods become ________ only when each individual has an access to the entire amount of it and its use by the individual does not reduce its availability to others.
Correct Answer indivisible
Your Answer divisible

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 Objective measurement of the trade-off , Maximization of difference between total benefits & total costs , Applicable only in partial equilibrium framework.

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

Multiple Choice Multiple Answer
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 Availability of factors of production , Tastes and preferences of producer

Multiple Choice Multiple Answer
Question The features of a Joint Stock-Company are
Correct Answer perpetual succession , limited liability , free transferability of shares
Your Answer perpetual succession , limited liability , free transferability of shares

Select The Blank
Question If the output rises in the greater proportion than that of the increase in factor inputs, it is referred to as ________.
Correct Answer increasing returns to scale.
Your Answer increasing returns to scale.

Select The Blank
Question A fall in price tends the demand for goods to ________
Correct Answer expand
Your Answer increase

Multiple Choice Multiple Answer
Question Average propensity to consume is characterized as follows
Correct Answer 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 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

True/False
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 True

Multiple Choice Multiple Answer
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

Select The Blank
Question Perfectly elastic demand curve is ________
Correct Answer horizontal
Your Answer horizontal

Multiple Choice Multiple Answer
Question Methods of measurement of elasticity are
Correct Answer Percentage method , Point elasticity method , Total outlay expenditure method
Your Answer Percentage method , Point elasticity method , Unitary elastic demand method

Select The Blank
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 social

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

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

True/False
Question In the measurement of profit, the differences in the concept of profit arise due to differences in cost concepts.
Correct Answer True
Your Answer True

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 Fulfillment of objective of the plans , Preparation of a budget , Expansion of firms

Select The Blank
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

Multiple Choice Single Answer
Question The economists who defined the term 'market' different from that of the traditional sense is
Correct Answer Jevons & Cournot
Your Answer Marshall

Multiple Choice Single Answer
Question The act of manufacturing goods and services is called
Correct Answer production
Your Answer production

True/False
Question Price discrimination is possible in perfect competition
Correct Answer False
Your Answer False

Select The Blank
Question Supply is predominantly determined by ________.
Correct Answer stock
Your Answer demand

Select The Blank
Question The social costs and benefits are the external economies and diseconomies resulting from the ________ activities, which are known as, "externalities"
Correct Answer firm's
Your Answer government

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 True

Multiple Choice Single Answer
Question Change in income of a person may result in demand for goods to
Correct Answer change
Your Answer change

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

Multiple Choice Single Answer
Question When in order to satisfy a given want , 2 or more goods are needed in combination, these goods are called
Correct Answer complimentary goods
Your Answer complimentary goods

Multiple Choice Multiple Answer
Question Forecasts can be made at the level of
Correct Answer A firm , An industry , The nation
Your Answer A firm , An industry

Select The Blank
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