LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Single Answer
* Question
In economics the Question related to the selection of methods with which commodities are produced is a subject matter of
Correct Answer
theory of production
Your Answer
theory of production
Multiple Choice Single Answer
* Question
In economics the questions related to the division of society’s output of goods and services among its members are topics in
Correct Answer
theory of distribution
Your Answer
theory of distribution
Multiple Choice Single Answer
* Question
In economics the questions related to the dynamic or static ( otherwise) capacity of the economy to produce goods and services are topics in the
Correct Answer
theory of economic growth
Your Answer
theory of production
Multiple Choice Single Answer
* Question
All the free gifts of nature which are commonly called natural resources are known to economists as
Correct Answer
Land
Your Answer
capital
Multiple Choice Single Answer
* Question
All the man made resources which are used in the process of making other goods and services are called
Correct Answer
capital
Your Answer
labor
Multiple Choice Single Answer
* Question
Managerial economics aims at providing help in the firms is
Correct Answer
decision making
Your Answer
decision making
True/False
* Question
Economic problem is faced by poor countrys only.
Correct Answer
False
Your Answer
False
Multiple Choice Single Answer
* Question
An industry is a group of firms dealing in the same line of
Correct Answer
business
Your Answer
business
True/False
* Question
Micro-economics is primarily concerned with the problem of what, how and for whom to produce
Correct Answer
True
Your Answer
True
True/False
* Question
Pure public goods must be in the hands of public sector only.
Correct Answer
True
Your Answer
False
Select The Blank
* Question
The goods become ________ only when each individual has an access to the entire amount of it and its use by the individual does not reduce its availability to others.
Correct Answer
indivisible
Your Answer
public
Select The Blank
* Question
The externality which causes an economic gain or an economic loss to other economic units is also referred to as ________ externality.
Correct Answer
Pecuniary
Your Answer
Economic
Select The Blank
* Question
In a market economy ________ is the best judge of personal interest.
Correct Answer
individual
Your Answer
firm
Match The Following
Question
Correct Answer
Your Answer
Managerial economics
Decision making and forward planning
Decision making and forward planning
Resources
Scarce
Scarce
Commodities
Goods and services
Goods and services
Human wants
Unlimited
Unlimited
Match The Following
Question
Correct Answer
Your Answer
General theory of employment, interest and money
J. M. Keynes
J. M. Keynes
Inflation
Reduction in purchasing power
Reduction in purchasing power
Services
Intangible goods
Intangible goods
Methods of production of commodities
Theory of production
Theory of production
Multiple Choice Multiple Answer
* Question
The characteristics of a sole proprietorship firm is
Correct Answer
Unlimited Capital , Ownership by a single person , Easy to form
Your Answer
Ownership by a single person , Easy to form
Multiple Choice Multiple Answer
* Question
Different types of business organizations are
Correct Answer
private sector , public sector , joint sector
Your Answer
private sector , public sector , joint sector
Select The Blank
* Question
Reasonable profit target as an alternative to the objective of profit maximization was suggested by ________.
Correct Answer
Joel Dean
Your Answer
Joel Dean
Select The Blank
* Question
The form of organization which is best for self employment is ________.
Correct Answer
Sole trader
Your Answer
Sole trader
Multiple Choice Single Answer
* Question
Economic Profit takes in to account the
Correct Answer
implicit cost
Your Answer
implicit cost
True/False
* Question
In any business, while formulating a profit policy, the possibility of emergence of rival firms must be taken in to account
Correct Answer
True
Your Answer
True
Multiple Choice Multiple Answer
* Question
The payments made out of the Gross Profit are
Correct Answer
Remuneration to factors of production , Depreciation , Maintenance Charges
Your Answer
Remuneration to factors of production , Depreciation , Maintenance Charges
Multiple Choice Multiple Answer
* Question
reasonable profit' are
Correct Answer
Capital Attraction , Plough Back , Normal earnings
Your Answer
Capital Attraction , Plough Back , Normal earnings
Multiple Choice Single Answer
* Question
Complementary goods are demanded
Correct Answer
jointly
Your Answer
separately
Multiple Choice Single Answer
* Question
Emergence of close substitutes to the commodity in * Question may bring about demand to
Correct Answer
decrease
Your Answer
decrease
Multiple Choice Single Answer
* Question
The demand for a commodity depends on the prices of its substitutes which are
Correct Answer
relative
Your Answer
relative
True/False
* Question
Demand curve slopes downwards from left to right.
Correct Answer
True
Your Answer
True
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 index
Your Answer
Wholesale prices index
Multiple Choice Multiple Answer
* Question
Different types of Elasticity of Demand are
Correct Answer
Price elasticity of demand , Income elasticity of demand , Cross elasticity of demand
Your Answer
Price elasticity of demand , Income elasticity of demand , Cross elasticity of demand
Multiple Choice Single Answer
* Question
If the increase in all factors leads to a less than proportionate increase in output, then the returns to scale are
Correct Answer
decreasing
Your Answer
decreasing
True/False
* Question
The supply of factory made goods of daily consumption is inelastic.
Correct Answer
False
Your Answer
True
Multiple Choice Multiple Answer
* Question
Major types of costs are
Correct Answer
Accounting costs , Economic costs , Opportunity costs
Your Answer
Accounting 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 Answer
decreasing returns to scale
Your Answer
decreasing returns to scale
Select The Blank
* Question
If the output rises in the greater proportion than that of the increase in factor inputs, it is referred to as ________.
Correct Answer
increasing returns to scale.
Your Answer
increasing returns to scale.
Multiple Choice Single Answer
* Question
Under monopoly the demand curve slopes
Correct Answer
downward
Your Answer
downward
Multiple Choice Single Answer
* Question
Dalal Street in Bombay is known as
Correct Answer
Bombay Stock Exchange
Your Answer
Bombay Stock Exchange
Multiple Choice Single Answer
* Question
The city of Banaras has specialized in the manufacture of
Correct Answer
silk
Your Answer
silk
True/False
* Question
A firm under perfect competition is a price maker.
Correct Answer
False
Your Answer
False
True/False
* Question
Long period supply is relatively inelastic.
Correct Answer
False
Your Answer
True
Multiple Choice Multiple Answer
* Question
Features of the firm are
Correct Answer
It is a business unit organized under one ownership , It is a sole proprietorship , It is a partnership or joint stock company
Your 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 Multiple Answer
* Question
Equilibrium is the stage of
Correct Answer
maximum satisfaction , balance , stationary
Your Answer
maximum satisfaction , balance , stationary
True/False
* Question
The Keynesian theory emphasizes effective supply as a crucial factor in determining the level of income and employment.
Correct Answer
False
Your Answer
True
Multiple Choice Single Answer
* Question
According to the Government, the buildup of inflationary pressure during the Nineties was attributed to
Correct Answer
Higher Fiscal deficit
Your Answer
Higher Fiscal deficit
True/False
* Question
The government also fixes minimum procurement prices for major crops on the recommendation of the Agricultural Prices Commission (APC).
Correct Answer
True
Your Answer
True
True/False
* Question
There is considerable slush money with politicians & Government servants.
Correct Answer
True
Your Answer
True
Multiple Choice Multiple Answer
* Question
Government intervention is needed in free market mechanism to
Correct Answer
To provide employment to all who willing to work at prevailing wage rate , Factors of production are optimally allocated between the various industries , All will get sufficient income to meet their basic needs
Your Answer
To provide employment to all who willing to work at prevailing wage rate , Factors of production are optimally allocated between the various industries , All will get sufficient income to meet their basic needs
Multiple Choice Multiple Answer
* Question
Defects of market system:
Correct Answer
Inequalities of income and wealth , Emergence of monopolies , Failure to provide full employment
Your Answer
Inequalities of income and wealth , Emergence of monopolies , Failure to provide full employment
Multiple Choice Single Answer
* Question
Managerial economics generally refers to the integration of economic theory with business
Correct Answer
Practice
Your Answer
Practice
Multiple Choice Single Answer
* Question
Every nation’s resources which are used to produce the quantities of goods and services that would be required to satisfy all its citizen’s wants are
Correct Answer
insufficient
Your Answer
insufficient
Multiple Choice Single Answer
* Question
Managerial economics is also understood to refer to
Correct Answer
applied economics
Your Answer
applied economics
Multiple Choice Single Answer
* Question
The type economic problem is
Correct Answer
universal
Your Answer
universal
Multiple Choice Single Answer
* Question
The act of making goods and services is called
Correct Answer
production
Your Answer
production
Multiple Choice Single Answer
* Question
The act of using goods and services to satisfy wants is called
Correct Answer
consumption
Your Answer
consumption
Multiple Choice Single Answer
* Question
The concept of just distribution of national product is a
Correct Answer
normative
Your Answer
objective
True/False
* Question
Resources are said to be involuntarily un employed when their wastage occur.
Correct Answer
True
Your Answer
True
Match The Following
Question
Correct Answer
Your Answer
Managerial economics
Decision making and forward planning
Decision making and forward planning
Resources
scarce
scarce
Commodities
goods and services
goods and services
Human wants
unlimited
unlimited
General Theory of Employment, Interest and Money
J. M. Keynes
J. M. Keynes
Multiple Choice Single Answer
* Question
In cost - benefit analysis, after the step of appraisal and selection of the project is the step of
Correct Answer
comparison of the cash flow
Your Answer
comparison of the cash flow
True/False
* Question
Social costs cannot be included in a firm's account book.
Correct Answer
True
Your Answer
False
Multiple Choice Multiple Answer
* Question
Steps in cost benefit analysis
Correct Answer
Identification of a project , Formulation of the project , Appraisal and selection of the project
Your Answer
Identification of a project , Formulation of the project , Appraisal and selection of the project
Multiple Choice Multiple Answer
* Question
The advantage of cost-benefit analysis are
Correct Answer
Maximization of social welfare , Objective measurement of the trade-off , Maximization of difference between total benefits & total costs
Your Answer
Maximization of social welfare , Objective measurement of the trade-off , Maximization of difference between total benefits & total costs
Select The Blank
* Question
Cost-Benefit analysis aims at ________ of social wealth.
Correct Answer
maximization
Your Answer
maximization
Select The Blank
* Question
Modern economists treat social cost and benefits as ________ of private investment and production decisions.
Correct Answer
externalities
Your Answer
externalities
Multiple Choice Single Answer
* Question
According to many economists, the root cause of economic problem is
Correct Answer
scarcity
Your Answer
scarcity
Multiple Choice Single Answer
* Question
Managerial economics aims at providing guidance to the firms for
Correct Answer
decision making
Your Answer
decision making
Multiple Choice Single Answer
* Question
In case of a Joint-Stock Company, the liability of share holders is
Correct Answer
limited
Your Answer
limited
Multiple Choice Single Answer
* Question
For an economist, Tata Eng & Locomotive Company Ltd is a
Correct Answer
firm
Your Answer
firm
Multiple Choice Multiple Answer
* Question
Preference Shares can be classified as
Correct Answer
Simple Shares , Cumulative Shares , Redeemable Shares
Your Answer
Simple Shares , Cumulative Shares , Redeemable Shares
Multiple Choice Multiple Answer
* Question
The promoters of a company can get incorporated by filing with the registrarof companies various documents such as
Correct Answer
Memorandum of Association , Articles of Association , Prospectus
Your Answer
Memorandum of Association , Articles of Association
Multiple Choice Multiple Answer
* Question
Forms of Public Enterprises
Correct Answer
departmental management , company management or management by boards , public corporations
Your Answer
departmental management , public corporations , non-profit organization
Select The Blank
* Question
Baumol has suggested as an alternative objective for profit maximization , the maximization of ________
Correct Answer
sales
Your Answer
sales
Select The Blank
* Question
The partnership between private sector & government is called ________
Correct Answer
Joint sector enterprise
Your Answer
Joint sector enterprise
Select The Blank
* Question
The minimum number of directors which public limited should have is ________.
Correct Answer
3
Your Answer
3
Multiple Choice Single Answer
* Question
The profit which is surplus of revenue over and above all paid out cost is
Correct Answer
Accounting Profit
Your Answer
Gross Profit
True/False
* Question
Measurement of profit becomes difficult because of the difficulty involved in the calculation of depreciation.
Correct Answer
True
Your Answer
True
Multiple Choice Single Answer
* Question
In economics, demand means desire backed by adequate
Correct Answer
purchasing power
Your Answer
purchasing power
Multiple Choice Single Answer
* Question
When more units of a commodity are purchased in response to decline in price of that commodity, it is called as expansion of
Correct Answer
demand
Your Answer
demand
Multiple Choice Single Answer
* Question
Demand for products like tea, betel, tobacoo, sigaratte is a matter of
Correct Answer
habit
Your Answer
habit
Multiple Choice Single Answer
* Question
If the substitutes are relatively cheaper then the demand for the commodity in * Question will be
Correct Answer
less
Your Answer
less
True/False
* Question
A shift in the demand curve to the left shows increase in demand.
Correct Answer
False
Your Answer
False
True/False
* Question
Demand for luxury goods is inelastic
Correct Answer
False
Your Answer
False
True/False
* Question
The demand for life saving drugs is elastic.
Correct Answer
False
Your Answer
False
Select The Blank
* Question
A normal demand curve has ________+B299
Correct Answer
negative slope
Your Answer
negative slope
Multiple Choice Multiple Answer
* Question
Cost function denotes
Correct Answer
The prices of such inputs as labour and capital material , The rate of output , The size of the plant
Your Answer
The 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
* Question
The law of constant returns to scale is depicted by the marginal output curve which is ________.
Correct Answer
horizontal
Your Answer
upward sloping
Select The Blank
* Question
In the 3rd stage of operation of the law of variable proportions, the marginal product becomes ________.
Correct Answer
negative
Your Answer
negative
Select The Blank
* Question
The costs which cover the cost of advertising is ________.
Correct Answer
Selling cost
Your Answer
Selling cost
Multiple Choice Multiple Answer
* Question
Features of Oligopoly Market are
Correct Answer
Few sellers , Restriction to entry of new firms , Price leadership
Your Answer
Few sellers , Restriction to entry of new firms , No Advertisement cost
Multiple Choice Single Answer
* Question
Saving is a
Correct Answer
private virtue
Your Answer
social virtue
True/False
* Question
During periods of inflation, the income of farmers as a class decreases.
Correct Answer
True
Your Answer
False
True/False
* Question
To solve the unemployment problem , the level of effective demand must decrease.
Correct Answer
False
Your Answer
False
Match The Following
Question
Correct Answer
Your Answer
Prosperity
Expansion of credit
Contraction of credit
The general theory of employment, Interest and money
J.M. Keynes
J.M. Keynes
Trade cycle
Wave like movement
Wave like movement
Statutory reserve ratio
Quantitative credit control measure
Quantitative credit control measure
Multiple Choice Multiple Answer
* Question
The characteristics of Inflation are
Correct Answer
Excess of demand , Sustained rise in prices , Cannot be anticipated
Your Answer
Sustained rise in prices , Cannot be anticipated , It is limited to some geographical areas
True/False
* Question
Market system or market economy suffers from time to time from economic depressions.
Correct Answer
True
Your Answer
True
Multiple Choice Multiple Answer
* Question
Main aims of the New Industrial Policy (1991) are
Correct Answer
To unshackle the indian industrial economy from the cobwebs of unnecessary bureaucratic control , To introduce liberalization with a view to integrate the indian economy with the world economy , To remove restrictions on direct foreign investment as also to free the domestic entrepreneur from the restriction of MRTP act
Your Answer
To unshackle the indian industrial economy from the cobwebs of unnecessary bureaucratic control , To introduce liberalization with a view to integrate the indian economy with the world economy , To remove restrictions on direct foreign investment as also to free the domestic entrepreneur from the restriction of MRTP act
Multiple Choice Single Answer
* Question
Economists call all human resources as
Correct Answer
labor
Your Answer
labor
True/False
* Question
Economic problem arises only in case of an overpopulated country.
Correct Answer
False
Your Answer
False
Multiple Choice Single Answer
* Question
All the buyers and sellers operating under perfect competition have knowledge
Correct Answer
perfect
Your Answer
perfect
True/False
* Question
The meaning of the word “economic” is most closely associated with the word unlimited
Correct Answer
True
Your Answer
True
Multiple Choice Single Answer
* Question
The conditions of equilibrium of a firm are applicable to all markets
Correct Answer
None
Your Answer
particular
True/False
* Question
In case of the co-operative societies supplying cheap inputs or supplying consumer products at fair prices, a system of subsidized pricing is followed
Correct Answer
True
Your Answer
True
Multiple Choice Single Answer
* Question
The price of a good and the exclusion principle together is
Correct Answer
divisibility
Your Answer
indivisibility
Multiple Choice Single Answer
* Question
The liability of a sole proprietary firm is
Correct Answer
unlimited
Your Answer
unlimited
True/False
* Question
Institution of private property is not an essential feature of Capitalism
Correct Answer
False
Your Answer
False
True/False
* Question
There never was in any country at any time ‘pure capitalism’ or ‘pure communism
Correct Answer
True
Your Answer
True
True/False
* Question
The railways using a lot of coal in firing the steam locomotives put the residential and other areas near the loco – shades to a lot of sufferings on account of smoke nuisance, is an example of pr
Correct Answer
False
Your Answer
True
True/False
* Question
A Joint stock company has perpetual succession.
Correct Answer
True
Your Answer
True
True/False
* Question
The management of the cooperative form of business organization is totalitarian in nature.
Correct Answer
False
Your Answer
True
Multiple Choice Single Answer
* Question
In Trade cycles the economic activity are
Correct Answer
ups and downs
Your Answer
ups and downs
True/False
* Question
In macro – economic analysis the behavior of economic agents such as firms, households and government is seen in total, disregarding details at particular level
Correct Answer
True
Your Answer
True
Multiple Choice Single Answer
* Question
Market economy or private enterprise economy is a economy which is
Correct Answer
planless
Your Answer
planned
Multiple Choice Single Answer
* Question
New commodities due to technotogical progress may result in demand for traditional type of goods
Correct Answer
decrease
Your Answer
decrease
Multiple Choice Single Answer
* Question
If a person is habituated to the consumption of a commodity and if he cannot easily give up its use, demand for it is generally
Correct Answer
inelastic
Your Answer
inelastic
Match The Following
Question
Correct Answer
Your Answer
Normal demand curve
Downwards to right
Downwards to right
Income consumption curve
Upwards to the right
Upwards to the right
Inelastic demand curve
Vertical straight line
Vertical straight line
Cross elasticity of demand between two perfect substitute will be
Infinity
Infinity
A demand curve, which takes the form of a horizontal line parallelto the quantity axis illustrates elasticity
Infinity.
Infinity.
Multiple Choice Single Answer
* Question
The law of diminishing returns is applicable to agriculture provided the state of technology is given and
Correct Answer
constant
Your Answer
resources
Multiple Choice Single Answer
* Question
Under the system of dual prices in case of essential goods, adopted by the government, the weaker sections of the community are supplied these goods through fair price shops whi
Correct Answer
fair
Your Answer
neo –rich
Multiple Choice Single Answer
* Question
The Government attempts to increase supplies of food grains and other essential goods in times of internal shortage through larger
Correct Answer
imports
Your Answer
borrowings
True/False
* Question
External economies are the advantages of large scale production enjoyed exclusively an individual firm alone.
Correct Answer
False
Your Answer
False
Multiple Choice Multiple Answer
* Question
Equilibrium is
Correct Answer
The stage of maximum satisfaction , The stage of balance , The stage of stationary
Your Answer
The stage of balance
Multiple Choice Multiple Answer
* Question
Conditions of equilibrium
Correct Answer
Marginal Revenue should be equal to Marginal Cost , The Marginal cost curve should cut the marginal revenue curve from below at the equilibrium point , Marginal cost curve should be increasing at equilibrium point
Your Answer
Marginal Revenue should be equal to Marginal Cost , The Marginal cost curve should cut the marginal revenue curve from below at the equilibrium point , Average cost curve should cut the Average Revenue curve
Select The Blank
* Question
Cost-benefit analysis refers to the analysis undertaken to judge any projects ________ whether government or private and find out its ________ and facilities its comparison with other available oppor
Correct Answer
investments
Your Answer
investments
Correct Answer
worth
Your Answer
profit
Multiple Choice Multiple Answer
* Question
Aggregate supply function
Correct 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 employment
Your Answer
Refers to show the varying level of supply at different prices
Multiple Choice Multiple Answer
* Question
Characteristics of Depression
Correct Answer
Decrease in economic activities , The growth rate becomes negative , The level of national income declines rapidly
Your Answer
Decrease in economic activities , The growth rate becomes negative , The level of national income declines rapidly
Multiple Choice Multiple Answer
* Question
Recession includes
Correct Answer
The demand is halted , Increase in production of goods , Inventories piling up in stocks
Your Answer
The demand is halted , Inventories piling up in stocks , The growth of discrepancy between supply and demand is very fast
Multiple Choice Multiple Answer
* Question
The causes of inflation
Correct Answer
Increase in public expenditure , Increase in private expenditure , Increase in foreign demand
Your Answer
Increase in public expenditure , Increase in foreign demand , Increase in taxation
Select The Blank
* Question
In the ________ terminology, the ________ demand function refers to the schedule of maximum sales proceeds, which the entrepreneurial community actually does expect to be received from the sale of
Correct Answer
Keynesian
Your Answer
Keynesian
Correct Answer
aggregate
Your Answer
total
Select The Blank
* Question
The rate of interest, according to ________ , depends upon two factors: (i) ________ and (ii) the quantity of money
Correct Answer
Keynes
Your Answer
Keynes
Correct Answer
the liquidity preference function
Your Answer
speculative
Multiple Choice Multiple Answer
* Question
Reasons for need of public distribution system
Correct Answer
To maintain stable price conditions , An efficient management of the supply , To supply the necessary goods to people at reasonable price
Your Answer
To maintain stable price conditions , An efficient management of the supply , To supply the necessary goods to people at reasonable price
Multiple Choice Multiple Answer
* Question
The consumer protection Act includes
Correct Answer
Protection from hazardous commodities , Right to a competitive price , Right to information regarding protection
Your Answer
Protection from hazardous commodities , Right to information regarding protection , Protest against price discrimination
Multiple Choice Multiple Answer
* Question
Objectives of economic policy
Correct Answer
To increase the efficiency and international competitiveness of industrial production , To improve the performance and rationalize the scope of the public sector , To reform and modernize the financial sector
Your Answer
To increase the efficiency and international competitiveness of industrial production , To improve the performance and rationalize the scope of the public sector , To reform and modernize the financial sector
Multiple Choice Multiple Answer
* Question
Scope of Managerial Economics deals with:
Correct Answer
Demand analysis and forecasting. , Production function & cost analysis. , Inventory management adverting, price system.
Your Answer
Demand analysis and forecasting. , Production function & cost analysis. , Inventory management adverting, price system.
Multiple Choice Multiple Answer
* Question
Assumptions 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 Answer
* Question
Types of income elasticity of demand
Correct Answer
Negative income elasticity , Zero income elasticity , Unit income elasticity
Your Answer
Negative income elasticity , Zero income elasticity , Unit income elasticity
Select The Blank
* Question
Managerial ________s generally refers to the integration of economic theory with ________ practice.
Correct Answer
economic
Your Answer
economic
Correct Answer
business
Your Answer
business
Select The Blank
* Question
The problem of unlimited wants and limited ________ with ________ uses has been forever confronting mankind.
Correct Answer
means
Your Answer
means
Correct Answer
alternative
Your Answer
alternative
Select The Blank
* Question
As per the International Labour Organisation (ILO), _ ________ is a ________ association of individuals with limited income on the basis of equal rights and responsibilities for achieving certa
Correct Answer
Co-operation
Your Answer
Co-operation
Correct Answer
voluntary
Your Answer
voluntary
Select The Blank
* Question
Like all organism, the ________ , too is an organism, according to the ________ theory.
Correct Answer
firm
Your Answer
firm
Correct Answer
life-cycle theory
Your Answer
homeostatic theory
Select The Blank
* Question
The ________-taking theory was developed by the ________ . According to him, profit arises because considerable amount of risk is involved in business.
Correct Answer
American economist Hawley
Your Answer
risk
Correct Answer
risk
Your Answer
American economist Hawley
Select The Blank
* Question
The 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 Answer
price
Your Answer
price
Correct Answer
price elasticity
Your Answer
price elasticity
Select The Blank
* Question
Indices constructed for one ________ should not be ________ for other purposes where they not be fully appropriate and given erroneous conclusions.
Correct Answer
purpose
Your Answer
purpose
Correct Answer
used
Your Answer
used
Select The Blank
* Question
The 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 w
Correct Answer
increased
Your Answer
increased
Correct Answer
marginal
Your Answer
marginal
Match The Following
Question
Correct Answer
Your Answer
Statutory Reserve Ratio
Quantitative credit Control Measure
Quantitative credit Control Measure
Trade cycleWave – like movement
Wave – like movement
Keynesian theoryShort – Period Analysis
J. M. Keynes
Aggregate Demand Function
Maximum sale proceeds expected by entrepreneurs
Short – Period Analysis
Effective Demand
J. M. Keynes
Maximum sale proceeds expected by entrepreneurs
Multiple Choice Single Answer
* Question
Economists call all human resources as
Correct Answer
labor
Your Answer
labor
True/False
* Question
Economic problem arises only in case of an overpopulated country.
Correct Answer
False
Your Answer
False
Multiple Choice Single Answer
* Question
All the buyers and sellers operating under perfect competition have knowledge
Correct Answer
perfect
Your Answer
perfect
True/False
* Question
The meaning of the word “economic” is most closely associated with the word unlimited
Correct Answer
True
Your Answer
True
Multiple Choice Single Answer
* Question
The conditions of equilibrium of a firm are applicable to all markets
Correct Answer
None
Your Answer
particular
True/False
* Question
In case of the co-operative societies supplying cheap inputs or supplying consumer products at fair prices, a system of subsidized pricing is followed
Correct Answer
True
Your Answer
True
Multiple Choice Single Answer
* Question
The price of a good and the exclusion principle together is
Correct Answer
divisibility
Your Answer
indivisibility
Multiple Choice Single Answer
* Question
The liability of a sole proprietary firm is
Correct Answer
unlimited
Your Answer
unlimited
True/False
* Question
Institution of private property is not an essential feature of Capitalism
Correct Answer
False
Your Answer
False
True/False
* Question
There never was in any country at any time ‘pure capitalism’ or ‘pure communism
Correct Answer
True
Your Answer
True
True/False
* Question
The railways using a lot of coal in firing the steam locomotives put the residential and other areas near the loco – shades to a lot of sufferings on account of smoke nuisance, is an example of pr
Correct Answer
False
Your Answer
True
True/False
* Question
A Joint stock company has perpetual succession.
Correct Answer
True
Your Answer
True
True/False
* Question
The management of the cooperative form of business organization is totalitarian in nature.
Correct Answer
False
Your Answer
True
Multiple Choice Single Answer
* Question
In Trade cycles the economic activity are
Correct Answer
ups and downs
Your Answer
ups and downs
True/False
* Question
In macro – economic analysis the behavior of economic agents such as firms, households and government is seen in total, disregarding details at particular level
Correct Answer
True
Your Answer
True
Multiple Choice Single Answer
* Question
Market economy or private enterprise economy is a economy which is
Correct Answer
planless
Your Answer
planned
Multiple Choice Single Answer
* Question
New commodities due to technotogical progress may result in demand for traditional type of goods
Correct Answer
decrease
Your Answer
decrease
Multiple Choice Single Answer
* Question
If a person is habituated to the consumption of a commodity and if he cannot easily give up its use, demand for it is generally
Correct Answer
inelastic
Your Answer
inelastic
Match The Following
Question
Correct Answer
Your Answer
Normal demand curve
Downwards to right
Downwards to right
Income consumption curve
Upwards to the right
Upwards to the right
Inelastic demand curve
Vertical straight line
Vertical straight line
Cross elasticity of demand between two perfect substitute will be
Infinity
Infinity
A demand curve, which takes the form of a horizontal line parallelto the quantity axis illustrates elasticity
Infinity.
Infinity.
Multiple Choice Single Answer
* Question
The law of diminishing returns is applicable to agriculture provided the state of technology is given and
Correct Answer
constant
Your Answer
resources
Multiple Choice Single Answer
* Question
Under the system of dual prices in case of essential goods, adopted by the government, the weaker sections of the community are supplied these goods through fair price shops whi
Correct Answer
fair
Your Answer
neo –rich
Multiple Choice Single Answer
* Question
The Government attempts to increase supplies of food grains and other essential goods in times of internal shortage through larger
Correct Answer
imports
Your Answer
borrowings
True/False
* Question
External economies are the advantages of large scale production enjoyed exclusively an individual firm alone.
Correct Answer
False
Your Answer
False
Multiple Choice Multiple Answer
* Question
Equilibrium is
Correct Answer
The stage of maximum satisfaction , The stage of balance , The stage of stationary
Your Answer
The stage of balance
Multiple Choice Multiple Answer
* Question
Conditions of equilibrium
Correct Answer
Marginal Revenue should be equal to Marginal Cost , The Marginal cost curve should cut the marginal revenue curve from below at the equilibrium point , Marginal cost curve should be increasing at equilibrium point
Your Answer
Marginal Revenue should be equal to Marginal Cost , The Marginal cost curve should cut the marginal revenue curve from below at the equilibrium point , Average cost curve should cut the Average Revenue curve
Select The Blank
* Question
Cost-benefit analysis refers to the analysis undertaken to judge any projects ________ whether government or private and find out its ________ and facilities its comparison with other available oppor
Correct Answer
investments
Your Answer
investments
Correct Answer
worth
Your Answer
profit
Multiple Choice Multiple Answer
* Question
Aggregate supply function
Correct 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 employment
Your Answer
Refers to show the varying level of supply at different prices
Multiple Choice Multiple Answer
* Question
Characteristics of Depression
Correct Answer
Decrease in economic activities , The growth rate becomes negative , The level of national income declines rapidly
Your Answer
Decrease in economic activities , The growth rate becomes negative , The level of national income declines rapidly
Multiple Choice Multiple Answer
* Question
Recession includes
Correct Answer
The demand is halted , Increase in production of goods , Inventories piling up in stocks
Your Answer
The demand is halted , Inventories piling up in stocks , The growth of discrepancy between supply and demand is very fast
Multiple Choice Multiple Answer
* Question
The causes of inflation
Correct Answer
Increase in public expenditure , Increase in private expenditure , Increase in foreign demand
Your Answer
Increase in public expenditure , Increase in foreign demand , Increase in taxation
Select The Blank
* Question
In the ________ terminology, the ________ demand function refers to the schedule of maximum sales proceeds, which the entrepreneurial community actually does expect to be received from the sale of
Correct Answer
Keynesian
Your Answer
Keynesian
Correct Answer
aggregate
Your Answer
total
Select The Blank
* Question
The rate of interest, according to ________ , depends upon two factors: (i) ________ and (ii) the quantity of money
Correct Answer
Keynes
Your Answer
Keynes
Correct Answer
the liquidity preference function
Your Answer
speculative
Multiple Choice Multiple Answer
* Question
Reasons for need of public distribution system
Correct Answer
To maintain stable price conditions , An efficient management of the supply , To supply the necessary goods to people at reasonable price
Your Answer
To maintain stable price conditions , An efficient management of the supply , To supply the necessary goods to people at reasonable price
Multiple Choice Multiple Answer
* Question
The consumer protection Act includes
Correct Answer
Protection from hazardous commodities , Right to a competitive price , Right to information regarding protection
Your Answer
Protection from hazardous commodities , Right to information regarding protection , Protest against price discrimination
Multiple Choice Multiple Answer
* Question
Objectives of economic policy
Correct Answer
To increase the efficiency and international competitiveness of industrial production , To improve the performance and rationalize the scope of the public sector , To reform and modernize the financial sector
Your Answer
To increase the efficiency and international competitiveness of industrial production , To improve the performance and rationalize the scope of the public sector , To reform and modernize the financial sector
Multiple Choice Multiple Answer
* Question
Scope of Managerial Economics deals with:
Correct Answer
Demand analysis and forecasting. , Production function & cost analysis. , Inventory management adverting, price system.
Your Answer
Demand analysis and forecasting. , Production function & cost analysis. , Inventory management adverting, price system.
Multiple Choice Multiple Answer
* Question
Assumptions 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 Answer
* Question
Types of income elasticity of demand
Correct Answer
Negative income elasticity , Zero income elasticity , Unit income elasticity
Your Answer
Negative income elasticity , Zero income elasticity , Unit income elasticity
Select The Blank
* Question
Managerial ________s generally refers to the integration of economic theory with ________ practice.
Correct Answer
economic
Your Answer
economic
Correct Answer
business
Your Answer
business
Select The Blank
* Question
The problem of unlimited wants and limited ________ with ________ uses has been forever confronting mankind.
Correct Answer
means
Your Answer
means
Correct Answer
alternative
Your Answer
alternative
Select The Blank
* Question
As per the International Labour Organisation (ILO), _ ________ is a ________ association of individuals with limited income on the basis of equal rights and responsibilities for achieving certa
Correct Answer
Co-operation
Your Answer
Co-operation
Correct Answer
voluntary
Your Answer
voluntary
Select The Blank
* Question
Like all organism, the ________ , too is an organism, according to the ________ theory.
Correct Answer
firm
Your Answer
firm
Correct Answer
life-cycle theory
Your Answer
homeostatic theory
Select The Blank
* Question
The ________-taking theory was developed by the ________ . According to him, profit arises because considerable amount of risk is involved in business.
Correct Answer
American economist Hawley
Your Answer
risk
Correct Answer
risk
Your Answer
American economist Hawley
Select The Blank
* Question
The 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 Answer
price
Your Answer
price
Correct Answer
price elasticity
Your Answer
price elasticity
Select The Blank
* Question
Indices constructed for one ________ should not be ________ for other purposes where they not be fully appropriate and given erroneous conclusions.
Correct Answer
purpose
Your Answer
purpose
Correct Answer
used
Your Answer
used
Select The Blank
* Question
The 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 w
Correct Answer
increased
Your Answer
increased
Correct Answer
marginal
Your Answer
marginal
Match The Following
Question
Correct Answer
Your Answer
Statutory Reserve RatioQuantitative credit Control Measure
Quantitative credit Control Measure
Trade cycleWave – like movement
Wave – like movement
Keynesian theory
Short – Period Analysis
J. M. Keynes
Aggregate Demand FunctionMaximum sale proceeds expected by entrepreneurs
Short – Period Analysis
Effective DemandJ. M. Keynes
Maximum sale proceeds expected by entrepreneurs
Multiple Choice Single Answer
* Question
In economics the Question related to the selection of methods with which commodities are produced is a subject matter of
Correct Answer
theory of production
Your Answer
theory of production
Multiple Choice Single Answer
* Question
In economics the questions related to the division of society’s output of goods and services among its members are topics in
Correct Answer
theory of distribution
Your Answer
theory of distribution
Multiple Choice Single Answer
* Question
In economics the questions related to the dynamic or static ( otherwise) capacity of the economy to produce goods and services are topics in the
Correct Answer
theory of economic growth
Your Answer
theory of production
Multiple Choice Single Answer
* Question
All the free gifts of nature which are commonly called natural resources are known to economists as
Correct Answer
Land
Your Answer
capital
Multiple Choice Single Answer
* Question
All the man made resources which are used in the process of making other goods and services are called
Correct Answer
capital
Your Answer
labor
Multiple Choice Single Answer
* Question
Managerial economics aims at providing help in the firms is
Correct Answer
decision making
Your Answer
decision making
True/False
* Question
Economic problem is faced by poor countrys only.
Correct Answer
False
Your Answer
False
Multiple Choice Single Answer
* Question
An industry is a group of firms dealing in the same line of
Correct Answer
business
Your Answer
business
True/False
* Question
Micro-economics is primarily concerned with the problem of what, how and for whom to produce
Correct Answer
True
Your Answer
True
True/False
* Question
Pure public goods must be in the hands of public sector only.
Correct Answer
True
Your Answer
False
Select The Blank
* Question
The goods become ________ only when each individual has an access to the entire amount of it and its use by the individual does not reduce its availability to others.
Correct Answer
indivisible
Your Answer
public
Select The Blank
* Question
The externality which causes an economic gain or an economic loss to other economic units is also referred to as ________ externality.
Correct Answer
Pecuniary
Your Answer
Economic
Select The Blank
* Question
In a market economy ________ is the best judge of personal interest.
Correct Answer
individual
Your Answer
firm
Match The Following
Question
Correct Answer
Your Answer
Managerial economics
Decision making and forward planning
Decision making and forward planning
Resources
Scarce
Scarce
Commodities
Goods and services
Goods and services
Human wants
Unlimited
Unlimited
Match The Following
Question
Correct Answer
Your Answer
General theory of employment, interest and money
J. M. Keynes
J. M. Keynes
Inflation
Reduction in purchasing power
Reduction in purchasing power
Services
Intangible goods
Intangible goods
Methods of production of commodities
Theory of production
Theory of production
Multiple Choice Multiple Answer
* Question
The characteristics of a sole proprietorship firm is
Correct Answer
Unlimited Capital , Ownership by a single person , Easy to form
Your Answer
Ownership by a single person , Easy to form
Multiple Choice Multiple Answer
* Question
Different types of business organizations are
Correct Answer
private sector , public sector , joint sector
Your Answer
private sector , public sector , joint sector
Select The Blank
* Question
Reasonable profit target as an alternative to the objective of profit maximization was suggested by ________.
Correct Answer
Joel Dean
Your Answer
Joel Dean
Select The Blank
* Question
The form of organization which is best for self employment is ________.
Correct Answer
Sole trader
Your Answer
Sole trader
Multiple Choice Single Answer
* Question
Economic Profit takes in to account the
Correct Answer
implicit cost
Your Answer
implicit cost
True/False
* Question
In any business, while formulating a profit policy, the possibility of emergence of rival firms must be taken in to account
Correct Answer
True
Your Answer
True
Multiple Choice Multiple Answer
* Question
The payments made out of the Gross Profit are
Correct Answer
Remuneration to factors of production , Depreciation , Maintenance Charges
Your Answer
Remuneration to factors of production , Depreciation , Maintenance Charges
Multiple Choice Multiple Answer
* Question
reasonable profit' are
Correct Answer
Capital Attraction , Plough Back , Normal earnings
Your Answer
Capital Attraction , Plough Back , Normal earnings
Multiple Choice Single Answer
* Question
Complementary goods are demanded
Correct Answer
jointly
Your Answer
separately
Multiple Choice Single Answer
* Question
Emergence of close substitutes to the commodity in * Question may bring about demand to
Correct Answer
decrease
Your Answer
decrease
Multiple Choice Single Answer
* Question
The demand for a commodity depends on the prices of its substitutes which are
Correct Answer
relative
Your Answer
relative
True/False
* Question
Demand curve slopes downwards from left to right.
Correct Answer
True
Your Answer
True
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 index
Your Answer
Wholesale prices index
Multiple Choice Multiple Answer
* Question
Different types of Elasticity of Demand are
Correct Answer
Price elasticity of demand , Income elasticity of demand , Cross elasticity of demand
Your Answer
Price elasticity of demand , Income elasticity of demand , Cross elasticity of demand
Multiple Choice Single Answer
* Question
If the increase in all factors leads to a less than proportionate increase in output, then the returns to scale are
Correct Answer
decreasing
Your Answer
decreasing
True/False
* Question
The supply of factory made goods of daily consumption is inelastic.
Correct Answer
False
Your Answer
True
Multiple Choice Multiple Answer
* Question
Major types of costs are
Correct Answer
Accounting costs , Economic costs , Opportunity costs
Your Answer
Accounting 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 Answer
decreasing returns to scale
Your Answer
decreasing returns to scale
Select The Blank
* Question
If the output rises in the greater proportion than that of the increase in factor inputs, it is referred to as ________.
Correct Answer
increasing returns to scale.
Your Answer
increasing returns to scale.
Multiple Choice Single Answer
* Question
Under monopoly the demand curve slopes
Correct Answer
downward
Your Answer
downward
Multiple Choice Single Answer
* Question
Dalal Street in Bombay is known as
Correct Answer
Bombay Stock Exchange
Your Answer
Bombay Stock Exchange
Multiple Choice Single Answer
* Question
The city of Banaras has specialized in the manufacture of
Correct Answer
silk
Your Answer
silk
True/False
* Question
A firm under perfect competition is a price maker.
Correct Answer
False
Your Answer
False
True/False
* Question
Long period supply is relatively inelastic.
Correct Answer
False
Your Answer
True
Multiple Choice Multiple Answer
* Question
Features of the firm are
Correct Answer
It is a business unit organized under one ownership , It is a sole proprietorship , It is a partnership or joint stock company
Your 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 Multiple Answer
* Question
Equilibrium is the stage of
Correct Answer
maximum satisfaction , balance , stationary
Your Answer
maximum satisfaction , balance , stationary
True/False
* Question
The Keynesian theory emphasizes effective supply as a crucial factor in determining the level of income and employment.
Correct Answer
False
Your Answer
True
Multiple Choice Single Answer
* Question
According to the Government, the buildup of inflationary pressure during the Nineties was attributed to
Correct Answer
Higher Fiscal deficit
Your Answer
Higher Fiscal deficit
True/False
* Question
The government also fixes minimum procurement prices for major crops on the recommendation of the Agricultural Prices Commission (APC).
Correct Answer
True
Your Answer
True
True/False
* Question
There is considerable slush money with politicians & Government servants.
Correct Answer
True
Your Answer
True
Multiple Choice Multiple Answer
* Question
Government intervention is needed in free market mechanism to
Correct Answer
To provide employment to all who willing to work at prevailing wage rate , Factors of production are optimally allocated between the various industries , All will get sufficient income to meet their basic needs
Your Answer
To provide employment to all who willing to work at prevailing wage rate , Factors of production are optimally allocated between the various industries , All will get sufficient income to meet their basic needs
Multiple Choice Multiple Answer
* Question
Defects of market system:
Correct Answer
Inequalities of income and wealth , Emergence of monopolies , Failure to provide full employment
Your Answer
Inequalities of income and wealth , Emergence of monopolies , Failure to provide full employment
Managerial Economics - 5
LIST OF ATTEMPTED QUESTIONS AND ANSWERSMultiple Choice Single Answer
* Question
Managerial economics generally refers to the integration of economic theory with business
Correct Answer
Practice
Your Answer
Practice
Multiple Choice Single Answer
* Question
Every nation’s resources which are used to produce the quantities of goods and services that would be required to satisfy all its citizen’s wants are
Correct Answer
insufficient
Your Answer
insufficient
Multiple Choice Single Answer
* Question
Managerial economics is also understood to refer to
Correct Answer
applied economics
Your Answer
applied economics
Multiple Choice Single Answer
* Question
The type economic problem is
Correct Answer
universal
Your Answer
universal
Multiple Choice Single Answer
* Question
The act of making goods and services is called
Correct Answer
production
Your Answer
production
Multiple Choice Single Answer
* Question
The act of using goods and services to satisfy wants is called
Correct Answer
consumption
Your Answer
consumption
Multiple Choice Single Answer
* Question
The concept of just distribution of national product is a
Correct Answer
normative
Your Answer
objective
True/False
* Question
Resources are said to be involuntarily un employed when their wastage occur.
Correct Answer
True
Your Answer
True
Match The Following
Question
Correct Answer
Your Answer
Managerial economics
Decision making and forward planning
Decision making and forward planning
Resources
scarce
scarce
Commodities
goods and services
goods and services
Human wants
unlimited
unlimited
General Theory of Employment, Interest and Money
J. M. Keynes
J. M. Keynes
Multiple Choice Single Answer
* Question
In cost - benefit analysis, after the step of appraisal and selection of the project is the step of
Correct Answer
comparison of the cash flow
Your Answer
comparison of the cash flow
True/False
* Question
Social costs cannot be included in a firm's account book.
Correct Answer
True
Your Answer
False
Multiple Choice Multiple Answer
* Question
Steps in cost benefit analysis
Correct Answer
Identification of a project , Formulation of the project , Appraisal and selection of the project
Your Answer
Identification of a project , Formulation of the project , Appraisal and selection of the project
Multiple Choice Multiple Answer
* Question
The advantage of cost-benefit analysis are
Correct Answer
Maximization of social welfare , Objective measurement of the trade-off , Maximization of difference between total benefits & total costs
Your Answer
Maximization of social welfare , Objective measurement of the trade-off , Maximization of difference between total benefits & total costs
Select The Blank
* Question
Cost-Benefit analysis aims at ________ of social wealth.
Correct Answer
maximization
Your Answer
maximization
Select The Blank
* Question
Modern economists treat social cost and benefits as ________ of private investment and production decisions.
Correct Answer
externalities
Your Answer
externalities
Multiple Choice Single Answer
* Question
According to many economists, the root cause of economic problem is
Correct Answer
scarcity
Your Answer
scarcity
Multiple Choice Single Answer
* Question
Managerial economics aims at providing guidance to the firms for
Correct Answer
decision making
Your Answer
decision making
Multiple Choice Single Answer
* Question
In case of a Joint-Stock Company, the liability of share holders is
Correct Answer
limited
Your Answer
limited
Multiple Choice Single Answer
* Question
For an economist, Tata Eng & Locomotive Company Ltd is a
Correct Answer
firm
Your Answer
firm
Multiple Choice Multiple Answer
* Question
Preference Shares can be classified as
Correct Answer
Simple Shares , Cumulative Shares , Redeemable Shares
Your Answer
Simple Shares , Cumulative Shares , Redeemable Shares
Multiple Choice Multiple Answer
* Question
The promoters of a company can get incorporated by filing with the registrarof companies various documents such as
Correct Answer
Memorandum of Association , Articles of Association , Prospectus
Your Answer
Memorandum of Association , Articles of Association
Multiple Choice Multiple Answer
* Question
Forms of Public Enterprises
Correct Answer
departmental management , company management or management by boards , public corporations
Your Answer
departmental management , public corporations , non-profit organization
Select The Blank
* Question
Baumol has suggested as an alternative objective for profit maximization , the maximization of ________
Correct Answer
sales
Your Answer
sales
Select The Blank
* Question
The partnership between private sector & government is called ________
Correct Answer
Joint sector enterprise
Your Answer
Joint sector enterprise
Select The Blank
* Question
The minimum number of directors which public limited should have is ________.
Correct Answer
3
Your Answer
3
Multiple Choice Single Answer
* Question
The profit which is surplus of revenue over and above all paid out cost is
Correct Answer
Accounting Profit
Your Answer
Gross Profit
True/False
* Question
Measurement of profit becomes difficult because of the difficulty involved in the calculation of depreciation.
Correct Answer
True
Your Answer
True
Multiple Choice Single Answer
* Question
In economics, demand means desire backed by adequate
Correct Answer
purchasing power
Your Answer
purchasing power
Multiple Choice Single Answer
* Question
When more units of a commodity are purchased in response to decline in price of that commodity, it is called as expansion of
Correct Answer
demand
Your Answer
demand
Multiple Choice Single Answer
* Question
Demand for products like tea, betel, tobacoo, sigaratte is a matter of
Correct Answer
habit
Your Answer
habit
Multiple Choice Single Answer
* Question
If the substitutes are relatively cheaper then the demand for the commodity in * Question will be
Correct Answer
less
Your Answer
less
True/False
* Question
A shift in the demand curve to the left shows increase in demand.
Correct Answer
False
Your Answer
False
True/False
* Question
Demand for luxury goods is inelastic
Correct Answer
False
Your Answer
False
True/False
* Question
The demand for life saving drugs is elastic.
Correct Answer
False
Your Answer
False
Select The Blank
* Question
A normal demand curve has ________+B299
Correct Answer
negative slope
Your Answer
negative slope
Multiple Choice Multiple Answer
* Question
Cost function denotes
Correct Answer
The prices of such inputs as labour and capital material , The rate of output , The size of the plant
Your Answer
The 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
* Question
The law of constant returns to scale is depicted by the marginal output curve which is ________.
Correct Answer
horizontal
Your Answer
upward sloping
Select The Blank
* Question
In the 3rd stage of operation of the law of variable proportions, the marginal product becomes ________.
Correct Answer
negative
Your Answer
negative
Select The Blank
* Question
The costs which cover the cost of advertising is ________.
Correct Answer
Selling cost
Your Answer
Selling cost
Multiple Choice Multiple Answer
* Question
Features of Oligopoly Market are
Correct Answer
Few sellers , Restriction to entry of new firms , Price leadership
Your Answer
Few sellers , Restriction to entry of new firms , No Advertisement cost
Multiple Choice Single Answer
* Question
Saving is a
Correct Answer
private virtue
Your Answer
social virtue
True/False
* Question
During periods of inflation, the income of farmers as a class decreases.
Correct Answer
True
Your Answer
False
True/False
* Question
To solve the unemployment problem , the level of effective demand must decrease.
Correct Answer
False
Your Answer
False
Match The Following
Question
Correct Answer
Your Answer
Prosperity
Expansion of credit
Contraction of credit
The general theory of employment, Interest and money
J.M. Keynes
J.M. Keynes
Trade cycle
Wave like movement
Wave like movement
Statutory reserve ratio
Quantitative credit control measure
Quantitative credit control measure
Multiple Choice Multiple Answer
* Question
The characteristics of Inflation are
Correct Answer
Excess of demand , Sustained rise in prices , Cannot be anticipated
Your Answer
Sustained rise in prices , Cannot be anticipated , It is limited to some geographical areas
True/False
* Question
Market system or market economy suffers from time to time from economic depressions.
Correct Answer
True
Your Answer
True
Multiple Choice Multiple Answer
* Question
Main aims of the New Industrial Policy (1991) are
Correct Answer
To unshackle the indian industrial economy from the cobwebs of unnecessary bureaucratic control , To introduce liberalization with a view to integrate the indian economy with the world economy , To remove restrictions on direct foreign investment as also to free the domestic entrepreneur from the restriction of MRTP act
Your Answer
To unshackle the indian industrial economy from the cobwebs of unnecessary bureaucratic control , To introduce liberalization with a view to integrate the indian economy with the world economy , To remove restrictions on direct foreign investment as also to free the domestic entrepreneur from the restriction of MRTP act
Managerial Economics - 4
LIST OF ATTEMPTED QUESTIONS AND ANSWERSMultiple Choice Single Answer
* Question
Economists call all human resources as
Correct Answer
labor
Your Answer
labor
True/False
* Question
Economic problem arises only in case of an overpopulated country.
Correct Answer
False
Your Answer
False
Multiple Choice Single Answer
* Question
All the buyers and sellers operating under perfect competition have knowledge
Correct Answer
perfect
Your Answer
perfect
True/False
* Question
The meaning of the word “economic” is most closely associated with the word unlimited
Correct Answer
True
Your Answer
True
Multiple Choice Single Answer
* Question
The conditions of equilibrium of a firm are applicable to all markets
Correct Answer
None
Your Answer
particular
True/False
* Question
In case of the co-operative societies supplying cheap inputs or supplying consumer products at fair prices, a system of subsidized pricing is followed
Correct Answer
True
Your Answer
True
Multiple Choice Single Answer
* Question
The price of a good and the exclusion principle together is
Correct Answer
divisibility
Your Answer
indivisibility
Multiple Choice Single Answer
* Question
The liability of a sole proprietary firm is
Correct Answer
unlimited
Your Answer
unlimited
True/False
* Question
Institution of private property is not an essential feature of Capitalism
Correct Answer
False
Your Answer
False
True/False
* Question
There never was in any country at any time ‘pure capitalism’ or ‘pure communism
Correct Answer
True
Your Answer
True
True/False
* Question
The railways using a lot of coal in firing the steam locomotives put the residential and other areas near the loco – shades to a lot of sufferings on account of smoke nuisance, is an example of pr
Correct Answer
False
Your Answer
True
True/False
* Question
A Joint stock company has perpetual succession.
Correct Answer
True
Your Answer
True
True/False
* Question
The management of the cooperative form of business organization is totalitarian in nature.
Correct Answer
False
Your Answer
True
Multiple Choice Single Answer
* Question
In Trade cycles the economic activity are
Correct Answer
ups and downs
Your Answer
ups and downs
True/False
* Question
In macro – economic analysis the behavior of economic agents such as firms, households and government is seen in total, disregarding details at particular level
Correct Answer
True
Your Answer
True
Multiple Choice Single Answer
* Question
Market economy or private enterprise economy is a economy which is
Correct Answer
planless
Your Answer
planned
Multiple Choice Single Answer
* Question
New commodities due to technotogical progress may result in demand for traditional type of goods
Correct Answer
decrease
Your Answer
decrease
Multiple Choice Single Answer
* Question
If a person is habituated to the consumption of a commodity and if he cannot easily give up its use, demand for it is generally
Correct Answer
inelastic
Your Answer
inelastic
Match The Following
Question
Correct Answer
Your Answer
Normal demand curve
Downwards to right
Downwards to right
Income consumption curve
Upwards to the right
Upwards to the right
Inelastic demand curve
Vertical straight line
Vertical straight line
Cross elasticity of demand between two perfect substitute will be
Infinity
Infinity
A demand curve, which takes the form of a horizontal line parallelto the quantity axis illustrates elasticity
Infinity.
Infinity.
Multiple Choice Single Answer
* Question
The law of diminishing returns is applicable to agriculture provided the state of technology is given and
Correct Answer
constant
Your Answer
resources
Multiple Choice Single Answer
* Question
Under the system of dual prices in case of essential goods, adopted by the government, the weaker sections of the community are supplied these goods through fair price shops whi
Correct Answer
fair
Your Answer
neo –rich
Multiple Choice Single Answer
* Question
The Government attempts to increase supplies of food grains and other essential goods in times of internal shortage through larger
Correct Answer
imports
Your Answer
borrowings
True/False
* Question
External economies are the advantages of large scale production enjoyed exclusively an individual firm alone.
Correct Answer
False
Your Answer
False
Multiple Choice Multiple Answer
* Question
Equilibrium is
Correct Answer
The stage of maximum satisfaction , The stage of balance , The stage of stationary
Your Answer
The stage of balance
Multiple Choice Multiple Answer
* Question
Conditions of equilibrium
Correct Answer
Marginal Revenue should be equal to Marginal Cost , The Marginal cost curve should cut the marginal revenue curve from below at the equilibrium point , Marginal cost curve should be increasing at equilibrium point
Your Answer
Marginal Revenue should be equal to Marginal Cost , The Marginal cost curve should cut the marginal revenue curve from below at the equilibrium point , Average cost curve should cut the Average Revenue curve
Select The Blank
* Question
Cost-benefit analysis refers to the analysis undertaken to judge any projects ________ whether government or private and find out its ________ and facilities its comparison with other available oppor
Correct Answer
investments
Your Answer
investments
Correct Answer
worth
Your Answer
profit
Multiple Choice Multiple Answer
* Question
Aggregate supply function
Correct 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 employment
Your Answer
Refers to show the varying level of supply at different prices
Multiple Choice Multiple Answer
* Question
Characteristics of Depression
Correct Answer
Decrease in economic activities , The growth rate becomes negative , The level of national income declines rapidly
Your Answer
Decrease in economic activities , The growth rate becomes negative , The level of national income declines rapidly
Multiple Choice Multiple Answer
* Question
Recession includes
Correct Answer
The demand is halted , Increase in production of goods , Inventories piling up in stocks
Your Answer
The demand is halted , Inventories piling up in stocks , The growth of discrepancy between supply and demand is very fast
Multiple Choice Multiple Answer
* Question
The causes of inflation
Correct Answer
Increase in public expenditure , Increase in private expenditure , Increase in foreign demand
Your Answer
Increase in public expenditure , Increase in foreign demand , Increase in taxation
Select The Blank
* Question
In the ________ terminology, the ________ demand function refers to the schedule of maximum sales proceeds, which the entrepreneurial community actually does expect to be received from the sale of
Correct Answer
Keynesian
Your Answer
Keynesian
Correct Answer
aggregate
Your Answer
total
Select The Blank
* Question
The rate of interest, according to ________ , depends upon two factors: (i) ________ and (ii) the quantity of money
Correct Answer
Keynes
Your Answer
Keynes
Correct Answer
the liquidity preference function
Your Answer
speculative
Multiple Choice Multiple Answer
* Question
Reasons for need of public distribution system
Correct Answer
To maintain stable price conditions , An efficient management of the supply , To supply the necessary goods to people at reasonable price
Your Answer
To maintain stable price conditions , An efficient management of the supply , To supply the necessary goods to people at reasonable price
Multiple Choice Multiple Answer
* Question
The consumer protection Act includes
Correct Answer
Protection from hazardous commodities , Right to a competitive price , Right to information regarding protection
Your Answer
Protection from hazardous commodities , Right to information regarding protection , Protest against price discrimination
Multiple Choice Multiple Answer
* Question
Objectives of economic policy
Correct Answer
To increase the efficiency and international competitiveness of industrial production , To improve the performance and rationalize the scope of the public sector , To reform and modernize the financial sector
Your Answer
To increase the efficiency and international competitiveness of industrial production , To improve the performance and rationalize the scope of the public sector , To reform and modernize the financial sector
Multiple Choice Multiple Answer
* Question
Scope of Managerial Economics deals with:
Correct Answer
Demand analysis and forecasting. , Production function & cost analysis. , Inventory management adverting, price system.
Your Answer
Demand analysis and forecasting. , Production function & cost analysis. , Inventory management adverting, price system.
Multiple Choice Multiple Answer
* Question
Assumptions 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 Answer
* Question
Types of income elasticity of demand
Correct Answer
Negative income elasticity , Zero income elasticity , Unit income elasticity
Your Answer
Negative income elasticity , Zero income elasticity , Unit income elasticity
Select The Blank
* Question
Managerial ________s generally refers to the integration of economic theory with ________ practice.
Correct Answer
economic
Your Answer
economic
Correct Answer
business
Your Answer
business
Select The Blank
* Question
The problem of unlimited wants and limited ________ with ________ uses has been forever confronting mankind.
Correct Answer
means
Your Answer
means
Correct Answer
alternative
Your Answer
alternative
Select The Blank
* Question
As per the International Labour Organisation (ILO), _ ________ is a ________ association of individuals with limited income on the basis of equal rights and responsibilities for achieving certa
Correct Answer
Co-operation
Your Answer
Co-operation
Correct Answer
voluntary
Your Answer
voluntary
Select The Blank
* Question
Like all organism, the ________ , too is an organism, according to the ________ theory.
Correct Answer
firm
Your Answer
firm
Correct Answer
life-cycle theory
Your Answer
homeostatic theory
Select The Blank
* Question
The ________-taking theory was developed by the ________ . According to him, profit arises because considerable amount of risk is involved in business.
Correct Answer
American economist Hawley
Your Answer
risk
Correct Answer
risk
Your Answer
American economist Hawley
Select The Blank
* Question
The 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 Answer
price
Your Answer
price
Correct Answer
price elasticity
Your Answer
price elasticity
Select The Blank
* Question
Indices constructed for one ________ should not be ________ for other purposes where they not be fully appropriate and given erroneous conclusions.
Correct Answer
purpose
Your Answer
purpose
Correct Answer
used
Your Answer
used
Select The Blank
* Question
The 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 w
Correct Answer
increased
Your Answer
increased
Correct Answer
marginal
Your Answer
marginal
Match The Following
Question
Correct Answer
Your Answer
Statutory Reserve Ratio
Quantitative credit Control Measure
Quantitative credit Control Measure
Trade cycleWave – like movement
Wave – like movement
Keynesian theoryShort – Period Analysis
J. M. Keynes
Aggregate Demand Function
Maximum sale proceeds expected by entrepreneurs
Short – Period Analysis
Effective Demand
J. M. Keynes
Maximum sale proceeds expected by entrepreneurs
Managerial Economics - 4
LIST OF ATTEMPTED QUESTIONS AND ANSWERSMultiple Choice Single Answer
* Question
Economists call all human resources as
Correct Answer
labor
Your Answer
labor
True/False
* Question
Economic problem arises only in case of an overpopulated country.
Correct Answer
False
Your Answer
False
Multiple Choice Single Answer
* Question
All the buyers and sellers operating under perfect competition have knowledge
Correct Answer
perfect
Your Answer
perfect
True/False
* Question
The meaning of the word “economic” is most closely associated with the word unlimited
Correct Answer
True
Your Answer
True
Multiple Choice Single Answer
* Question
The conditions of equilibrium of a firm are applicable to all markets
Correct Answer
None
Your Answer
particular
True/False
* Question
In case of the co-operative societies supplying cheap inputs or supplying consumer products at fair prices, a system of subsidized pricing is followed
Correct Answer
True
Your Answer
True
Multiple Choice Single Answer
* Question
The price of a good and the exclusion principle together is
Correct Answer
divisibility
Your Answer
indivisibility
Multiple Choice Single Answer
* Question
The liability of a sole proprietary firm is
Correct Answer
unlimited
Your Answer
unlimited
True/False
* Question
Institution of private property is not an essential feature of Capitalism
Correct Answer
False
Your Answer
False
True/False
* Question
There never was in any country at any time ‘pure capitalism’ or ‘pure communism
Correct Answer
True
Your Answer
True
True/False
* Question
The railways using a lot of coal in firing the steam locomotives put the residential and other areas near the loco – shades to a lot of sufferings on account of smoke nuisance, is an example of pr
Correct Answer
False
Your Answer
True
True/False
* Question
A Joint stock company has perpetual succession.
Correct Answer
True
Your Answer
True
True/False
* Question
The management of the cooperative form of business organization is totalitarian in nature.
Correct Answer
False
Your Answer
True
Multiple Choice Single Answer
* Question
In Trade cycles the economic activity are
Correct Answer
ups and downs
Your Answer
ups and downs
True/False
* Question
In macro – economic analysis the behavior of economic agents such as firms, households and government is seen in total, disregarding details at particular level
Correct Answer
True
Your Answer
True
Multiple Choice Single Answer
* Question
Market economy or private enterprise economy is a economy which is
Correct Answer
planless
Your Answer
planned
Multiple Choice Single Answer
* Question
New commodities due to technotogical progress may result in demand for traditional type of goods
Correct Answer
decrease
Your Answer
decrease
Multiple Choice Single Answer
* Question
If a person is habituated to the consumption of a commodity and if he cannot easily give up its use, demand for it is generally
Correct Answer
inelastic
Your Answer
inelastic
Match The Following
Question
Correct Answer
Your Answer
Normal demand curve
Downwards to right
Downwards to right
Income consumption curve
Upwards to the right
Upwards to the right
Inelastic demand curve
Vertical straight line
Vertical straight line
Cross elasticity of demand between two perfect substitute will be
Infinity
Infinity
A demand curve, which takes the form of a horizontal line parallelto the quantity axis illustrates elasticity
Infinity.
Infinity.
Multiple Choice Single Answer
* Question
The law of diminishing returns is applicable to agriculture provided the state of technology is given and
Correct Answer
constant
Your Answer
resources
Multiple Choice Single Answer
* Question
Under the system of dual prices in case of essential goods, adopted by the government, the weaker sections of the community are supplied these goods through fair price shops whi
Correct Answer
fair
Your Answer
neo –rich
Multiple Choice Single Answer
* Question
The Government attempts to increase supplies of food grains and other essential goods in times of internal shortage through larger
Correct Answer
imports
Your Answer
borrowings
True/False
* Question
External economies are the advantages of large scale production enjoyed exclusively an individual firm alone.
Correct Answer
False
Your Answer
False
Multiple Choice Multiple Answer
* Question
Equilibrium is
Correct Answer
The stage of maximum satisfaction , The stage of balance , The stage of stationary
Your Answer
The stage of balance
Multiple Choice Multiple Answer
* Question
Conditions of equilibrium
Correct Answer
Marginal Revenue should be equal to Marginal Cost , The Marginal cost curve should cut the marginal revenue curve from below at the equilibrium point , Marginal cost curve should be increasing at equilibrium point
Your Answer
Marginal Revenue should be equal to Marginal Cost , The Marginal cost curve should cut the marginal revenue curve from below at the equilibrium point , Average cost curve should cut the Average Revenue curve
Select The Blank
* Question
Cost-benefit analysis refers to the analysis undertaken to judge any projects ________ whether government or private and find out its ________ and facilities its comparison with other available oppor
Correct Answer
investments
Your Answer
investments
Correct Answer
worth
Your Answer
profit
Multiple Choice Multiple Answer
* Question
Aggregate supply function
Correct 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 employment
Your Answer
Refers to show the varying level of supply at different prices
Multiple Choice Multiple Answer
* Question
Characteristics of Depression
Correct Answer
Decrease in economic activities , The growth rate becomes negative , The level of national income declines rapidly
Your Answer
Decrease in economic activities , The growth rate becomes negative , The level of national income declines rapidly
Multiple Choice Multiple Answer
* Question
Recession includes
Correct Answer
The demand is halted , Increase in production of goods , Inventories piling up in stocks
Your Answer
The demand is halted , Inventories piling up in stocks , The growth of discrepancy between supply and demand is very fast
Multiple Choice Multiple Answer
* Question
The causes of inflation
Correct Answer
Increase in public expenditure , Increase in private expenditure , Increase in foreign demand
Your Answer
Increase in public expenditure , Increase in foreign demand , Increase in taxation
Select The Blank
* Question
In the ________ terminology, the ________ demand function refers to the schedule of maximum sales proceeds, which the entrepreneurial community actually does expect to be received from the sale of
Correct Answer
Keynesian
Your Answer
Keynesian
Correct Answer
aggregate
Your Answer
total
Select The Blank
* Question
The rate of interest, according to ________ , depends upon two factors: (i) ________ and (ii) the quantity of money
Correct Answer
Keynes
Your Answer
Keynes
Correct Answer
the liquidity preference function
Your Answer
speculative
Multiple Choice Multiple Answer
* Question
Reasons for need of public distribution system
Correct Answer
To maintain stable price conditions , An efficient management of the supply , To supply the necessary goods to people at reasonable price
Your Answer
To maintain stable price conditions , An efficient management of the supply , To supply the necessary goods to people at reasonable price
Multiple Choice Multiple Answer
* Question
The consumer protection Act includes
Correct Answer
Protection from hazardous commodities , Right to a competitive price , Right to information regarding protection
Your Answer
Protection from hazardous commodities , Right to information regarding protection , Protest against price discrimination
Multiple Choice Multiple Answer
* Question
Objectives of economic policy
Correct Answer
To increase the efficiency and international competitiveness of industrial production , To improve the performance and rationalize the scope of the public sector , To reform and modernize the financial sector
Your Answer
To increase the efficiency and international competitiveness of industrial production , To improve the performance and rationalize the scope of the public sector , To reform and modernize the financial sector
Multiple Choice Multiple Answer
* Question
Scope of Managerial Economics deals with:
Correct Answer
Demand analysis and forecasting. , Production function & cost analysis. , Inventory management adverting, price system.
Your Answer
Demand analysis and forecasting. , Production function & cost analysis. , Inventory management adverting, price system.
Multiple Choice Multiple Answer
* Question
Assumptions 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 Answer
* Question
Types of income elasticity of demand
Correct Answer
Negative income elasticity , Zero income elasticity , Unit income elasticity
Your Answer
Negative income elasticity , Zero income elasticity , Unit income elasticity
Select The Blank
* Question
Managerial ________s generally refers to the integration of economic theory with ________ practice.
Correct Answer
economic
Your Answer
economic
Correct Answer
business
Your Answer
business
Select The Blank
* Question
The problem of unlimited wants and limited ________ with ________ uses has been forever confronting mankind.
Correct Answer
means
Your Answer
means
Correct Answer
alternative
Your Answer
alternative
Select The Blank
* Question
As per the International Labour Organisation (ILO), _ ________ is a ________ association of individuals with limited income on the basis of equal rights and responsibilities for achieving certa
Correct Answer
Co-operation
Your Answer
Co-operation
Correct Answer
voluntary
Your Answer
voluntary
Select The Blank
* Question
Like all organism, the ________ , too is an organism, according to the ________ theory.
Correct Answer
firm
Your Answer
firm
Correct Answer
life-cycle theory
Your Answer
homeostatic theory
Select The Blank
* Question
The ________-taking theory was developed by the ________ . According to him, profit arises because considerable amount of risk is involved in business.
Correct Answer
American economist Hawley
Your Answer
risk
Correct Answer
risk
Your Answer
American economist Hawley
Select The Blank
* Question
The 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 Answer
price
Your Answer
price
Correct Answer
price elasticity
Your Answer
price elasticity
Select The Blank
* Question
Indices constructed for one ________ should not be ________ for other purposes where they not be fully appropriate and given erroneous conclusions.
Correct Answer
purpose
Your Answer
purpose
Correct Answer
used
Your Answer
used
Select The Blank
* Question
The 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 w
Correct Answer
increased
Your Answer
increased
Correct Answer
marginal
Your Answer
marginal
Match The Following
Question
Correct Answer
Your Answer
Statutory Reserve RatioQuantitative credit Control Measure
Quantitative credit Control Measure
Trade cycleWave – like movement
Wave – like movement
Keynesian theory
Short – Period Analysis
J. M. Keynes
Aggregate Demand FunctionMaximum sale proceeds expected by entrepreneurs
Short – Period Analysis
Effective DemandJ. M. Keynes
Maximum sale proceeds expected by entrepreneurs
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