managerial economics scdl
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8/3/2019 Managerial Economics Scdl
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Managerial Economics – 1
Posted by scdlpapers on July 21st, 2010
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Single AnswerQuestionThe concept of Perfect competition includes all the features of :-Correct AnswerPure competitionYour AnswerPure competition
Multiple Choice Single AnswerQuestionAn entrepreneur may earn high profits just by luck, say because of outbreak of war. This isknown as :-Correct AnswerChance ProfitsYour AnswerMonopoly Profits
Multiple Choice Single AnswerQuestionManagerial economics is also understood to refer toCorrect Answerapplied economicsYour Answerapplied economics
Multiple Choice Multiple AnswerQuestionFeatures of Dumping are :-Correct AnswerIt is possible in the case of monopoly market , Selling same good at higher price in home market
and at lower price in international market , It is encouraged with a view to promote the exportsYour AnswerIt is possible in the case of monopoly market , It is encouraged with a view to promote theexports
Multiple Choice Single AnswerQuestionThe type economic problem is
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Correct AnsweruniversalYour Answeruniversal
True/FalseQuestionIn macro – economic analysis the behavior of economic agents such as firms, households andgovernment is seen in total, disregarding details at particular level.Correct AnswerTrueYour AnswerTrue
True/FalseQuestion
Changes in the value of money because of inflation, make inventory valuation of finishedproducts difficult.Correct AnswerTrueYour AnswerTrue
Multiple Choice Single AnswerQuestionThe method of inventory valuation in which, the cost of production is calculated on theassumption that the material which was last to enter the inventory of the company was used first
is :-Correct AnswerLIFOYour AnswerLIFO
Multiple Choice Single AnswerQuestionThe act of making goods and services is calledCorrect AnswerproductionYour Answerproduction
Select The Blank QuestionThe partnership between private sector & government is called ________.Correct AnswerJoint sector enterprise
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Your AnswerJoint sector enterprise
Multiple Choice Multiple AnswerQuestion
According to Keynes there are three motives for holding cash for liquidity preference :-Correct AnswerThe speculative motive , The transactions motive , The precautionary motiveYour AnswerThe transactions motive , The precautionary motive , The speculative motive
Multiple Choice Single AnswerQuestionIf the substitutes are relatively costly then the demand for the commodity in question will be :-Correct AnswerMore
Your AnswerMore
Multiple Choice Multiple AnswerQuestionThe Laws of Returns to scale are :-Correct AnswerLaw of Increasing Returns to Scale , Law of Constant Returns to Scale , Law of DecreasingReturns to scaleYour AnswerLaw of Decreasing Returns to scale
Multiple Choice Multiple AnswerQuestionIncreasing Returns explains :-Correct AnswerTotal product increases at an increasing rate , Marginal product increasing and it is maximum ,Average product is increasing but it is below MPYour AnswerTotal product increases at an increasing rate , Marginal product increasing and it is maximum ,Average product is increasing but it is below MP
Multiple Choice Single AnswerQuestionAn individual consumer or particular market for a given commodity are the subject matter of :-Correct AnswerMicro EconomicsYour AnswerMicro Economics
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True/FalseQuestionThe prosperity phase is characterized by rise in the level of employment.Correct AnswerTrue
Your AnswerTrue
Select The Blank QuestionBaumol has suggested as an alternative objective for profit maximization, the maximization of ________.Correct AnswerSalesYour AnswerSales
Multiple Choice Single AnswerQuestionThe profit which is surplus of revenue over and above all paid out cost is :-Correct AnswerAccounting ProfitYour AnswerGross Profit
Select The Blank Question
In perfect competition various factors of production are assumed to be ________.Correct AnswerPerfectly mobileYour AnswerPerfectly mobile
Select The Blank QuestionKeynes, on the basis of a fundamental psychological law, observed that as income ________,consumption Increases.Correct AnswerIncreasesYour AnswerIncreases
True/FalseQuestionDuring the period of depression, a large part of a country‟s resources lie involuntarily idle. Correct Answer
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TrueYour AnswerTrue
True/False
QuestionPure private goods are completely divisible and to them the principle of exclusion applies in fullmeasure.Correct AnswerTrueYour AnswerFalse
Select The Blank QuestionThe taxation & public expenditure policies are called as ________ ..
Correct AnswerBudgetary PolicyYour AnswerBudgetary Policy
Multiple Choice Multiple AnswerQuestionThe disinvestments of industries is needed for :-Correct AnswerPhased privatization , Reducing deficit , Capital support to plansYour Answer
Phased privatization , Reducing deficit , Capital support to plansMultiple Choice Single AnswerQuestionThe act of using goods and services to satisfy wants is calledCorrect AnswerconsumptionYour Answerconsumption
Multiple Choice Single AnswerQuestionThe things that are produced by factors of production are calledCorrect AnswercommoditiesYour Answercommodities
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Select The Blank QuestionIn the context of externalities, driving the smoke-emitting buses and trucks in the cities is anexample of ________ cost.Correct Answer
SocialYour AnswerSocial
Multiple Choice Single AnswerQuestionThe concept of just distribution of national product is aCorrect AnswernormativeYour Answernormative
True/FalseQuestionThe government also fixes minimum procurement prices for major crops on the recommendationof the Agricultural Prices Commission (APC).Correct AnswerTrueYour AnswerTrue
Multiple Choice Multiple Answer
QuestionAccording to Lionel Robbins definition of economics, “Economics is a science which : -Correct AnswerStudies human behaviour , Relationship between ends and scares resources , Scarce means havealternate usesYour AnswerStudies human behaviour , Relationship between ends and scares resources , Scarce means havealternate uses
Select The Blank QuestionUnder perfect competition, price is determined by the interaction of total demand and ________.Correct AnswerTotal supplyYour AnswerTotal selling cost
Multiple Choice Multiple AnswerQuestion
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Features of monopolistic Competition are :-Correct AnswerFairly large number of firms , Product differentiation , Selling costs are existedYour AnswerFairly large number of firms , Product differentiation , Selling costs are existed
Multiple Choice Multiple AnswerQuestionSteps in cost benefit analysis are :-Correct AnswerIdentification of a project , Formulation of the project , Appraisal and selection of the projectYour AnswerIdentification of a project , Formulation of the project , Appraisal and selection of the project
True/FalseQuestion
There is no separation of ownership and management in case of a Joint Stock Company.Correct AnswerFalseYour AnswerFalse
Multiple Choice Single AnswerQuestionDuring a period of rising prices (inflation), the goods and services are :-Correct AnswerScarce
Your AnswerScarce
Multiple Choice Single AnswerQuestionThe cost recorded in the books of accounts are considered as :-Correct AnswerExplicit costsYour AnswerExplicit costs
Multiple Choice Single AnswerQuestionVariable cost are those costs which vary with the level of :-Correct AnswerOutputYour AnswerOutput
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Select The Blank QuestionOpen market operations measures are ________.Correct AnswerQuantitative credit control
Your AnswerQuantitative credit control
Select The Blank QuestionManagerial ________ lies on the borderline of management and Economics.Correct AnswerEconomicsYour AnswerEconomics
True/FalseQuestionThe demand for life saving drugs is elastic.Correct AnswerFalseYour AnswerFalse
Multiple Choice Single AnswerQuestionManagerial economics generally refers to the integration of economic theory with business
Correct AnswerPracticeYour AnswerPractice
Match The FollowingQuestionCorrect AnswerYour AnswerResource allocation decisions in free market economyTheory of priceTheory of priceEconomic problemUniversalUniversalManagerial EconomicsApplied branch of knowledgeApplied branch of knowledgeInflation
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Reduction in purchasing powerReduction in purchasing powerWaste of resourcesInvoluntary unemploymentInvoluntary unemployment
Multiple Choice Single AnswerQuestionAccording J.B.Clark, profit is the reward paid for :-Correct AnswerDynamismYour AnswerRisk bearing
Multiple Choice Multiple AnswerQuestion
The characteristics of a sole proprietorship firm is :-Correct AnswerUnlimited Capital , Ownership by a single person , Easy to formYour AnswerOwnership by a single person , Easy to form
Select The Blank QuestionThe rate of interest, according to Keynes depends upon two factors: the liquidity preferencefunction and ________.Correct Answer
The quantity of money.Your AnswerThe quantity of money.
Match The FollowingQuestionCorrect AnswerYour AnswerHuman wantsunlimitedunlimitedGeneral Theory of Employment, Interest and MoneyJ. M. KeynesJ. M. KeynesManagerial economicsDecision making and forward planningDecision making and forward planningResourcesscarce
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scarceCommoditiesgoods and servicesgoods and services
Multiple Choice Single AnswerQuestionEvery nation‟s resources which are used to produce the quantities of goods and services thatwould be required to satisfy all its citizen‟s want s areCorrect AnswerinsufficientYour Answerinsufficient
Managerial Economics – 2
Posted by scdlpapers on July 21st, 2010
List Of Attempted Questions And Answers
Select The Blank Question The sum of all individual demands constitutes________Correct Answer market demandYour Answer market demand
True/FalseQuestion Under perfect competition, price is determined by the interaction of total demand andtotal supply in the market.Correct Answer FalseYour Answer True
Multiple Choice Single AnswerQuestion Price of a product under perfect competition is determined by the interaction of totalsupply andCorrect Answer total demandYour Answer total demand
Select The Blank Question The cost which enter the accounts book of the firm are referred as ________.Correct Answer Accounting costYour Answer Accounting cost
Multiple Choice Multiple AnswerQuestion Keynes‟s theory of employment explai nsCorrect Answer Effective demand , Aggregate supply , Aggregate demandYour Answer Effective demand , Aggregate supply , Aggregate demand
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Multiple Choice Single AnswerQuestion The type economic problem isCorrect Answer universalYour Answer universal
Multiple Choice Single AnswerQuestion An individual consumer or particular market for a given commodity are the subjectmatter of Correct Answer Micro EconomicsYour Answer Micro Economics
Multiple Choice Multiple AnswerQuestion Features of the firm areCorrect Answer It is a business unit organized under one ownership , It is a sole proprietorship ,It is a partnership or joint stock companyYour Answer It is a business unit organized under one ownership , It is a sole proprietorship , It
is a partnership or joint stock company
Multiple Choice Single AnswerQuestion Whether the economy‟s capacity to produce goods and services is growing from year toyear or remaining static is studied under theCorrect Answer Theory of economic growthYour Answer Theory of economic growth
Multiple Choice Multiple AnswerQuestion Co-operative organizations isCorrect Answer voluntary organization , managed by democratic principle , organization, which
performs its business within the membersYour Answer voluntary organization , managed by democratic principle , non profit motiveorganization
Multiple Choice Multiple AnswerQuestion Assumptions underlying the law of Supply areCorrect Answer The cost of production is unchanged , No change in technique of production ,Government policies are unchangedYour Answer The cost of production is unchanged , No change in technique of production ,Government policies are unchanged
True/FalseQuestion Macro-economies is a policy oriented science.Correct Answer TrueYour Answer True
Multiple Choice Single AnswerQuestion Expansion of supply is shown by the movement in the supply curve which is
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Correct Answer upwardYour Answer upward
Multiple Choice Single AnswerQuestion Liability of a sole trader is
Correct Answer unlimitedYour Answer unlimited
Select The Blank Question If the output rises in the greater proportion than that of the increase in factor inputs, it isreferred to as ________.Correct Answer increasing returns to scale.Your Answer increasing returns to scale.
Select The Blank Question An upward sloping demand curve is called ________
Correct Answer exceptional demand curveYour Answer exceptional demand curve
Multiple Choice Single AnswerQuestion Every nation‟s resources which are used to produce the quantities of goods and servicesthat would be required to satisfy all its citizen‟s wants are Correct Answer insufficientYour Answer insufficient
Multiple Choice Single AnswerQuestion The act of making goods and services is called
Correct Answer productionYour Answer production
Multiple Choice Single AnswerQuestion Question related to the efficient production and allocation belong to the branch of economic theory calledCorrect Answer Welfare EconomicsYour Answer Welfare Economics
Multiple Choice Single AnswerQuestion The act of using goods and services to satisfy wants is called
Correct Answer consumptionYour Answer consumption
Multiple Choice Multiple AnswerQuestion Explicit costs areCorrect Answer Out of pocket costs , These are firms accounting expenses , Expenditure costsYour Answer Out of pocket costs , These are firms accounting expenses , Expenditure costs
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Select The Blank Question In the 3rd stage of operation of the law of variable proportions, the marginal productbecomes ________.Correct Answer negativeYour Answer negative
True/FalseQuestion The Keynesian theory emphasizes effective supply as a crucial factor in determiningthe level of income and employment.Correct Answer FalseYour Answer False
Multiple Choice Single AnswerQuestion The things that are produced by factors of production are calledCorrect Answer commoditiesYour Answer commodities
Select The Blank Question By „ profits‟, the accountant means total revenue minus________. Correct Answer Explicit costsYour Answer Explicit costs
Multiple Choice Single AnswerQuestion All the buyers and sellers operating under perfect competition have knowledge whichisCorrect Answer perfectYour Answer perfect
Match The FollowingQuestion Correct Answer Your Answer
Resource allocation decisions in free market economy Theory of price Theory of priceEconomic problem Universal UniversalManagerial Economics Applied branch of knowledge Applied branch of knowledgeInflation Reduction in purchasing power Theory of priceWaste of resources Involuntary unemployment Involuntary unemployment
Multiple Choice Multiple Answer
Question 16. The phase of recovery denotesCorrect Answer More employment opportunities , Increase in profitability , Wage rate increaseYour Answer More employment opportunities , Increase in profitability , Wage rate increase
Select The Blank Question Supply is predominantly determined by ________.Correct Answer stock Your Answer demand
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Select The Blank Question The form of organization which is best for self employment is ________.Correct Answer Sole traderYour Answer Sole trader
Multiple Choice Single AnswerQuestion The suggestion of maximization of balanced growth rate as another alternativeobjective of a firm‟s profit is suggested by Correct Answer Prof. MorrisYour Answer Baumol
True/FalseQuestion Under perfect competition,firms are free to enter and exit in the market.Correct Answer TrueYour Answer True
Multiple Choice Single AnswerQuestion J.M. Keynes, on the basis of a fundamental psychological law of consumption,observed that as income increases, consumption also increases, but proportionatelyCorrect Answer lessYour Answer less
Multiple Choice Single AnswerQuestion The Risk theory of profit was developed byCorrect Answer HawleyYour Answer Hawley
True/FalseQuestion The congress government led by Narsimha Rao announced the New Industrial Policyin July 1991.Correct Answer TrueYour Answer True
Select The Blank Question Perfectly elastic demand curve is ________Correct Answer horizontalYour Answer horizontal
True/FalseQuestion The distinction between fixed costs and variable costs is relevant in the short periodonly.Correct Answer TrueYour Answer True
Multiple Choice Multiple AnswerQuestion The term externalities may also be referred as:
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Correct Answer Spill-over effects , Neighborhood effects , Third party effectsYour Answer Spill-over effects , Neighborhood effects , Third party effects
Multiple Choice Multiple AnswerQuestion Methods of forecasting demand for new products are
Correct Answer Product life cycle analysis , Test marketing , Evolutionary approachYour Answer Evolutionary approach
Multiple Choice Single AnswerQuestion Often monopolies purposely keep certain factors of production idle creating artificialscarcities of their products as a result the pricesCorrect Answer riseYour Answer rise
Multiple Choice Multiple AnswerQuestion The methods of calculating depreciation is
Correct Answer Diminishing Balance Method , Annuity Method , Service Unit MethodYour Answer Diminishing Balance Method , Annuity Method , Service Unit Method
Match The FollowingQuestion Correct Answer Your Answer
Human wants unlimited unlimitedGeneral Theory of Employment, Interest and Money J. M. Keynes J. M. KeynesManagerial economics Decision making and forward planning Decision making and forwardplanningResources scarce scarce
Commodities goods and services goods and servicesSelect The Blank Question In the context of formulating an investment project, ________ feasibility means theavailability of supervisors for implementing and running the project smoothly and professionally.Correct Answer managementYour Answer management
True/FalseQuestion The sum of total fixed costs and total variable costs is the total cost.Correct Answer True
Your Answer TrueMultiple Choice Multiple AnswerQuestion Features of Market areCorrect Answer Place where buyers and sellers meet each other , A building where a number of shops dealing in a particular commodity exist , A place where transaction of goods and servicesis undertakenYour Answer Place where buyers and sellers meet each other , A building where a number of
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shops dealing in a particular commodity exist , A place where transaction of goods and servicesis undertaken
Multiple Choice Single AnswerQuestion Managerial economics is also understood to refer to
Correct Answer applied economicsYour Answer applied economics
True/FalseQuestion Private profit motive is an essential feature of Capitalism.Correct Answer TrueYour Answer True
Managerial Economics – 3
Posted by scdlpapers on July 21st, 2010
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
True/FalseQuestionIn case of a proprietary firm the liability of the proprietor is limited.Correct AnswerFalseYour AnswerFalse
Multiple Choice Multiple AnswerQuestionAccounting profit includes :-Correct AnswerWages , Rent , InterestYour AnswerInterest , Total revenue
True/FalseQuestionIn experimental price approach the firms takes some cognizance of the demand for the productand proceeds to fix a price by a trial and error method.Correct AnswerTrueYour AnswerTrue
Multiple Choice Multiple AnswerQuestion
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Defects of market system:-Correct AnswerInequalities of income and wealth , Emergence of monopolies , Failure to provide fullemploymentYour Answer
Emergence of monopolies , Failure to provide full employment , Prevailing of barter system
Multiple Choice Single AnswerQuestionIn case of perfectly elastic supply, the supply curve is :-Correct AnswerHorizontalYour AnswerVertical
Multiple Choice Single Answer
QuestionEvery nation‟s resources which are used to produce the quantities of goods and services thatwould be required to satisfy all its citizen‟s wants are Correct AnswerinsufficientYour Answerinsufficient
Multiple Choice Single AnswerQuestionManagerial economics is also understood to refer to
Correct Answerapplied economicsYour Answerapplied economics
Multiple Choice Single AnswerQuestionEconomists have pointed out that the real world is full of :-Correct AnswerImperfect competitionYour AnswerPure competition
Multiple Choice Multiple AnswerQuestionCharacteristics of Pure Public goods are:-Correct AnswerThey are completely indivisible , Their marginal cost would be zero or close to zero , Theirbenefits cannot be priced
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Your AnswerThey are completely indivisible , Their benefits cannot be priced
Multiple Choice Multiple AnswerQuestion
Main aims of the New Industrial Policy (1991) are :-Correct AnswerTo unshackle the Indian industrial economy from the cobwebs of unnecessary bureaucraticcontrol , To introduce liberalization with a view to integrate the Indian economy with the worldeconomy , To remove restrictions on direct foreign investment as also to free the domesticentrepreneur from the restriction of MRTP actYour AnswerTo unshackle the Indian industrial economy from the cobwebs of unnecessary bureaucraticcontrol , To introduce liberalization with a view to integrate the Indian economy with the worldeconomy , To remove restrictions on direct foreign investment as also to free the domesticentrepreneur from the restriction of MRTP act
Multiple Choice Single AnswerQuestionUnder perfect competition, generally demand and supply act and react upon each other anddetermine the priceCorrect AnswerequilibriumYour Answerequilibrium
Multiple Choice Multiple Answer
QuestionFactors leading to differences in the economic & the traditional concepts of valuation are :-Correct AnswerInventory Valuation , Depreciation , Unaccounted value changes in the assets & liabilitiesYour AnswerInventory Valuation , Depreciation , Unaccounted value changes in the assets & liabilities
Select The Blank QuestionSuper-normal profit is also called ________.Correct AnswerExcess profitYour AnswerExcess profit
Multiple Choice Multiple AnswerQuestionUnder cost plus pricing :-Correct Answer
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Actual costs, standard costs are included , Certain percentage of profit also included , The priceis set to cover material, labour costYour AnswerThe price is set to cover material, labour cost , Actual costs, standard costs are included
Match The FollowingQuestionCorrect AnswerYour AnswerHuman wantsunlimitedunlimitedGeneral Theory of Employment, Interest and MoneyJ. M. KeynesJ. M. KeynesManagerial economics
Decision making and forward planningDecision making and forward planningResourcesscarcescarceCommoditiesgoods and servicesgoods and services
True/FalseQuestionConsumer‟s protection involves protection to t
he consumers from unfair trade practices.Correct AnswerTrueYour AnswerTrue
Select The Blank QuestionWhen Government repays old loans, the purchasing power at the disposal of the people________.Correct AnswerIncreasesYour AnswerBecomes negative
True/FalseQuestionThe law of supply is not hypothetical.Correct Answer
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FalseYour AnswerTrue
Multiple Choice Single Answer
QuestionA firm gets an opportunity to produce multiple products because changes in business activity in afirms is :-Correct AnswerCyclicalYour AnswerCyclical
True/FalseQuestionWhen a change in income has no effect upon the quantity demanded of a product, the income
elasticity of demand is zero.Correct AnswerTrueYour AnswerTrue
Multiple Choice Single AnswerQuestionManagerial economics generally refers to the integration of economic theory with businessCorrect AnswerPractice
Your AnswerPractice
Select The Blank QuestionPropensity to consume is defined as the relationship between consumption and ________.Correct AnswerIncomeYour AnswerIncome
True/FalseQuestionPublic enterprises have shown a very high rate of return of the capital invested.Correct AnswerFalseYour AnswerFalse
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Select The Blank Question________ effects are those externalities which flow from the production or use of the good toother parties or economic units.Correct Answer
Third partyYour AnswerExternal
True/FalseQuestionIn the traditional concept of equilibrium, a firm attains the equilibrium when the firm‟s TotalRevenue (T.R.) =Total Cost (T.C.).Correct AnswerFalseYour Answer
TrueMultiple Choice Single AnswerQuestionThe method of inventory valuation in which, the cost of production is calculated on theassumption that the material which was last to enter the inventory of the company was used firstis :-Correct AnswerLIFOYour AnswerLIFO
True/FalseQuestionSupply management is related to the volume of supply & its distribution system.Correct AnswerTrueYour AnswerTrue
Multiple Choice Multiple AnswerQuestionDemand is determined by :-Correct AnswerPrice of the product , Relative prices of other goods , Tastes and habitsYour AnswerPrice of the product , Relative prices of other goods , Tastes and habits
Multiple Choice Multiple AnswerQuestion
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Different types of Elasticity of Demand are :-Correct AnswerCross elasticity of demand , Price elasticity of demand , Income elasticity of demandYour AnswerPrice elasticity of demand , Income elasticity of demand , Cross elasticity of demand
Multiple Choice Single AnswerQuestionIn case of a Joint-Stock Company, the liability of share holders is :-Correct AnswerLimitedYour AnswerLimited
Multiple Choice Single AnswerQuestion
Expansion of supply is shown by the movement in the supply curve which is :-Correct AnswerUpwardYour AnswerUpward
Multiple Choice Single AnswerQuestionSaving is a :-Correct AnswerPrivate virtue
Your AnswerPrivate virtue
Multiple Choice Single AnswerQuestionAccording to the Government, the building up of inflationary pressure during the Nineties wasattributed to :-Correct AnswerHigher Fiscal deficitYour AnswerHigher Fiscal deficit
Multiple Choice Multiple AnswerQuestionA competitive industry has three basic characteristics :-Correct AnswerLarge Number of Firms , Homogeneous Product , Free entry and exitYour AnswerLarge Number of Firms , Homogeneous Product , Free entry and exit
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Multiple Choice Single AnswerQuestionThe income which a businessman might expect from the second best alternative use of hisresources is called as :-Correct Answer
Opportunity costYour AnswerOpportunity cost
Select The Blank QuestionAdvertising forms an integral part of decision-making and________.Correct AnswerForward – planningYour AnswerForward – planning
Multiple Choice Multiple AnswerQuestionExceptions to the Law of Demand are :-Correct AnswerGriffin goods , Articles of snob appeal , SpeculationYour AnswerGriffin goods , Articles of snob appeal , Speculation
Select The Blank Question
True inflation starts only after reaching ________.Correct AnswerLevel of full employmentYour AnswerLevel of full employment
Select The Blank QuestionThe financing of ________ goods is done through Public expenditure.Correct AnswerPublicYour AnswerPublic
Multiple Choice Multiple AnswerQuestionAssumptions of the Law of Demand are :-Correct Answer
No change in consumer‟s income , No change in consumer‟s preferences , No change in fashion
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Your Answer No change in consumer‟s income , No change in consumer‟s preferences , No change in fashion
Multiple Choice Multiple AnswerQuestion
Types of Share capital of Joint-Stock Company are :-Correct AnswerRegistered or authorized capital , Issued capital , Paid-up capitalYour AnswerRegistered or authorized capital , Issued capital , Paid-up capital
True/FalseQuestionThe sum of total fixed costs and total variable costs is the total cost.Correct AnswerTrue
Your AnswerTrue
True/FalseQuestionDuring the period of depression, a large part of a country‟s resources lie involuntarily idle. Correct AnswerTrueYour AnswerTrue
True/FalseQuestionUnder the New Industrial Policy, in order to invite foreign investment in high priority industries,it was decided to provide approval for direct foreign investment upto 51% equity in suchindustries.Correct AnswerTrueYour AnswerTrue
Managerial Economics – 7
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LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Single AnswerQuestionEconomists call all human resources as
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Correct AnswerlaborYour Answerlabor
True/FalseQuestionEconomic problem arises only in case of an overpopulated country.Correct AnswerFalseYour AnswerFalse
Multiple Choice Single AnswerQuestionAll the buyers and sellers operating under perfect competition have knowledge
Correct AnswerperfectYour Answerperfect
True/FalseQuestionThe meaning of the word “economic” is most closely associated with the word unlimited Correct AnswerTrueYour Answer
TrueMultiple Choice Single AnswerQuestionThe conditions of equilibrium of a firm are applicable to all marketsCorrect AnswerNoneYour Answerparticular
True/FalseQuestionIn case of the co-operative societies supplying cheap inputs or supplying consumer products atfair prices, a system of subsidized pricing is followedCorrect AnswerTrueYour AnswerTrue
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Multiple Choice Single AnswerQuestionThe price of a good and the exclusion princople together isCorrect Answerdivisibility
Your Answerindivisibility
Multiple Choice Single AnswerQuestionThe liability of a sole proprietary firm isCorrect AnswerunlimitedYour Answerunlimited
True/FalseQuestionInstitution of private property is not an essential feature of CapitalismCorrect AnswerFalseYour AnswerFalse
True/FalseQuestionThere never was in any country at any time „pure capitalism‟ or „pure communism
Correct AnswerTrueYour AnswerTrue
True/FalseQuestionThe railways using a lot of coal in firing the steam locomotives put the residential and otherareas near the loco – shades to a lot of sufferings on account of smoke nuisance, is an example of prCorrect AnswerFalseYour AnswerTrue
True/FalseQuestionA Joint stock company has perpetual succession.Correct Answer
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TrueYour AnswerTrue
True/False
QuestionThe management of the cooperative form of business organization is totalitarian in nature.Correct AnswerFalseYour AnswerTrue
Multiple Choice Single AnswerQuestionIn Trade cycles the economic activity areCorrect Answer
ups and downsYour Answerups and downs
True/FalseQuestionIn macro – economic analysis the behavior of economic agents such as firms, households andgovernment is seen in total, disregarding details at particular levelCorrect AnswerTrueYour Answer
TrueMultiple Choice Single AnswerQuestionMarket economy or private enterprise economy is a economy which isCorrect AnswerplanlessYour Answerplanned
Multiple Choice Single AnswerQuestionNew commodities due to technotogical progress may result in demand for traditional type of goodsCorrect AnswerdecreaseYour Answerdecrease
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Multiple Choice Single AnswerQuestionIf a person is habituated to the consumption of a commodity and if he cannot easily give up itsuse, demand for it is generallyCorrect Answer
inelasticYour Answerinelastic
Match The FollowingQuestionCorrect AnswerYour AnswerNormal demand curveDownwards to rightDownwards to right
Income consumption curveUpwards to the rightUpwards to the rightInelastic demand curveVertical straight lineVertical straight lineCross elasticity of demand between two perfect substitute will beInfinityInfinityA demand curve, which takes the form of a horizontal line parallelto the quantity axis illustrateselasticityInfinity.Infinity.
Multiple Choice Single AnswerQuestionThe law of diminishing returns is applicable to agriculture provided the state of technology isgiven andCorrect AnswerconstantYour Answerresources
Multiple Choice Single AnswerQuestionUnder the system of dual prices in case of essential goods, adopted by the government, theweaker sections of the community are supplied these goods through fair price shops whiCorrect Answerfair
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Your Answerneo – rich
Multiple Choice Single AnswerQuestion
The Government attempts to increase supplies of food grains and other essential goods in timesof internal shortage through largerCorrect AnswerimportsYour Answerborrowings
True/FalseQuestionExternal economies are the advantages of large scale production enjoyed exclusively anindividual firm alone.
Correct AnswerFalseYour AnswerFalse
Multiple Choice Multiple AnswerQuestionEquilibrium isCorrect AnswerThe stage of maximum satisfaction , The stage of balance , The stage of stationaryYour Answer
The stage of balanceMultiple Choice Multiple AnswerQuestionConditions of equilibriumCorrect AnswerMarginal Revenue should be equal to Marginal Cost , The Marginal cost curve should cut themarginal revenue curve from below at the equilibrium point , Marginal cost curve should beincreasing at equilibrium pointYour AnswerMarginal Revenue should be equal to Marginal Cost , The Marginal cost curve should cut themarginal revenue curve from below at the equilibrium point , Average cost curve should cut theAverage Revenue curve
Select The Blank QuestionCost-benefit analysis refers to the analysis undertaken to judge any projects ________ whethergovernment or private and find out its ________ and facilities its comparison with otheravailable oppor
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Correct AnswerinvestmentsYour AnswerinvestmentsCorrect Answer
worthYour Answerprofit
Multiple Choice Multiple AnswerQuestionAggregate supply functionCorrect AnswerRefers to that price at which the seller is willing to supply , Refers to show the varying level of supply at different prices , Explains the level of out put varies with the level of employmentYour Answer
Refers to show the varying level of supply at different pricesMultiple Choice Multiple AnswerQuestionCharacteristics of DepressionCorrect AnswerDecrease in economic activities , The growth rate becomes negative , The level of nationalincome declines rapidlyYour AnswerDecrease in economic activities , The growth rate becomes negative , The level of nationalincome declines rapidly
Multiple Choice Multiple AnswerQuestionRecession includesCorrect AnswerThe demand is halted , Increase in production of goods , Inventories piling up in stocksYour AnswerThe demand is halted , Inventories piling up in stocks , The growth of discrepancy betweensupply and demand is very fast
Multiple Choice Multiple AnswerQuestionThe causes of inflationCorrect AnswerIncrease in public expenditure , Increase in private expenditure , Increase in foreign demandYour AnswerIncrease in public expenditure , Increase in foreign demand , Increase in taxation
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Select The Blank QuestionIn the ________ terminology, the ________ demand function refers to the schedule of maximumsales proceeds, which the entrepreneurial community actually does expect to be received fromthe sale of
Correct AnswerKeynesianYour AnswerKeynesianCorrect AnsweraggregateYour Answertotal
Select The Blank Question
The rate of interest, according to ________ , depends upon two factors: (i) ________ and (ii) thequantity of moneyCorrect AnswerKeynesYour AnswerKeynesCorrect Answerthe liquidity preference functionYour Answerspeculative
Multiple Choice Multiple AnswerQuestionReasons for need of public distribution systemCorrect AnswerTo maintain stable price conditions , An efficient management of the supply , To supply thenecessary goods to people at reasonable priceYour AnswerTo maintain stable price conditions , An efficient management of the supply , To supply thenecessary goods to people at reasonable price
Multiple Choice Multiple AnswerQuestionThe consumer protection Act includesCorrect AnswerProtection from hazardous commodities , Right to a competitive price , Right to informationregarding protectionYour AnswerProtection from hazardous commodities , Right to information regarding protection , Protestagainst price discrimination
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Multiple Choice Multiple AnswerQuestionObjectives of economic policyCorrect AnswerTo increase the efficiency and international competitiveness of industrial production , To
improve the performance and rationalize the scope of the public sector , To reform andmodernize the financial sectorYour AnswerTo increase the efficiency and international competitiveness of industrial production , Toimprove the performance and rationalize the scope of the public sector , To reform andmodernize the financial sector
Multiple Choice Multiple AnswerQuestionScope of Managerial Economics deals with:Correct Answer
Demand analysis and forecasting. , Production function & cost analysis. , Inventory managementadverting, price system.Your AnswerDemand analysis and forecasting. , Production function & cost analysis. , Inventory managementadverting, price system.
Multiple Choice Multiple AnswerQuestionAssumptions of the Law of Demand are:Correct Answer
No change in consumer‟s income , No change in consumer‟s preferences , No change in fashion
Your Answer No change in consumer‟s income , No change in consumer‟s preferences , No change in fashion ,No Change in government policy.
Multiple Choice Multiple AnswerQuestionTypes of income elasticity of demandCorrect AnswerNegative income elasticity , Zero income elasticity , Unit income elasticityYour AnswerNegative income elasticity , Zero income elasticity , Unit income elasticity
Select The Blank QuestionManagerial ________s generally refers to the integration of economic theory with ________practice.Correct AnswereconomicYour Answer
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economicCorrect AnswerbusinessYour Answerbusiness
Select The Blank QuestionThe problem of unlimited wants and limited ________ with ________ uses has been foreverconfronting mankind.Correct AnswermeansYour AnswermeansCorrect Answeralternative
Your Answeralternative
Select The Blank QuestionAs per the International Labour Organisation (ILO), _ ________ is a ________ association of individuals with limited income on the basis of equal rights and responsibilities for achievingcertaCorrect AnswerCo-operationYour Answer
Co-operationCorrect AnswervoluntaryYour Answervoluntary
Select The Blank QuestionLike all organism, the ________ , too is an organism, according to the ________ theory.Correct AnswerfirmYour AnswerfirmCorrect Answerlife-cycle theoryYour Answerhomeostatic theory
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Select The Blank QuestionThe ________-taking theory was developed by the ________ . According to him, profit arisesbecause considerable amount of risk is involved in business.Correct Answer
American economist HawleyYour Answerrisk Correct Answerrisk Your AnswerAmerican economist Hawley
Select The Blank QuestionThe extent of the change of demand for a commodity to a given change in ________ , other
demand determinants remaining constant, is termed as the ________ of demand.Correct AnswerpriceYour AnswerpriceCorrect Answerprice elasticityYour Answerprice elasticity
Select The Blank
QuestionIndices constructed for one ________ should not be ________ for other purposes where they notbe fully appropriate and given erroneous conclusions.Correct AnswerpurposeYour AnswerpurposeCorrect AnswerusedYour Answerused
Select The Blank QuestionThe law of diminishing returns states that, „as the proportion of one factor in a combination of factors is ________ after a point, first the ________ and then the average product of that factor wCorrect AnswerincreasedYour Answer
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increasedCorrect AnswermarginalYour Answermarginal
Match The FollowingQuestionCorrect AnswerYour AnswerStatutory Reserve RatioQuantitative credit Control MeasureQuantitative credit Control MeasureTrade cycleWave – like movementWave – like movement
Keynesian theoryShort – Period AnalysisJ. M. KeynesAggregate Demand FunctionMaximum sale proceeds expected by entrepreneursShort – Period AnalysisEffective DemandJ. M. KeynesMaximum sale proceeds expected by entrepreneurs
Managerial Economics – 5
Posted by scdlpapers on July 21st, 2010
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Single AnswerQuestionManagerial economics generally refers to the integration of economic theory with businessCorrect AnswerPracticeYour Answer
Practice
Multiple Choice Single AnswerQuestionEvery nation‟s resources which are used to produce the quantities of goods and services thatwould be required to satisfy all i ts citizen‟s wants are Correct Answerinsufficient
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Your Answerinsufficient
Multiple Choice Single AnswerQuestion
Managerial economics is also understood to refer toCorrect Answerapplied economicsYour Answerapplied economics
Multiple Choice Single AnswerQuestionThe type economic problem isCorrect Answeruniversal
Your Answeruniversal
Multiple Choice Single AnswerQuestionThe act of making goods and services is calledCorrect AnswerproductionYour Answerproduction
Multiple Choice Single AnswerQuestionThe act of using goods and services to satisfy wants is calledCorrect AnswerconsumptionYour Answerconsumption
Multiple Choice Single AnswerQuestionThe concept of just distribution of national product is aCorrect AnswernormativeYour Answerobjective
True/FalseQuestionResources are said to be involuntarily un employed when their wastage occur.
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Correct AnswerTrueYour AnswerTrue
Match The FollowingQuestionCorrect AnswerYour AnswerManagerial economicsDecision making and forward planningDecision making and forward planningResourcesscarcescarceCommodities
goods and servicesgoods and servicesHuman wantsunlimitedunlimitedGeneral Theory of Employment, Interest and MoneyJ. M. KeynesJ. M. Keynes
Multiple Choice Single AnswerQuestion
In cost –
benefit analysis, after the step of appraisal and selection of the project is the step of Correct Answercomparison of the cash flowYour Answercomparison of the cash flow
True/FalseQuestionSocial costs cannot be included in a firm‟s account book.Correct AnswerTrueYour AnswerFalse
Multiple Choice Multiple AnswerQuestionSteps in cost benefit analysisCorrect AnswerIdentification of a project , Formulation of the project , Appraisal and selection of the project
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Your AnswerIdentification of a project , Formulation of the project , Appraisal and selection of the project
Multiple Choice Multiple AnswerQuestion
The advantage of cost-benefit analysis areCorrect AnswerMaximization of social welfare , Objective measurement of the trade-off , Maximization of difference between total benefits & total costsYour AnswerMaximization of social welfare , Objective measurement of the trade-off , Maximization of difference between total benefits & total costs
Select The Blank QuestionCost-Benefit analysis aims at ________ of social wealth.
Correct AnswermaximizationYour Answermaximization
Select The Blank QuestionModern economists treat social cost and benefits as ________ of private investment andproduction decisions.Correct Answerexternalities
Your Answerexternalities
Multiple Choice Single AnswerQuestionAccording to many economists, the root cause of economic problem isCorrect AnswerscarcityYour Answerscarcity
Multiple Choice Single AnswerQuestionManagerial economics aims at providing guidance to the firms forCorrect Answerdecision makingYour Answerdecision making
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Multiple Choice Single AnswerQuestionIn case of a Joint-Stock Company, the liability of share holders isCorrect Answerlimited
Your Answerlimited
Multiple Choice Single AnswerQuestionFor an economist, Tata Eng & Locomotive Company Ltd is aCorrect AnswerfirmYour Answerfirm
Multiple Choice Multiple AnswerQuestionPreference Shares can be classified asCorrect AnswerSimple Shares , Cumulative Shares , Redeemable SharesYour AnswerSimple Shares , Cumulative Shares , Redeemable Shares
Multiple Choice Multiple AnswerQuestionThe promoters of a company can get incorporated by filing with the registrarof companies
various documents such asCorrect AnswerMemorandum of Association , Articles of Association , ProspectusYour AnswerMemorandum of Association , Articles of Association
Multiple Choice Multiple AnswerQuestionForms of Public EnterprisesCorrect Answerdepartmental management , company management or management by boards , publiccorporationsYour Answerdepartmental management , public corporations , non-profit organization
Select The Blank QuestionBaumol has suggested as an alternative objective for profit maximization , the maximization of ________
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Correct AnswersalesYour Answersales
Select The Blank QuestionThe partnership between private sector & government is called ________Correct AnswerJoint sector enterpriseYour AnswerJoint sector enterprise
Select The Blank QuestionThe minimum number of directors which public limited should have is ________.
Correct Answer3Your Answer3
Multiple Choice Single AnswerQuestionThe profit which is surplus of revenue over and above all paid out cost isCorrect AnswerAccounting ProfitYour Answer
Gross ProfitTrue/FalseQuestionMeasurement of profit becomes difficult because of the difficulty involved in the calculation of depreciation.Correct AnswerTrueYour AnswerTrue
Multiple Choice Single AnswerQuestionIn economics, demand means desire backed by adequateCorrect Answerpurchasing powerYour Answerpurchasing power
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Multiple Choice Single AnswerQuestionWhen more units of a commodity are purchased in response to decline in price of thatcommodity, it is called as expansion of Correct Answer
demandYour Answerdemand
Multiple Choice Single AnswerQuestionDemand for products like tea, betel, tobacoo, sigaratte is a matter of Correct AnswerhabitYour Answerhabit
Multiple Choice Single AnswerQuestionIf the substitutes are relatively cheaper then the demand for the commodity in question will beCorrect AnswerlessYour Answerless
True/FalseQuestion
A shift in the demand curve to the left shows increase in demand.Correct AnswerFalseYour AnswerFalse
True/FalseQuestionDemand for luxury goods is inelasticCorrect AnswerFalseYour AnswerFalse
True/FalseQuestionThe demand for life saving drugs is elastic.Correct AnswerFalse
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Your AnswerFalse
Select The Blank Question
A normal demand curve has ________+B299Correct Answernegative slopeYour Answernegative slope
Multiple Choice Multiple AnswerQuestionCost function denotesCorrect AnswerThe prices of such inputs as labour and capital material , The rate of output , The size of the plant
Your AnswerThe prices of such inputs as labour and capital material , The rate of output , The size of the plant, The cost of technology
Select The Blank QuestionThe law of constant returns to scale is depicted by the marginal output curve which is ________.Correct AnswerhorizontalYour Answerupward sloping
Select The Blank QuestionIn the 3rd stage of operation of the law of variable proportions, the marginal product becomes________.Correct AnswernegativeYour Answernegative
Select The Blank QuestionThe costs which cover the cost of advertising is ________.Correct AnswerSelling costYour AnswerSelling cost
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Multiple Choice Multiple AnswerQuestionFeatures of Oligopoly Market areCorrect AnswerFew sellers , Restriction to entry of new firms , Price leadership
Your AnswerFew sellers , Restriction to entry of new firms , No Advertisement cost
Multiple Choice Single AnswerQuestionSaving is aCorrect Answerprivate virtueYour Answersocial virtue
True/FalseQuestionDuring periods of inflation, the income of farmers as a class decreases.Correct AnswerTrueYour AnswerFalse
True/FalseQuestionTo solve the unemployment problem , the level of effective demand must decrease.
Correct AnswerFalseYour AnswerFalse
Match The FollowingQuestionCorrect AnswerYour AnswerProsperityExpansion of creditContraction of creditThe general theory of employment, Interest and moneyJ.M. KeynesJ.M. KeynesTrade cycleWave like movementWave like movementStatutory reserve ratio
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Quantitative credit control measureQuantitative credit control measure
Multiple Choice Multiple AnswerQuestion
The characteristics of Inflation areCorrect AnswerExcess of demand , Sustained rise in prices , Cannot be anticipatedYour AnswerSustained rise in prices , Cannot be anticipated , It is limited to some geographical areas
True/FalseQuestionMarket system or market economy suffers from time to time from economic depressions.Correct AnswerTrue
Your AnswerTrue
Multiple Choice Multiple AnswerQuestionMain aims of the New Industrial Policy (1991) areCorrect AnswerTo unshackle the indian industrial economy from the cobwebs of unnecessary bureaucraticcontrol , To introduce liberalization with a view to integrate the indian economy with the worldeconomy , To remove restrictions on direct foreign investment as also to free the domesticentrepreneur from the restriction of MRTP act
Your AnswerTo unshackle the indian industrial economy from the cobwebs of unnecessary bureaucraticcontrol , To introduce liberalization with a view to integrate the indian economy with the worldeconomy , To remove restrictions on direct foreign investment as also to free the domesticentrepreneur from the restriction of MRTP act
Managerial Economics – 6
Posted by scdlpapers on July 21st, 2010
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Single AnswerQuestionIn economics the question related to the selection of methods with which commodities areproduced is a subject matter of Correct Answertheory of production
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Your Answertheory of production
Multiple Choice Single AnswerQuestion
In economics the questions related to the division of society‟s output of goods and servicesamong its members are topics inCorrect Answertheory of distributionYour Answertheory of distribution
Multiple Choice Single AnswerQuestionIn economics the questions related to the dynamic or static ( otherwise) capacity of the economyto produce goods and services are topics in the
Correct Answertheory of economic growthYour Answertheory of production
Multiple Choice Single AnswerQuestionAll the free gifts of nature which are commonly called natural resources are known toeconomists asCorrect AnswerLand
Your Answercapital
Multiple Choice Single AnswerQuestionAll the man made resources which are used in the process of making other goods and servicesare calledCorrect AnswercapitalYour Answerlabor
Multiple Choice Single AnswerQuestionManagerial economics aims at providing help in the firms isCorrect Answerdecision makingYour Answerdecision making
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True/FalseQuestionEconomic problem is faced by poor countrys only.Correct AnswerFalse
Your AnswerFalse
Multiple Choice Single AnswerQuestionAn industry is a group of firms dealing in the same line of Correct AnswerbusinessYour Answerbusiness
True/FalseQuestionMicro-economics is primarily concerned with the problem of what, how and for whom toproduceCorrect AnswerTrueYour AnswerTrue
True/FalseQuestion
Pure public goods must be in the hands of public sector only.Correct AnswerTrueYour AnswerFalse
Select The Blank QuestionThe goods become ________ only when each individual has an access to the entire amount of itand its use by the individual does not reduce its availability to others.Correct AnswerindivisibleYour Answerpublic
Select The Blank QuestionThe externality which causes an economic gain or an economic loss to other economic units isalso referred to as ________ externality.
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Correct AnswerPecuniaryYour AnswerEconomic
Select The Blank QuestionIn a market economy ________ is the best judge of personal interest.Correct AnswerindividualYour Answerfirm
Match The FollowingQuestionCorrect Answer
Your AnswerManagerial economicsDecision making and forward planningDecision making and forward planningResourcesScarceScarceCommoditiesGoods and servicesGoods and servicesHuman wants
UnlimitedUnlimited
Match The FollowingQuestionCorrect AnswerYour AnswerGeneral theory of employment, interest and moneyJ. M. KeynesJ. M. KeynesInflationReduction in purchasing powerReduction in purchasing powerServicesIntangible goodsIntangible goodsMethods of production of commoditiesTheory of productionTheory of production
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Multiple Choice Multiple AnswerQuestionThe characteristics of a sole proprietorship firm isCorrect AnswerUnlimited Capital , Ownership by a single person , Easy to form
Your AnswerOwnership by a single person , Easy to form
Multiple Choice Multiple AnswerQuestionDifferent types of business organizations areCorrect Answerprivate sector , public sector , joint sectorYour Answerprivate sector , public sector , joint sector
Select The Blank QuestionReasonable profit target as an alternative to the objective of profit maximization was suggestedby ________.Correct AnswerJoel DeanYour AnswerJoel Dean
Select The Blank Question
The form of organization which is best for self employment is ________.Correct AnswerSole traderYour AnswerSole trader
Multiple Choice Single AnswerQuestionEconomic Profit takes in to account theCorrect Answerimplicit costYour Answerimplicit cost
True/FalseQuestionIn any business, while formulating a profit policy, the possibility of emergence of rival firmsmust be taken in to accountCorrect Answer
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TrueYour AnswerTrue
Multiple Choice Multiple Answer
QuestionThe payments made out of the Gross Profit areCorrect AnswerRemuneration to factors of production , Depreciation , Maintenance ChargesYour AnswerRemuneration to factors of production , Depreciation , Maintenance Charges
Multiple Choice Multiple AnswerQuestionreasonable profit‟ are Correct Answer
Capital Attraction , Plough Back , Normal earningsYour AnswerCapital Attraction , Plough Back , Normal earnings
Multiple Choice Single AnswerQuestionComplementary goods are demandedCorrect Answer
jointlyYour Answerseparately
Multiple Choice Single AnswerQuestionEmergence of close substitutes to the commodity in question may bring about demand toCorrect AnswerdecreaseYour Answerdecrease
Multiple Choice Single AnswerQuestionThe demand for a commodity depends on the prices of its substitutes which areCorrect AnswerrelativeYour Answerrelative
True/FalseQuestion
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Demand curve slopes downwards from left to right.Correct AnswerTrueYour AnswerTrue
Select The Blank QuestionThe index numbers which measure the changes in the general price level of a country refers to________Correct AnswerWholesale prices indexYour AnswerWholesale prices index
Multiple Choice Multiple Answer
QuestionDifferent types of Elasticity of Demand areCorrect AnswerPrice elasticity of demand , Income elasticity of demand , Cross elasticity of demandYour AnswerPrice elasticity of demand , Income elasticity of demand , Cross elasticity of demand
Multiple Choice Single AnswerQuestionIf the increase in all factors leads to a less than proportionate increase in output, then the returnsto scale are
Correct AnswerdecreasingYour Answerdecreasing
True/FalseQuestionThe supply of factory made goods of daily consumption is inelastic.Correct AnswerFalseYour AnswerTrue
Multiple Choice Multiple AnswerQuestionMajor types of costs areCorrect AnswerAccounting costs , Economic costs , Opportunity costs
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Your AnswerAccounting costs , Economic costs , Opportunity costs
Select The Blank Question
Output rises in a lesser proportion to that of the increase in input, under the case of ________.Correct Answerdecreasing returns to scaleYour Answerdecreasing returns to scale
Select The Blank QuestionIf the output rises in the greater proportion than that of the increase in factor inputs, it is referredto as ________.Correct Answer
increasing returns to scale.Your Answerincreasing returns to scale.
Multiple Choice Single AnswerQuestionUnder monopoly the demand curve slopesCorrect AnswerdownwardYour Answerdownward
Multiple Choice Single AnswerQuestionDalal Street in Bombay is known asCorrect AnswerBombay Stock ExchangeYour AnswerBombay Stock Exchange
Multiple Choice Single AnswerQuestionThe city of Banaras has specialized in the manufacture of Correct Answersilk Your Answersilk
True/FalseQuestion
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A firm under perfect competition is a price maker.Correct AnswerFalseYour AnswerFalse
True/FalseQuestionLong period supply is relatively inelastic.Correct AnswerFalseYour AnswerTrue
Multiple Choice Multiple AnswerQuestion
Features of the firm areCorrect AnswerIt is a business unit organized under one ownership , It is a sole proprietorship , It is a partnershipor joint stock companyYour AnswerIt is a business unit organized under one ownership , It is a sole proprietorship , It is a partnershipor joint stock company
Multiple Choice Multiple AnswerQuestionEquilibrium is the stage of
Correct Answermaximum satisfaction , balance , stationaryYour Answermaximum satisfaction , balance , stationary
True/FalseQuestionThe Keynesian theory emphasizes effective supply as a crucial factor in determining the level of income and employment.Correct AnswerFalseYour AnswerTrue
Multiple Choice Single AnswerQuestionAccording to the Government, the buildup of inflationary pressure during the Nineties wasattributed toCorrect Answer
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Higher Fiscal deficitYour AnswerHigher Fiscal deficit
True/False
QuestionThe government also fixes minimum procurement prices for major crops on the recommendationof the Agricultural Prices Commission (APC).Correct AnswerTrueYour AnswerTrue
True/FalseQuestionThere is considerable slush money with politicians & Government servants.
Correct AnswerTrueYour AnswerTrue
Multiple Choice Multiple AnswerQuestionGovernment intervention is needed in free market mechanism toCorrect AnswerTo 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 needsYour AnswerTo 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 incometo meet their basic needs
Multiple Choice Multiple AnswerQuestionDefects of market system:Correct AnswerInequalities of income and wealth , Emergence of monopolies , Failure to provide fullemploymentYour Answer
Managerial Economics – 7
Posted by scdlpapers on July 21st, 2010
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
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Multiple Choice Single AnswerQuestionEconomists call all human resources asCorrect Answerlabor
Your Answerlabor
True/FalseQuestionEconomic problem arises only in case of an overpopulated country.Correct AnswerFalseYour AnswerFalse
Multiple Choice Single AnswerQuestionAll the buyers and sellers operating under perfect competition have knowledgeCorrect AnswerperfectYour Answerperfect
True/FalseQuestionThe meaning of the word “economic” is most closely associated with the word unlimited
Correct AnswerTrueYour AnswerTrue
Multiple Choice Single AnswerQuestionThe conditions of equilibrium of a firm are applicable to all marketsCorrect AnswerNoneYour Answerparticular
True/FalseQuestionIn case of the co-operative societies supplying cheap inputs or supplying consumer products atfair prices, a system of subsidized pricing is followedCorrect AnswerTrue
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Your AnswerTrue
Multiple Choice Single AnswerQuestion
The price of a good and the exclusion princople together isCorrect AnswerdivisibilityYour Answerindivisibility
Multiple Choice Single AnswerQuestionThe liability of a sole proprietary firm isCorrect Answerunlimited
Your Answerunlimited
True/FalseQuestionInstitution of private property is not an essential feature of CapitalismCorrect AnswerFalseYour AnswerFalse
True/FalseQuestionThere never was in any country at any time „pure capitalism‟ or „pure communism Correct AnswerTrueYour AnswerTrue
True/FalseQuestionThe railways using a lot of coal in firing the steam locomotives put the residential and otherareas near the loco – shades to a lot of sufferings on account of smoke nuisance, is an example of prCorrect AnswerFalseYour AnswerTrue
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True/FalseQuestionA Joint stock company has perpetual succession.Correct AnswerTrue
Your AnswerTrue
True/FalseQuestionThe management of the cooperative form of business organization is totalitarian in nature.Correct AnswerFalseYour AnswerTrue
Multiple Choice Single AnswerQuestionIn Trade cycles the economic activity areCorrect Answerups and downsYour Answerups and downs
True/FalseQuestionIn macro – economic analysis the behavior of economic agents such as firms, households and
government is seen in total, disregarding details at particular levelCorrect AnswerTrueYour AnswerTrue
Multiple Choice Single AnswerQuestionMarket economy or private enterprise economy is a economy which isCorrect AnswerplanlessYour Answerplanned
Multiple Choice Single AnswerQuestionNew commodities due to technotogical progress may result in demand for traditional type of goodsCorrect Answer
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decreaseYour Answerdecrease
Multiple Choice Single Answer
QuestionIf a person is habituated to the consumption of a commodity and if he cannot easily give up itsuse, demand for it is generallyCorrect AnswerinelasticYour Answerinelastic
Match The FollowingQuestionCorrect Answer
Your AnswerNormal demand curveDownwards to rightDownwards to rightIncome consumption curveUpwards to the rightUpwards to the rightInelastic demand curveVertical straight lineVertical straight lineCross elasticity of demand between two perfect substitute will be
InfinityInfinityA demand curve, which takes the form of a horizontal line parallelto the quantity axis illustrateselasticityInfinity.Infinity.
Multiple Choice Single AnswerQuestionThe law of diminishing returns is applicable to agriculture provided the state of technology isgiven andCorrect AnswerconstantYour Answerresources
Multiple Choice Single AnswerQuestionUnder the system of dual prices in case of essential goods, adopted by the government, the
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weaker sections of the community are supplied these goods through fair price shops whiCorrect AnswerfairYour Answerneo – rich
Multiple Choice Single AnswerQuestionThe Government attempts to increase supplies of food grains and other essential goods in timesof internal shortage through largerCorrect AnswerimportsYour Answerborrowings
True/False
QuestionExternal economies are the advantages of large scale production enjoyed exclusively anindividual firm alone.Correct AnswerFalseYour AnswerFalse
Multiple Choice Multiple AnswerQuestionEquilibrium is
Correct AnswerThe stage of maximum satisfaction , The stage of balance , The stage of stationaryYour AnswerThe stage of balance
Multiple Choice Multiple AnswerQuestionConditions of equilibriumCorrect AnswerMarginal Revenue should be equal to Marginal Cost , The Marginal cost curve should cut themarginal revenue curve from below at the equilibrium point , Marginal cost curve should beincreasing at equilibrium pointYour AnswerMarginal Revenue should be equal to Marginal Cost , The Marginal cost curve should cut themarginal revenue curve from below at the equilibrium point , Average cost curve should cut theAverage Revenue curve
Select The Blank Question
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Cost-benefit analysis refers to the analysis undertaken to judge any projects ________ whethergovernment or private and find out its ________ and facilities its comparison with otheravailable opporCorrect Answerinvestments
Your AnswerinvestmentsCorrect AnswerworthYour Answerprofit
Multiple Choice Multiple AnswerQuestionAggregate supply functionCorrect Answer
Refers to that price at which the seller is willing to supply , Refers to show the varying level of supply at different prices , Explains the level of out put varies with the level of employmentYour AnswerRefers to show the varying level of supply at different prices
Multiple Choice Multiple AnswerQuestionCharacteristics of DepressionCorrect AnswerDecrease in economic activities , The growth rate becomes negative , The level of nationalincome declines rapidly
Your AnswerDecrease in economic activities , The growth rate becomes negative , The level of nationalincome declines rapidly
Multiple Choice Multiple AnswerQuestionRecession includesCorrect AnswerThe demand is halted , Increase in production of goods , Inventories piling up in stocksYour AnswerThe demand is halted , Inventories piling up in stocks , The growth of discrepancy betweensupply and demand is very fast
Multiple Choice Multiple AnswerQuestionThe causes of inflationCorrect AnswerIncrease in public expenditure , Increase in private expenditure , Increase in foreign demand
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Your AnswerIncrease in public expenditure , Increase in foreign demand , Increase in taxation
Select The Blank Question
In the ________ terminology, the ________ demand function refers to the schedule of maximumsales proceeds, which the entrepreneurial community actually does expect to be received fromthe sale of Correct AnswerKeynesianYour AnswerKeynesianCorrect AnsweraggregateYour Answertotal
Select The Blank QuestionThe rate of interest, according to ________ , depends upon two factors: (i) ________ and (ii) thequantity of moneyCorrect AnswerKeynesYour AnswerKeynesCorrect Answerthe liquidity preference function
Your Answerspeculative
Multiple Choice Multiple AnswerQuestionReasons for need of public distribution systemCorrect AnswerTo maintain stable price conditions , An efficient management of the supply , To supply thenecessary goods to people at reasonable priceYour AnswerTo maintain stable price conditions , An efficient management of the supply , To supply thenecessary goods to people at reasonable price
Multiple Choice Multiple AnswerQuestionThe consumer protection Act includesCorrect AnswerProtection from hazardous commodities , Right to a competitive price , Right to informationregarding protection
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Your AnswerProtection from hazardous commodities , Right to information regarding protection , Protestagainst price discrimination
Multiple Choice Multiple Answer
QuestionObjectives of economic policyCorrect AnswerTo increase the efficiency and international competitiveness of industrial production , Toimprove the performance and rationalize the scope of the public sector , To reform andmodernize the financial sectorYour AnswerTo increase the efficiency and international competitiveness of industrial production , Toimprove the performance and rationalize the scope of the public sector , To reform andmodernize the financial sector
Multiple Choice Multiple AnswerQuestionScope of Managerial Economics deals with:Correct AnswerDemand analysis and forecasting. , Production function & cost analysis. , Inventory managementadverting, price system.Your AnswerDemand analysis and forecasting. , Production function & cost analysis. , Inventory managementadverting, price system.
Multiple Choice Multiple Answer
QuestionAssumptions of the Law of Demand are:Correct Answer
No change in consumer‟s income , No change in consumer‟s preference s , No change in fashionYour Answer
No change in consumer‟s income , No change in consumer‟s preferences , No change in fashion ,No Change in government policy.
Multiple Choice Multiple AnswerQuestionTypes of income elasticity of demandCorrect AnswerNegative income elasticity , Zero income elasticity , Unit income elasticityYour AnswerNegative income elasticity , Zero income elasticity , Unit income elasticity
Select The Blank QuestionManagerial ________s generally refers to the integration of economic theory with ________
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practice.Correct AnswereconomicYour Answereconomic
Correct AnswerbusinessYour Answerbusiness
Select The Blank QuestionThe problem of unlimited wants and limited ________ with ________ uses has been foreverconfronting mankind.Correct Answermeans
Your AnswermeansCorrect AnsweralternativeYour Answeralternative
Select The Blank QuestionAs per the International Labour Organisation (ILO), _ ________ is a ________ association of individuals with limited income on the basis of equal rights and responsibilities for achieving
certaCorrect AnswerCo-operationYour AnswerCo-operationCorrect AnswervoluntaryYour Answervoluntary
Select The Blank QuestionLike all organism, the ________ , too is an organism, according to the ________ theory.Correct AnswerfirmYour AnswerfirmCorrect Answerlife-cycle theory
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Your Answerhomeostatic theory
Select The Blank Question
The ________-taking theory was developed by the ________ . According to him, profit arisesbecause considerable amount of risk is involved in business.Correct AnswerAmerican economist HawleyYour Answerrisk Correct Answerrisk Your AnswerAmerican economist Hawley
Select The Blank QuestionThe extent of the change of demand for a commodity to a given change in ________ , otherdemand determinants remaining constant, is termed as the ________ of demand.Correct AnswerpriceYour AnswerpriceCorrect Answerprice elasticityYour Answer
price elasticitySelect The Blank QuestionIndices constructed for one ________ should not be ________ for other purposes where they notbe fully appropriate and given erroneous conclusions.Correct AnswerpurposeYour AnswerpurposeCorrect AnswerusedYour Answerused
Select The Blank QuestionThe law of diminishing returns states th at, „as the proportion of one factor in a combination of factors is ________ after a point, first the ________ and then the average product of that factor w
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Correct AnswerincreasedYour AnswerincreasedCorrect Answer
marginalYour Answermarginal
Match The FollowingQuestionCorrect AnswerYour AnswerStatutory Reserve RatioQuantitative credit Control MeasureQuantitative credit Control Measure
Trade cycleWave – like movementWave – like movementKeynesian theoryShort – Period AnalysisJ. M. KeynesAggregate Demand FunctionMaximum sale proceeds expected by entrepreneursShort – Period AnalysisEffective DemandJ. M. KeynesMaximum sale proceeds expected by entrepreneurs
Managerial Economics – 8
Posted by scdlpapers on July 21st, 2010
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Single AnswerQuestionManagerial economics generally refers to the integration of economic theory with business
Correct AnswerPracticeYour AnswerPractice
Multiple Choice Single AnswerQuestionEvery nation‟s resources which are used to produce the quantities of goods and services that
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would be required to satisfy all its citizen‟s wants are Correct AnswerinsufficientYour Answersufficient
Multiple Choice Single AnswerQuestionAll the buyers and sellers operating under perfect competition have knowledgeCorrect AnswerperfectYour Answerperfect
True/FalseQuestion
Inflation reduces the purchasing power of money and savings.Correct AnswerTrueYour AnswerFalse
Multiple Choice Single AnswerQuestionThe supply curve during market period is perfectlyCorrect Answerinelastic
Your Answerinelastic
True/FalseQuestionMicro-economics is primarily concerned with the problem of what, how and for whom toproduceCorrect AnswerTrueYour AnswerTrue
Match The FollowingQuestionCorrect AnswerYour AnswerManagerial economicsDecision making and forward planningDecision making and forward planning
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Resourcesscarcegoods and servicesCommoditiesgoods and services
scarceHuman wantsunlimitedunlimitedGeneral Theory of Employment, Interest and MoneyJ. M. KeynesJ. M. Keynes
True/FalseQuestionThe price policy under monopolistic competition is dependent on the prices charged by other
rival firmsCorrect AnswerTrueYour AnswerFalse
Multiple Choice Single AnswerQuestionAll firms producing the same or similar product together makeCorrect Answeran industry
Your Answeran industry
Multiple Choice Single AnswerQuestionJoint Stock Company succession isCorrect AnswerperpetualYour Answerperpetual
True/FalseQuestionPrivate profit motive is an essential feature of CapitalismCorrect AnswerTrueYour AnswerTrue
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True/FalseQuestion„Free riders‟ is a term associated with the people who would like to have benefit of a goodwithout sharing the cost of its supplyCorrect Answer
TrueYour AnswerFalse
Multiple Choice Single AnswerQuestionMacro – economics provides an exploration to the functioning of an economy inCorrect AnswergeneralYour Answergeneral
True/FalseQuestionInflation is a great opportunity for merchants to benefit more.Correct AnswerTrueYour AnswerTrue
True/FalseQuestion
The various phases of business cycles are shown by the line of cycle which moves up and downthe steady growth lineCorrect AnswerTrueYour AnswerTrue
True/FalseQuestionIn the measurement of profit, the differences in the concept of profit arise out of the differencesin cost conceptsCorrect AnswerTrueYour AnswerFalse
Multiple Choice Single AnswerQuestionIn economics demand means desire backed by adequate
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Correct Answerpurchasing powerYour Answerability to pay
Multiple Choice Single AnswerQuestionThe law of diminishing returns is applicable to agriculture provided the state of technology isgiven andCorrect AnswerconstantYour Answerconstant
Multiple Choice Single AnswerQuestion
Under the monetary measures to control inflation, the R. B. I relies heavily on selective creditcontrols on bank loans against food grains, sugar, oils, oilseeds, cotton etc so as to discourageCorrect AnswerSpeculative hoardingYour AnswerSpeculative hoarding
Multiple Choice Single AnswerQuestionSlope of supply curve isCorrect Answer
positiveYour Answerpositive
Multiple Choice Single AnswerQuestionCosts which increase because of the expansion of a firm are called costsCorrect AnswerincrementalYour Answerincremental
True/FalseQuestionThe opportunity cost of a product is the opportunity gained of being able to produce some otherproduct.Correct AnswerFalse
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Your AnswerFalse
True/FalseQuestion
The supply curve in case of unitary elastic supply is rectangular hyperbola.Correct AnswerFalseYour AnswerFalse
Multiple Choice Multiple AnswerQuestionAn IndustryCorrect AnswerIs a group of firms , All firms dealing in the same line of business , The ownership and
management of each firm is differentYour AnswerIs a group of firms , All firms dealing in the same line of business , The ownership andmanagement of each firm is different
Select The Blank QuestionUnder monopoly, there is ________ seller who controls the entire ________ in the marketCorrect Answeronly oneYour Answer
only oneCorrect AnswersupplyYour Answersupply
Select The Blank QuestionUnder monopsony, there are ________ sellers but ________ buyerCorrect AnswermanyYour AnswermanyCorrect Answeronly oneYour Answeronly one
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Match The FollowingQuestionCorrect AnswerYour AnswerMarginal utility
Addition to total utilityAddition to total utilityTotal utility increases marginalPosative and decliningMarginal utility is zeroAt the saturation point for a commodity x the Mux isZeroDemand curve of a commodityMarginal utilities areDemand curve of a commodityPosative and declining
Total utility isMarginal utility is zeroZero
Select The Blank QuestionBy using cost-benefit analysis we can show the ________ necessary for attaining maximum________ and optimal policy aiming at this goalCorrect AnswermeasuresYour AnswerGross Domestic ProductCorrect Answernet wealthYour Answergross wealth
Multiple Choice Multiple AnswerQuestionAverage propensity to consumeCorrect AnswerIt is defined as the ratio of consumption expenditure to any particular level of income , It isfound by dividing consumption expenditure by income , It is expressed as the percentage of income consumedYour AnswerIt is derived by dividing income by consumption expenditure
Multiple Choice Multiple AnswerQuestionInflation means
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Correct AnswerIt is a phenomenon of rising prices , It is a general and dynamic phenomenon , It includes anexcess of demandYour AnswerIt is a phenomenon of rising prices
Select The Blank QuestionAggregate supply function refers to a ________ of the various minimum amounts of proceeds or________ , which must be expected to be received by the entrepreneur class from the sale of output resultCorrect AnswerscheduleYour AnswerdemandCorrect Answer
revenuesYour Answerrevenues
Select The Blank QuestionIn the ________ terminology, the ________ demand function refers to the schedule of maximumsales proceeds, which the entrepreneurial community actually does expect to be received fromthe sale of Correct AnswerKeynesian
Your AnswerKeynesianCorrect AnsweraggregateYour Answeraggregate
Multiple Choice Multiple AnswerQuestionThe fiscal policy includesCorrect AnswerFormation of taxation policy , It is an instrument for economic stabilization , Monitoring of public expenditureYour AnswerFormation of taxation policy , It is an instrument for economic stabilization , Monitoring of public expenditure
Multiple Choice Multiple AnswerQuestion
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The meaning of monetary policyCorrect AnswerIt is programme of the central bank , It controls the total supply of money , The basic objective isto achieve economic stabilityYour Answer
It is programme of the central bank , It controls the total supply of money , The basic objective isto achieve economic stability
Multiple Choice Multiple AnswerQuestionCauses for rise in prices in IndiaCorrect AnswerMounting government expenditure , Deficit financing and increase in money supply , Role of black moneyYour AnswerMounting government expenditure , Deficit financing and increase in money supply , Role of
black moneyMultiple Choice Multiple AnswerQuestionManagerial economics deals withCorrect AnswerIntegration of economic theory with business practice , Using logic of economics, mathematics& statistics. , The use of economic modes of thought to analyze business solution.Your AnswerIntegration of economic theory with business practice , Using logic of economics, mathematics& statistics.
Multiple Choice Multiple AnswerQuestionThe sources of economic problems are:Correct AnswerMan has unlimited wants or ends , The means or resources to satisfy them are limited. , Theseresources are not specific but have alternative uses.Your AnswerMan has unlimited wants or ends , The means or resources to satisfy them are limited. , Theseresources are not specific but have alternative uses.
Multiple Choice Multiple AnswerQuestionDifferent types of business organizations are;Correct AnswerPrivate sector. , Public sector. , Joint sector.Your AnswerJoint sector.
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Multiple Choice Multiple AnswerQuestionProprietary firm isCorrect AnswerOwned by a single person. , Easy to form. , An organization of single person.
Your AnswerOwned by a single person.
Multiple Choice Multiple AnswerQuestionMethods of measurement of elasticityCorrect AnswerPercentage Method , Point elasticity Method , Total outlay expenditure methodYour AnswerPercentage Method , Point elasticity Method , Total outlay expenditure method
Multiple Choice Multiple AnswerQuestionDemand forecasts are necessary for:Correct AnswerFulfillment of objective of the plans , Preparation of a budget , Expansion of firmsYour AnswerPreparation of a budget , Expansion of firms
Select The Blank QuestionEconomic theory provides the basis for the ________ _ making process, there is some difference
between the generalization based on abstraction and actual practices. Besides economic theory,matCorrect Answerdecision makingYour AnsweroptimalCorrect AnswerstatisticsYour Answer
Select The Blank QuestionThe resources of a society consist not only of the free gifts of nature such as ________ but alsoof ________ and of all sorts of man made aids to further production.Correct Answerland and mineralsYour Answerland and mineralsCorrect Answer
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human capacityYour Answerhuman capacity
Select The Blank
QuestionIndividual or sole ________ , which is also called sole- ________ , or single entrepreneurship isthe most common, the simplest and the oldest form of business organisation.Correct AnswerproprietorshipYour AnswerproprietorshipCorrect Answertrader shipYour Answertrader ship
Select The Blank QuestionNominal cost is the ________ cost of production, it is also called expenses of production. Thereal cost is the ________ cost of production.Correct AnswermoneyYour AnsweropportunityCorrect Answeropportunity
Your Answergross
Select The Blank QuestionCosts may be classified as : (a) ________ , including material costs, wage cost and interest cost(b) ________ , including costs of advertising and (c) other costs, including insurance chCorrect AnswerProduction costsYour AnswerProduction costsCorrect AnswerSelling costsYour AnswerSelling costs
Select The Blank QuestionThe costs of self owned resources, which are employed by the ________ , are non- expenditure
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or , ________Correct AnswerfirmYour Answerfirm
Correct Answerimplicit costs .Your Answerimplicit costs .
Managerial Economics – 9
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Multiple Choice Single AnswerQuestionThe study of the working and allocation of resources in the free market economies is the topic intheCorrect Answertheory of priceYour Answertheory of production
Multiple Choice Single AnswerQuestionManagerial economics aims at providing help in the firms isCorrect Answerdecision makingYour Answerdecision making
True/FalseQuestionThe federal government of U.S.A. does not face the basic economic problem.Correct AnswerFalseYour AnswerFalse
Multiple Choice Single AnswerQuestionIn equilibrium analysis of a firm, it is assumed that every individual proprietor exhibits rationaleconomicCorrect Answerbehavior
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Your Answerbehavior
Match The FollowingQuestion
Correct AnswerYour AnswerManagerial EconomicsPrescriptive in natureThe theory of distributionResourcesAlternative usesAlternative usesDivision of society‟s output of goods and services The theory of distributionPrescriptive in nature
Motor carsTangible goodsTangible goodsWantsInsatiableInsatiable
True/FalseQuestionMarket price fluctuates very oftenCorrect Answer
TrueYour AnswerFalse
Multiple Choice Single AnswerQuestionThe firm is the unit that makes the decisions regarding employment of and the output of commodities areCorrect Answerfactors of productionYour Answerfactors of production
Multiple Choice Single AnswerQuestionThe principle of exclusion cannot be applied to the goods which areCorrect Answerindivisible
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Your Answerinvisible
Multiple Choice Single AnswerQuestion
In the cost – benefit analysis, the firm step involved is that the investor has to choose a fewproject alternatives promising a rate of return which isCorrect AnswerhighYour Answerhigh
Multiple Choice Single AnswerQuestionMarket system of economy is characterized by consumer‟s Correct Answer
sovereigntyYour Answerdemand
Multiple Choice Single AnswerQuestionIn case of a joint stock company, the liability of share holders isCorrect AnswerlimitedYour Answerlimited
True/FalseQuestionThe divisible goods, whose benefits can be priced, are called pure public goodsCorrect AnswerFalseYour AnswerTrue
True/FalseQuestionIn case of a proprietary firm the liability of the proprietor is limitedCorrect AnswerFalseYour AnswerFalse
True/FalseQuestion
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During the phase of depression, the level of national income and expenditure rises rapidlyCorrect AnswerFalseYour AnswerFalse
Multiple Choice Single AnswerQuestionAccording J.B.Clark, profit is the reward paid forCorrect AnswerdynamismYour Answerrisk bearing
Multiple Choice Single AnswerQuestion
Gross profit is the excess of total revenue of a firm over totalCorrect AnswerexpenditureYour Answerexpenditure
Multiple Choice Single AnswerQuestionIn general, the demand for necessaries is relativelyCorrect Answerinelastic
Your Answerelastic
True/FalseQuestionDemand for food grains is inelastic but the demand for wheat is elastic.Correct AnswerTrueYour AnswerFalse
Match The FollowingQuestionCorrect AnswerYour AnswerExcess supply can be defined asQuantity supplied minus quantity demandedQuantity supplied minus quantity demandedIf demand remain unchanged on increase in supply will result in
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A rise in equilibrium quantityThe supply is perfectly elasticMarket Price is a situation whichThe supply is perfectly elasticA rise in equilibrium quantity
The responsiveness of demand to change in price is measuredElasticity of demandIn the same proportionUnit income elasticity implies that asincome rises demand for a commodity risesIn the same proportionElasticity of demand
Select The Blank QuestionGreater scope for the ________ sector may mean incremental ________ , which connotes theexpansion of public sector undertakings, can be left to some private companies
Correct AnswerprivateYour AnswerinvestmentCorrect AnswerdisinvestmentsYour Answergrowth
Multiple Choice Single AnswerQuestion
Goods produced on small scale of supply isCorrect AnswerinelasticYour Answerzero elastic
True/FalseQuestionThe sum of total fixed costs and total variable costs is the total cost.Correct AnswerTrueYour AnswerTrue
True/FalseQuestionContraction of supply is traced by the downward movement on the supply curve.Correct AnswerTrue
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Your AnswerTrue
True/FalseQuestion
The laws of returns to scale explain the behavior of output in response to changes in scale.Correct AnswerTrueYour AnswerTrue
True/FalseQuestionIn the stage I of the law of diminishing returns, the marginal product goes on increasingCorrect AnswerTrue
Your AnswerFalse
Multiple Choice Multiple AnswerQuestionFeatures of monopolistic CompetitionCorrect AnswerFairly Large number of firms , Product differentiation , Selling costs are existedYour AnswerFairly Large number of firms , Product differentiation , Selling costs are existed
Select The Blank QuestionWhere ________ is charging a ________ in the home market and a lower price in theinternational market, it is called DumpingCorrect AnswermonopolistYour Answera firmCorrect Answerhigher priceYour Answerhigher price
Select The Blank QuestionThe number of sellers operating under this type of competition is ________ under oligopoly, butless than under ________Correct Answerlarger than
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Your AnswercomplementaryCorrect Answerperfect ompetitionYour Answer
perfect ompetition
Multiple Choice Multiple AnswerQuestionMarginal Propensity to consumeCorrect AnswerIt 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 formulampc= change in C/change in YYour AnswerIt 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 bychange in the consumption expenditure
Multiple Choice Multiple AnswerQuestionInvestmentCorrect AnswerIt adds to capital equipments , It leads to increase in level of income , It includes new plant andequipmentYour AnswerIt adds to capital equipments , It leads to increase in level of income , It includes new plant and
equipmentMultiple Choice Multiple AnswerQuestionFeatures of stage of expansion in business cycle areCorrect AnswerRise in national output , Rise in consumer and capital expenditure , Bank advances grow rapidlyYour AnswerRise in national output , Rise in consumer and capital expenditure , Bank advances grow rapidly
Multiple Choice Multiple AnswerQuestionCharacteristics of DepressionCorrect AnswerDecrease in economic activities , The growth rate becomes negative , The level of nationalincome declines rapidlyYour AnswerDecrease in economic activities , The growth rate becomes negative
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Multiple Choice Multiple AnswerQuestionRecession includesCorrect AnswerThe demand is halted , Increase in production of goods , Inventories piling up in stocks
Your AnswerThe demand is halted , Inventories piling up in stocks
Multiple Choice Multiple AnswerQuestionThe causes of inflationCorrect AnswerIncrease in public expenditure , Increase in private expenditure , Increase in foreign demandYour AnswerIncrease in public expenditure , Increase in foreign demand , Increase in taxation
Select The Blank QuestionThe rate of interest, according to ________ , depends upon two factors: (i) ________ and (ii) thequantity of moneyCorrect AnswerKeynesYour AnswerKeynesCorrect Answerthe liquidity preference functionYour Answer
the liquidity preference functionSelect The Blank QuestionIn the words of ________ , “inflation occurs when the ________ of prices and cost is rising”. Correct AnswerProf. SamuelsonYour AnswerProf. SamuelsonCorrect Answergeneral levelYour Answergeneral level
Multiple Choice Multiple AnswerQuestionForms of Public EnterprisesCorrect AnswerPublic Corporations , Departmental management , Company Management or management by
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boardsYour AnswerDepartmental management , Public Corporations
Multiple Choice Multiple Answer
QuestionSpecific organizational goals of Firms are:Correct AnswerMaximisation of profit , Reasonable Profit Target , Sales revenue MaximizationYour AnswerMaximisation of profit , Reasonable Profit Target , Sales revenue Maximization
Multiple Choice Multiple AnswerQuestionIndividual Demand Schedule:Correct Answer
Is in tabular form , It shows the prices of goods , It shows the quantities of a commoditypurchasedYour AnswerIs in tabular form , It shows the prices of goods , It shows the quantities of a commoditypurchased
Multiple Choice Multiple AnswerQuestionThe production function can be explained by:Correct AnswerLaw of variable proportions , Laws of returns to scale , Optimum combinations of inputs
Your AnswerLaw of variable proportions , Laws of returns to scale , Optimum combinations of inputs
Multiple Choice Multiple AnswerQuestionImplicit costs are:Correct AnswerCost on self owned resources , Costs of salary of the proprietor , Interest on the entrepreneur‟sown investmentYour AnswerCost on self owned resources , Interest on the entrepreneur‟s own investment
Select The Blank QuestionManagerial ________s generally refers to the integration of economic theory with ________practice.Correct AnswereconomicYour Answer
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economicCorrect AnswerbusinessYour Answerbusiness
Select The Blank QuestionIn a competitive industry, there is a large number of firms so that the action of ________ firmhas ________ on the price and output of the whole industry.Correct Answera singleYour Answera singleCorrect Answerno effect
Your Answerno effect
Select The Blank QuestionAs per the International Labour Organisation (ILO), _ ________ is a ________ association of individuals with limited income on the basis of equal rights and responsibilities for achievingcertaCorrect AnswerCo-operationYour Answer
Co-operationCorrect AnswervoluntaryYour Answervoluntary
Select The Blank QuestionThe word ________ has different meanings to businessmen, ________ , tax collectors, workersand economists and it is often used in a loose sense that buries its real significanceCorrect AnswerProfitYour AnswerProfitCorrect AnsweraccountantsYour Answeraccountants
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Select The Blank QuestionThe demand curve is ________ representation of a demand schedule, demand curve slopes________ ward from left to right.Correct Answer
graphicalYour AnswergraphicalCorrect AnswerdownYour Answerdown
Select The Blank QuestionThe ________ that is ________ is the opportunity cost of the commodity produced.
Correct AnswersacrificedYour AnswercommodityCorrect AnswercommodityYour Answersacrificed
Managerial Economics – 10
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LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Single AnswerQuestion Pure public goods are subject to the law of decreasing average cost, because of theCorrect Answer economies of scaleYour Answer economies of scale
Multiple Choice Single AnswerQuestion In the cost – benefit analysis, after formulating various alternative project capacity,
each of them has to be examined in terms of itsCorrect Answer feasibilityYour Answer feasibility
True/FalseQuestion Bargaining is one of the remedies of corrective action.Correct Answer FalseYour Answer True
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Match The FollowingQuestion Correct Answer Your Answer
Defence service Indivisible Indivisible
Economic effects of public goods are Spill over effect Spill over effect
Selection or implementation Step of cost benefit analysis Step of cost benefit analysis
Production possibility frontier Maximization of output Maximization of output
Multiple Choice Multiple AnswerQuestion The advantage of cost-benefit analysis areCorrect Answer Maximization of social welfare , Objective measurement of the trade-off ,Maximization of difference between total benefits & total costsYour Answer Maximization of social welfare , Objective measurement of the trade-off ,
Maximization of difference between total benefits & total costs
Multiple Choice Multiple AnswerQuestion The term externalities may also be referred as:Correct Answer Spill-over effects , Neighborhood effects , Third party effectsYour Answer Spill-over effects , Neighborhood effects , Third party effects
Select The Blank Question Modern economists treat social cost and benefits as ________ of private investmentand production decisions.Correct Answer externalities
Your Answer disadvantages
Select The Blank Question Economists like A.C.Harberger have shown that the cost benefit analysis can beapplied to ________ analysis.Correct Answer general equilibriumYour Answer general equilibrium
Select The Blank Question In the context of formulating an investment project, ________ feasibility means theavailability of supervisors for implementing and running the project smoothly and professionally.
Correct Answer managementYour Answer management
Select The Blank Question Prof. Sam Nelson calls risks from unsafe factories or nuclear power plants as ________economies.Correct Answer negativeYour Answer hazardous
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Multiple Choice Single AnswerQuestion According to Lionel Robbins, “Economics is a science which studies Correct Answer human behaviorYour Answer social behavior
Multiple Choice Single AnswerQuestion Question related to the efficient production and allocation belong to the branch of economic theory calledCorrect Answer Welfare EconomicsYour Answer Business Economics
Multiple Choice Multiple AnswerQuestion Managerial economics deals withCorrect Answer Integration of economic theory with business practice , Using logic of economics, mathematics & statistics , The use of economic modes of thought to analyze businesssolution
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
Multiple Choice Single AnswerQuestion The public sector is owned & controlled byCorrect Answer state enterprisesYour Answer state enterprises
Select The Blank Question Reasonable profit target as an alternative to the objective of profit maximization wassuggested by ________.
Correct Answer Joel DeanYour Answer Joel Dean
Select The Blank Question “Homeostatic Approach” as an alternative objective of firms was suggested by________.Correct Answer Prof. Kenneth BouldingYour Answer Prof. Kenneth Boulding
Select The Blank Question The form of organization which is best for self employment is ________.Correct Answer Sole traderYour Answer Sole trader
True/FalseQuestion Accounting profit takes in to account opportunity cost.Correct Answer FalseYour Answer False
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Multiple Choice Single AnswerQuestion Complementary goods are demandedCorrect Answer jointlyYour Answer jointly
Multiple Choice Single AnswerQuestion If the substitutes are relatively costly then the demand for the commodity in questionwill beCorrect Answer moreYour Answer same
True/FalseQuestion There are no real exceptions to the law of demandCorrect Answer FalseYour Answer False
True/FalseQuestion Demand curve slopes downwards from left to right.Correct Answer TrueYour Answer True
Select The Blank Question An upward sloping demand curve is called ________Correct Answer exceptional demand curveYour Answer exceptional demand curve
Select The Blank
Question Goods which are paradoxical to the law of demand are ________Correct Answer Giffen goods, ,Your Answer Giffen goods, ,
Match The FollowingQuestion Correct Answer Your Answer
Normally the isoquant slopes upward from right to left. downward from right to left
Any straight line supply curve which cuts y axis will have zero elasticity of supply. perfectlyelastic
The market period supply curve for perishable commodities is perfectly inelastic. perfectlyinelastic.
A rightwards shift in supply schedule indicates an increase in supply. an increase in supply.
Multiple Choice Multiple AnswerQuestion Explicit costs are
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Correct Answer Out of pocket costs , These are firms accounting expenses , Expenditure costsYour Answer Out of pocket costs , These are firms accounting expenses , Expenditure costs
Select The Blank Question Output rises in a lesser proportion to that of the increase in input, under the case of
________.Correct Answer decreasing returns to scaleYour Answer decreasing returns to scale
Select The Blank Question The cost which enter the accounts book of the firm are referred as ________.Correct Answer Accounting costYour Answer Accounting cost
Multiple Choice Single AnswerQuestion Jevons‟ , the economists who defined the term „market‟ different from that of the
traditional sense is anCorrect Answer English economistsYour Answer English economists
Multiple Choice Single AnswerQuestion Economists have pointed out that the real world is full of Correct Answer Imperfect competitionYour Answer Imperfect competition
True/FalseQuestion A firm under perfect competition is a price maker.
Correct Answer FalseYour Answer False
True/FalseQuestion Under perfect competition single seller can influence the price.Correct Answer FalseYour Answer False
Multiple Choice Multiple AnswerQuestion Types of imperfect competition areCorrect Answer Monopoly , Duopoly , Oligopoly
Your Answer Monopoly , Duopoly , OligopolyMultiple Choice Multiple AnswerQuestion Features of Pure Competition areCorrect Answer Large number of buyers and sellers , Homogeneous products , Free entry andfree exit of firmsYour Answer Large number of buyers and sellers , Homogeneous products , Free entry and freeexit of firms
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Multiple Choice Multiple AnswerQuestion Equilibrium is the stage of Correct Answer maximum satisfaction , balance , stationaryYour Answer maximum satisfaction , balance
Multiple Choice Single AnswerQuestion Inflation is a phenomena in which pricesCorrect Answer riseYour Answer rise
Multiple Choice Single AnswerQuestion True inflation starts only after reaching the level of fullCorrect Answer EmploymentYour Answer Employment
True/False
Question During inflation, the pensioners whose income is permanently fixed, are substantiallybenefited.Correct Answer FalseYour Answer False
True/FalseQuestion Saving is a private virtueCorrect Answer TrueYour Answer True
Multiple Choice Multiple Answer
Question According to Keynes, Aggregate supply function refers toCorrect Answer the minimum price of revenue which the entrepreneurs must get , Associatedwith different levels of employment , Explains that the level of out put varies with the level of employmentYour Answer the minimum price of revenue which the entrepreneurs must get , Associated withdifferent levels of employment , Explains that the level of out put varies with the level of employment
Multiple Choice Multiple AnswerQuestion Marginal Propensity to consume is characterized as followsCorrect Answer 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 theformula mpc= change in c/change in yYour Answer It is rate of change in the average propensity to consume as income changes , It isderived by the formula mpc= change in c/change in y , It is derived by dividing the change inincome by change in the consumption expenditure
Multiple Choice Single AnswerQuestion During the period of depression various factors of production are
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Correct Answer exhaustedYour Answer unutilized
True/FalseQuestion In general SBI uses its monetary policy to achieve a judicious balance between the
growth of production and control of the general price level.Correct Answer FalseYour Answer False
True/FalseQuestion Public enterprises have shown a very high rate of return of the capital investedCorrect Answer FalseYour Answer False
Multiple Choice Multiple AnswerQuestion The meaning of monetary policy is
Correct Answer It is programmed of the central bank , It controls the total supply of money , Thebasic objective is to achieve economic stabilityYour Answer It is programmed of the central bank , It controls the total supply of money , Thebasic objective is to achieve economic stability
Multiple Choice Multiple AnswerQuestion Main aims of the New Industrial Policy (1991) areCorrect Answer To unshackle the indian industrial economy from the cobwebs of unnecessarybureaucratic control , To introduce liberalization with a view to integrate the indian economywith the world economy , To remove restrictions on direct foreign investment as also to free thedomestic entrepreneur from the restriction of MRTP act
Your Answer To unshackle the indian industrial economy from the cobwebs of unnecessarybureaucratic control , To introduce liberalization with a view to integrate the indian economywith the world economy , To remove restrictions on direct foreign investment as also to free thedomestic entrepreneur from the restriction of MRTP act
Multiple Choice Multiple AnswerQuestion Objectives of economic policy areCorrect Answer To increase the efficiency and international competitiveness of industrialproduction , To improve the performance and rationalize the scope of the public sector , Toreform and modernize the financial sectorYour Answer To increase the efficiency and international competitiveness of industrialproduction , To improve the performance and rationalize the scope of the public sector , Toreform and modernize the financial sector
Managerial Economics – 11
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LIST OF ATTEMPTED QUESTIONS AND ANSWERS
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True/FalseQuestionA supply schedule is a graphical presentation of supply patterns.Correct AnswerFalse
Your AnswerTrue
True/FalseQuestionThe subject matter of macro – economics includes the theory of income and employment at anindividual level.Correct AnswerFalseYour AnswerFalse
Select The Blank QuestionWhen demand for the product increases in the same proportion in which income increases,Income elasticity of demand will be equal to________Correct AnswerunityYour Answerunity
Multiple Choice Multiple Answer
QuestionFeatures of stage of expansion in business cycle areCorrect AnswerRise in national output , Rise in consumer and capital expenditure , Bank advances grow rapidlyYour AnswerRise in national output , Rise in consumer and capital expenditure , Bank advances grow rapidly
Multiple Choice Multiple AnswerQuestionExplicit costs areCorrect AnswerOut of pocket costs , These are firms accounting expenses , Expenditure costsYour AnswerOut of pocket costs , These are firms accounting expenses , Expenditure costs
Multiple Choice Single AnswerQuestionDemand for products like tea, betel, tobacoo, sigaratte is a matter of Correct Answer
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habitYour Answerhabit
Multiple Choice Single Answer
QuestionIf the substitutes are relatively cheaper then the demand for the commodity in question will beCorrect AnswerlessYour Answerless
Multiple Choice Single AnswerQuestionAn assembly of several machines, linked together either physically or by processes, capable of producing a given quantity of a product per day is
Correct AnswerplantYour Answerplant
Multiple Choice Single AnswerQuestionThe Risk Taking Theory was developed by Hawley, who was anCorrect AnswerAmerican EconomistYour Answer
American EconomistSelect The Blank QuestionThe cost which enter the accounts book of the firm are referred as ________.Correct AnswerAccounting costYour AnswerAccounting cost
Select The Blank QuestionThe persons who own the ________hip concern are called Partners.Correct AnswerPartnersYour AnswerPartners
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Select The Blank QuestionPerfectly elastic demand curve is ________Correct Answerhorizontal
Your Answerhorizontal
Select The Blank QuestionWhile discussing the product divisibility of public and private goods, the principle of ________may be applied in case of only those people who do not agree to pay or who cannot pay themarket priceCorrect AnswerexclusionYour Answer
exclusionMultiple Choice Multiple AnswerQuestionFeatures of the firm areCorrect AnswerIt is a business unit organized under one ownership , It is a sole proprietorship , It is a partnershipor joint stock companyYour AnswerIt is a business unit organized under one ownership , It is a sole proprietorship , It is a partnershipor joint stock company
Multiple Choice Multiple AnswerQuestionThe causes of inflation areCorrect AnswerIncrease in public expenditure , Increase in private expenditure , Increase in foreign demandYour AnswerIncrease in public expenditure , Increase in private expenditure , Increase in foreign demand
True/FalseQuestionInflation is a great opportunity for merchants to earn more profit.Correct AnswerTrueYour AnswerTrue
Match The FollowingQuestion
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Correct AnswerYour AnswerHuman wantsunlimitedunlimited
General Theory of Employment, Interest and MoneyJ. M. KeynesJ. M. KeynesManagerial economicsDecision making and forward planningDecision making and forward planningResourcesscarcescarceCommoditiesgoods and services
goods and servicesMultiple Choice Multiple AnswerQuestionThe advantage of cost-benefit analysis areCorrect AnswerMaximization of social welfare , Objective measurement of the trade-off , Maximization of difference between total benefits & total costsYour AnswerMaximization of social welfare , Objective measurement of the trade-off , Maximization of difference between total benefits & total costs
Select The Blank QuestionSole Proprietorship which is also called sole ________Correct AnswertradershipYour Answertradership
True/FalseQuestionA plant is an economic unit which takes various decisions related to production and distribution.Correct AnswerFalseYour AnswerFalse
Multiple Choice Multiple AnswerQuestion
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Features of an Industry areCorrect AnswerAll firms dealing in the same line of business , The ownership and management of each firm isdifferent , Is a group of firmsYour Answer
All firms dealing in the same line of business , The ownership and management of each firm isdifferent , Is a group of firms
Multiple Choice Single AnswerQuestionManagerial economics generally refers to the integration of economic theory with businessCorrect AnswerPracticeYour AnswerPractice
True/FalseQuestionDuring recession, on account of decline in investment by producers, there is decline in incomeand consumption.Correct AnswerTrueYour AnswerTrue
Multiple Choice Multiple AnswerQuestion
The fiscal policy includesCorrect AnswerMonitoring of public expenditure , Formation of taxation policy , It is an instrument foreconomic stabilizationYour AnswerFormation of taxation policy , It is an instrument for economic stabilization , Monitoring of public expenditure
Multiple Choice Single AnswerQuestionForecasts made either through experience or through methodigistic areCorrect AnswerstatisticalYour Answerstatistical
Multiple Choice Single AnswerQuestionManagerial economics is also understood to refer to
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Correct Answerapplied economicsYour Answerapplied economics
Select The Blank QuestionThe externality which causes an economic gain or an economic loss to other economic units isalso referred to as ________ externality.Correct AnswerPecuniaryYour AnswerSocial
Multiple Choice Single AnswerQuestion
According to Prof. F.H. Knight, profit is a reward forCorrect Answeruncertainty bearingYour Answeruncertainty bearing
Multiple Choice Single AnswerQuestionThe principle of full employment equilibrium was stated byCorrect AnswerSay‟s Law of Market
Your AnswerLaw of Demand
Multiple Choice Multiple AnswerQuestionPhases of business cycleCorrect AnswerExpansion , Peak , RecessionYour AnswerExpansion , Peak , Recession , Trough
True/FalseQuestionIn case of a Joint Stock Company the liability of the share holders is unlimited.Correct AnswerFalseYour AnswerFalse
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Multiple Choice Single AnswerQuestionGoods which are completely divisible and to them the principle of exclusion applies in fullmeasure, are calledCorrect Answer
Pure public goodsYour AnswerPrivate goods
Multiple Choice Multiple AnswerQuestionAssumptions underlying the law of Supply areCorrect AnswerThe cost of production is unchanged , No change in technique of production , Governmentpolicies are unchangedYour Answer
The cost of production is unchanged , No change in technique of production , Governmentpolicies are unchanged
Multiple Choice Multiple AnswerQuestionThe payments made out of the Gross Profit areCorrect AnswerRemuneration to factors of production , Depreciation , Maintenance ChargesYour AnswerRemuneration to factors of production , Depreciation , Maintenance Charges
Select The Blank QuestionThe indivisible goods to which the principle exclusion does not apply are called ________goods.Correct Answerpure publicYour Answerpure public
True/FalseQuestionMicro-economics is primarily concerned with the problem of what, how and for whom toproduce?Correct AnswerFalseYour AnswerTrue
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Multiple Choice Single AnswerQuestionGross profit is the excess of total revenue of a firm over totalCorrect Answerexpenditure
Your Answerexpenditure
True/FalseQuestionDuring period of depression various factors of production lie unutilized.Correct AnswerTrueYour AnswerTrue
Multiple Choice Multiple AnswerQuestionCo-operative organizations isCorrect Answervoluntary organization , managed by democratic principle , organization, which performs itsbusiness within the membersYour Answervoluntary organization , managed by democratic principle , organization, which performs itsbusiness within the members , non profit motive organization
Multiple Choice Single Answer
QuestionMacro economics is the study of theCorrect Answeraggregate behavior of economyYour Answeraggregate behavior of economy
True/FalseQuestionTo solve the unemployment problem, the level of effective demand must decrease.Correct AnswerFalseYour AnswerFalse
Multiple Choice Single AnswerQuestionThe public sector is owned & controlled byCorrect Answer
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state enterprisesYour Answerstate enterprises
Select The Blank
QuestionDemand for safety pins is ________Correct AnswerinelasticYour Answerrelatively inelastic
Multiple Choice Single AnswerQuestionUnder perfect competition, generally demand and supply act and react upon each other anddetermine the price
Correct AnswerequilibriumYour Answerequilibrium
True/FalseQuestionDuring the period of recession there is increase in incomes of wage and interest earners.Correct AnswerFalseYour Answer
FalseSelect The Blank QuestionIn a market economy ________ is the best judge of personal interest.Correct AnswerindividualYour Answerfirm
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LIST OF ATTEMPTED QUESTIONS AND ANSWERS
True/FalseQuestionA monopolist in a price maker.
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Correct AnswerTrueYour AnswerTrue
Multiple Choice Single AnswerQuestionThe city of Faridabad has specialized in the manufacture of Correct AnswerbanglesYour Answerbangles
Multiple Choice Multiple AnswerQuestionDemand is determined by
Correct AnswerPrice of the product , Relative prices of other goods , Tastes and habitsYour AnswerPrice of the product , Relative prices of other goods , Tastes and habits
Multiple Choice Multiple AnswerQuestionBaumol has pointed out three main contributions of economic theory. They areCorrect AnswerEconomic theory offers clarity to various concepts used in the business anlayses , Economictheory 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 analyasisYour AnswerEconomic theory offers clarity to various concepts used in the business anlayses , Economictheory contributes in building anlyatical model to rocognize managerial problems , Economictheory contributes to ,‟a set of analytical methods‟ which enhance the analytical capabilities of business analyasis
True/FalseQuestionIn case of indivisible goods, which are not priced, the decisions regarding their demandpreferences are taken through price mechanism.Correct AnswerFalseYour AnswerTrue
True/FalseQuestion
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A shift in the demand curve to the left shows increase in demand.Correct AnswerFalseYour AnswerTrue
Multiple Choice Single AnswerQuestionThe act of making goods and services is calledCorrect AnswerproductionYour Answerproduction
Multiple Choice Single AnswerQuestion
With decline in price of a commodity, total expenditure spent on the commodity is less thanbefore, then elasticity of demand for the commodity isCorrect Answer< 1Your Answer< 1
Match The FollowingQuestionCorrect AnswerYour Answer
N.G.O.SVoluntary social work Voluntary social work Sole proprietorshipUnlimited liabilityUnlimited liabilityPreference sharesFixed rate of dividendFixed rate of dividendPublic enterprisesState controlState control
True/FalseQuestionPure private goods are completely divisible and to them the principle of exclusion applies in fullmeasure.Correct AnswerTrue
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Your AnswerTrue
Multiple Choice Single AnswerQuestion
The act of using goods and services to satisfy wants is calledCorrect AnswerconsumptionYour Answerconsumption
True/FalseQuestionExternal economies are the advantages of large scale production enjoyed exclusively anindividual firm alone.Correct Answer
FalseYour AnswerTrue
Multiple Choice Single AnswerQuestionMarket mechanism is characterized byCorrect AnswerinstabilityYour Answerstability
Multiple Choice Multiple AnswerQuestionFeatures of Pure Competition areCorrect AnswerLarge number of buyers and sellers , Homogeneous products , Free entry and free exit of firmsYour AnswerLarge number of buyers and sellers , Homogeneous products , Free entry and free exit of firms
Multiple Choice Single AnswerQuestionThe things that are produced by factors of production are calledCorrect AnswercommoditiesYour Answerfree goods
True/FalseQuestion
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Generally, the larger the income of a consumer, his demand for overall commodities tends to berelatively elastic.Correct AnswerFalseYour Answer
False
Multiple Choice Multiple AnswerQuestionThe production function studiesCorrect AnswerInput and out put relation , Factors of production and final production , Technology used inproductionYour AnswerInput and out put relation , Factors of production and final production , Demand for production
Select The Blank QuestionThe externality which causes an economic gain or an economic loss to other economic units isalso referred to as ________ externality.Correct AnswerPecuniaryYour AnswerSocial
Select The Blank Question
The index numbers which are compiled to measure the changes in retail prices of variouscommodities refers to ________Correct AnswerRetail prices indexYour AnswerRetail prices index
Select The Blank QuestionIn the context of formulating an investment project, ________ feasibility means the availabilityof supervisors for implementing and running the project smoothly and professionally.Correct AnswermanagementYour Answermanagement
Select The Blank QuestionThe minimum number of directors which private limited should have is ________.
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Correct Answer2Your Answer2
Select The Blank QuestionIn a market economy ________ is the best judge of personal interest.Correct AnswerindividualYour Answerindividual
Multiple Choice Single AnswerQuestionThe concept of just distribution of national product is a
Correct AnswernormativeYour Answerneutral
True/FalseQuestionSupply management is related to the volume ofsupply & its distribution system.Correct AnswerTrueYour Answer
TrueMultiple Choice Single AnswerQuestionThe type economic problem isCorrect AnsweruniversalYour Answeruniversal
Multiple Choice Single AnswerQuestionUnder monopoly entry of new firms isCorrect AnswerprohibitedYour Answerprohibited
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Multiple Choice Multiple AnswerQuestionSpecific organizational goals of Firms areCorrect Answermaximization of profit , reasonable profit target , sales revenue maximization
Your Answermaximization of profit , sales revenue maximization , to cover risk and uncertainty
Multiple Choice Multiple AnswerQuestionGovernment intervention is needed in free market mechanism toCorrect AnswerTo 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 incometo meet their basic needsYour 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 marketmechanism by charging license fees, commissions, etc
Multiple Choice Single AnswerQuestionThe firm is a center, where all the decisions are taken aboutCorrect AnswerproductionYour Answerproduction
Multiple Choice Single AnswerQuestionUnder the imperfect market, the market in which few firms exists is called asCorrect AnswerOligopolyYour AnswerOligopoly
True/FalseQuestionThere are no real exceptions to the law of demandCorrect AnswerFalseYour AnswerFalse
Multiple Choice Single AnswerQuestion
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Every nation‟s resources which are u sed to produce the quantities of goods and services thatwould be required to satisfy all its citizen‟s wants are Correct AnswerinsufficientYour Answer
insufficient
True/FalseQuestionThe prosperity phase is characterized by rise in the level of employment.Correct AnswerTrueYour AnswerTrue
Multiple Choice Multiple Answer
QuestionThe characteristics of a sole proprietorship firm isCorrect AnswerUnlimited Capital , Ownership by a single person , Easy to formYour AnswerOwnership by a single person , Easy to form
Select The Blank QuestionSole Proprietorship which is also called sole ________Correct Answer
tradershipYour Answertradership
Multiple Choice Single AnswerQuestionThe method of inventory valuation in which , the cost of production is calculated on theassumption that the material which was last to enter the inventory of the company was used firstisCorrect AnswerLIFOYour AnswerLIFO
Multiple Choice Single AnswerQuestionIn economics, demand means desire backed by adequateCorrect Answerpurchasing power
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Your Answerpurchasing power
Multiple Choice Single AnswerQuestion
Managerial economics generally refers to the integration of economic theory with businessCorrect AnswerPracticeYour AnswerPractice
Multiple Choice Single AnswerQuestionA group of firms dealing in the same line of business are called asCorrect AnswerIndustry
Your AnswerIndustry
Multiple Choice Single AnswerQuestionManagerial economics is also understood to refer toCorrect Answerapplied economicsYour Answerapplied economics
Match The FollowingQuestionCorrect AnswerYour AnswerNon-price competitionadvertisement.advertisement.Prestige pricehigh price on account of prestige considerations.high price on account of prestige considerations.Administered pricespublic sector undertaking.state government.Pricing in cooperative societiesstate government.public sector undertaking.
Multiple Choice Single AnswerQuestion
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The demand curve (A.R.) of a firm under perfect competition isCorrect Answerperfectly elasticYour Answerinelastic
Multiple Choice Multiple AnswerQuestionThe advantage of cost-benefit analysis areCorrect AnswerMaximization of social welfare , Objective measurement of the trade-off , Maximization of difference between total benefits & total costsYour AnswerMaximization of social welfare , Maximization of difference between total benefits & total costs, Applicable only in partial equilibrium framework.
Select The Blank QuestionBy using cost-benefit analysis we can show the measures necessary for attaining maximum________ and optimal policy aiming at this goal.Correct Answernet wealthYour Answernet domestic product
Multiple Choice Multiple AnswerQuestion
The causes of inflation areCorrect AnswerIncrease in public expenditure , Increase in private expenditure , Increase in foreign demandYour AnswerIncrease in public expenditure , Increase in foreign demand , Increase in taxation
Select The Blank QuestionThe partnership between private sector & government is called ________Correct AnswerJoint sector enterpriseYour AnswerJoint sector enterprise
Multiple Choice Multiple AnswerQuestionFeatures of short run period areCorrect AnswerSupply of goods can be adjusted to the demand to some extent , Supply and demand determine
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the price , Some factors can be changedYour AnswerSupply of goods can be adjusted to the demand to some extent , Supply and demand determine
Managerial Economics – 13
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LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Single AnswerQuestionManagerial economics generally refers to the integration of economic theory with businessCorrect AnswerPracticeYour AnswerPractice
Multiple Choice Single AnswerQuestionEvery nation‟s resources which are used to produce the quantities of goods and services thatwould be required to satisfy all its citizen‟s wants are Correct AnswerinsufficientYour Answersufficient
Multiple Choice Single AnswerQuestionAll the buyers and sellers operating under perfect competition have knowledgeCorrect AnswerperfectYour Answerperfect
True/FalseQuestionInflation reduces the purchasing power of money and savings.Correct AnswerTrueYour AnswerFalse
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Multiple Choice Single AnswerQuestionThe supply curve during market period is perfectlyCorrect Answerinelastic
Your Answerinelastic
True/FalseQuestionMicro-economics is primarily concerned with the problem of what, how and for whom toproduceCorrect AnswerTrueYour AnswerTrue
Match The FollowingQuestionCorrect AnswerYour AnswerManagerial economicsDecision making and forward planningDecision making and forward planningResourcesscarcegoods and services
Commoditiesgoods and servicesscarceHuman wantsunlimitedunlimitedGeneral Theory of Employment, Interest and MoneyJ. M. KeynesJ. M. Keynes
True/FalseQuestionThe price policy under monopolistic competition is dependent on the prices charged by otherrival firmsCorrect AnswerTrueYour AnswerFalse
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Multiple Choice Single AnswerQuestionAll firms producing the same or similar product together makeCorrect Answeran industry
Your Answeran industry
Multiple Choice Single AnswerQuestionJoint Stock Company succession isCorrect AnswerperpetualYour Answerperpetual
True/FalseQuestionPrivate profit motive is an essential feature of CapitalismCorrect AnswerTrueYour AnswerTrue
True/FalseQuestion„Free riders‟ is a term associated with the people w ho would like to have benefit of a good
without sharing the cost of its supplyCorrect AnswerTrueYour AnswerFalse
Multiple Choice Single AnswerQuestionMacro – economics provides an exploration to the functioning of an economy inCorrect AnswergeneralYour Answergeneral
True/FalseQuestionInflation is a great opportunity for merchants to benefit more.Correct AnswerTrue
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Your AnswerTrue
True/FalseQuestion
The various phases of business cycles are shown by the line of cycle which moves up and downthe steady growth lineCorrect AnswerTrueYour AnswerTrue
True/FalseQuestionIn the measurement of profit, the differences in the concept of profit arise out of the differencesin cost concepts
Correct AnswerTrueYour AnswerFalse
Multiple Choice Single AnswerQuestionIn economics demand means desire backed by adequateCorrect Answerpurchasing powerYour Answer
ability to payMultiple Choice Single AnswerQuestionThe law of diminishing returns is applicable to agriculture provided the state of technology isgiven andCorrect AnswerconstantYour Answerconstant
Multiple Choice Single AnswerQuestionUnder the monetary measures to control inflation, the R. B. I relies heavily on selective creditcontrols on bank loans against food grains, sugar, oils, oilseeds, cotton etc so as to discourageCorrect AnswerSpeculative hoardingYour AnswerSpeculative hoarding
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Multiple Choice Single AnswerQuestionSlope of supply curve isCorrect Answerpositive
Your Answerpositive
Multiple Choice Single AnswerQuestionCosts which increase because of the expansion of a firm are called costsCorrect AnswerincrementalYour Answerincremental
True/FalseQuestionThe opportunity cost of a product is the opportunity gained of being able to produce some otherproduct.Correct AnswerFalseYour AnswerFalse
True/FalseQuestion
The supply curve in case of unitary elastic supply is rectangular hyperbola.Correct AnswerFalseYour AnswerFalse
Multiple Choice Multiple AnswerQuestionAn IndustryCorrect AnswerIs a group of firms , All firms dealing in the same line of business , The ownership andmanagement of each firm is differentYour AnswerIs a group of firms , All firms dealing in the same line of business , The ownership andmanagement of each firm is different
Select The Blank QuestionUnder monopoly, there is ________ seller who controls the entire ________ in the market
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Correct Answeronly oneYour Answeronly oneCorrect Answer
supplyYour Answersupply
Select The Blank QuestionUnder monopsony, there are ________ sellers but ________ buyerCorrect AnswermanyYour Answermany
Correct Answeronly oneYour Answeronly one
Match The FollowingQuestionCorrect AnswerYour AnswerMarginal utilityAddition to total utility
Addition to total utilityTotal utility increases marginalPosative and decliningMarginal utility is zeroAt the saturation point for a commodity x the Mux isZeroDemand curve of a commodityMarginal utilities areDemand curve of a commodityPosative and decliningTotal utility isMarginal utility is zeroZero
Select The Blank QuestionBy using cost-benefit analysis we can show the ________ necessary for attaining maximum________ and optimal policy aiming at this goalCorrect Answer
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measuresYour AnswerGross Domestic ProductCorrect Answernet wealth
Your Answergross wealth
Multiple Choice Multiple AnswerQuestionAverage propensity to consumeCorrect AnswerIt is defined as the ratio of consumption expenditure to any particular level of income , It isfound by dividing consumption expenditure by income , It is expressed as the percentage of income consumedYour Answer
It is derived by dividing income by consumption expenditureMultiple Choice Multiple AnswerQuestionInflation meansCorrect AnswerIt is a phenomenon of rising prices , It is a general and dynamic phenomenon , It includes anexcess of demandYour AnswerIt is a phenomenon of rising prices
Select The Blank QuestionAggregate supply function refers to a ________ of the various minimum amounts of proceeds or________ , which must be expected to be received by the entrepreneur class from the sale of output resultCorrect AnswerscheduleYour AnswerdemandCorrect AnswerrevenuesYour Answerrevenues
Select The Blank QuestionIn the ________ terminology, the ________ demand function refers to the schedule of maximumsales proceeds, which the entrepreneurial community actually does expect to be received fromthe sale of
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Correct AnswerKeynesianYour AnswerKeynesianCorrect Answer
aggregateYour Answeraggregate
Multiple Choice Multiple AnswerQuestionThe fiscal policy includesCorrect AnswerFormation of taxation policy , It is an instrument for economic stabilization , Monitoring of public expenditureYour Answer
Formation of taxation policy , It is an instrument for economic stabilization , Monitoring of public expenditure
Multiple Choice Multiple AnswerQuestionThe meaning of monetary policyCorrect AnswerIt is programme of the central bank , It controls the total supply of money , The basic objective isto achieve economic stabilityYour AnswerIt is programme of the central bank , It controls the total supply of money , The basic objective is
to achieve economic stabilityMultiple Choice Multiple AnswerQuestionCauses for rise in prices in IndiaCorrect AnswerMounting government expenditure , Deficit financing and increase in money supply , Role of black moneyYour AnswerMounting government expenditure , Deficit financing and increase in money supply , Role of black money
Multiple Choice Multiple AnswerQuestionManagerial economics deals withCorrect AnswerIntegration 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
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Integration of economic theory with business practice , Using logic of economics, mathematics& statistics.
Multiple Choice Multiple AnswerQuestion
The sources of economic problems are:Correct AnswerMan has unlimited wants or ends , The means or resources to satisfy them are limited. , Theseresources are not specific but have alternative uses.Your AnswerMan has unlimited wants or ends , The means or resources to satisfy them are limited. , Theseresources are not specific but have alternative uses.
Multiple Choice Multiple AnswerQuestionDifferent types of business organizations are;
Correct AnswerPrivate sector. , Public sector. , Joint sector.Your AnswerJoint sector.
Multiple Choice Multiple AnswerQuestionProprietary firm isCorrect AnswerOwned by a single person. , Easy to form. , An organization of single person.Your Answer
Owned by a single person.Multiple Choice Multiple AnswerQuestionMethods of measurement of elasticityCorrect AnswerPercentage Method , Point elasticity Method , Total outlay expenditure methodYour AnswerPercentage Method , Point elasticity Method , Total outlay expenditure method
Multiple Choice Multiple AnswerQuestionDemand forecasts are necessary for:Correct AnswerFulfillment of objective of the plans , Preparation of a budget , Expansion of firmsYour AnswerPreparation of a budget , Expansion of firms
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Select The Blank QuestionEconomic theory provides the basis for the ________ _ making process, there is some differencebetween the generalization based on abstraction and actual practices. Besides economic theory,mat
Correct Answerdecision makingYour AnsweroptimalCorrect AnswerstatisticsYour Answer
Select The Blank QuestionThe resources of a society consist not only of the free gifts of nature such as ________ but also
of ________ and of all sorts of man made aids to further production.Correct Answerland and mineralsYour Answerland and mineralsCorrect Answerhuman capacityYour Answerhuman capacity
Select The Blank
QuestionIndividual or sole ________ , which is also called sole- ________ , or single entrepreneurship isthe most common, the simplest and the oldest form of business organisation.Correct AnswerproprietorshipYour AnswerproprietorshipCorrect Answertrader shipYour Answertrader ship
Select The Blank QuestionNominal cost is the ________ cost of production, it is also called expenses of production. Thereal cost is the ________ cost of production.Correct AnswermoneyYour Answer
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opportunityCorrect AnsweropportunityYour Answergross
Select The Blank QuestionCosts may be classified as : (a) ________ , including material costs, wage cost and interest cost(b) ________ , including costs of advertising and (c) other costs, including insurance chCorrect AnswerProduction costsYour AnswerProduction costsCorrect AnswerSelling costs
Your AnswerSelling costs
Select The Blank QuestionThe costs of self owned resources, which are employed by the ________ , are non- expenditureor , ________Correct AnswerfirmYour Answerfirm
Correct Answerimplicit costs .Your Answerimplicit costs .
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Multiple Choice Single AnswerQuestion
The study of the working and allocation of resources in the free market economies is the topic intheCorrect Answertheory of priceYour Answertheory of production
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Multiple Choice Single AnswerQuestionManagerial economics aims at providing help in the firms isCorrect Answerdecision making
Your Answerdecision making
True/FalseQuestionThe federal government of U.S.A. does not face the basic economic problem.Correct AnswerFalseYour AnswerFalse
Multiple Choice Single AnswerQuestionIn equilibrium analysis of a firm, it is assumed that every individual proprietor exhibits rationaleconomicCorrect AnswerbehaviorYour Answerbehavior
Match The FollowingQuestion
Correct AnswerYour AnswerManagerial EconomicsPrescriptive in natureThe theory of distributionResourcesAlternative usesAlternative usesDivision of society‟s output of goods and services The theory of distributionPrescriptive in natureMotor carsTangible goodsTangible goodsWantsInsatiableInsatiable
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True/FalseQuestionMarket price fluctuates very oftenCorrect AnswerTrue
Your AnswerFalse
Multiple Choice Single AnswerQuestionThe firm is the unit that makes the decisions regarding employment of and the output of commodities areCorrect Answerfactors of productionYour Answerfactors of production
Multiple Choice Single AnswerQuestionThe principle of exclusion cannot be applied to the goods which areCorrect AnswerindivisibleYour Answerinvisible
Multiple Choice Single AnswerQuestion
In the cost – benefit analysis, the firm step involved is that the investor has to choose a fewproject alternatives promising a rate of return which isCorrect AnswerhighYour Answerhigh
Multiple Choice Single AnswerQuestionMarket system of economy is characterized by consumer‟s Correct AnswersovereigntyYour Answerdemand
Multiple Choice Single AnswerQuestionIn case of a joint stock company, the liability of share holders isCorrect Answer
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limitedYour Answerlimited
True/False
QuestionThe divisible goods, whose benefits can be priced, are called pure public goodsCorrect AnswerFalseYour AnswerTrue
True/FalseQuestionIn case of a proprietary firm the liability of the proprietor is limitedCorrect Answer
FalseYour AnswerFalse
True/FalseQuestionDuring the phase of depression, the level of national income and expenditure rises rapidlyCorrect AnswerFalseYour AnswerFalse
Multiple Choice Single AnswerQuestionAccording J.B.Clark, profit is the reward paid forCorrect AnswerdynamismYour Answerrisk bearing
Multiple Choice Single AnswerQuestionGross profit is the excess of total revenue of a firm over totalCorrect AnswerexpenditureYour Answerexpenditure
Multiple Choice Single AnswerQuestion
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In general, the demand for necessaries is relativelyCorrect AnswerinelasticYour Answerelastic
True/FalseQuestionDemand for food grains is inelastic but the demand for wheat is elastic.Correct AnswerTrueYour AnswerFalse
Match The FollowingQuestion
Correct AnswerYour AnswerExcess supply can be defined asQuantity supplied minus quantity demandedQuantity supplied minus quantity demandedIf demand remain unchanged on increase in supply will result inA rise in equilibrium quantityThe supply is perfectly elasticMarket Price is a situation whichThe supply is perfectly elasticA rise in equilibrium quantity
The responsiveness of demand to change in price is measuredElasticity of demandIn the same proportionUnit income elasticity implies that asincome rises demand for a commodity risesIn the same proportionElasticity of demand
Select The Blank QuestionGreater scope for the ________ sector may mean incremental ________ , which connotes theexpansion of public sector undertakings, can be left to some private companiesCorrect AnswerprivateYour AnswerinvestmentCorrect AnswerdisinvestmentsYour Answergrowth
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Multiple Choice Single AnswerQuestionGoods produced on small scale of supply isCorrect Answerinelastic
Your Answerzero elastic
True/FalseQuestionThe sum of total fixed costs and total variable costs is the total cost.Correct AnswerTrueYour AnswerTrue
True/FalseQuestionContraction of supply is traced by the downward movement on the supply curve.Correct AnswerTrueYour AnswerTrue
True/FalseQuestionThe laws of returns to scale explain the behavior of output in response to changes in scale.
Correct AnswerTrueYour AnswerTrue
True/FalseQuestionIn the stage I of the law of diminishing returns, the marginal product goes on increasingCorrect AnswerTrueYour AnswerFalse
Multiple Choice Multiple AnswerQuestionFeatures of monopolistic CompetitionCorrect AnswerFairly Large number of firms , Product differentiation , Selling costs are existed
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Your AnswerFairly Large number of firms , Product differentiation , Selling costs are existed
Select The Blank Question
Where ________ is charging a ________ in the home market and a lower price in theinternational market, it is called DumpingCorrect AnswermonopolistYour Answera firmCorrect Answerhigher priceYour Answerhigher price
Select The Blank QuestionThe number of sellers operating under this type of competition is ________ under oligopoly, butless than under ________Correct Answerlarger thanYour AnswercomplementaryCorrect Answerperfect ompetitionYour Answer
perfect ompetitionMultiple Choice Multiple AnswerQuestionMarginal Propensity to consumeCorrect AnswerIt 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 formulampc= change in C/change in YYour AnswerIt is defined as the ratio of the change in consumption to the change in income , It is derived bythe formula mpc= change in C/change in Y , It is derived by dividing the change in income bychange in the consumption expenditure
Multiple Choice Multiple AnswerQuestionInvestmentCorrect AnswerIt adds to capital equipments , It leads to increase in level of income , It includes new plant and
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equipmentYour AnswerIt adds to capital equipments , It leads to increase in level of income , It includes new plant andequipment
Multiple Choice Multiple AnswerQuestionFeatures of stage of expansion in business cycle areCorrect AnswerRise in national output , Rise in consumer and capital expenditure , Bank advances grow rapidlyYour AnswerRise in national output , Rise in consumer and capital expenditure , Bank advances grow rapidly
Multiple Choice Multiple AnswerQuestionCharacteristics of Depression
Correct AnswerDecrease in economic activities , The growth rate becomes negative , The level of nationalincome declines rapidlyYour AnswerDecrease in economic activities , The growth rate becomes negative
Multiple Choice Multiple AnswerQuestionRecession includesCorrect AnswerThe demand is halted , Increase in production of goods , Inventories piling up in stocks
Your AnswerThe demand is halted , Inventories piling up in stocks
Multiple Choice Multiple AnswerQuestionThe causes of inflationCorrect AnswerIncrease in public expenditure , Increase in private expenditure , Increase in foreign demandYour AnswerIncrease in public expenditure , Increase in foreign demand , Increase in taxation
Select The Blank QuestionThe rate of interest, according to ________ , depends upon two factors: (i) ________ and (ii) thequantity of moneyCorrect AnswerKeynesYour AnswerKeynes
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Correct Answerthe liquidity preference functionYour Answerthe liquidity preference function
Select The Blank QuestionIn the words of ________ , “inflation occurs when the ________ of prices and cost is rising”. Correct AnswerProf. SamuelsonYour AnswerProf. SamuelsonCorrect Answergeneral levelYour Answergeneral level
Multiple Choice Multiple AnswerQuestionForms of Public EnterprisesCorrect AnswerPublic Corporations , Departmental management , Company Management or management byboardsYour AnswerDepartmental management , Public Corporations
Multiple Choice Multiple Answer
QuestionSpecific organizational goals of Firms are:Correct AnswerMaximisation of profit , Reasonable Profit Target , Sales revenue MaximizationYour AnswerMaximisation of profit , Reasonable Profit Target , Sales revenue Maximization
Multiple Choice Multiple AnswerQuestionIndividual Demand Schedule:Correct AnswerIs in tabular form , It shows the prices of goods , It shows the quantities of a commoditypurchasedYour AnswerIs in tabular form , It shows the prices of goods , It shows the quantities of a commoditypurchased
Multiple Choice Multiple AnswerQuestion
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The production function can be explained by:Correct AnswerLaw of variable proportions , Laws of returns to scale , Optimum combinations of inputsYour AnswerLaw of variable proportions , Laws of returns to scale , Optimum combinations of inputs
Multiple Choice Multiple AnswerQuestionImplicit costs are:Correct AnswerCost on self owned resources , Costs of salary of the proprietor , Interest on the entrepreneur‟sown investmentYour AnswerCost on self owned resources , Interest on the entrepreneur‟s own investment
Select The Blank
QuestionManagerial ________s generally refers to the integration of economic theory with ________practice.Correct AnswereconomicYour AnswereconomicCorrect AnswerbusinessYour Answerbusiness
Select The Blank QuestionIn a competitive industry, there is a large number of firms so that the action of ________ firmhas ________ on the price and output of the whole industry.Correct Answera singleYour Answera singleCorrect Answerno effectYour Answerno effect
Select The Blank QuestionAs per the International Labour Organisation (ILO), _ ________ is a ________ association of individuals with limited income on the basis of equal rights and responsibilities for achievingcerta
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Correct AnswerCo-operationYour AnswerCo-operationCorrect Answer
voluntaryYour Answervoluntary
Select The Blank QuestionThe word ________ has different meanings to businessmen, ________ , tax collectors, workersand economists and it is often used in a loose sense that buries its real significanceCorrect AnswerProfitYour Answer
ProfitCorrect AnsweraccountantsYour Answeraccountants
Select The Blank QuestionThe demand curve is ________ representation of a demand schedule, demand curve slopes________ ward from left to right.Correct Answer
graphicalYour AnswergraphicalCorrect AnswerdownYour Answerdown
Select The Blank QuestionThe ________ that is ________ is the opportunity cost of the commodity produced.Correct AnswersacrificedYour AnswercommodityCorrect AnswercommodityYour Answersacrificed
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Managerial Economics – 15
Posted by scdlpapers on July 21st, 2010
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Single AnswerQuestion Pure public goods are subject to the law of decreasing average cost, because of theCorrect Answer economies of scaleYour Answer economies of scale
Multiple Choice Single AnswerQuestion In the cost – benefit analysis, after formulating various alternative project capacity,each of them has to be examined in terms of itsCorrect Answer feasibilityYour Answer feasibility
True/FalseQuestion Bargaining is one of the remedies of corrective action.Correct Answer FalseYour Answer True
Match The FollowingQuestion Correct Answer Your Answer
Defence service Indivisible Indivisible
Economic effects of public goods are Spill over effect Spill over effect
Selection or implementation Step of cost benefit analysis Step of cost benefit analysis
Production possibility frontier Maximization of output Maximization of output
Multiple Choice Multiple AnswerQuestion The advantage of cost-benefit analysis areCorrect Answer Maximization of social welfare , Objective measurement of the trade-off ,Maximization of difference between total benefits & total costsYour Answer Maximization of social welfare , Objective measurement of the trade-off ,Maximization of difference between total benefits & total costs
Multiple Choice Multiple AnswerQuestion The term externalities may also be referred as:Correct Answer Spill-over effects , Neighborhood effects , Third party effectsYour Answer Spill-over effects , Neighborhood effects , Third party effects
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Select The Blank Question Modern economists treat social cost and benefits as ________ of private investmentand production decisions.Correct Answer externalitiesYour Answer disadvantages
Select The Blank Question Economists like A.C.Harberger have shown that the cost benefit analysis can beapplied to ________ analysis.Correct Answer general equilibriumYour Answer general equilibrium
Select The Blank Question In the context of formulating an investment project, ________ feasibility means theavailability of supervisors for implementing and running the project smoothly and professionally.Correct Answer management
Your Answer management
Select The Blank Question Prof. Sam Nelson calls risks from unsafe factories or nuclear power plants as ________economies.Correct Answer negativeYour Answer hazardous
Multiple Choice Single AnswerQuestion According to Lionel Robbins, “Economics is a science which studiesCorrect Answer human behavior
Your Answer social behaviorMultiple Choice Single AnswerQuestion Question related to the efficient production and allocation belong to the branch of economic theory calledCorrect Answer Welfare EconomicsYour Answer Business Economics
Multiple Choice Multiple AnswerQuestion Managerial economics deals withCorrect Answer Integration of economic theory with business practice , Using logic of economics, mathematics & statistics , The use of economic modes of thought to analyze businesssolutionYour 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
Multiple Choice Single AnswerQuestion The public sector is owned & controlled by
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Correct Answer state enterprisesYour Answer state enterprises
Select The Blank Question Reasonable profit target as an alternative to the objective of profit maximization was
suggested by ________.Correct Answer Joel DeanYour Answer Joel Dean
Select The Blank Question “Homeostatic Approach” as an alternative objective of firms was suggested by________.Correct Answer Prof. Kenneth BouldingYour Answer Prof. Kenneth Boulding
Select The Blank
Question The form of organization which is best for self employment is ________.Correct Answer Sole traderYour Answer Sole trader
True/FalseQuestion Accounting profit takes in to account opportunity cost.Correct Answer FalseYour Answer False
Multiple Choice Single AnswerQuestion Complementary goods are demanded
Correct Answer jointlyYour Answer jointly
Multiple Choice Single AnswerQuestion If the substitutes are relatively costly then the demand for the commodity in questionwill beCorrect Answer moreYour Answer same
True/FalseQuestion There are no real exceptions to the law of demand
Correct Answer FalseYour Answer False
True/FalseQuestion Demand curve slopes downwards from left to right.Correct Answer TrueYour Answer True
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Select The Blank Question An upward sloping demand curve is called ________Correct Answer exceptional demand curveYour Answer exceptional demand curve
Select The Blank Question Goods which are paradoxical to the law of demand are ________Correct Answer Giffen goods, ,Your Answer Giffen goods, ,
Match The FollowingQuestion Correct Answer Your Answer
Normally the isoquant slopes upward from right to left. downward from right to left
Any straight line supply curve which cuts y axis will have zero elasticity of supply. perfectly
elastic
The market period supply curve for perishable commodities is perfectly inelastic. perfectlyinelastic.
A rightwards shift in supply schedule indicates an increase in supply. an increase in supply.
Multiple Choice Multiple AnswerQuestion Explicit costs areCorrect Answer Out of pocket costs , These are firms accounting expenses , Expenditure costsYour Answer Out of pocket costs , These are firms accounting expenses , Expenditure costs
Select The Blank Question Output rises in a lesser proportion to that of the increase in input, under the case of ________.Correct Answer decreasing returns to scaleYour Answer decreasing returns to scale
Select The Blank Question The cost which enter the accounts book of the firm are referred as ________.Correct Answer Accounting costYour Answer Accounting cost
Multiple Choice Single AnswerQuestion Jevons‟ , the economists who defined the term „market‟ different from that of thetraditional sense is anCorrect Answer English economistsYour Answer English economists
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Multiple Choice Single AnswerQuestion Economists have pointed out that the real world is full of Correct Answer Imperfect competitionYour Answer Imperfect competition
True/FalseQuestion A firm under perfect competition is a price maker.Correct Answer FalseYour Answer False
True/FalseQuestion Under perfect competition single seller can influence the price.Correct Answer FalseYour Answer False
Multiple Choice Multiple Answer
Question Types of imperfect competition areCorrect Answer Monopoly , Duopoly , OligopolyYour Answer Monopoly , Duopoly , Oligopoly
Multiple Choice Multiple AnswerQuestion Features of Pure Competition areCorrect Answer Large number of buyers and sellers , Homogeneous products , Free entry andfree exit of firmsYour Answer Large number of buyers and sellers , Homogeneous products , Free entry and freeexit of firms
Multiple Choice Multiple AnswerQuestion Equilibrium is the stage of Correct Answer maximum satisfaction , balance , stationaryYour Answer maximum satisfaction , balance
Multiple Choice Single AnswerQuestion Inflation is a phenomena in which pricesCorrect Answer riseYour Answer rise
Multiple Choice Single Answer
Question True inflation starts only after reaching the level of fullCorrect Answer EmploymentYour Answer Employment
True/FalseQuestion During inflation, the pensioners whose income is permanently fixed, are substantiallybenefited.
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Correct Answer FalseYour Answer False
True/FalseQuestion Saving is a private virtue
Correct Answer TrueYour Answer True
Multiple Choice Multiple AnswerQuestion According to Keynes, Aggregate supply function refers toCorrect Answer the minimum price of revenue which the entrepreneurs must get , Associatedwith different levels of employment , Explains that the level of out put varies with the level of employmentYour Answer the minimum price of revenue which the entrepreneurs must get , Associated withdifferent levels of employment , Explains that the level of out put varies with the level of employment
Multiple Choice Multiple AnswerQuestion Marginal Propensity to consume is characterized as followsCorrect Answer 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 theformula mpc= change in c/change in yYour Answer It is rate of change in the average propensity to consume as income changes , It isderived by the formula mpc= change in c/change in y , It is derived by dividing the change inincome by change in the consumption expenditure
Multiple Choice Single Answer
Question During the period of depression various factors of production areCorrect Answer exhaustedYour Answer unutilized
True/FalseQuestion In general SBI uses its monetary policy to achieve a judicious balance between thegrowth of production and control of the general price level.Correct Answer FalseYour Answer False
True/FalseQuestion Public enterprises have shown a very high rate of return of the capital investedCorrect Answer FalseYour Answer False
Multiple Choice Multiple AnswerQuestion The meaning of monetary policy isCorrect Answer It is programmed of the central bank , It controls the total supply of money , Thebasic objective is to achieve economic stability
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Your Answer It is programmed of the central bank , It controls the total supply of money , Thebasic objective is to achieve economic stability
Multiple Choice Multiple AnswerQuestion Main aims of the New Industrial Policy (1991) are
Correct Answer To unshackle the indian industrial economy from the cobwebs of unnecessarybureaucratic control , To introduce liberalization with a view to integrate the indian economywith the world economy , To remove restrictions on direct foreign investment as also to free thedomestic entrepreneur from the restriction of MRTP actYour Answer To unshackle the indian industrial economy from the cobwebs of unnecessarybureaucratic control , To introduce liberalization with a view to integrate the indian economywith the world economy , To remove restrictions on direct foreign investment as also to free thedomestic entrepreneur from the restriction of MRTP act
Multiple Choice Multiple AnswerQuestion Objectives of economic policy are
Correct Answer To increase the efficiency and international competitiveness of industrialproduction , To improve the performance and rationalize the scope of the public sector , Toreform and modernize the financial sectorYour Answer To increase the efficiency and international competitiveness of industrialproduction , To improve the performance and rationalize the scope of the public sector , Toreform and modernize the financial sector
Managerial Economics – 16
Posted by scdlpapers on July 21st, 2010
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Single AnswerQuestionEvery nation‟s resources which are used to produce the quantities of goods and services thatwould be required to satisfy all its citizen‟s wants are Correct AnswerinsufficientYour Answerinsufficient
Match The FollowingQuestionCorrect AnswerYour AnswerManagerial economicsDecision making and forward planningDecision making and forward planningResources
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scarcescarceCommoditiesgoods and servicesgoods and services
Human wantsunlimitedunlimitedGeneral Theory of Employment, Interest and MoneyJ. M. KeynesJ. M. Keynes
Multiple Choice Single AnswerQuestionThe feasibility, which includes the prospects of employment generation, development of backward areas, social groups comprises of
Correct AnswerEconomic feasibilityYour AnswerEconomic feasibility
Multiple Choice Single AnswerQuestionAs far as its use is concerned, tuning in of a radio can be categorized as:Correct AnswerDivisibleYour Answer
DivisibleTrue/FalseQuestionIn a market system of economy, there is no harmony between individual interests and interests of the community.Correct AnswerFalseYour AnswerFalse
True/FalseQuestionInstitution of private property is not an essential feature of Capitalism.Correct AnswerFalseYour AnswerFalse
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Multiple Choice Multiple AnswerQuestionIn case of defense services, all the sections of the society are equally protected and benefited.The defense services in other words isCorrect Answer
indivisible in character , cannot be priced in the market , a public goodYour Answerindivisible in character , cannot be priced in the market
Select The Blank QuestionOn the ________ level, the summation of maximum individual welfare does not automaticallylead to maximum social welfare.Correct AnswermacroYour Answer
microSelect The Blank QuestionWhile discussing the product divisibility of public and private goods, the principle of ________may be applied in case of only those people who do not agree to pay or who cannot pay themarket priceCorrect AnswerexclusionYour Answerexceptions
Select The Blank QuestionThe goods become ________ only when each individual has an access to the entire amount of itand its use by the individual does not reduce its availability to others.Correct AnswerindivisibleYour Answerpublic
Select The Blank QuestionIn the context of formulation of an investment project, ________ feasibility means theavailability of land, plant, machinery, raw materials and technical know how etc.Correct AnswertechnicalYour Answertechnical
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Select The Blank QuestionIn a market economy ________ is the best judge of personal interest.Correct Answerindividual
Your Answerindividual
True/FalseQuestionInflation reduces the purchasing power of people‟s income and savings. Correct AnswerTrueYour AnswerTrue
True/FalseQuestionIn a free-enterprise economy, the problems of what how and for whom are solved by a planningcommitteeCorrect AnswerFalseYour AnswerFalse
Multiple Choice Single AnswerQuestion
A technical unit of given capacity of output isCorrect AnswerplantYour Answerplant
Multiple Choice Multiple AnswerQuestionPreference Shares can be classified asCorrect AnswerSimple Shares , Cumulative Shares , Redeemable SharesYour AnswerSimple Shares , Redeemable Shares
Multiple Choice Multiple AnswerQuestionThe sole proprietorship type of organization is found inCorrect AnswerAgriculture, , Retail trade, , Hotel,
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Your AnswerAgriculture, , Retail trade, , Hotel,
Multiple Choice Multiple AnswerQuestion
Co-operative organizations isCorrect Answervoluntary organization , managed by democratic principle , organization, which performs itsbusiness within the membersYour Answervoluntary organization , managed by democratic principle , non profit motive organization
Select The Blank QuestionA private limited company can be formed with 2 to 50 members maximum, excluding ________Correct Answer
employee shareholdersYour AnswerDirectors
Multiple Choice Single AnswerQuestionThe method of inventory valuation in which , the cost of production is calculated on theassumption that the material which was last to enter the inventory of the company was used firstisCorrect AnswerLIFO
Your AnswerLIFO
True/FalseQuestionProfit should be large enough for a plough – back for business expansion.Correct AnswerTrueYour AnswerTrue
True/FalseQuestionAccounting profit takes in to account opportunity cost.Correct AnswerFalseYour AnswerTrue
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Multiple Choice Multiple AnswerQuestionProfit is regarded asCorrect Answerincome accruing to the equity holders , wages accrue to the labour , rent accrue to the owner
Your Answerincome accruing to the equity holders , rent accrue to the owner
Multiple Choice Single AnswerQuestionChange in income of a person may result in demand for goods toCorrect AnswerchangeYour Answerchange
Multiple Choice Single AnswerQuestionWith decline in price of a commodity, total expenditure spent on the commodity is less thanbefore, then elasticity of demand for the commodity isCorrect Answer< 1Your Answer>1
Multiple Choice Single AnswerQuestion
Peas & beas, groundnut oil & til oil, tea & coffee are examples of Correct Answersubstitutes goodsYour Answersubstitutes goods
True/FalseQuestionDemand for luxury goods is inelasticCorrect AnswerFalseYour AnswerFalse
Match The FollowingQuestionCorrect AnswerYour AnswerIncrease in demand
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Upward shift of the demand curveUpward movement on the demand curveExtension of demandDownward movement on the demand curveVertical Demand curve
Decrease in DemandLeftward shift of the demand curveDownward movement on the demand curveContraction of DemandUpward movement on the demand curveLeftward shift of the demand curve
Select The Blank QuestionIncrease in consumer‟s income leads in the demand for inferior goods to ________ Correct Answer
decreaseYour Answerdecrease
Multiple Choice Multiple AnswerQuestionReasons for change in Demand (Increase or Decrease in Demand)Correct AnswerChange income of consumer , Change in population , Change in fashion and customsYour AnswerChange income of consumer , Change in population , Change in fashion and customs
Multiple Choice Single AnswerQuestionAVC is the per unit variable cost of Correct AnswerproductionYour Answerfixed variable
True/FalseQuestionThe sum of total fixed costs and total variable costs is the total cost.Correct AnswerTrueYour AnswerTrue
Multiple Choice Multiple AnswerQuestion
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The production function can be explained byCorrect AnswerLaw of variable proportions , Laws of returns to scale , Optimum combinations of inputsYour AnswerLaw of variable proportions , Laws of returns to scale
Select The Blank QuestionOutput rises in a lesser proportion to that of the increase in input, under the case of ________.Correct Answerdecreasing returns to scaleYour Answerdecreasing returns to scale
Select The Blank Question
The costs which cover the cost of advertising is ________.Correct AnswerSelling costYour AnswerIncremental cost
Select The Blank QuestionThe out of pocket costs are ________.Correct AnswerExplicit costs
Your AnswerExplicit costs
Select The Blank QuestionBy „ profits‟, the accountant means total revenue minus________. Correct AnswerExplicit costsYour AnswerFixed costs
Multiple Choice Single AnswerQuestionThe supply curve during market period isCorrect Answerperfectly inelasticYour Answerperfectly inelastic
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Multiple Choice Single AnswerQuestionUnder monopoly entry of new firms isCorrect Answerprohibited
Your Answerlimited
True/FalseQuestionIn case of the co-operative societies supplying cheap inputs or supplying consumer products atfair prices, a system of subsidized pricing is followed.Correct AnswerTrueYour AnswerTrue
True/FalseQuestionMarket price fluctuates very often.Correct AnswerTrueYour AnswerTrue
Multiple Choice Multiple AnswerQuestion
Macro Economics is the study of Correct AnswerThe aggregate behavior of the economy , The behavior of economic agents , Problems such asthe rates of inflation, the balance of payments, etcYour AnswerThe aggregate behavior of the economy , Problems such as the rates of inflation, the balance of payments, etc , Economic welfare
Multiple Choice Multiple AnswerQuestionThe subject matter of Micro economics includes the study of Correct Answeran individual consumer , particular market for a given commodity , operation of a firmYour Answeran individual consumer , particular market for a given commodity , major economic issues ,problems & policies
Multiple Choice Multiple AnswerQuestion
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16. The phase of recovery denotesCorrect AnswerMore employment opportunities , Increase in profitability , Wage rate increaseYour AnswerMore employment opportunities , Increase in profitability , Wage rate increase
Multiple Choice Multiple AnswerQuestionQuantitative credit control measures areCorrect Answeropen market operations , changes in bank rates , changes in statutory reserve ratioYour Answeropen market operations , moral suasion
Multiple Choice Single AnswerQuestion
The government has adopted a system of dual prices in the case of Correct Answeressential goodsYour Answeressential goods
Multiple Choice Multiple AnswerQuestionThe disinvestments of industries is needed forCorrect AnswerPhased privatization , Reducing deficit , Capital support to plans
Your AnswerPhased privatization , Reducing deficit , Capital support to plans
Managerial Economics – 17
Posted by scdlpapers on July 21st, 2010
LIST OF ATTEMPTED QUESTIONS AND ANSWERS ME1
Question In India, the first phase of economic reforms is believed to have begun in 1985 whenVishwanath Pratap Singh was the Prime Minister of the country.
Correct Answer FalseYour Answer False
Question Price discrimination is possible in case of Correct Answer public utilities with legal sanction , personnel services sold , geographicalbarriersYour Answer public utilities with legal sanction , personnel services sold , geographical barriers
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Question The methods of calculating depreciation isCorrect Answer Diminishing Balance Method , Annuity Method , Service Unit MethodYour Answer Diminishing Balance Method , Annuity Method , Service Unit Method
Question Correct Answer Your Answer
Break even point T.R. = T.C. T.R. = T.C.
Normal profit Implicit cost Short run cost
Average variable cost (A.V.C.) Short run cost Explicit cost
Change in supply Increase and decrease in supply Expansion and contraction of supply
Question A competitive industry has three basic characteristicsCorrect Answer Large Number of Firms , Homogeneous Product , Free entry and exit
Your Answer Large Number of Firms , Homogeneous Product , Free entry and exit
Question To solve the unemployment problem , the level of effective demand must decrease.Correct Answer FalseYour Answer True
Question The act of using goods and services to satisfy wants is calledCorrect Answer consumptionYour Answer consumption
Question The minimum number of directors which public limited should have is ________.
Correct Answer 3Your Answer 3
Question The factors of production areCorrect Answer Labour , Land , CapitalYour Answer Labour , Land , Profit
Question Economists have pointed out that the real world is full of Correct Answer Imperfect competitionYour Answer Monopolistic competition
Question According to J.M. Keynes, the equilibrium between the aggregate demand function andthe aggregate supply function can, and often does take place atCorrect Answer less than full employmentYour Answer full employment
Question Important theories of profits areCorrect Answer Uncertainty-bearing theory of profit , Dynamic theory of profit , Life cycle
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theoryYour Answer Risk taking theory , Uncertainty-bearing theory of profit , Dynamic theory of profit
Question The things that are produced by factors of production are calledCorrect Answer commodities
Your Answer commodities
Question Demand is determined byCorrect Answer Price of the product , Relative prices of other goods , Tastes and habitsYour Answer Price of the product , Relative prices of other goods , Tastes and habits
Question The necessary condition of profit maximization of a firm is that Marginal Revenue(M.R) must be equal to ________.Correct Answer Marginal cost (M.C)Your Answer Marginal cost (M.C)
Question The concept of just distribution of national product is aCorrect Answer normativeYour Answer objective
Question Dalal Street in Bombay is known asCorrect Answer Bombay Stock ExchangeYour Answer Bombay Stock Exchange
Question The type economic problem isCorrect Answer universalYour Answer universal
Question Preference share holders get a rate of dividend which isCorrect Answer fixedYour Answer high
Question The act of making goods and services is calledCorrect Answer productionYour Answer production
Question Contraction of supply is traced by the downward movement on the supply curveCorrect Answer True
Your Answer TrueQuestion Baumol has suggested as an alternative objective for profit maximization , themaximization of ________Correct Answer salesYour Answer sales
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Match The FollowingQuestion Correct Answer Your Answer
Commodities goods and services goods and services
Human wants unlimited unlimited
General Theory of Employment, Interest and Money J. M. Keynes J. M. Keynes
Managerial economics Decision making and forward planning Decision making and forwardplanning
Resources scarce scarce
Question In the traditional concept of equil ibrium, a firm attains the equilibrium when the firm‟sTotal Revenue (T.R.) =Total Cost (T.C.).
Correct Answer FalseYour Answer True
Question Under cost plus pricingCorrect Answer The price is set to cover material, labour cost , Actual costs, standard costs areincluded , Certain percentage of profit also includedYour Answer The price is set to cover material, labour cost , Actual costs, standard costs areincluded , Certain percentage of profit also included
Question In economics, supply is considered to be aCorrect Answer relative term
Your Answer relative term
Question In economics the question related to the selection of methods with which commoditiesare produced is a subject matter of Correct Answer theory of productionYour Answer theory of production
Question Under the decreasing returns to scale, the marginal output curve slopes ________.Correct Answer downwardYour Answer downward
Question Managerial economics generally refers to the integration of economic theory withbusinessCorrect Answer PracticeYour Answer Practice
Question Steps in cost benefit analysisCorrect Answer Identification of a project , Formulation of the project , Appraisal and selectionof the project
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Your Answer Identification of a project , Formulation of the project , Appraisal and selection of the project
Question Slope of supply curve isCorrect Answer positive
Your Answer positive
Question The salary of the proprietor or rent on own land are the ________.Correct Answer Implicit costYour Answer Implicit cost
Question The profits which must be deducted from the gross profits to arrive at net profits areCorrect Answer Monopoly ProfitsYour Answer Monopoly Profits
Question We say that a nation faces economic problems , under following conditions
Correct Answer Man has unlimited wants or ends , The means or resources to satisfy them arelimited , These resources are not specific but have alternative usesYour Answer Man has unlimited wants or ends , The means or resources to satisfy them arelimited , These resources are not specific but have alternative uses
Question A shift in the demand curve to the left shows increase in demand.Correct Answer FalseYour Answer False
Question The sum of total fixed costs and total variable costs is the total cost.Correct Answer True
Your Answer TrueQuestion A Joint- Stock Company is owned by its share holders but it is managed byCorrect Answer Board of DirectorsYour Answer Non-government organization
Question The liability of a Karta in a Joint Hindu Family Business firm is ________.Correct Answer limitedYour Answer joint
Question A fall in price tends the demand for goods to ________
Correct Answer expandYour Answer increase
Question The supply curve slopes downwards from left to right.Correct Answer FalseYour Answer False
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Question Poverty is the root cause of Economic problem.Correct Answer FalseYour Answer False
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 insufficientYour Answer insufficient
Question In case of a proprietory firm, the liability for all his debts isCorrect Answer unlimitedYour Answer unlimited
Question The city of Kashmir has specialized in the manufacture of Correct Answer shawlsYour Answer shawls
Question The Laws of Returns to scale areCorrect Answer Law of Increasing Returns to Scale , Law of Constant Returns to Scale , Law of Decreasing Returns to scaleYour Answer Law of Increasing Returns to Scale , Law of Constant Returns to Scale , Law of Decreasing Returns to scale
Question Managerial economics is also understood to refer toCorrect Answer applied economicsYour Answer applied economics
Question The registration of a partnership firm is voluntaryCorrect Answer True Your Answer True
Managerial Economics – 18
Posted by scdlpapers on July 21st, 2010
LIST OF ATTEMPTED QUESTIONS AND ANSWERS ME2
Question A responsible factor for inflation isCorrect Answer hike in pricesYour Answer hike in prices
Question Economists call all human resources asCorrect Answer laborYour Answer labor
Question The wage and salary earners who get fixed income in terms of money are benefitedduring inflation.
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Correct Answer FalseYour Answer False
Question Over the years in India the govt. expenditure isCorrect Answer increasing
Your Answer increasing
Question Given the price, if the cost of production increases because of higher price of rawmaterials, the supplyCorrect Answer decreasesYour Answer decreases
Question All the man made resources which are used in the process of making other goods andservices are calledCorrect Answer capitalYour Answer capital
Question Micro-economics is primarily concerned with the problem of what, how and for whomto produce?Correct Answer FalseYour Answer False
Question Inflation is characterized by excess of demand.Correct Answer TrueYour Answer True
Question Individual Demand Schedule
Correct Answer Is in tabular form , It shows the prices of goods , It shows the quantities of acommodity purchasedYour Answer Is in tabular form , It shows the prices of goods , It shows the quantities of acommodity purchased
Question Measurement of profit becomes difficult because of the difficulty involved in thecalculation of depreciation.Correct Answer TrueYour Answer False
Question Main aims of the New Industrial Policy (1991) are
Correct Answer To unshackle the indian industrial economy from the cobwebs of unnecessarybureaucratic control , To introduce liberalization with a view to integrate the indian economywith the world economy , To remove restrictions on direct foreign investment as also to free thedomestic entrepreneur from the restriction of MRTP actYour Answer To unshackle the indian industrial economy from the cobwebs of unnecessarybureaucratic control , To introduce liberalization with a view to integrate the indian economywith the world economy , To remove restrictions on direct foreign investment as also to free thedomestic entrepreneur from the restriction of MRTP act
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Question Free riders‟ is a term associated with the people who would like to have benefit of agood without sharing the cost of its supply.Correct Answer TrueYour Answer True
Question Managerial economics aims at providing help in the firms isCorrect Answer decision makingYour Answer decision making
Question The persons who own the ________hip concern are called Partners.Correct Answer PartnersYour Answer Partners
Question The minimum number of directors which private limited should have is ________.Correct Answer 2Your Answer 2
Question Generally, the larger the income of a consumer, his demand for overall commoditiestends to be relatively elastic.Correct Answer FalseYour 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 citiesis an example of ________ cost.Correct Answer socialYour 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 upwardsloping curve. upward sloping curve.
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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 investmentsYour Answer investments
Question Variable cost are those costs which vary with the level of Correct Answer outputYour Answer output
Question An individual consumer or particular market for a given commodity are the subjectmatter of
Correct Answer Micro EconomicsYour Answer Micro Economics
Question In the Dynamic Theory of Profit, Prof. Clark has pointed out the types of changes,which areCorrect Answer Changes in the supply of capital , Changes in population , Changes in thetechniques of productionYour Answer Changes in the supply of capital , Changes in population , Changes in thetechniques 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 TrueYour Answer True
Question True inflation starts only after reaching the level of fullCorrect Answer EmploymentYour Answer Employment
Question All the free gifts of nature which are commonly called natural resources are known toeconomists asCorrect Answer Land
Your Answer LandQuestion Reasons for need of public distribution system areCorrect Answer To maintain stable price conditions , To bring an efficient management of thesupply , To supply the necessary goods to people at reasonable priceYour Answer To maintain stable price conditions , To bring an efficient management of thesupply , To supply the necessary goods to people at reasonable price
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Question Production Function implies relationship betweenCorrect Answer input & outputYour Answer input & output
Question The important determinants of supply are
Correct Answer Always referred to in relation to price & time , Government policy , Availabilityof factors of productionYour 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 andservices among its members are topics inCorrect Answer theory of distributionYour Answer theory of distribution
Question Demand for a commodity depends on the relative price of its ________
Correct Answer substitute goodsYour Answer substitute goods
Question In case of the co-operative societies supplying cheap inputs or supplying consumerproducts at fair prices, a system of subsidized pricing is followed.Correct Answer TrueYour Answer False
Question During periods of inflation, the income of farmers as a class decreases.Correct Answer TrueYour Answer True
Question By „ profits‟, the accountant means total revenue minus________. Correct Answer Explicit costsYour Answer Sunk cost
Question The index numbers which measure the changes in the general price level of a countryrefers to ________Correct Answer Wholesale prices indexYour Answer Commodity prices index
Question The study of the working and allocation of resources in the free market economies is
the topic in theCorrect Answer theory of priceYour Answer theory of price
Question According to the Government, the buildup of inflationary pressure during the Ninetieswas attributed toCorrect Answer Higher Fiscal deficitYour Answer Higher Fiscal deficit
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Question In economics the questions related to the dynamic or static ( otherwise) capacity of theeconomy to produce goods and services are topics in theCorrect Answer theory of economic growthYour Answer theory of economic growth
Question Increasing Returns explainsCorrect Answer Total product increases at an increasing rate , Marginal product increasing and itis maximum , Average product is increasing but it is below MPYour Answer Total product increases at an increasing rate , Marginal product increasing and it ismaximum , Average product is increasing but it is below MP
Question Implicit costs areCorrect Answer Cost on self owned resources , Costs of salary of the proprietor , Interest on theentrepreneur‟s own investment Your Answer Cost on self owned resources , Costs of salary of the proprietor , Interest on theentrepreneur‟s own investment
Question Characteristics of the phase of Depression areCorrect Answer Decrease in economic activities , The growth rate becomes negative , The levelof national income declines rapidlyYour 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 resourcesCorrect Answer FalseYour Answer True
Question Economists like A.C.Harberger have shown that the cost benefit analysis can beapplied to ________ analysis.Correct Answer general equilibriumYour Answer general equilibrium
Question Break-Even analysis is derived byCorrect Answer Fixed cost , Average variable cost , Quantity of goods and priceYour 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 businesssolutionYour 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
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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 technicalYour Answer infrastructure
Question Scarcity of resources is the root cause of economic problem.Correct Answer TrueYour Answer True
Question Inflation reduces the purchasing power of people‟s income and savings. Correct Answer TrueYour Answer True
Question Demand for safety pins is ________Correct Answer inelasticYour Answer relatively inelastic
Question Reasonable profit target as an alternative to the objective of profit maximization wassuggested by ________.Correct Answer Joel DeanYour 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 scaleYour Answer decreasing returns to scale
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Question Social costs cannot be included in a firm‟s account book. Correct Answer TrueYour Answer False
Question Economic problem arises only in case of an overpopulated country.
Correct Answer FalseYour Answer False
Question The cost which enter the accounts book of the firm are referred as ________.Correct Answer Accounting costYour Answer Accounting cost
Question The question regarding the nature and quantities of commodities to be produced issolely restricted to capitalist economies.Correct Answer FalseYour Answer True
Question There are no real exceptions to the law of demandCorrect Answer FalseYour Answer False
Question The federal government of U.S.A. does not face the basic economic problem.Correct Answer FalseYour Answer False
Question The subject matter of managerial economics covers two important areas namelydecision-making and
Correct Answer forward PlanningYour Answer forward Planning
Match The FollowingQuestion 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 thedemand curve
Increase in demand Upward shift of the demand curve Upward shift of the demand curveExtension of demand Downward movement on the demand curve Downward movement on thedemand curve
Question The promoters of a company can get incorporated by filing with the registrarof companies various documents such as
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Correct Answer Memorandum of Association , Articles of Association , ProspectusYour Answer Articles of Association , Prospectus
Question Features of public sector enterprisesCorrect Answer it is controlled by the state , separate funds to undertake their activity , they are
accountable to publicYour Answer it is controlled by the state , separate funds to undertake their activity , they areaccountable to public
Question The production function studiesCorrect Answer Input and out put relation , Factors of production and final production ,Technology used in productionYour Answer Input and out put relation , Factors of production and final production , Demandfor production
Question In the 3rd stage of operation of the law of variable proportions, the marginal product
becomes ________.Correct Answer negativeYour Answer negative
Question In a market economy ________ is the best judge of personal interest.Correct Answer individualYour Answer public
Question All the buyers and sellers operating under perfect competition have knowledge whichisCorrect Answer perfect
Your Answer perfectQuestion In a market system of an economy, producers are guided by ________ motive.Correct Answer profitYour Answer profit
Question The cost recorded in the books of accounts are considered asCorrect Answer explicit costsYour Answer explicit costs
Question Demand forecasts are necessary for
Correct Answer Fulfillment of objective of the plans , Preparation of a budget , Expansion of firmsYour 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 TrueYour Answer True
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Question Features of an Industry areCorrect Answer All firms dealing in the same line of business , The ownership and managementof each firm is different , Is a group of firmsYour 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 isCorrect Answer Unlimited Capital , Ownership by a single person , Easy to formYour Answer Ownership by a single person , Easy to form
Question Normally, a larger quantity is demanded atCorrect Answer lower priceYour Answer lower price
Question When a company rasies additional finance by borrowing from the public for a specificperiod of time at a particular rate of interest, it is called as
Correct Answer DebenturesYour Answer Debentures
Question In cost benefit analysis, in the valuation of costs and benefits, for finding the presentvalue, one has to make use of Correct Answer discount rateYour Answer discount rate
Question Like a particular street in a city , the entire city may sometimes specialize in theproduction of a particular commodity . The city acquire the status of aCorrect Answer national market
Your Answer capital marketQuestion Types of Share capital of Joint-Stock Company areCorrect Answer registered or authorized capital , issued capital , paid-up capitalYour Answer registered or authorized capital , issued capital , paid-up capital
Question An upward sloping demand curve is called ________Correct Answer exceptional demand curveYour 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 demandYour Answer Price elasticity of demand , Income elasticity of demand , Cross elasticity of demand
Question Cournot‟ , the economists who defined the term „market‟ diff erent from that of thetraditional sense is an
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Correct Answer French economistsYour 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 TrueYour Answer True
Question A monopolist in a price maker.Correct Answer TrueYour Answer True
Question The demand curve (A.R.) of a firm under perfect competition is
Correct Answer perfectly elasticYour Answer perfectly elastic
Question Managerial economics aims at providing guidance to the firms forCorrect Answer decision makingYour Answer decision making
Question In case of defense services, all the sections of the society are equally protected andbenefited. The defense services in other words isCorrect Answer indivisible in character , cannot be priced in the market , a public goodYour 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 TrueYour Answer True
Question The subject matter of macro – economics includes the theory of income andemployment at an individual level.Correct Answer FalseYour Answer False
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LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Multiple AnswerQuestion Types of Share capital of Joint-Stock Company are
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Correct Answer registered or authorized capital , issued capital , paid-up capitalYour Answer registered or authorized capital , issued capital , paid-up capital
Match The FollowingQuestion Correct Answer Your Answer
Equilibrium price is the price where the quantity demanded equals quantity supplied quantitydemanded equals quantity supplied
Excess supply can be defined as quantity supplied minus quantity demanded. quantity suppliedminus quantity demanded.
Tea and sugar Complimentary goods Complimentary goods
Excess demand can be defined as quantity demanded minus quantity supplied quantity demandedminus quantity supplied
Multiple Choice Single AnswerQuestion The act of making goods and services is calledCorrect Answer productionYour Answer production
Multiple Choice Single AnswerQuestion The act of using goods and services to satisfy wants is calledCorrect Answer consumptionYour Answer consumption
Select The Blank Question The liability of a Karta in a Joint Hindu Family Business firm is ________.Correct Answer limitedYour Answer limited
Select The Blank Question Demand for a commodity depends on the relative price of its ________Correct Answer substitute goodsYour Answer substitute goods
Multiple Choice Multiple Answer
Question reasonable profit‟ are Correct Answer Capital Attraction , Plough Back , Normal earningsYour Answer Capital Attraction , Plough Back , Normal earnings
Multiple Choice Multiple AnswerQuestion Features of Long -run market areCorrect Answer It is durable goods market , Supply can be increased or reduced according to thedemand , Sellers at least recover minimum price for their goods
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Your Answer It is durable goods market , Supply can be increased or reduced according to thedemand , Sellers at least recover minimum price for their goods
Multiple Choice Single AnswerQuestion The type economic problem is
Correct Answer universalYour Answer universal
Select The Blank Question In a market system of an economy, producers are guided by ________ motive.Correct Answer profitYour Answer profit
Multiple Choice Single AnswerQuestion An individual consumer or particular market for a given commodity are the subjectmatter of
Correct Answer Micro EconomicsYour Answer Micro Economics
Select The Blank Question The index numbers which measure the changes in the general price level of a countryrefers to ________Correct Answer Wholesale prices indexYour Answer Wholesale prices index
Multiple Choice Single AnswerQuestion While calculating accounting profit, the costs which are considered are by nature
Correct Answer explicitYour Answer implicit
Multiple Choice Single AnswerQuestion Given the price, if the cost of production increases because of higher price of rawmaterials, the supplyCorrect Answer decreasesYour Answer decreases
Multiple Choice Single AnswerQuestion The things that are produced by factors of production are called
Correct Answer commoditiesYour Answer commodities
Multiple Choice Single AnswerQuestion The concept of just distribution of national product is aCorrect Answer normativeYour Answer normative
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Multiple Choice Single AnswerQuestion In economics the question related to the selection of methods with which commoditiesare produced is a subject matter of Correct Answer theory of productionYour Answer theory of production
True/FalseQuestion In case of the co-operative societies supplying cheap inputs or supplying consumerproducts at fair prices, a system of subsidized pricing is followed.Correct Answer TrueYour Answer True
Select The Blank Question Modern economists treat social cost and benefits as ________ of private investmentand production decisions.Correct Answer externalities
Your Answer externalities
Multiple Choice Multiple AnswerQuestion The market system of economy is based on the following foundations:Correct Answer Consumer‟s Sovereignty , Non -interference by the state. , Private Profit MotiveYour Answer Consumer‟s Sovereignty , Private Profit Motive , Existence of monopoly
Select The Blank Question The indivisible goods to which the principle exclusion does not apply are called________ goods.Correct Answer pure public
Your Answer privateSelect The Blank Question The goods become ________ only when each individual has an access to the entireamount of it and its use by the individual does not reduce its availability to others.Correct Answer indivisibleYour Answer public
Multiple Choice Single AnswerQuestion The city of Banaras has specialized in the manufacture of Correct Answer silk Your Answer silk
True/FalseQuestion During inflation, the pensioners whose income is permanently fixed, are substantiallybenefited.Correct Answer FalseYour Answer False
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Select The Blank Question Economists like A.C.Harberger have shown that the cost benefit analysis can beapplied to ________ analysis.Correct Answer general equilibriumYour Answer general equilibrium
True/FalseQuestion Generally, the larger the income of a consumer, his demand for overall commoditiestends to be relatively elastic.Correct Answer FalseYour Answer False
Multiple Choice Single AnswerQuestion In economics the questions related to the division of society‟s output of goods andservices among its members are topics inCorrect Answer theory of distribution
Your Answer theory of distribution
True/FalseQuestion Supply management is related to the volume ofsupply & its distribution system.Correct Answer TrueYour Answer True
Select The Blank Question Demand for safety pins is ________Correct Answer inelasticYour Answer inelastic
Multiple Choice Single AnswerQuestion Every nation‟s resources which are used to produce the quantities of goods and servicesthat would be required to satisfy all its citizen‟s wants are Correct Answer insufficientYour Answer insufficient
True/FalseQuestion Under the disinvestments process, there is full transfer of ownershipCorrect Answer TrueYour Answer False
Multiple Choice Single AnswerQuestion In cost – benefit analysis, after the step of appraisal and selection of the project is thestep of Correct Answer comparison of the cash flowYour Answer comparison of the cash flow
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Multiple Choice Single AnswerQuestion When a company rasies additional finance by borrowing from the public for a specificperiod of time at a particular rate of interest, it is called asCorrect Answer DebenturesYour Answer Debentures
Multiple Choice Multiple AnswerQuestion Features of market period areCorrect Answer Related to few hours or few days , Related to perishable goods , The entiresupply is to be disposed off on the same dayYour Answer Related to few hours or few days , Related to perishable goods , The entire supplyis to be disposed off on the same day
Select The Blank Question In the context of formulating an investment project, ________ feasibility means theavailability of supervisors for implementing and running the project smoothly and professionally.
Correct Answer managementYour Answer organizational
Multiple Choice Multiple AnswerQuestion Increasing Returns explainsCorrect Answer Total product increases at an increasing rate , Marginal product increasing and itis maximum , Average product is increasing but it is below MPYour Answer Total product increases at an increasing rate , Marginal product increasing and it ismaximum , Average product is increasing but it is below MP
Multiple Choice Single Answer
Question Managerial economics generally refers to the integration of economic theory withbusinessCorrect Answer PracticeYour Answer Practice
Multiple Choice Multiple AnswerQuestion Scope of Managerial Economics deals withCorrect Answer Demand analysis and forecasting , Production function & cost analysis ,Inventory management adverting, price systemYour Answer Demand analysis and forecasting , Production function & cost analysis , Inventorymanagement adverting, price system
Multiple Choice Single AnswerQuestion The observation of economic histories of the United States & West European countriesshows that competition , the heart of market mechanism gives rise toCorrect Answer monopoliesYour Answer price competition
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Match The FollowingQuestion Correct Answer Your Answer
Chance profit Outbreak of war Outbreak of war
Innovation theory of profit Joseph Schumpeter Joseph Schumpeter
Uncertainly bearing F. H. Knight theory F. H. Knight theory
Implicit cost Opportunity cost Opportunity cost
Multiple Choice Single AnswerQuestion During a period of rising prices (inflation), the goods and services areCorrect Answer scarceYour Answer are also increasing
True/FalseQuestion Contraction of supply is traced by the downward movement on the supply curveCorrect Answer TrueYour Answer True
Multiple Choice Single AnswerQuestion Over the years in India the govt. expenditure isCorrect Answer increasingYour Answer increasing
True/False
Question To solve the unemployment problem , the level of effective demand must decrease.Correct Answer FalseYour Answer False
True/FalseQuestion Demand is related to price, time and place.Correct Answer TrueYour Answer False
Multiple Choice Single AnswerQuestion Managerial economics is also understood to refer to
Correct Answer applied economicsYour Answer applied economics
Select The Blank Question A fall in price tends the demand for goods to ________Correct Answer expand Your Answer expand
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LIST OF ATTEMPTED QUESTIONS AND ANSWERS
True/False
Question Macro economic studies are based on empirical evidence.Correct Answer TrueYour Answer True
Select The Blank Question According to the World Bank‟s approach, the trade able items would be valued at thecorresponding world prices and the non-trade able items at the ________.Correct Answer shadow pricesYour Answer market prices
Multiple Choice Single Answer
Question The study of the working and allocation of resources in the free market economies isthe topic in theCorrect Answer theory of priceYour Answer theory of price
Multiple Choice Single AnswerQuestion Costs which increase because of the expansion of a firm are calledCorrect Answer incrementalYour Answer incremental
True/False
Question In the Long- run, supply of goods can be adjusted to the demand and therefore supplycurve is horizontal to the X-axis.Correct Answer FalseYour Answer True
Select The Blank Question By „ profits‟, the accountant means total revenue minus________. Correct Answer Explicit costsYour Answer Implicit cost
Multiple Choice Multiple Answer
Question Features of short run period areCorrect Answer Supply of goods can be adjusted to the demand to some extent , Supply anddemand determine the price , Some factors can be changedYour Answer Supply of goods can be adjusted to the demand to some extent , Supply anddemand determine the price , Some factors can be changed
Select The Blank Question The law of constant returns to scale is depicted by the marginal output curve which is
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________.Correct Answer horizontalYour Answer horizontal
Multiple Choice Single Answer
Question The method of calculating depreciation in which the actual working hours of a capitalasset are taken in to account isCorrect Answer service unitYour Answer service unit
True/FalseQuestion Demand curve slopes upwards from left to right.Correct Answer FalseYour Answer False
Multiple Choice Single Answer
Question All the free gifts of nature which are commonly called natural resources are known toeconomists asCorrect Answer LandYour Answer Land
True/FalseQuestion Macro-economies is a policy oriented science.Correct Answer TrueYour Answer True
Multiple Choice Single Answer
Question The assumption of perfect competition in all the analytical theories is made byCorrect Answer Classical economistsYour Answer Keynesian economists
Select The Blank Question In the 3rd stage of operation of the law of variable proportions, the marginal productbecomes ________.Correct Answer negativeYour Answer positive
Multiple Choice Multiple Answer
Question Reasons for need of public distribution system areCorrect Answer To maintain stable price conditions , To bring an efficient management of thesupply , To supply the necessary goods to people at reasonable priceYour Answer To maintain stable price conditions , To bring an efficient management of thesupply , To supply the necessary goods to people at reasonable price
Select The Blank Question When demand for the product increases in the same proportion in which income
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increases, Income elasticity of demand will be equal to________Correct Answer unityYour Answer greater than unity
Multiple Choice Multiple Answer
Question Accounting profit includesCorrect Answer wages , rent , interestYour Answer wages , rent , interest
Multiple Choice Multiple AnswerQuestion The fiscal policy includesCorrect Answer Formation of taxation policy , It is an instrument for economic stabilization ,Monitoring of public expenditureYour Answer Formation of taxation policy , It is an instrument for economic stabilization ,Monitoring of public expenditure
Multiple Choice Single AnswerQuestion The method of inventory valuation in which , the cost of production is calculated on theassumption that the material which was last to enter the inventory of the company was used firstisCorrect Answer LIFOYour Answer LIFO
Select The Blank Question A private limited company can be formed with 2 to 50 members maximum, excluding________Correct Answer employee shareholders
Your Answer employee shareholdersMultiple Choice Single AnswerQuestion The number of sellers operating under monopolistic competition as compare tooligopoly isCorrect Answer largerYour Answer larger
Multiple Choice Multiple AnswerQuestion Causes for rise in prices in IndiaCorrect Answer Mounting government expenditure , Deficit financing and increase in moneysupply , Role of black moneyYour Answer Mounting government expenditure , Deficit financing and increase in moneysupply , Increase in demand
True/FalseQuestion Social costs cannot be included in a firm‟s account book. Correct Answer TrueYour Answer False
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Multiple Choice Single AnswerQuestion AVC is the per unit variable cost of Correct Answer productionYour Answer total revenue
Multiple Choice Multiple AnswerQuestion Exceptions to the Law of Demand areCorrect Answer Giffen goods , Articles of snob appeal , SpeculationYour Answer Giffen goods , Articles of snob appeal , Speculation
Question In the cost – benefit analysis, the first step involved is that the investor has to choose afew project alternatives promising aCorrect Answer high rate of returnYour Answer high rate of return
Question In the Dynamic Theory of Profit, Prof. Clark has pointed out the types of changes,
which areCorrect Answer Changes in the supply of capital , Changes in population , Changes in thetechniques of productionYour Answer Changes in the supply of capital , Changes in population , Changes in thetechniques of production
Question Economic problem is faced by poor countrys only.Correct Answer FalseYour Answer False
Match The Following
Question Correct Answer Your AnswerPure private goods Divisible goods Divisible goods
Self -interest Market economy Neighborhood
Danger from drunken drivers Negative economies Negative economies
Impure public goods Quasi – public goods Quasi – public goods
Multiple Choice Multiple Answer
Question Types of imperfect competition areCorrect Answer Monopoly , Duopoly , OligopolyYour Answer Monopoly , Duopoly , Oligopoly
Question If the output rises in the greater proportion than that of the increase in factor inputs, it isreferred to as ________.Correct Answer increasing returns to scale.Your Answer increasing returns to scale.
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Question Investment is significant becauseCorrect Answer Addition to the real capital assets , It leads to increase in level of income ,Increases accumulated wealth of the societyYour Answer Addition to the real capital assets , It leads to increase in level of income ,Increases accumulated wealth of the society
Question In the context of externalities, driving the smoke-emitting buses and trucks in the citiesis an example of ________ cost.Correct Answer socialYour Answer social
Question According to Lionel Robbins, “Economics is a science which studies Correct Answer human behaviorYour Answer economic variables behavior
Question The out of pocket costs are ________.
Correct Answer Explicit costsYour Answer Explicit costs
Question A firm gets an opportunity to produce multiple products because changes in businessactivity in a firms isCorrect Answer cyclicalYour Answer rapid
Question Market system or market economy suffers from time to time from economicdepressions.Correct Answer True
Your Answer TrueQuestion Under competitive conditions, market mechanism would automatically bringequilibrium at the level of Correct Answer full employmentYour Answer optimum produce
Question Micro-economics is primarily concerned with the problem of what, how and for whomto produce?Correct Answer FalseYour Answer True
Question Factors influencing selling costs areCorrect Answer Type of product , Introduction of new goods , Technology changesYour Answer Type of product , Introduction of new goods , Advertising by customers
Question The important determinants of supply areCorrect Answer Always referred to in relation to price & time , Government policy , Availabilityof factors of production
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Your Answer Always referred to in relation to price & time , Government policy , Availability of factors of production
Question The slope of Supply curve of labour is alwaysCorrect Answer backward
Your Answer upward
Question In economics the questions related to the dynamic or static ( otherwise) capacity of theeconomy to produce goods and services are topics in theCorrect Answer theory of economic growthYour Answer theory of economic growth
Question Features of monopolistic Competition areCorrect Answer Fairly large number of firms , Product differentiation , Selling costs are existedYour Answer Fairly large number of firms , Product differentiation , Selling costs are existed
Question Under perfect competition,firms are free to enter and exit in the market.Correct Answer TrueYour Answer True
Match The FollowingQuestion 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 Under perfect competition single seller can influence the price.Correct Answer False Your Answer False
Managerial Economics – 22
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LIST OF ATTEMPTED QUESTIONS AND ANSWERS
True/FalseQuestion The damage being done by the factories at and around Agra to Taj Mahal is an exampleof social cost for private benefit.
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Correct Answer TrueYour Answer True
Multiple Choice Single AnswerQuestion The Risk theory of profit was developed by
Correct Answer HawleyYour Answer Hawley
Multiple Choice Multiple AnswerQuestion Index numbers may broadly be classified asCorrect Answer Price indices , Quantity indices , Special purpose indicesYour Answer Price indices , Quantity indices , Special purpose indices
Multiple Choice Single AnswerQuestion Expansion of supply is shown by the movement in the supply curve which isCorrect Answer upward
Your Answer upward
Multiple Choice Multiple AnswerQuestion Forms of Public EnterprisesCorrect Answer departmental management , company management or management by boards ,public corporationsYour Answer departmental management , company management or management by boards ,public corporations
Select The Blank Question The financing of ________ goods is done through public expenditure.
Correct Answer publicYour Answer public
Multiple Choice Single AnswerQuestion A Joint- Stock Company is owned by its share holders but it is managed byCorrect Answer Board of DirectorsYour Answer Board of Directors
Multiple Choice Multiple AnswerQuestion The examples of negative externalities areCorrect Answer nuclear power plants , gargantuan trucks , unsafe factories
Your Answer nuclear power plants , gargantuan trucks , unsafe factoriesMatch The FollowingQuestion Correct Answer Your Answer
Reduction in demand due to a new substitute in market Uncertainity Uncertainity
Accounting profit Explicit costs Explicit costs
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Economic profit Pure profit Pure profit
Risk taking theory Hawley Hawley
Multiple Choice Single Answer
Question Peas & beas, groundnut oil & til oil, tea & coffee are examples of Correct Answer substitutes goodsYour Answer complimentary goods
Select The Blank Question Output rises in a lesser proportion to that of the increase in input, under the case of ________.Correct Answer decreasing returns to scaleYour Answer decreasing returns to scale
True/False
Question A monopolist in a price maker.Correct Answer TrueYour Answer True
Select The Blank Question The chemical effluents recklessly released by a chemical factory in the river causingwater pollution, is an example of ________ cost.Correct Answer socialYour Answer environmental
True/False
Question The financing of the pure public goods has to be through public expenditure and notthrough market pricing.Correct Answer TrueYour Answer True
Multiple Choice Single AnswerQuestion A firm is a unit of production, where production is done with the aim to maximizeCorrect Answer profitsYour Answer profits
Select The Blank
Question By „ profits‟, th e economist means total revenue minus ________.Correct Answer All costsYour Answer Explicit costs
Multiple Choice Multiple AnswerQuestion Cost-Benefit Analysis isCorrect Answer The analysis undertaken to judge the investment of any project , Refers tofinding out the worth of investment , Enable ranking of optional investments
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Your Answer The analysis undertaken to judge the investment of any project , Refers to findingout the worth of investment , Enable ranking of optional investments
True/FalseQuestion Giffen goods are superior goods.
Correct Answer FalseYour Answer False
Multiple Choice Multiple AnswerQuestion The railways use a lot of coal in firing the steam locomotives. This act causesCorrect Answer a lot of sufferings to the people near the railway. , cost to the society. , no cost tothe railways.Your Answer a lot of sufferings to the people near the railway. , cost to the society. , no cost tothe railways.
Multiple Choice Single Answer
Question All the buyers and sellers operating under perfect competition have knowledgeCorrect Answer perfectYour Answer perfect
Multiple Choice Multiple AnswerQuestion Marginal cost pricing explains that theCorrect Answer Price charged should be equal to the marginal cost , Cost price sets the lowerlimi ts for firm‟s price , Cost price ensures the possible level of profitability Your Answer Price charged should be equal to the marginal cost , Cost price sets the lower limitsfor firm‟s price , Cost price ensures the possible level of profitability
True/FalseQuestion The question regarding the nature and quantities of commodities to be produced issolely restricted to capitalist economies.Correct Answer FalseYour Answer False
Match The FollowingQuestion Correct Answer Your Answer
Implicit costs are the cost of resources owned by the firm. of resources owned by the firm.
Opportunity costs are also known as alternative costs alternative costsThe difference between average total cost &average fixed cost shows variable cost variable cost
The difference between average cost and average revenue is average profit average profit
True/FalseQuestion During the period of depression, a large part of a country‟s resources lie involuntarily
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idle.Correct Answer TrueYour Answer True
Multiple Choice Single Answer
Question The demand curve (A.R.) of a firm under perfect competition isCorrect Answer perfectly elasticYour Answer perfectly elastic
Select The Blank Question The externality which causes an economic gain or an economic loss to other economicunits is also referred to as ________ externality.Correct Answer PecuniaryYour Answer Pecuniary
Select The Blank
Question While discussing the product divisibility of public and private goods, the principle of ________ may be applied in case of only those people who do not agree to pay or who cannotpay the market priceCorrect Answer exclusionYour Answer exclusion
Select The Blank Question Under the decreasing returns to scale, the marginal output curve slopes ________.Correct Answer downwardYour Answer downward
Multiple Choice Multiple AnswerQuestion Characteristics of Pure Public goods are:Correct Answer They are completely indivisible , Their marginal cost would be zero or close tozero , Their benefits cannot be pricedYour Answer They are completely indivisible , Their marginal cost would be zero or close tozero , Their benefits cannot be priced
Multiple Choice Multiple AnswerQuestion Major types of costs areCorrect Answer Accounting costs , Economic costs , Opportunity costsYour Answer Accounting costs , Economic costs , Opportunity costs
True/FalseQuestion The short run Average Cost (A.C.) curve is U shaped.Correct Answer TrueYour Answer True
True/FalseQuestion Cyclical fluctuations are recurrent in nature
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Correct Answer TrueYour Answer True
Multiple Choice Multiple AnswerQuestion Quantitative credit control measures are
Correct Answer open market operations , changes in bank rates , changes in statutory reserveratioYour Answer open market operations , changes in statutory reserve ratio
True/FalseQuestion Private profit motive is an essential feature of Capitalism.Correct Answer TrueYour Answer True
Multiple Choice Single AnswerQuestion The number of buyers & sellers operating under perfect competition is
Correct Answer largeYour Answer large
Select The Blank Question The sum of all individual demands constitutes________Correct Answer market demandYour Answer market demand
Select The Blank Question The costs which cover the cost of advertising is ________.Correct Answer Selling cost
Your Answer Selling costMultiple Choice Single AnswerQuestion The relation between variable input and ouputCorrect Answer is directYour Answer is direct
Multiple Choice Single AnswerQuestion With decline in price of a commodity, total expenditure spent on the commodity is lessthan before, then elasticity of demand for the commodity isCorrect Answer < 1
Your Answer < 1Multiple Choice Single AnswerQuestion The public sector is owned & controlled byCorrect Answer state enterprisesYour Answer state enterprises
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True/FalseQuestion In the market, any one who agrees to pay the requisite price of a product would beexcluded from their consumption.Correct Answer FalseYour Answer False
Multiple Choice Single AnswerQuestion A downward movement from one point to another point on the same demand curveimpliesCorrect Answer expansionYour Answer expansion
Multiple Choice Multiple AnswerQuestion Methods of forecasting demand for new products areCorrect Answer Product life cycle analysis , Test marketing , Evolutionary approachYour Answer Product life cycle analysis , Test marketing , Evolutionary approach
True/FalseQuestion The concept of economic profit differs from that of normal profit.Correct Answer FalseYour Answer True
Select The Blank Question Reasonable profit target as an alternative to the objective of profit maximization wassuggested by ________.Correct Answer Joel DeanYour Answer Joel Dean
Multiple Choice Single AnswerQuestion Inflation is characterized by demand which is inCorrect Answer excess of supplyYour Answer surplus
Select The Blank Question Defence service is an example of ________ good.Correct Answer indivisibleYour Answer public
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LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Select The Blank Question
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When there is ________ in foreign demand for the goods manufactured in a country, exportsincrease and prices of commodities in the country Increase.Correct AnswerIncreaseYour Answer
Increase
Select The Blank QuestionManagerial ________ lies on the borderline of management and Economics.Correct AnswerEconomicsYour AnswerEconomics
True/False
QuestionDemand curve slopes upwards from left to right.Correct AnswerFalseYour AnswerFalse
Multiple Choice Single AnswerQuestionIf a person is habituated to the consumption of a commodity and if he cannot easily give up itsuse, demand for it is generally :-
Correct AnswerInelasticYour AnswerInelastic
Select The Blank QuestionPropensity to consume is defined as the relationship between consumption and ________.Correct AnswerIncomeYour AnswerIncome
True/FalseQuestionIn case of a proprietary firm the liability of the proprietor is limited.Correct AnswerFalse
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Your AnswerFalse
Select The Blank Question
Government has carried out various rounds of disinvestments of equity shareholding, realizing atotal amount of ________.Correct AnswerRs. 20,320 croresYour AnswerRs. 19,320 crores
Select The Blank QuestionIn a market system of an economy, producers are guided by ________ motive.Correct Answer
ProfitYour AnswerProfit
True/FalseQuestionDemand is related to price, time and place.Correct AnswerTrueYour AnswerFalse
Match The FollowingQuestionCorrect AnswerYour AnswerPollution control certificateGovernment actionGovernment actionAir pollutionNegative externalityMeasure to reduce externalityRadio or TV signalPositive externalityPositive externalityNegotiationPrivate ActionPerfect Competition in the market
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Select The Blank QuestionCost- benefit analysis refers to the analysis undertaken to judge any project‟s ________ whether government or private and find out its worth.Correct Answer
InvestmentsYour AnswerInvestments
Multiple Choice Multiple AnswerQuestionThe entrepreneur gets Pure Profit for :-Correct AnswerUndertaking risk & uncertainty , For co-ordination & organizing production , For innovationYour AnswerUndertaking risk & uncertainty , For innovation , For generating employment
Multiple Choice Single AnswerQuestionThe demand for a commodity depends on the prices of its substitutes which are :-Correct AnswerRelativeYour AnswerRelative
Multiple Choice Single AnswerQuestion
Under perfect competition, if demand increases, supply being constant, the price would :-Correct AnswerRiseYour AnswerRise
True/FalseQuestionA firm is a technical unit of a given capacity of output.Correct AnswerFalseYour AnswerFalse
Multiple Choice Single AnswerQuestionWith decline in price of a commodity, total expenditure spent on the commodity is less thanbefore, then elasticity of demand for the commodity is :-Correct Answer
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Less than oneYour AnswerLess than one
Select The Blank
QuestionModern economists treat social cost and benefits as ________ of private investment andproduction decisions.Correct AnswerExternalitiesYour AnswerExternalities
Multiple Choice Single AnswerQuestionWhen a firm‟s A.R. (average revenue) is greater th an A.C. (average cost), it gets a profit which is
:-Correct AnswerSuper normalYour AnswerPositive
Multiple Choice Multiple AnswerQuestionFeatures of Dumping are :-Correct AnswerIt is possible in the case of monopoly market , Selling same good at higher price in home market
and at lower price in international market , It is encouraged with a view to promote the exportsYour AnswerIt is possible in the case of monopoly market , Selling same good at higher price in home marketand at lower price in international market , It is encouraged with a view to promote the exports
Multiple Choice Single AnswerQuestionAccording to J.M. Keynes, there is inducement to invest, when the marginal efficiency of capitalis greater than :-Correct AnswerRate of interestYour AnswerRate of interest
Multiple Choice Single AnswerQuestionAccording to many economists, the root cause of economic problem is :-Correct AnswerScarcity
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Your AnswerScarcity
Multiple Choice Single AnswerQuestion
Demand for several products like ice-cream, chocolate, bhel-puri depends on :-Correct AnswerIndividual tastesYour AnswerIndividual tastes
True/FalseQuestionIn the traditional concept of equilibrium, a firm attains the equilibrium when the firm‟s TotalRevenue (T.R.) =Total Cost (T.C.).Correct Answer
FalseYour AnswerTrue
Multiple Choice Multiple AnswerQuestionThe phase of recovery denotes :-Correct AnswerMore employment opportunities , Increase in profitability , Wage rate increaseYour AnswerIncrease in profitability , Inventories decrease
True/FalseQuestionThere is no separation of ownership and management in case of a Joint Stock Company.Correct AnswerFalseYour AnswerFalse
True/FalseQuestionPure public goods must be in the hands of public sector only.Correct AnswerTrueYour AnswerTrue
Select The Blank Question
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The salary of the proprietor or rent on own land are the ________.Correct AnswerImplicit costYour AnswerImplicit cost
Multiple Choice Multiple AnswerQuestionDemand Curve :-Correct AnswerIs a graphical presentation , Slopes downward , Explain the relation between price and demandYour AnswerIs a graphical presentation , Slopes downward , Explain the relation between price and demand
True/FalseQuestion
The short run Average Cost (A.C.) curve is U shaped.Correct AnswerTrueYour AnswerTrue
Select The Blank QuestionSole Proprietorship is also called sole ________.Correct AnswerTradership
Your AnswerTradership
Select The Blank QuestionPerfectly elastic demand curve is ________.Correct AnswerHorizontalYour AnswerHorizontal
Select The Blank QuestionThe externality which causes an economic gain or an economic loss to other economic units isalso referred to as ________ externality.Correct AnswerPecuniaryYour AnswerPecuniary
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Multiple Choice Multiple AnswerQuestionDistinction between private sector and public sector is determined on the basis of :-Correct AnswerEconomic system , Motive , Principle of pricing
Your AnswerEconomic system , Motive , Principle of pricing
Multiple Choice Single AnswerQuestionFor an economist, Tata Eng & Locomotive Company Ltd is a :-Correct AnswerFirmYour AnswerFirm
True/FalseQuestionIn any business, while formulating a profit policy, the possibility of emergence of rival firmsmust be taken into account.Correct AnswerTrueYour AnswerTrue
Multiple Choice Multiple AnswerQuestion
Government intervention is needed in free market mechanism to :-Correct AnswerProvide employment to all who willing to work at prevailing wage rate , Factors of productionwhich are optimally allocated between the various industries , Get sufficient income to meet theirbasic needs by allYour AnswerProvide employment to all who willing to work at prevailing wage rate , Factors of productionwhich are optimally allocated between the various industries , Get sufficient income to meet theirbasic needs by all
Multiple Choice Multiple AnswerQuestionDemand is determined by :-Correct AnswerPrice of the product , Relative prices of other goods , Tastes and habitsYour AnswerPrice of the product , Tastes and habits
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Match The FollowingQuestionCorrect AnswerYour AnswerHuman wants
UnlimitedUnlimitedManagerial economicsDecision making and forward planningDecision making and forward planningResourcesScarceLimitedCommoditiesGoods and servicesGoods and services
Multiple Choice Multiple AnswerQuestionThe payments made out of the Gross Profit are :-Correct AnswerRemuneration to factors of production , Depreciation , Maintenance ChargesYour AnswerRemuneration to factors of production , Depreciation , Maintenance Charges
Multiple Choice Multiple AnswerQuestion
Types of income elasticity of demand :-Correct AnswerNegative income elasticity , Zero income elasticity , Unit income elasticityYour AnswerNegative income elasticity , Unit income elasticity , Neutral income elasticity
Multiple Choice Single AnswerQuestionIn general, the demand for necessaries is relatively :-Correct AnswerInelasticYour AnswerInelastic
Multiple Choice Multiple AnswerQuestionThe causes of inflation are :-Correct AnswerIncrease in public expenditure , Increase in private expenditure , Increase in foreign demand
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Your AnswerIncrease in public expenditure , Increase in private expenditure , Increase in foreign demand
True/FalseQuestion
Institution of private property is not an essential feature of Capitalism.Correct AnswerFalseYour AnswerFalse
Multiple Choice Multiple AnswerQuestionIn 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 goodYour AnswerIndivisible in character , Cannot be priced in the market , A public good
Multiple Choice Multiple AnswerQuestionMethods of forecasting demand for new products are :-Correct AnswerProduct life cycle analysis , Test marketing , Evolutionary approachYour AnswerProduct life cycle analysis , Test marketing , Evolutionary approach
Multiple Choice Single AnswerQuestionPeas & beans, groundnut oil & til oil, tea & coffee are examples of :-Correct AnswerSubstitute goodsYour AnswerSubstitute goods
Multiple Choice Single AnswerQuestionWhen with a rise in price, the total outlay falls, or with a fall in price, the total outlay rises,elasticity of demand is :-Correct AnswerGreater than oneYour AnswerInfinite
Managerial Economics – 24
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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 theCorrect Answer economies of scaleYour Answer economies of scale
Multiple Choice Multiple AnswerQuestion Features of Long – run market areCorrect Answer It is durable goods market , Supply can be increased or reduced according to thedemand , Sellers at least recover minimum price for their goodsYour Answer It is durable goods market , Supply can be increased or reduced according to thedemand , Sellers at least recover minimum price for their goods
True/FalseQuestion In case of indivisible goods, which are not priced, the decisions regarding their demandpreferences are taken through price mechanism.Correct Answer FalseYour Answer True
Multiple Choice Single AnswerQuestion A responsible factor for inflation isCorrect Answer hike in pricesYour Answer hike in prices
True/FalseQuestion A monopolist‟s product is a unique product.Correct Answer TrueYour Answer True
Multiple Choice Multiple AnswerQuestion Important theories of profits areCorrect Answer Uncertainty-bearing theory of profit , Dynamic theory of profit , Life cycletheoryYour Answer Risk taking theory , Uncertainty-bearing theory of profit , Dynamic theory of profit
Multiple Choice Multiple AnswerQuestion The promoters of a company can get incorporated by filing with the registrarof companies various documents such asCorrect Answer Memorandum of Association , Articles of Association , ProspectusYour Answer Memorandum of Association , Articles of Association
Select The Blank Question The cost which enter the accounts book of the firm are referred as ________.
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Correct Answer Accounting costYour Answer Accounting cost
Multiple Choice Single AnswerQuestion The indivisible goods whose benefits cannot be priced are called
Correct Answer Pure public goodsYour Answer Pure private goods
Select The Blank Question The partnership between private sector & government is called ________Correct Answer Joint sector enterpriseYour Answer Joint sector enterprise
Multiple Choice Single AnswerQuestion The main objective of a co- operative organization isCorrect Answer service
Your Answer service
Multiple Choice Multiple AnswerQuestion The features of business or trade cycle areCorrect Answer It is a wave like movement , These fluctuations are recurrent in nature ,Expansion and contraction in trade cycle are cumulative in effectYour Answer It is a wave like movement , These fluctuations are recurrent in nature , Expansionand contraction in trade cycle are cumulative in effect
Match The FollowingQuestion 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 AnswerQuestion The profits which must be deducted from the gross profits to arrive at net profits are
Correct Answer Monopoly ProfitsYour Answer Accounting Profit
True/FalseQuestion The products sold by different sellers under pure competition are heterogeneous.Correct Answer FalseYour Answer True
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Match The FollowingQuestion 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 AnswerQuestion Cournot‟ , the economists who defined the term „market‟ different from that of thetraditional sense is anCorrect Answer French economistsYour Answer German economists
Multiple Choice Single AnswerQuestion According J.B.Clark, profit is the reward paid forCorrect Answer dynamismYour Answer risk bearing
Select The Blank Question The goods become ________ only when each individual has an access to the entireamount of it and its use by the individual does not reduce its availability to others.Correct Answer indivisibleYour Answer divisible
Multiple Choice Multiple AnswerQuestion The advantage of cost-benefit analysis areCorrect Answer Maximization of social welfare , Objective measurement of the trade-off ,Maximization of difference between total benefits & total costsYour Answer Objective measurement of the trade-off , Maximization of difference between totalbenefits & total costs , Applicable only in partial equilibrium framework.
True/FalseQuestion Supply management is related to the volume ofsupply & its distribution system.Correct Answer True
Your Answer TrueMultiple Choice Multiple AnswerQuestion The important determinants of supply areCorrect Answer Always referred to in relation to price & time , Government policy , Availabilityof factors of productionYour Answer Availability of factors of production , Tastes and preferences of producer
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Multiple Choice Multiple AnswerQuestion The features of a Joint Stock-Company areCorrect Answer perpetual succession , limited liability , free transferability of sharesYour 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 isreferred 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 expandYour Answer increase
Multiple Choice Multiple AnswerQuestion Average propensity to consume is characterized as followsCorrect Answer the ratio of consumption expenditure to any particular level of income , It isfound by dividing consumption expenditure by income , It is expressed as the percentage of income consumedYour Answer the ratio of consumption expenditure to any particular level of income , It is foundby dividing consumption expenditure by income , It is expressed as the percentage of incomeconsumed
True/FalseQuestion 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 TrueYour Answer True
Multiple Choice Multiple AnswerQuestion Individual Demand ScheduleCorrect Answer Is in tabular form , It shows the prices of goods , It shows the quantities of acommodity purchasedYour Answer Is in tabular form , It shows the prices of goods , It shows the quantities of acommodity purchased
Select The Blank Question Perfectly elastic demand curve is ________Correct Answer horizontalYour Answer horizontal
Multiple Choice Multiple AnswerQuestion Methods of measurement of elasticity are
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Correct Answer Percentage method , Point elasticity method , Total outlay expenditure methodYour 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 socialYour Answer social
True/FalseQuestion There are no real exceptions to the law of demandCorrect Answer FalseYour Answer False
True/FalseQuestion The divisible goods, whose benefits can be priced, are called pure public goods.
Correct Answer FalseYour Answer True
True/FalseQuestion In the measurement of profit, the differences in the concept of profit arise due todifferences in cost concepts.Correct Answer TrueYour Answer True
Multiple Choice Multiple AnswerQuestion Demand forecasts are necessary for
Correct Answer Fulfillment of objective of the plans , Preparation of a budget , Expansion of firmsYour 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 beapplied to ________ analysis.Correct Answer general equilibriumYour Answer general equilibrium
Multiple Choice Single AnswerQuestion The economists who defined the term „market‟ different from that of the tr
aditionalsense isCorrect Answer Jevons & CournotYour Answer Marshall
Multiple Choice Single AnswerQuestion The act of manufacturing goods and services is called
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Correct Answer productionYour Answer production
True/FalseQuestion Price discrimination is possible in perfect competition
Correct Answer FalseYour 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 resultingfrom the ________ activities, which are known as, “externalities”
Correct Answer firm‟s Your Answer government
True/FalseQuestion Free riders‟ is a term associated with the people who would like to have benefit of agood without sharing the cost of its supply.Correct Answer TrueYour Answer True
Multiple Choice Single AnswerQuestion Change in income of a person may result in demand for goods to
Correct Answer changeYour Answer change
Multiple Choice Single AnswerQuestion Managerial economics aims at providing guidance to the firms forCorrect Answer decision makingYour Answer decision making
Multiple Choice Single AnswerQuestion When in order to satisfy a given want , 2 or more goods are needed in combination,these goods are called
Correct Answer complimentary goodsYour Answer complimentary goods
Multiple Choice Multiple AnswerQuestion Forecasts can be made at the level of Correct Answer A firm , An industry , The nationYour Answer A firm , An industry
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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 investmentsYour Answer investments
Managerial Economics – 25
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LIST OF ATTEMPTED QUESTIONS AND ANSWERS
True/FalseQuestion During inflation, the pensioners whose income is permanently fixed, are substantiallybenefited.Correct Answer FalseYour Answer True
Multiple Choice Single AnswerQuestion During the period of depression various factors of production areCorrect Answer exhaustedYour Answer unutilized
True/FalseQuestion When demand and supply rise and fall in the same proportion, the equilibrium pricechanges.Correct Answer FalseYour Answer False
Select The Blank Question “Homeostatic Approach” as an alternative objective of firms was suggested by________.Correct Answer Prof. Kenneth BouldingYour Answer Joel Dean
Select The Blank Question The social costs and benefits are the external economies and diseconomies resultingfrom the ________ activities, which are known as, “externalities” Correct Answer firm‟s Your An swer firm‟s
Multiple Choice Single AnswerQuestion Economists call all human resources mental, physical , inherited and acquired asCorrect Answer LabourYour Answer Labour
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Multiple Choice Single AnswerQuestion According to Prof. F.H. Knight, profit is a reward forCorrect Answer uncertainty bearingYour Answer risk bearing
Multiple Choice Multiple AnswerQuestion Internal Economies involvesCorrect Answer Advantages of large-scale production , Low cost of production , It availsbenefits of cheaper financeYour Answer Low cost of production , It avails benefits of cheaper finance , Availability of banking facility
Select The Blank Question Demand for safety pins is ________Correct Answer inelasticYour Answer relatively inelastic
Select The Blank Question By „ profits‟, the economist means total revenue minus ________. Correct Answer All costsYour Answer All costs
Multiple Choice Multiple AnswerQuestion Distinction between private sector and public sector is determinedCorrect Answer on the basis of economic system , on the basis of motive , on the basis of principle of pricingYour Answer on the basis of economic system , on the basis of motive , on the basis of
infrastructureSelect The Blank Question The liability of a Karta in a Joint Hindu Family Businessis ________.Correct Answer limitedYour Answer unlimited
True/FalseQuestion When a change in income has no effect upon the quantity demanded of a product, theincome elasticity of demand is zeroCorrect Answer TrueYour Answer True
Select The Blank Question The externality which causes an economic gain or an economic loss to other economicunits is also referred to as ________ externality.Correct Answer PecuniaryYour Answer Economic
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True/FalseQuestion Micro-economics is primarily concerned with the problem of what, how and for whomto produce?Correct Answer FalseYour Answer True
True/FalseQuestion During period of depression various factors of production lie unutilized.Correct Answer TrueYour Answer True
True/FalseQuestion In case of sole proprietorship the owner and organization are sameCorrect Answer TrueYour Answer True
Multiple Choice Multiple AnswerQuestion Increasing Returns explainsCorrect Answer Total product increases at an increasing rate , Marginal product increasing and itis maximum , Average product is increasing but it is below MPYour Answer Total product increases at an increasing rate , Marginal product increasing and it ismaximum , Average product is increasing but it is above MP
Match The FollowingQuestion Correct Answer Your Answer
Price leadership Oligopoly Monopoly
Surgical equipment Refusal pricing psychological & subjective approach
Intuitive pricing psychological & subjective approach selection of sample tests markets
Experimental pricing selection of sample tests markets Oligopoly
Multiple Choice Single AnswerQuestion During a period of rising prices (inflation), the goods and services areCorrect Answer scarceYour Answer scarce
Select The Blank Question The financing of ________ goods is done through public expenditure.Correct Answer publicYour Answer public
Multiple Choice Multiple AnswerQuestion Reasons for change in Demand (Increase or Decrease in Demand)
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Correct Answer Change income of consumer , Change in population , Change in fashion andcustomsYour Answer Change income of consumer , Change in fashion and customs
Select The Blank
Question The form of organization which is best for self employment is ________.Correct Answer Sole traderYour Answer Joint sector enterprise
Multiple Choice Multiple AnswerQuestion Price discrimination is possible in case of Correct Answer public utilities with legal sanction , personnel services sold , geographicalbarriersYour Answer monopolistic market , personnel services sold
True/False
Question The short run Average Cost (A.C.) curve is U shaped.Correct Answer TrueYour Answer True
True/FalseQuestion Demand for luxury goods is inelasticCorrect Answer FalseYour Answer True
True/FalseQuestion Market price fluctuates very often.
Correct Answer TrueYour Answer True
Multiple Choice Single AnswerQuestion According to J.M.Keynes, the equilibrium is established at the levelCorrect Answer less than full employmentYour Answer equal to full employment
Match The FollowingQuestion Correct Answer Your Answer
The point of effective demand is the point when A.D. = A.S. A.D. = A.S.Trade Cycle Recession Recession
Rise in costs due to an increase in factor prices a cause of inflation from supply side. a cause of inflation from supply side.
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According to J. M. Keynes, there are two factors determining the investment function, namely i)the M.E.C. and ii) the rate of interest. namely i) the consumption. and ii) the rate of savings.
Multiple Choice Single AnswerQuestion Joint Stock Company is an incorporated association with a
Correct Answer perpetual successionYour Answer perpetual succession
Select The Blank Question Sole Proprietorship which is also called sole ________Correct Answer tradershipYour Answer tradership
Multiple Choice Single AnswerQuestion The market which covers capital market & all banking and non-banking institutions aretogether taken as
Correct Answer Financial MarketYour Answer Financial Market
Multiple Choice Multiple AnswerQuestion According to Keynes there are three motives for holding cash for liquidity preferenceCorrect Answer the transactions motive , the precautionary motive , the speculative motiveYour Answer the transactions motive , the precautionary motive , the speculative motive
Multiple Choice Multiple AnswerQuestion The total output of all the commodities in one country over some period, usually takenas a year is called as
Correct Answer Gross National Product , National Product , National IncomeYour Answer Gross National Product , National Product
Multiple Choice Multiple AnswerQuestion Co-operative organizations isCorrect Answer voluntary organization , managed by democratic principle , organization, whichperforms its business within the membersYour Answer voluntary organization , managed by democratic principle , non profit motiveorganization
Select The Blank
Question The indivisible goods to which the principle exclusion does not apply are called________ goods.Correct Answer pure publicYour Answer pure public
Select The Blank Question In a market system of an economy, producers are guided by ________ motive.
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Correct Answer profitYour Answer profit
Multiple Choice Single AnswerQuestion Economic problem does not recognize the boundaries of caste,creed,culture Thus
economic problem is always considered as theCorrect Answer universal problemYour Answer universal problem
Multiple Choice Multiple AnswerQuestion Conditions of Price Discrimination are:Correct Answer The two markets in which the product is sold should be kept separate , Theelasticity of demand in different markets should be different , Market must be imperfectYour Answer The two markets in which the product is sold should be kept separate , Theelasticity of demand in different markets should be different , Market must be imperfect
True/FalseQuestion Pure (Net) profit contains an element of monopoly profit.Correct Answer FalseYour Answer True
Multiple Choice Multiple AnswerQuestion Accounting profit includesCorrect Answer wages , rent , interestYour Answer wages , rent , interest
Multiple Choice Single Answer
Question Depreciation is the value caused by the continuous use of a capital asset, whichindicatesCorrect Answer lossYour Answer loss
Multiple Choice Multiple AnswerQuestion The railways use a lot of coal in firing the steam locomotives. This act causesCorrect Answer a lot of sufferings to the people near the railway. , cost to the society. , no cost tothe railways.Your Answer a lot of sufferings to the people near the railway. , affects the railways
Multiple Choice Single AnswerQuestion J.M. Keynes, on the basis of a fundamental psychological law of consumption,observed that as income increases, consumption also increases, but proportionatelyCorrect Answer lessYour Answer less
Multiple Choice Single AnswerQuestion Slope of supply curve is
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Correct Answer positiveYour Answer positive
Multiple Choice Multiple AnswerQuestion Types of imperfect competition are
Correct Answer Monopoly , Duopoly , OligopolyYour Answer Monopoly , Duopoly , Oligopoly
Multiple Choice Single AnswerQuestion In the Long run perfect competition and monopolistic competition the firm makeprofits which areCorrect Answer normalYour Answer normal
Managerial Economics – 26
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LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Single AnswerQuestion In cost – benefit analysis, after the step of appraisal and selection of the project is thestep of Correct Answer comparison of the cash flowYour Answer comparison of the cash flow
Select The Blank Question In the context of formulating an investment project, ________ feasibility means theavailability of supervisors for implementing and running the project smoothly and professionally.Correct Answer managementYour Answer management
True/FalseQuestion The externalities that may be an economic gain or economic losses to other economicunits are referred to as technological externalities.Correct Answer FalseYour Answer False
Select The Blank Question The minimum number of directors which private limited should have is ________.Correct Answer 2Your Answer 3
Multiple Choice Multiple AnswerQuestion Co-operative organizations isCorrect Answer voluntary organization , managed by democratic principle , organization, which
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performs its business within the membersYour Answer voluntary organization , managed by democratic principle , organization, whichperforms its business within the members
Multiple Choice Multiple Answer
Question Main aims of the New Industrial Policy (1991) areCorrect Answer To unshackle the indian industrial economy from the cobwebs of unnecessarybureaucratic control , To introduce liberalization with a view to integrate the indian economywith the world economy , To remove restrictions on direct foreign investment as also to free thedomestic entrepreneur from the restriction of MRTP actYour Answer To unshackle the indian industrial economy from the cobwebs of unnecessarybureaucratic control , To introduce liberalization with a view to integrate the indian economywith the world economy , To remove restrictions on direct foreign investment as also to free thedomestic entrepreneur from the restriction of MRTP act
Multiple Choice Multiple Answer
Question Quantitative credit control measures areCorrect Answer open market operations , changes in bank rates , changes in statutory reserveratioYour Answer open market operations , changes in bank rates , changes in statutory reserve ratio
Multiple Choice Single AnswerQuestion The principle of full employment equilibrium was stated byCorrect Answer Say‟s Law of Market Your Answer Say‟s Law of Market
Select The Blank
Question Increase in consumer‟s income leads in the demand for inferior goods to ________ Correct Answer decreaseYour Answer decrease
True/FalseQuestion The congress government led by Narsimha Rao announced the New Industrial Policyin July 1991.Correct Answer TrueYour Answer True
Select The Blank Question The index numbers which measure the changes in the general price level of a countryrefers to ________Correct Answer Wholesale prices indexYour Answer Wholesale prices index
Multiple Choice Single AnswerQuestion Peas & beas, groundnut oil & til oil, tea & coffee are examples of
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Correct Answer substitutes goodsYour Answer substitutes goods
Multiple Choice Multiple AnswerQuestion Exceptions to the Law of Demand are
Correct Answer Giffen goods , Articles of snob appeal , SpeculationYour Answer Giffen goods , Articles of snob appeal , Speculation
Multiple Choice Single AnswerQuestion Variable cost are those costs which vary with the level of Correct Answer outputYour Answer output
Multiple Choice Single AnswerQuestion Costs which increase because of the expansion of a firm are calledCorrect Answer incremental
Your Answer incremental
Multiple Choice Single AnswerQuestion Managerial economics is also understood to refer toCorrect Answer applied economicsYour Answer applied economics
Multiple Choice Single AnswerQuestion The suggestion of reasonable profit target as an alternative to the objective of profitmaximization is byCorrect Answer Joel Dean
Your Answer Joel DeanMultiple Choice Multiple AnswerQuestion Different types of business organizations areCorrect Answer private sector , public sector , joint sectorYour Answer public sector , joint sector , private sector
Select The Blank Question Defence service is an example of ________ good.Correct Answer indivisibleYour Answer indivisible
Multiple Choice Multiple AnswerQuestion The advantage of cost-benefit analysis areCorrect Answer Maximization of social welfare , Objective measurement of the trade-off ,Maximization of difference between total benefits & total costsYour Answer Maximization of social welfare , Objective measurement of the trade-off ,Maximization of difference between total benefits & total costs
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Multiple Choice Single AnswerQuestion The income which a businessman might expect from the second best alternative use of his resources is called asCorrect Answer opportunity costYour Answer opportunity cost
Match The FollowingQuestion 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
Multiple Choice Single AnswerQuestion The type economic problem isCorrect Answer universalYour Answer universal
True/FalseQuestion The defence services are indivisible in the sense that they cannot be priced in the
market in order to deprive some members of the society from its use or benefits.Correct Answer TrueYour Answer True
Select The Blank Question The good becomes ________ so far as its use is concerned only when it is priced in themarket and the principle of exclusion is applied to it.Correct Answer divisibleYour Answer divisible
Select The Blank
Question Output rises in a lesser proportion to that of the increase in input, under the case of ________.Correct Answer decreasing returns to scaleYour Answer decreasing returns to scale
True/FalseQuestion The law of supply is not hypothetical.
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Correct Answer FalseYour Answer False
True/FalseQuestion In a free-enterprise economy, the problems of what how and for whom are solved by a
planning committeeCorrect Answer FalseYour Answer False
Multiple Choice Single AnswerQuestion Dalal Street in Bombay is known asCorrect Answer Bombay Stock ExchangeYour Answer Bombay Stock Exchange
True/FalseQuestion Accounting profit takes in to account opportunity cost.
Correct Answer FalseYour Answer False
Multiple Choice Multiple AnswerQuestion Types of Share capital of Joint-Stock Company areCorrect Answer registered or authorized capital , issued capital , paid-up capitalYour Answer registered or authorized capital , issued capital , paid-up capital
True/FalseQuestion A Joint Stock Company is managed by the Board of Directors elected by shareholders.Correct Answer True
Your Answer TrueTrue/FalseQuestion A plant is an economic unit which takes various decisions related to production anddistribution.Correct Answer FalseYour Answer False
Multiple Choice Single AnswerQuestion Every nation‟s resources which are use d to produce the quantities of goods and servicesthat would be required to satisfy all its citizen‟s wants are
Correct Answer insufficientYour Answer insufficient
Multiple Choice Single AnswerQuestion A firm gets an opportunity to produce multiple products because changes in businessactivity in a firms isCorrect Answer cyclicalYour Answer cyclical
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Multiple Choice Multiple AnswerQuestion Major types of costs areCorrect Answer Accounting costs , Economic costs , Opportunity costsYour Answer Accounting costs , Economic costs , Opportunity costs
Multiple Choice Single AnswerQuestion Managerial economics generally refers to the integration of economic theory withbusinessCorrect Answer PracticeYour Answer Practice
Select The Blank Question The liability of a Karta in a Joint Hindu Family Business firm is ________.Correct Answer limitedYour Answer limited
Multiple Choice Multiple AnswerQuestion The production function studiesCorrect Answer Input and out put relation , Factors of production and final production ,Technology used in productionYour Answer Input and out put relation , Factors of production and final production ,Technology used in production
Select The Blank Question An upward sloping demand curve is called ________Correct Answer exceptional demand curveYour Answer exceptional demand curve
Select The Blank Question Economists like A.C.Harberger have shown that the cost benefit analysis can beapplied to ________ analysis.Correct Answer general equilibriumYour Answer general equilibrium
Select The Blank Question The necessary condition of profit maximization of a firm is that Marginal Revenue(M.R) must be equal to ________.Correct Answer Marginal cost (M.C)Your Answer Marginal cost (M.C)
Multiple Choice Multiple AnswerQuestion Managerial economics deals withCorrect Answer Integration of economic theory with business practice , Using logic of economics, mathematics & statistics , The use of economic modes of thought to analyze businesssolution
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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
Match The FollowingQuestion Correct Answer Your Answer
Implicit costs are the cost of resources owned by the firm. of resources owned by the firm.
Opportunity costs are also known as alternative costs alternative costs
The difference between average total cost &average fixed cost shows variable cost variable cost
The difference between average cost and average revenue is average profit average profit
Multiple Choice Single AnswerQuestion In a market economy, a firm in the private sector basically aims at maximization of
Correct Answer money profitsYour Answer money profits
Multiple Choice Single AnswerQuestion Under pure competition, the entry & exit of firms isCorrect Answer freeYour Answer free
True/FalseQuestion A supply schedule is a graphical presentation of supply patterns.Correct Answer False
Your Answer False
« Managerial Economics – 11 Managerial Economics – 26 »
Managerial Economics – 27
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True/FalseQuestion When a firm‟s average revenue (A.R) is less than its average cost, it earns only normal profit.Correct Answer FalseYour Answer True
Multiple Choice Single AnswerQuestion The indivisible goods whose benefits cannot be priced arecalled
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Correct Answer Pure public goodsYour Answer Pure public goods
True/FalseQuestion The opportunity cost of a product is the opportunity gained
of being able to produce some other product.Correct Answer FalseYour Answer True
Select The Blank Question The indivisible goods to which the principle exclusion doesnot apply are called ________ goods.Correct Answer pure publicYour Answer private
True/False
Question Giffen goods are superior goods.Correct Answer FalseYour Answer False
Multiple Choice Multiple AnswerQuestion Defects of market system:Correct Answer Inequalities of income and wealth , Emergence of monopolies , Failure to provide full employmentYour Answer Inequalities of income and wealth , Emergence of monopolies
Multiple Choice Single Answer
Question The number of sellers operating under monopolisticcompetition as compare to oligopoly isCorrect Answer largerYour Answer smaller
True/FalseQuestion The distinction between fixed costs and variable costs isrelevant in the short period only.Correct Answer TrueYour Answer True
Multiple Choice Multiple AnswerQuestion The promoters of a company can get incorporated by filingwith the registrarof companies various documents such asCorrect Answer Memorandum of Association , Articles of Association, ProspectusYour Answer Memorandum of Association , Articles of Association ,Prospectus
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Multiple Choice Single AnswerQuestion The General Theory of Employment, Interest and Money in 1936was published byCorrect Answer J.M. KeynesYour Answer J.M. Keynes
Select The Blank Question Modern economists treat social cost and benefits as ________of private investment and production decisions.Correct Answer externalitiesYour Answer advantages
Multiple Choice Single AnswerQuestion The Risk Taking Theory was developed by Hawley, who was anCorrect Answer American EconomistYour Answer American Economist
Match The FollowingQuestion Correct Answer Your Answer
Motor cars Tangible goods Alternative uses
Wants Insatiable Prescriptive in nature
Managerial Economics Prescriptive in nature Tangible goods
Resources Alternative uses The theory of distribution
Division of society‟s output of goods and services The theory of distribution Insatiable
Multiple Choice Single AnswerQuestion When input and output increase in the same proportion, thephase of returns areCorrect Answer constantYour Answer increasing
True/False
Question Demand and desire are one and the same.Correct Answer FalseYour Answer False
True/FalseQuestion The demand curve has a negative slope.Correct Answer TrueYour Answer False
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Select The Blank Question “Homeostatic Approach” as an alternative objective of firms was suggested by ________.Correct Answer Prof. Kenneth BouldingYour Answer Prof. Kenneth Boulding
True/FalseQuestion Price is the, only determinant of demandCorrect Answer FalseYour Answer False
Select The Blank Question Output rises in a lesser proportion to that of the increasein input, under the case of ________.Correct Answer decreasing returns to scaleYour Answer decreasing returns to scale
Multiple Choice Single AnswerQuestion Besides private sector, the other type of businessorganization isCorrect Answer joint sectorYour Answer co-operative organizations
Multiple Choice Single AnswerQuestion Jevons‟ , the economists who defined the term „market‟ different from that of the traditional sense is anCorrect Answer English economists
Your Answer English economistsMultiple Choice Single AnswerQuestion If a person is habituated to the consumption of a commodityand if he cannot easily give up its use, demand for it is generallyCorrect Answer inelasticYour Answer unitary elastic
Multiple Choice Multiple AnswerQuestion Features of an Industry areCorrect Answer All firms dealing in the same line of business , Theownership and management of each firm is different , Is a group of firmsYour Answer All firms produce different goods , All firms dealing in thesame line of business
True/FalseQuestion Measurement of profit becomes difficult because of thedifficulty involved in the calculation of depreciation.
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Multiple Choice Multiple AnswerQuestion Internal Economies involvesCorrect Answer Advantages of large-scale production , Low cost of production , It avails benefits of cheaper financeYour Answer Advantages of large-scale production , Low cost of
production , It avails benefits of cheaper finance
Multiple Choice Multiple AnswerQuestion We say that a nation faces economic problems , underfollowing conditionsCorrect Answer Man has unlimited wants or ends , The means orresources to satisfy them are limited , These resources are not specific buthave alternative usesYour Answer Man has unlimited wants or ends , The means or resources tosatisfy them are limited
Select The Blank Question In the 3rd stage of operation of the law of variableproportions, the marginal product becomes ________.Correct Answer negativeYour Answer zero
Multiple Choice Multiple AnswerQuestion Main aims of the New Industrial Policy (1991) areCorrect Answer To unshackle the indian industrial economy from thecobwebs of unnecessary bureaucratic control , To introduce liberalizationwith a view to integrate the indian economy with the world economy , To
remove restrictions on direct foreign investment as also to free thedomestic entrepreneur from the restriction of MRTP actYour Answer To unshackle the indian industrial economy from the cobwebsof unnecessary bureaucratic control , To introduce liberalization with aview to integrate the indian economy with the world economy
Multiple Choice Single AnswerQuestion The relation between variable input and ouputCorrect Answer is directYour Answer is direct
Multiple Choice Multiple AnswerQuestion Government intervention is needed in free market mechanismtoCorrect Answer To provide employment to all who willing to work atprevailing wage rate , Factors of production are optimally allocated betweenthe various industries , All will get sufficient income to meet their basicneedsYour Answer To provide employment to all who willing to work at
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prevailing wage rate , Factors of production are optimally allocated betweenthe various industries
Select The Blank Question The index numbers which measure the changes in the general
price level of a country refers to ________Correct Answer Wholesale prices indexYour Answer Customer price indices
True/FalseQuestion The rise in prices is basically because of shortages of basic goods & services and a rapid growth of money supply.Correct Answer TrueYour Answer True
Multiple Choice Multiple Answer
Question The sole proprietorship type of organization is found inCorrect Answer Agriculture, , Retail trade, , Hotel,Your Answer Agriculture, , Retail trade,
Multiple Choice Multiple AnswerQuestion According to Keynes there are three motives for holding cashfor liquidity preferenceCorrect Answer the transactions motive , the precautionary motive ,the speculative motiveYour Answer the transactions motive , the precautionary motive , thespeculative motive
Select The Blank Question Cost-benefit analysis refers to the analysis undertaken to
judge any projects ________ whether government or private and find out itsworth.Correct Answer investmentsYour Answer profits
Multiple Choice Single AnswerQuestion In the law of variable proportion, a stage is reached whenmarginal product isCorrect Answer zeroYour Answer zero
True/FalseQuestion Profit should be large enough for a plough – back forbusiness expansion.Correct Answer TrueYour Answer True
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Multiple Choice Multiple AnswerQuestion Average propensity to consume is characterized as followsCorrect Answer the ratio of consumption expenditure to anyparticular level of income , It is found by dividing consumption expenditureby income , It is expressed as the percentage of income consumed
Your Answer the ratio of consumption expenditure to any particular levelof income , It is found by dividing consumption expenditure by income
Multiple Choice Single AnswerQuestion Market mechanism is characterized byCorrect Answer instabilityYour Answer stability
Select The Blank Question Supply is predominantly determined by ________.Correct Answer stock
Your Answer demand
Select The Blank Question The externality which causes an economic gain or an economicloss to other economic units is also referred to as ________ externality.Correct Answer PecuniaryYour Answer Financial
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Multiple Choice Single Answer Question he externality in which the
onsumption or production levels of an economic unit affect the otherconomic units in the economy isalled :-
CorrectAnswer
echnological externality
YourAnswer
echnological externality
Select The Blank Question y „ profits‟, the economist means
otal revenue minus ________.CorrectAnswer
All costs
YourAnswer
All costs
Multiple Choice Single Answer
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Question he act of using goods and servicesavailable in the market to satisfywants is called :-
CorrectAnswer
Consumption
YourAnswer Consumption
True/False Question Marginal Cost (M.C.) is the rate of
hange of fixed cost.CorrectAnswer
alse
YourAnswer
alse
Select The Blank Question he factors of production are called
inputs and may be combined toyield the maximum ________.CorrectAnswer
Output
YourAnswer
Output
Multiple Choice Single Answer Question Depreciation is the value caused by
he continuous use of a capital asset,which indicates :-
CorrectAnswer
Loss
YourAnswer
Loss
True/False Question he externalities or economic
ffects, which flow from theroduction or use of the goods to
other parties or economic units, areermed as „neighborhood effects.‟
CorrectAnswer
rue
YourAnswer
alse
Multiple Choice Single Answer Question When a company raises additional
inance by borrowing from theublic for a specific period of time
at a particular rate of interest, it isalled as :-
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CorrectAnswer
Debentures
YourAnswer
Redeemable Shares
Multiple Choice Multiple Answer
Question At the level of the society, themacro economic objectives are :-CorrectAnswer
conomic stabilization ,mployment generation , Poverty
reductionYourAnswer
conomic stabilization ,mployment generation , Poverty
reductionTrue/False Question Any point on the production
ossibility curve indicates under
utilization of resources.CorrectAnswer
alse
YourAnswer
rue
Multiple Choice Multiple Answer Question Index numbers may broadly be
lassified as :-CorrectAnswer
pecial purpose indices , Priceindices , Quantity indices
YourAnswer
Price indices , Quantity indices ,pecial purpose indices
Multiple Choice Single Answer Question In case of a pure public good, its
marginal cost is :-CorrectAnswer
ero
YourAnswer
Low
Multiple Choice Single Answer Question An entrepreneur may earn high
rofits just by luck, say because of outbreak of war. This is known as :-
CorrectAnswer
Chance Profits
YourAnswer
Chance Profits
Multiple Choice Multiple Answer Question Methods of measurement of
lasticity are :-
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CorrectAnswer
Percentage method , Point elasticitymethod , Total outlay expendituremethod
YourAnswer
Percentage method , Point elasticitymethod , Total outlay expenditure
methodMultiple Choice Single Answer Question he firm is an economic unit that
makes the decisions regardingmployment of :-
CorrectAnswer
actors of production
YourAnswer
actors of production
Multiple Choice Multiple Answer Question Reasons for change in Demand
(Increase or Decrease in Demand)are :-CorrectAnswer
Change income of consumer ,Change in population , Change inashion and customs
YourAnswer
Change income of consumer ,Change in population , Change inashion and customs
True/False Question A firm is a technical unit of a given
apacity of output.CorrectAnswer
alse
YourAnswer
rue
Multiple Choice Single Answer Question During the period of depression
various factors of production are :-CorrectAnswer
Unutilized
YourAnswer
xhausted
Select The Blank Question he rate of interest, according to
Keynes depends upon two factors:he liquidity preference function and_______.
CorrectAnswer
he quantity of money.
Your he supply of money
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AnswerSelect The Blank Question y what methods are commodities
roduced and the consequences of hoices about ________ and the
onsequences of choice aboutroduction methods are topics inheory of Production.
CorrectAnswer
Production
YourAnswer
Production
True/False Question he demand for life saving drugs is
lastic.Correct
Answer
alse
YourAnswer
rue
Select The Blank Question he minimum number of directors
which private limited should have is_______.
CorrectAnswer
2
YourAnswer
2
Multiple Choice Single Answer Question he market which deals with all the
goods as a whole are considered as:-
CorrectAnswer
Commodity Market
YourAnswer
Commodity Market
Multiple Choice Single Answer Question In case of increase in the income,
he rich person‟s demand for goodswill be :-
CorrectAnswer
More
YourAnswer
More
Select The Blank Question he supply of agricultural goods is
_______.
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CorrectAnswer
Inelastic
YourAnswer
Inelastic
Select The Blank
Question he products sold by differentsellers under pure competition are_______.
CorrectAnswer
Homogeneous
YourAnswer
Homogeneous
Select The Blank Question iscal Policy refers to variations in
_______.Correct
Answer
Levels of taxation
YourAnswer
otal supply of money
Multiple Choice Multiple Answer Question Price discrimination is possible in
ase of :-CorrectAnswer
Public utilities with legal sanction ,Personnel services sold ,Geographical barriers
YourAnswer
Monopolistic market , Publicutilities with legal sanction ,Geographical barriers
True/False Question Consumer‟s protection involves
rotection to the consumers fromunfair trade practices.
CorrectAnswer
rue
YourAnswer
rue
Multiple Choice Single Answer Question In the Long run, perfect competition
and monopolistic competition, theirm make profits which are :-
CorrectAnswer
Normal
YourAnswer
uper normal
True/False Question In case of decrease in supply, the
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supply curve shifts to left side of theoriginal supply curve.
CorrectAnswer
rue
Your
Answer
alse
Multiple Choice Multiple Answer Question In case of defense services, all the
sections of the society are equallyrotected and benefited. The
defense services in other words is :-CorrectAnswer
Indivisible in character , Cannot bericed in the market , A public good
YourAnswer
Indivisible in character , Cannot bericed in the market
True/False
Question Demand for luxury goods isinelastic.CorrectAnswer
alse
YourAnswer
rue
Select The Blank Question A normal demand curve has
_______.CorrectAnswer
Negative slope
YourAnswer
Positive slope
Match The Following Question Correct
AnswerYourAnswer
Experimentalpricing
Trialanderrormethod
Multipleproducts
A.C.>A.R
Twofirms
Trialand
errormethod
Monopoly Lowcrosselasticityof demand
Singleproducts
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Excesscapacity
Multipleproducts
Highcrosselasticityof demand
Select The Blank Question If there is reduction in the taxes
levied by the Government, peopleare left with ________.
CorrectAnswer
More money
YourAnswer
Has no effect on the money witheople
Select The Blank Question In a market economy ________ is
he best judge of personal interest.
CorrectAnswer Individual
YourAnswer
Individual
Multiple Choice Multiple Answer Question Under cost plus pricing :-CorrectAnswer
he price is set to cover material,labour cost , Actual costs, standardosts are included , Certainercentage of profit also included
Your
Answer
he price is set to cover material,
labour cost , Full cost is not coveredActual costs, standard costs areincluded
Multiple Choice Multiple Answer Question he criteria to be taken into account
while setting the standards for a„reasonable profit‟ are : -
CorrectAnswer
Capital Attraction , Plough Back ,Normal earnings
YourAnswer
Capital Attraction , Plough Back ,Normal earnings
Multiple Choice Multiple Answer Question Quantitative credit control measuresare :-
CorrectAnswer
Open market operations , Changesin bank rates , Changes in statutoryreserve ratio
YourAnswer
Open market operations , Changesin bank rates , Changes in statutory
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reserve ratioMultiple Choice Multiple Answer Question eatures of public sector enterprises
are as follows :-Correct
Answer
It is controlled by the state ,
eparate funds to undertake theiractivity , They are accountable toublic
YourAnswer
It is controlled by the state ,eparate funds to undertake their
activity , They are accountable toublic
True/False Question Complementary goods are jointly
demanded but jointly demandedgoods may not be Complementary.
CorrectAnswer rueYourAnswer
rue
Multiple Choice Multiple Answer Question ypes of income elasticity of
demand :-CorrectAnswer
Negative income elasticity , Zeroincome elasticity , Unit incomelasticity
YourAnswer
Negative income elasticity , Zeroincome elasticity , Unit incomelasticity
True/False Question In case of a partnership firm, the
liability of a partner is limited.CorrectAnswer
alse
YourAnswer
alse
Match The Following Question Correct
Answer
Your
AnswerBreak evenpoint
T.R. =T.C.
T.R. =T.C.
Normalprofit
Implicitcost
Implicitcost
Averagevariable
Shortrun
Shortrun
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cost(A.V.C.)
cost cost
Changeinsupply
Increaseanddecrease
insupply
Increaseanddecrease
insupply
Multiple Choice Single Answer Question Prof. Samuelson calls the air and
water pollution or dangers fromdrunken drivers as economies thatare :-
CorrectAnswer
Negative
YourAnswer
Large scale
Multiple Choice Multiple Answer Question he sole proprietorship type of
organization is found in :-CorrectAnswer
Agriculture , Retail trade , Hotel
YourAnswer
Agriculture , Retail trade
Managerial Economics – 29
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Multiple Choice Single AnswerQuestion Managerial economics generally refers to the integration of economic theory withbusinessCorrect Answer Practice
Multiple Choice Single AnswerQuestion Every nation‟s resources which are used to produce the quantities of goods andservices that would be requ ired to satisfy all its citizen‟s wants are Correct Answer insufficient
Multiple Choice Single AnswerQuestion Managerial economics is also understood to refer toCorrect Answer applied economics
Multiple Choice Single AnswerQuestion The type economic problem isCorrect Answer Universal
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Multiple Choice Single AnswerQuestion The act of making goods and services is calledCorrect Answer production
Multiple Choice Single Answer
Question The act of using goods and services to satisfy wants is calledCorrect Answer Consumption
Multiple Choice Single AnswerQuestion The things that are produced by factors of production are calledCorrect Answer Commodities
Multiple Choice Single AnswerQuestion The concept of just distribution of national product is aCorrect Answer normative
True/FalseQuestion A firm under perfect competition is a price makerCorrect Answer False
True/FalseQuestion When demand and supply rise and fall in the same proportion, the equilibrium pricechanges.Correct Answer False
True/FalseQuestion Market means a particular area where buyers and sellers meet
Correct Answer FalseMultiple Choice Single AnswerQuestion Goods which are completely divisible and to them the principle of exclusion appliesin full measure areCorrect Answer Pure private goods
Multiple Choice Single AnswerQuestion Market system of economy is characterized by consumer‟s Correct Answer sovereignty
True/FalseQuestion In case of a proprietary firm the liability of the proprietor is limitedCorrect Answer False
Multiple Choice Single AnswerQuestion Macro – economics provides an exploration to the functioning of an economy inCorrect Answer general
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True/FalseQuestion The subject matter of macro – economics includes the theory of income andemployment at an individual levelCorrect Answer False
Match The FollowingQuestion Correct AnswerDual prices Two different pricesInflation Deficit financingP.D.S. Essential commoditiesR.B.I. General and selective credit control measuresThe consumers‟ Protection Act 1986 Right to information
Multiple Choice Single AnswerQuestion Depreciation is the value caused by the continuous use of a capital asset isCorrect Answer loss
True/FalseQuestion Accounting profit takes in to account opportunity cost.Correct Answer False
True/FalseQuestion According to Prof Knight, profit is the reward for uncertainty bearing.Correct Answer True
True/FalseQuestion According to J.B. Clark, profit is the reward paid to the entrepreneur for dynamism.
Correct Answer TrueMultiple Choice Single AnswerQuestion Complementary goods are demandedCorrect Answer jointly
Match The FollowingQuestion Correct AnswerCross demand is the change in the quantity demanded of a given commodity in response to theChange in the price of anothercommodity
Incase there were no changes in the quantity of food sold even when its price had fallen we
would know that Demand was entirely inelasticThe elasticity of demand for product will be higher The more available are substitutes for thatproductThe law of demand indicates Relationship between the price of a commodity and the quantityDemandedThe law of demand states When price falls demand rises
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Multiple Choice Single AnswerQuestion As per the law marginal product becomes negative when total productCorrect Answer falls
Multiple Choice Single Answer
Question The law of diminishing returns is applicable to agriculture provided the state of technology is given andCorrect Answer constant
Multiple Choice Single AnswerQuestion Under the system of dual prices adopted by the Government for essential goods, theweaker sections of the community are supplied those goods through fair price shops which areCorrect Answer fair
Select The Blank Question Quantitative credit control measures such as ________ operations, change in the
bank rate, and changes in the ________ ratiosCorrect Answer open marketCorrect Answer statutory reserve
Multiple Choice Single AnswerQuestion AVC is the per unit variable cost of Correct Answer production
True/FalseQuestion Given the price, if the cost of production of a commodity decreases because of theuse of improved technique of production, there will be increase in supply.
Correct Answer TrueTrue/FalseQuestion The laws of returns to scale explain the behavior of output in response to changes inscale.Correct Answer True
Multiple Choice Multiple AnswerQuestion An IndustryCorrect Answer Is a group of firms , All firms dealing in the same line of business , Theownership and management of each firm is different
Multiple Choice Multiple AnswerQuestion DumpingCorrect Answer It is possible in the case of Monopoly Market , Selling same good at higherprice in home market and lower at price in the international market , It is encourage with a viewto promote the exports
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Select The Blank Question Under perfect competition, ________ is determined by the interaction of total________ and total supply in the marketCorrect Answer priceCorrect Answer demand
Multiple Choice Multiple AnswerQuestion Advantages of Cost-Benefit AnalysisCorrect Answer It aims at maximization of social welfare , In following this principle, theproblem of infinite target value does not arise , It shows the measures necessary for attainingmaximum net wealth
Multiple Choice Multiple AnswerQuestion Effective DemandCorrect Answer Determine the level of income and output in an economy , Is totalexpenditure is equal to total income in an economy , Study of aggregate demand and aggregate
supply
Select The Blank Question According to Prof. Ackley, “________ economics deals with economic affairs in thelarge it concerns the ________ of economic life”. Correct Answer macroCorrect Answer overall dimensions
Multiple Choice Multiple AnswerQuestion Different types of business organizations are;Correct Answer Private sector. , Public sector. , Joint sector.
Multiple Choice Multiple AnswerQuestion Distinction between private sector and public sector is determinedCorrect Answer On the basis of economic system , On the basis of motive , On the basis of principle of pricing
Multiple Choice Multiple AnswerQuestion Methods of Demand forecasting for new Products are:Correct Answer Product life Cycle Analysis , Test Marketing , Evolutionary ApproachMultiple Choice Multiple AnswerQuestion Index numbers may broadly be classified as:Correct Answer Price indices , Quantity Indices , Special purpose indices
Select The Blank Question Economics is a ________ , which studies human behaviour as a relationshipbetween ________ , which have alternative uses.Correct Answer scienceCorrect Answer ends and scarce means
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Select The Blank Question The production function is the name given to the ________ between the rates of ________ of productive services and rate of output of a productCorrect Answer relationshipCorrect Answer input
Select The Blank Question Internal economies are those advantages of large- scale ________ , which accrue toa ________ on account of its superior techniques and managementCorrect Answer productionCorrect Answer firm
Select The Blank Question Elasticity of supply may be defined as the ratio of the percentage ________ or the________ change in quantity supplied to the percentage or proportionate change in Price.Correct Answer proportionate
Correct Answer change
Select The Blank Question Costs may be classified as : (a) ________ , including material costs, wage cost andinterest cost (b) ________ , including costs of advertising and (c) other costs, including insurancechCorrect Answer Production costsCorrect Answer Selling costs
Managerial Economics – 30
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Multiple Choice Single Answer Question In case of a pure public good, its
marginal cost isCorrectAnswer
zero
YourAnswer
high
True/False Question During the period of depression, a large
part of a country‟s resources lieinvoluntarily idle.
CorrectAnswer
True
YourAnswer
True
Select The Blank Question Goods which are paradoxical to the law
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of demand are ________CorrectAnswer
Giffen goods, ,
YourAnswer
Giffen goods, ,
True/False Question In contrast to the normative concept of ustice, efficiency and inefficiency are
positive concepts.CorrectAnswer
True
YourAnswer
False
True/False Question Pure private goods are completely
divisible and to them the principle of
exclusion applies in full measure.CorrectAnswer
True
YourAnswer
False
True/False Question Macro-economies is a policy oriented
science.CorrectAnswer
True
YourAnswer
True
Select The Blank Question On the ________ level, the summation
of maximum individual welfare doesnot automatically lead to maximumsocial welfare.
CorrectAnswer
macro
YourAnswer
macro
Multiple Choice Multiple Answer Question Equilibrium is the stage of CorrectAnswer
maximum satisfaction , balance ,stationary
YourAnswer
maximum satisfaction , balance ,stationary
Select The Blank Question In the context of formulating an
investment project, ________ feasibility
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means the availability of supervisors forimplementing and running the projectsmoothly and professionally.
CorrectAnswer
management
YourAnswer management
Multiple Choice Multiple Answer Question The subject matter of Micro economics
includes the study of CorrectAnswer
an individual consumer , particularmarket for a given commodity ,operation of a firm
YourAnswer
an individual consumer , particularmarket for a given commodity ,operation of a firm
Multiple Choice Single Answer Question Economic problem does not recognizethe boundaries of caste,creed,cultureThus economic problem is alwaysconsidered as the
CorrectAnswer
universal problem
YourAnswer
universal problem
Select The Blank Question Demand for safety pins is ________CorrectAnswer
inelastic
YourAnswer
perfectly elastic
Multiple Choice Single Answer Question Supply curve shifts to the right side of
the original supply curve when, thesupply
CorrectAnswer
increases
YourAnswer
increases
Multiple Choice Multiple Answer Question The consumer protection Act includesCorrectAnswer
Protection from hazardous commodities, Right to a competitive price , Right toinformation regarding protection
YourAnswer
Protection from hazardous commodities, Right to a competitive price , Right to
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information regarding protectionMatch The Following Question Correct
AnswerYourAnswer
Resource
allocation
optimum
combinationof inputs
Land
NaturalResources
Land carcity
Economicproblem
Scarcity MicroEconomics
ManagerialEconomics
inventorymanagement
inventorymanagement
Elasticityof
demand
MicroEconomics
optimumcombination
of inputsSelect The Blank Question In a market system of an economy,
producers are guided by ________motive.
CorrectAnswer
profit
YourAnswer
price
Multiple Choice Multiple Answer Question Features of the firm are
CorrectAnswer It is a business unit organized under oneownership , It is a sole proprietorship ,It is a partnership or joint stock company
YourAnswer
It is a business unit organized under oneownership , It is a sole proprietorship
Select The Blank Question The chemical effluents recklessly
released by a chemical factory in theriver causing water pollution, is anexample of ________ cost.
CorrectAnswer social
YourAnswer
environmental
Multiple Choice Multiple Answer Question Investment is significant becauseCorrectAnswer
Addition to the real capital assets , Itleads to increase in level of income ,
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Increases accumulated wealth of thesociety
YourAnswer
Addition to the real capital assets , Itleads to increase in level of income
True/False
Question Price discrimination is possible inperfect competitionCorrectAnswer
False
YourAnswer
False
Select The Blank Question The index numbers which are compiled
to measure the changes in retail pricesof various commodities refers to________
CorrectAnswer Retail prices indexYourAnswer
Retail prices index
Select The Blank Question In the context of formulation of an
investment project, ________ feasibilitymeans the availability of land, plant,machinery, raw materials and technicalknow how etc.
CorrectAnswer
technical
YourAnswer
technical
Multiple Choice Single Answer Question Managerial economics is also
understood to refer toCorrectAnswer
applied economics
YourAnswer
applied economics
Multiple Choice Single Answer Question The type economic problem isCorrectAnswer
universal
YourAnswer
universal
True/False Question When price of a commodity falls, the
supply of that commodity increases.
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CorrectAnswer
False
YourAnswer
True
Multiple Choice Single Answer
Question The act of making goods and services iscalledCorrectAnswer
production
YourAnswer
production
Multiple Choice Single Answer Question If supply of goods and services can be
increased to correspond with everyincrease in demand, price level will tendto
CorrectAnswer be stableYourAnswer
rise
Multiple Choice Single Answer Question Complementary goods are demandedCorrectAnswer
ointly
YourAnswer
ointly
Match The Following
Question CorrectAnswer YourAnswerHumanwants
unlimited unlimited
GeneralTheory of Employment,Interest andMoney
J. M.Keynes
J. M.Keynes
Managerialeconomics
Decisionmakingandforwardplanning
Decisionmakingandforwardplanning
Resources scarce scarceCommodities goods
andservices
goodsandservices
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Multiple Choice Multiple Answer Question Quantitative credit control measures areCorrectAnswer
open market operations , changes inbank rates , changes in statutory reserveratio
YourAnswer open market operations , changes inbank rates , changes in statutory reserveratio
True/False Question Inflation is characterized by excess of
demand.CorrectAnswer
True
YourAnswer
True
Select The Blank
Question The good becomes ________ so far asits use is concerned only when it ispriced in the market and the principle of exclusion is applied to it.
CorrectAnswer
divisible
YourAnswer
profitable
True/False Question Institution of private property is not an
essential feature of Capitalism.CorrectAnswer
False
YourAnswer
False
Multiple Choice Single Answer Question Firm is anCorrectAnswer
economic unit
YourAnswer
economic unit
Multiple Choice Single Answer Question The city of Ahmedabad has specialized
in the manufacture of CorrectAnswer
textiles
YourAnswer
textiles
Multiple Choice Single Answer Question When more units of a commodity are
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purchased in response to decline inprice of that commodity, it is called asexpansion of
CorrectAnswer
demand
YourAnswer demand
Multiple Choice Multiple Answer Question Different types of Elasticity of Demand
areCorrectAnswer
Price elasticity of demand , Incomeelasticity of demand , Cross elasticity of demand
YourAnswer
Perfectly elastic demand
Multiple Choice Single Answer
Question According to Prof. F.H. Knight, profit isa reward forCorrectAnswer
uncertainty bearing
YourAnswer
uncertainty bearing
Multiple Choice Multiple Answer Question The disinvestments of industries is
needed forCorrectAnswer
Phased privatization , Reducing deficit ,Capital support to plans
YourAnswer
Phased privatization , Reducing deficit ,Capital support to plans
Multiple Choice Multiple Answer Question Types of Share capital of Joint-Stock
Company areCorrectAnswer
registered or authorized capital , issuedcapital , paid-up capital
YourAnswer
registered or authorized capital , issuedcapital , paid-up capital
Select The Blank Question The form of organization which is best
for self employment is ________.CorrectAnswer
Sole trader
YourAnswer
Sole trader
Multiple Choice Single Answer Question Managerial economics refers to the
integration of economic theory with
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businessCorrectAnswer
practices
YourAnswer
practices
Select The Blank Question The cost which enter the accounts book of the firm are referred as ________.
CorrectAnswer
Accounting cost
YourAnswer
Accounting cost
True/False Question The most significant feature of perfect
competition is the existence of anautomatic price mechanism.
CorrectAnswer TrueYourAnswer
True
Multiple Choice Single Answer Question Managerial economics generally refers
to the integration of economic theorywith business
CorrectAnswer
Practice
YourAnswer
Practice
Multiple Choice Single Answer Question Every nation‟s resources which are used
to produce the quantities of goods andservices that would be required tosatisfy all its citizen‟s wants are
CorrectAnswer
insufficient
YourAnswer
insufficient
True/False Question Under the liberalization policy,
Government added another list of nineindustries for which automatic approvalupto 74 % would be allowed
CorrectAnswer
True
YourAnswer
True
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