LIST OF ATTEMPTED QUESTIONS AND ANSWERS
True/False
* Question The damage being done by the factories at and around Agra to Taj Mahal is an example of social cost for private benefit.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
* Question The Risk theory of profit was developed by
Correct Answer Hawley
Your Answer Hawley
Multiple Choice Multiple Answer
* Question Index numbers may broadly be classified as
Correct Answer Price indices , Quantity indices , Special purpose indices
Your Answer Price indices , Quantity indices , Special purpose indices
Multiple Choice Single Answer
* Question Expansion of supply is shown by the movement in the supply curve which is
Correct Answer upward
Your Answer upward
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 , company management or management by boards , public corporations
Select The Blank
* Question The financing of ________ goods is done through public expenditure.
Correct Answer public
Your Answer public
Multiple Choice Single Answer
* Question A Joint- Stock Company is owned by its share holders but it is managed by
Correct Answer Board of Directors
Your Answer Board of Directors
Multiple Choice Multiple Answer
* Question The examples of negative externalities are
Correct Answer nuclear power plants , gargantuan trucks , unsafe factories
Your Answer nuclear power plants , gargantuan trucks , unsafe factories
Match The Following
* Question Correct Answer Your Answer
Reduction in demand due to a new substitute in market Uncertainity Uncertainity
Accounting profit Explicit costs Explicit costs
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 goods
Your 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 scale
Your Answer decreasing returns to scale
True/False
* Question A monopolist in a price maker.
Correct Answer True
Your Answer True
Select The Blank
* Question The chemical effluents recklessly released by a chemical factory in the river causing water pollution, is an example of ________ cost.
Correct Answer social
Your Answer environmental
True/False
* Question The financing of the pure public goods has to be through public expenditure and not through market pricing.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
* Question A firm is a unit of production, where production is done with the aim to maximize
Correct Answer profits
Your Answer profits
Select The Blank
* Question By ' profits', the economist means total revenue minus ________.
Correct Answer All costs
Your Answer Explicit costs
Multiple Choice Multiple Answer
* Question Cost-Benefit Analysis is
Correct Answer The analysis undertaken to judge the investment of any project , Refers to finding out the worth of investment , Enable ranking of optional investments
Your Answer The analysis undertaken to judge the investment of any project , Refers to finding out the worth of investment , Enable ranking of optional investments
True/False
* Question Giffen goods are superior goods.
Correct Answer False
Your Answer False
Multiple Choice Multiple Answer
* Question The railways use a lot of coal in firing the steam locomotives. This act causes
Correct Answer a lot of sufferings to the people near the railway. , cost to the society. , no cost to the railways.
Your Answer a lot of sufferings to the people near the railway. , cost to the society. , no cost to the railways.
Multiple Choice Single Answer
* Question All the buyers and sellers operating under perfect competition have knowledge
Correct Answer perfect
Your Answer perfect
Multiple Choice Multiple Answer
* Question Marginal cost pricing explains that the
Correct Answer Price charged should be equal to the marginal cost , Cost price sets the lower limits 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 limits for firm’s price , Cost price ensures the possible level of profitability
True/False
* Question The * Question regarding the nature and quantities of commodities to be produced is solely restricted to capitalist economies.
Correct Answer False
Your Answer False
Match The Following
* Question 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
True/False
* Question During the period of depression, a large part of a country’s resources lie involuntarily idle.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
* Question The demand curve (A.R.) of a firm under perfect competition is
Correct Answer perfectly elastic
Your Answer perfectly elastic
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 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 cannot pay the market price
Correct Answer exclusion
Your Answer exclusion
Select The Blank
* Question Under the decreasing returns to scale, the marginal output curve slopes ________.
Correct Answer downward
Your Answer downward
Multiple Choice Multiple Answer
* Question Characteristics of Pure Public goods are:
Correct Answer They are completely indivisible , Their marginal cost would be zero or close to zero , Their benefits cannot be priced
Your Answer They are completely indivisible , Their marginal cost would be zero or close to zero , Their benefits cannot be priced
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
True/False
* Question The short run Average Cost (A.C.) curve is U shaped.
Correct Answer True
Your Answer True
True/False
* Question Cyclical fluctuations are recurrent in nature
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
* Question Quantitative credit control measures are
Correct Answer open market operations , changes in bank rates , changes in statutory reserve ratio
Your Answer open market operations , changes in statutory reserve ratio
True/False
* Question Private profit motive is an essential feature of Capitalism.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
* Question The number of buyers & sellers operating under perfect competition is
Correct Answer large
Your Answer large
Select The Blank
* Question The sum of all individual demands constitutes________
Correct Answer market demand
Your Answer market demand
Select The Blank
* Question The costs which cover the cost of advertising is ________.
Correct Answer Selling cost
Your Answer Selling cost
Multiple Choice Single Answer
* Question The relation between variable input and ouput
Correct Answer is direct
Your Answer is direct
Multiple Choice Single Answer
* Question With decline in price of a commodity, total expenditure spent on the commodity is less than before, then elasticity of demand for the commodity is
Correct Answer < 1
Your Answer < 1
Multiple Choice Single Answer
* Question The public sector is owned & controlled by
Correct Answer state enterprises
Your Answer state enterprises
True/False
* Question In the market, any one who agrees to pay the requisite price of a product would be excluded from their consumption.
Correct Answer False
Your Answer False
Multiple Choice Single Answer
* Question A downward movement from one point to another point on the same demand curve implies
Correct Answer expansion
Your Answer expansion
Multiple Choice Multiple Answer
* Question Methods of forecasting demand for new products are
Correct Answer Product life cycle analysis , Test marketing , Evolutionary approach
Your Answer Product life cycle analysis , Test marketing , Evolutionary approach
True/False
* Question The concept of economic profit differs from that of normal profit.
Correct Answer False
Your Answer True
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
Multiple Choice Single Answer
* Question Inflation is characterized by demand which is in
Correct Answer excess of supply
Your Answer surplus
Select The Blank
* Question Defence service is an example of ________ good.
Correct Answer indivisible
Your Answer public
True/False
* Question The damage being done by the factories at and around Agra to Taj Mahal is an example of social cost for private benefit.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
* Question The Risk theory of profit was developed by
Correct Answer Hawley
Your Answer Hawley
Multiple Choice Multiple Answer
* Question Index numbers may broadly be classified as
Correct Answer Price indices , Quantity indices , Special purpose indices
Your Answer Price indices , Quantity indices , Special purpose indices
Multiple Choice Single Answer
* Question Expansion of supply is shown by the movement in the supply curve which is
Correct Answer upward
Your Answer upward
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 , company management or management by boards , public corporations
Select The Blank
* Question The financing of ________ goods is done through public expenditure.
Correct Answer public
Your Answer public
Multiple Choice Single Answer
* Question A Joint- Stock Company is owned by its share holders but it is managed by
Correct Answer Board of Directors
Your Answer Board of Directors
Multiple Choice Multiple Answer
* Question The examples of negative externalities are
Correct Answer nuclear power plants , gargantuan trucks , unsafe factories
Your Answer nuclear power plants , gargantuan trucks , unsafe factories
Match The Following
* Question Correct Answer Your Answer
Reduction in demand due to a new substitute in market Uncertainity Uncertainity
Accounting profit Explicit costs Explicit costs
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 goods
Your 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 scale
Your Answer decreasing returns to scale
True/False
* Question A monopolist in a price maker.
Correct Answer True
Your Answer True
Select The Blank
* Question The chemical effluents recklessly released by a chemical factory in the river causing water pollution, is an example of ________ cost.
Correct Answer social
Your Answer environmental
True/False
* Question The financing of the pure public goods has to be through public expenditure and not through market pricing.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
* Question A firm is a unit of production, where production is done with the aim to maximize
Correct Answer profits
Your Answer profits
Select The Blank
* Question By ' profits', the economist means total revenue minus ________.
Correct Answer All costs
Your Answer Explicit costs
Multiple Choice Multiple Answer
* Question Cost-Benefit Analysis is
Correct Answer The analysis undertaken to judge the investment of any project , Refers to finding out the worth of investment , Enable ranking of optional investments
Your Answer The analysis undertaken to judge the investment of any project , Refers to finding out the worth of investment , Enable ranking of optional investments
True/False
* Question Giffen goods are superior goods.
Correct Answer False
Your Answer False
Multiple Choice Multiple Answer
* Question The railways use a lot of coal in firing the steam locomotives. This act causes
Correct Answer a lot of sufferings to the people near the railway. , cost to the society. , no cost to the railways.
Your Answer a lot of sufferings to the people near the railway. , cost to the society. , no cost to the railways.
Multiple Choice Single Answer
* Question All the buyers and sellers operating under perfect competition have knowledge
Correct Answer perfect
Your Answer perfect
Multiple Choice Multiple Answer
* Question Marginal cost pricing explains that the
Correct Answer Price charged should be equal to the marginal cost , Cost price sets the lower limits 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 limits for firm’s price , Cost price ensures the possible level of profitability
True/False
* Question The * Question regarding the nature and quantities of commodities to be produced is solely restricted to capitalist economies.
Correct Answer False
Your Answer False
Match The Following
* Question 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
True/False
* Question During the period of depression, a large part of a country’s resources lie involuntarily idle.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
* Question The demand curve (A.R.) of a firm under perfect competition is
Correct Answer perfectly elastic
Your Answer perfectly elastic
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 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 cannot pay the market price
Correct Answer exclusion
Your Answer exclusion
Select The Blank
* Question Under the decreasing returns to scale, the marginal output curve slopes ________.
Correct Answer downward
Your Answer downward
Multiple Choice Multiple Answer
* Question Characteristics of Pure Public goods are:
Correct Answer They are completely indivisible , Their marginal cost would be zero or close to zero , Their benefits cannot be priced
Your Answer They are completely indivisible , Their marginal cost would be zero or close to zero , Their benefits cannot be priced
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
True/False
* Question The short run Average Cost (A.C.) curve is U shaped.
Correct Answer True
Your Answer True
True/False
* Question Cyclical fluctuations are recurrent in nature
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
* Question Quantitative credit control measures are
Correct Answer open market operations , changes in bank rates , changes in statutory reserve ratio
Your Answer open market operations , changes in statutory reserve ratio
True/False
* Question Private profit motive is an essential feature of Capitalism.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
* Question The number of buyers & sellers operating under perfect competition is
Correct Answer large
Your Answer large
Select The Blank
* Question The sum of all individual demands constitutes________
Correct Answer market demand
Your Answer market demand
Select The Blank
* Question The costs which cover the cost of advertising is ________.
Correct Answer Selling cost
Your Answer Selling cost
Multiple Choice Single Answer
* Question The relation between variable input and ouput
Correct Answer is direct
Your Answer is direct
Multiple Choice Single Answer
* Question With decline in price of a commodity, total expenditure spent on the commodity is less than before, then elasticity of demand for the commodity is
Correct Answer < 1
Your Answer < 1
Multiple Choice Single Answer
* Question The public sector is owned & controlled by
Correct Answer state enterprises
Your Answer state enterprises
True/False
* Question In the market, any one who agrees to pay the requisite price of a product would be excluded from their consumption.
Correct Answer False
Your Answer False
Multiple Choice Single Answer
* Question A downward movement from one point to another point on the same demand curve implies
Correct Answer expansion
Your Answer expansion
Multiple Choice Multiple Answer
* Question Methods of forecasting demand for new products are
Correct Answer Product life cycle analysis , Test marketing , Evolutionary approach
Your Answer Product life cycle analysis , Test marketing , Evolutionary approach
True/False
* Question The concept of economic profit differs from that of normal profit.
Correct Answer False
Your Answer True
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
Multiple Choice Single Answer
* Question Inflation is characterized by demand which is in
Correct Answer excess of supply
Your Answer surplus
Select The Blank
* Question Defence service is an example of ________ good.
Correct Answer indivisible
Your Answer public
Labels: Managerial Economics (Set VII)
LIST OF ATTEMPTED * QUESTIONS AND ANSWERS
True/False
* Question Macro economic studies are based on empirical evidence.
Correct Answer True
Your Answer True
Select The Blank
* Question According to the World Bank's approach, the trade able items would be valued at the corresponding world prices and the non-trade able items at the ________.
Correct Answer shadow prices
Your Answer market prices
Multiple Choice Single Answer
* Question The study of the working and allocation of resources in the free market economies is the topic in the
Correct Answer theory of price
Your Answer theory of price
Multiple Choice Single Answer
* Question Costs which increase because of the expansion of a firm are called
Correct Answer incremental
Your Answer incremental
True/False
* Question In the Long- run, supply of goods can be adjusted to the demand and therefore supply curve is horizontal to the X-axis.
Correct Answer False
Your Answer True
Select The Blank
* Question By ' profits', the accountant means total revenue minus________.
Correct Answer Explicit costs
Your Answer Implicit cost
Multiple Choice Multiple Answer
* Question Features of short run period are
Correct Answer Supply of goods can be adjusted to the demand to some extent , Supply and demand determine the price , Some factors can be changed
Your Answer Supply of goods can be adjusted to the demand to some extent , Supply and demand 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 ________.
Correct Answer horizontal
Your Answer horizontal
Multiple Choice Single Answer
* Question The method of calculating depreciation in which the actual working hours of a capital asset are taken in to account is
Correct Answer service unit
Your Answer service unit
True/False
* Question Demand curve slopes upwards from left to right.
Correct Answer False
Your Answer False
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 Land
True/False
* Question Macro-economies is a policy oriented science.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
* Question The assumption of perfect competition in all the analytical theories is made by
Correct Answer Classical economists
Your Answer Keynesian economists
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 positive
Multiple Choice Multiple Answer
* Question Reasons for need of public distribution system are
Correct Answer To maintain stable price conditions , To bring an efficient management of the supply , To supply the necessary goods to people at reasonable price
Your Answer To maintain stable price conditions , To bring an efficient management of the supply , To supply the necessary goods to people at reasonable price
Select The Blank
* Question When demand for the product increases in the same proportion in which income increases, Income elasticity of demand will be equal to________
Correct Answer unity
Your Answer greater than unity
Multiple Choice Multiple Answer
* Question Accounting profit includes
Correct Answer wages , rent , interest
Your Answer wages , rent , interest
Multiple Choice Multiple Answer
* Question The fiscal policy includes
Correct Answer Formation of taxation policy , It is an instrument for economic stabilization , Monitoring of public expenditure
Your Answer Formation of taxation policy , It is an instrument for economic stabilization , Monitoring of public expenditure
Multiple Choice Single Answer
* Question The method of inventory valuation in which , the cost of production is calculated on the assumption that the material which was last to enter the inventory of the company was used first is
Correct Answer LIFO
Your 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 shareholders
Multiple Choice Single Answer
* Question The number of sellers operating under monopolistic competition as compare to oligopoly is
Correct Answer larger
Your Answer larger
Multiple Choice Multiple Answer
* Question Causes for rise in prices in India
Correct Answer Mounting government expenditure , Deficit financing and increase in money supply , Role of black money
Your Answer Mounting government expenditure , Deficit financing and increase in money supply , Increase in demand
True/False
* Question Social costs cannot be included in a firm's account book.
Correct Answer True
Your Answer False
Multiple Choice Single Answer
* Question AVC is the per unit variable cost of
Correct Answer production
Your Answer total revenue
Multiple Choice Multiple Answer
* Question Exceptions to the Law of Demand are
Correct Answer Giffen goods , Articles of snob appeal , Speculation
Your 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 a few project alternatives promising a
Correct Answer high rate of return
Your Answer high rate of return
* Question In the Dynamic Theory of Profit, Prof. Clark has pointed out the types of changes, which are
Correct Answer Changes in the supply of capital , Changes in population , Changes in the techniques of production
Your Answer Changes in the supply of capital , Changes in population , Changes in the techniques of production
* Question Economic problem is faced by poor countrys only.
Correct Answer False
Your Answer False
Match The Following
* Question Correct Answer Your Answer
Pure 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 are
Correct Answer Monopoly , Duopoly , Oligopoly
Your Answer Monopoly , Duopoly , Oligopoly
* 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.
* Question Investment is significant because
Correct Answer Addition to the real capital assets , It leads to increase in level of income , Increases accumulated wealth of the society
Your 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 cities is an example of ________ cost.
Correct Answer social
Your Answer social
* Question According to Lionel Robbins, "Economics is a science which studies
Correct Answer human behavior
Your Answer economic variables behavior
* Question The out of pocket costs are ________.
Correct Answer Explicit costs
Your Answer Explicit costs
* Question A firm gets an opportunity to produce multiple products because changes in business activity in a firms is
Correct Answer cyclical
Your Answer rapid
* Question Market system or market economy suffers from time to time from economic depressions.
Correct Answer True
Your Answer True
* Question Under competitive conditions, market mechanism would automatically bring equilibrium at the level of
Correct Answer full employment
Your Answer optimum produce
* Question Micro-economics is primarily concerned with the problem of what, how and for whom to produce?
Correct Answer False
Your Answer True
* Question Factors influencing selling costs are
Correct Answer Type of product , Introduction of new goods , Technology changes
Your Answer Type of product , Introduction of new goods , Advertising by customers
* Question The important determinants of supply are
Correct Answer Always referred to in relation to price & time , Government policy , Availability of factors of production
Your Answer Always referred to in relation to price & time , Government policy , Availability of factors of production
* Question The slope of Supply curve of labour is always
Correct Answer backward
Your Answer upward
* Question In economics the * Questions related to the dynamic or static ( otherwise) capacity of the economy to produce goods and services are topics in the
Correct Answer theory of economic growth
Your Answer theory of economic growth
* Question Features of monopolistic Competition are
Correct Answer Fairly large number of firms , Product differentiation , Selling costs are existed
Your 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 True
Your Answer True
Match The Following
* 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 Under perfect competition single seller can influence the price.
Correct Answer False Your Answer False
True/False
* Question Macro economic studies are based on empirical evidence.
Correct Answer True
Your Answer True
Select The Blank
* Question According to the World Bank's approach, the trade able items would be valued at the corresponding world prices and the non-trade able items at the ________.
Correct Answer shadow prices
Your Answer market prices
Multiple Choice Single Answer
* Question The study of the working and allocation of resources in the free market economies is the topic in the
Correct Answer theory of price
Your Answer theory of price
Multiple Choice Single Answer
* Question Costs which increase because of the expansion of a firm are called
Correct Answer incremental
Your Answer incremental
True/False
* Question In the Long- run, supply of goods can be adjusted to the demand and therefore supply curve is horizontal to the X-axis.
Correct Answer False
Your Answer True
Select The Blank
* Question By ' profits', the accountant means total revenue minus________.
Correct Answer Explicit costs
Your Answer Implicit cost
Multiple Choice Multiple Answer
* Question Features of short run period are
Correct Answer Supply of goods can be adjusted to the demand to some extent , Supply and demand determine the price , Some factors can be changed
Your Answer Supply of goods can be adjusted to the demand to some extent , Supply and demand 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 ________.
Correct Answer horizontal
Your Answer horizontal
Multiple Choice Single Answer
* Question The method of calculating depreciation in which the actual working hours of a capital asset are taken in to account is
Correct Answer service unit
Your Answer service unit
True/False
* Question Demand curve slopes upwards from left to right.
Correct Answer False
Your Answer False
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 Land
True/False
* Question Macro-economies is a policy oriented science.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
* Question The assumption of perfect competition in all the analytical theories is made by
Correct Answer Classical economists
Your Answer Keynesian economists
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 positive
Multiple Choice Multiple Answer
* Question Reasons for need of public distribution system are
Correct Answer To maintain stable price conditions , To bring an efficient management of the supply , To supply the necessary goods to people at reasonable price
Your Answer To maintain stable price conditions , To bring an efficient management of the supply , To supply the necessary goods to people at reasonable price
Select The Blank
* Question When demand for the product increases in the same proportion in which income increases, Income elasticity of demand will be equal to________
Correct Answer unity
Your Answer greater than unity
Multiple Choice Multiple Answer
* Question Accounting profit includes
Correct Answer wages , rent , interest
Your Answer wages , rent , interest
Multiple Choice Multiple Answer
* Question The fiscal policy includes
Correct Answer Formation of taxation policy , It is an instrument for economic stabilization , Monitoring of public expenditure
Your Answer Formation of taxation policy , It is an instrument for economic stabilization , Monitoring of public expenditure
Multiple Choice Single Answer
* Question The method of inventory valuation in which , the cost of production is calculated on the assumption that the material which was last to enter the inventory of the company was used first is
Correct Answer LIFO
Your 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 shareholders
Multiple Choice Single Answer
* Question The number of sellers operating under monopolistic competition as compare to oligopoly is
Correct Answer larger
Your Answer larger
Multiple Choice Multiple Answer
* Question Causes for rise in prices in India
Correct Answer Mounting government expenditure , Deficit financing and increase in money supply , Role of black money
Your Answer Mounting government expenditure , Deficit financing and increase in money supply , Increase in demand
True/False
* Question Social costs cannot be included in a firm's account book.
Correct Answer True
Your Answer False
Multiple Choice Single Answer
* Question AVC is the per unit variable cost of
Correct Answer production
Your Answer total revenue
Multiple Choice Multiple Answer
* Question Exceptions to the Law of Demand are
Correct Answer Giffen goods , Articles of snob appeal , Speculation
Your 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 a few project alternatives promising a
Correct Answer high rate of return
Your Answer high rate of return
* Question In the Dynamic Theory of Profit, Prof. Clark has pointed out the types of changes, which are
Correct Answer Changes in the supply of capital , Changes in population , Changes in the techniques of production
Your Answer Changes in the supply of capital , Changes in population , Changes in the techniques of production
* Question Economic problem is faced by poor countrys only.
Correct Answer False
Your Answer False
Match The Following
* Question Correct Answer Your Answer
Pure 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 are
Correct Answer Monopoly , Duopoly , Oligopoly
Your Answer Monopoly , Duopoly , Oligopoly
* 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.
* Question Investment is significant because
Correct Answer Addition to the real capital assets , It leads to increase in level of income , Increases accumulated wealth of the society
Your 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 cities is an example of ________ cost.
Correct Answer social
Your Answer social
* Question According to Lionel Robbins, "Economics is a science which studies
Correct Answer human behavior
Your Answer economic variables behavior
* Question The out of pocket costs are ________.
Correct Answer Explicit costs
Your Answer Explicit costs
* Question A firm gets an opportunity to produce multiple products because changes in business activity in a firms is
Correct Answer cyclical
Your Answer rapid
* Question Market system or market economy suffers from time to time from economic depressions.
Correct Answer True
Your Answer True
* Question Under competitive conditions, market mechanism would automatically bring equilibrium at the level of
Correct Answer full employment
Your Answer optimum produce
* Question Micro-economics is primarily concerned with the problem of what, how and for whom to produce?
Correct Answer False
Your Answer True
* Question Factors influencing selling costs are
Correct Answer Type of product , Introduction of new goods , Technology changes
Your Answer Type of product , Introduction of new goods , Advertising by customers
* Question The important determinants of supply are
Correct Answer Always referred to in relation to price & time , Government policy , Availability of factors of production
Your Answer Always referred to in relation to price & time , Government policy , Availability of factors of production
* Question The slope of Supply curve of labour is always
Correct Answer backward
Your Answer upward
* Question In economics the * Questions related to the dynamic or static ( otherwise) capacity of the economy to produce goods and services are topics in the
Correct Answer theory of economic growth
Your Answer theory of economic growth
* Question Features of monopolistic Competition are
Correct Answer Fairly large number of firms , Product differentiation , Selling costs are existed
Your 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 True
Your Answer True
Match The Following
* 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 Under perfect competition single seller can influence the price.
Correct Answer False Your Answer False
Labels: Managerial Economics (Set VII)
LIST OF ATTEMPTED * QUESTIONS AND ANSWERS
Multiple Choice Multiple Answer
* Question Types of Share capital of Joint-Stock Company are
Correct Answer registered or authorized capital , issued capital , paid-up capital
Your Answer registered or authorized capital , issued capital , paid-up capital
Match The Following
* Question Correct Answer Your Answer
Equilibrium price is the price where the quantity demanded equals quantity supplied quantity demanded equals quantity supplied
Excess supply can be defined as quantity supplied minus quantity demanded. quantity supplied minus quantity demanded.
Tea and sugar Complimentary goods Complimentary goods
Excess demand can be defined as quantity demanded minus quantity supplied quantity demanded minus quantity supplied
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
Select The Blank
* Question The liability of a Karta in a Joint Hindu Family Business firm is ________.
Correct Answer limited
Your Answer limited
Select The Blank
* Question Demand for a commodity depends on the relative price of its ________
Correct Answer substitute goods
Your Answer substitute goods
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 Multiple Answer
* Question Features of Long -run market are
Correct Answer It is durable goods market , Supply can be increased or reduced according to the demand , Sellers at least recover minimum price for their goods
Your Answer It is durable goods market , Supply can be increased or reduced according to the demand , Sellers at least recover minimum price for their goods
Multiple Choice Single Answer
* Question The type economic problem is
Correct Answer universal
Your Answer universal
Select The Blank
* Question In a market system of an economy, producers are guided by ________ motive.
Correct Answer profit
Your Answer profit
Multiple Choice Single Answer
* Question An individual consumer or particular market for a given commodity are the subject matter of
Correct Answer Micro Economics
Your Answer Micro Economics
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 Single Answer
* Question While calculating accounting profit, the costs which are considered are by nature
Correct Answer explicit
Your Answer implicit
Multiple Choice Single Answer
* Question Given the price, if the cost of production increases because of higher price of raw materials, the supply
Correct Answer decreases
Your Answer decreases
Multiple Choice Single Answer
* Question The things that are produced by factors of production are called
Correct Answer commodities
Your Answer commodities
Multiple Choice Single Answer
* Question The concept of just distribution of national product is a
Correct Answer normative
Your Answer normative
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
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
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 Multiple Answer
* Question The market system of economy is based on the following foundations:
Correct Answer Consumer's Sovereignty , Non-interference by the state. , Private Profit Motive
Your 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 private
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
Multiple Choice Single Answer
* Question The city of Banaras has specialized in the manufacture of
Correct Answer silk
Your Answer silk
True/False
* Question During inflation, the pensioners whose income is permanently fixed, are substantially benefited.
Correct Answer False
Your Answer False
Select The Blank
* Question Economists like A.C.Harberger have shown that the cost benefit analysis can be applied to ________ analysis.
Correct Answer general equilibrium
Your Answer general equilibrium
True/False
* Question Generally, the larger the income of a consumer, his demand for overall commodities tends to be relatively elastic.
Correct Answer False
Your Answer False
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
True/False
* Question Supply management is related to the volume ofsupply & its distribution system.
Correct Answer True
Your Answer True
Select The Blank
* Question Demand for safety pins is ________
Correct Answer inelastic
Your Answer inelastic
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
True/False
* Question Under the disinvestments process, there is full transfer of ownership
Correct Answer True
Your Answer False
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
Multiple Choice Single Answer
* Question When a company rasies additional finance by borrowing from the public for a specific period of time at a particular rate of interest, it is called as
Correct Answer Debentures
Your Answer Debentures
Multiple Choice Multiple Answer
* Question Features of market period are
Correct Answer Related to few hours or few days , Related to perishable goods , The entire supply is to be disposed off on the same day
Your Answer Related to few hours or few days , Related to perishable goods , The entire supply is to be disposed off on the same day
Select The Blank
* Question In the context of formulating an investment project, ________ feasibility means the availability of supervisors for implementing and running the project smoothly and professionally.
Correct Answer management
Your Answer organizational
Multiple Choice Multiple Answer
* Question Increasing Returns explains
Correct Answer Total product increases at an increasing rate , Marginal product increasing and it is maximum , Average product is increasing but it is below MP
Your Answer Total product increases at an increasing rate , Marginal product increasing and it is maximum , Average product is increasing but it is below MP
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 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 Single Answer
* Question The observation of economic histories of the United States & West European countries shows that competition , the heart of market mechanism gives rise to
Correct Answer monopolies
Your Answer price competition
Match The Following
* Question 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 Answer
* Question During a period of rising prices (inflation), the goods and services are
Correct Answer scarce
Your Answer are also increasing
True/False
* Question Contraction of supply is traced by the downward movement on the supply curve
Correct Answer True
Your Answer True
Multiple Choice Single Answer
* Question Over the years in India the govt. expenditure is
Correct Answer increasing
Your Answer increasing
True/False
* Question To solve the unemployment problem , the level of effective demand must decrease.
Correct Answer False
Your Answer False
True/False
* Question Demand is related to price, time and place.
Correct Answer True
Your Answer False
Multiple Choice Single Answer
* Question Managerial economics is also understood to refer to
Correct Answer applied economics
Your Answer applied economics
Select The Blank
* Question A fall in price tends the demand for goods to ________
Correct Answer expand Your Answer expand
Multiple Choice Multiple Answer
* Question Types of Share capital of Joint-Stock Company are
Correct Answer registered or authorized capital , issued capital , paid-up capital
Your Answer registered or authorized capital , issued capital , paid-up capital
Match The Following
* Question Correct Answer Your Answer
Equilibrium price is the price where the quantity demanded equals quantity supplied quantity demanded equals quantity supplied
Excess supply can be defined as quantity supplied minus quantity demanded. quantity supplied minus quantity demanded.
Tea and sugar Complimentary goods Complimentary goods
Excess demand can be defined as quantity demanded minus quantity supplied quantity demanded minus quantity supplied
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
Select The Blank
* Question The liability of a Karta in a Joint Hindu Family Business firm is ________.
Correct Answer limited
Your Answer limited
Select The Blank
* Question Demand for a commodity depends on the relative price of its ________
Correct Answer substitute goods
Your Answer substitute goods
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 Multiple Answer
* Question Features of Long -run market are
Correct Answer It is durable goods market , Supply can be increased or reduced according to the demand , Sellers at least recover minimum price for their goods
Your Answer It is durable goods market , Supply can be increased or reduced according to the demand , Sellers at least recover minimum price for their goods
Multiple Choice Single Answer
* Question The type economic problem is
Correct Answer universal
Your Answer universal
Select The Blank
* Question In a market system of an economy, producers are guided by ________ motive.
Correct Answer profit
Your Answer profit
Multiple Choice Single Answer
* Question An individual consumer or particular market for a given commodity are the subject matter of
Correct Answer Micro Economics
Your Answer Micro Economics
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 Single Answer
* Question While calculating accounting profit, the costs which are considered are by nature
Correct Answer explicit
Your Answer implicit
Multiple Choice Single Answer
* Question Given the price, if the cost of production increases because of higher price of raw materials, the supply
Correct Answer decreases
Your Answer decreases
Multiple Choice Single Answer
* Question The things that are produced by factors of production are called
Correct Answer commodities
Your Answer commodities
Multiple Choice Single Answer
* Question The concept of just distribution of national product is a
Correct Answer normative
Your Answer normative
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
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
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 Multiple Answer
* Question The market system of economy is based on the following foundations:
Correct Answer Consumer's Sovereignty , Non-interference by the state. , Private Profit Motive
Your 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 private
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
Multiple Choice Single Answer
* Question The city of Banaras has specialized in the manufacture of
Correct Answer silk
Your Answer silk
True/False
* Question During inflation, the pensioners whose income is permanently fixed, are substantially benefited.
Correct Answer False
Your Answer False
Select The Blank
* Question Economists like A.C.Harberger have shown that the cost benefit analysis can be applied to ________ analysis.
Correct Answer general equilibrium
Your Answer general equilibrium
True/False
* Question Generally, the larger the income of a consumer, his demand for overall commodities tends to be relatively elastic.
Correct Answer False
Your Answer False
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
True/False
* Question Supply management is related to the volume ofsupply & its distribution system.
Correct Answer True
Your Answer True
Select The Blank
* Question Demand for safety pins is ________
Correct Answer inelastic
Your Answer inelastic
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
True/False
* Question Under the disinvestments process, there is full transfer of ownership
Correct Answer True
Your Answer False
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
Multiple Choice Single Answer
* Question When a company rasies additional finance by borrowing from the public for a specific period of time at a particular rate of interest, it is called as
Correct Answer Debentures
Your Answer Debentures
Multiple Choice Multiple Answer
* Question Features of market period are
Correct Answer Related to few hours or few days , Related to perishable goods , The entire supply is to be disposed off on the same day
Your Answer Related to few hours or few days , Related to perishable goods , The entire supply is to be disposed off on the same day
Select The Blank
* Question In the context of formulating an investment project, ________ feasibility means the availability of supervisors for implementing and running the project smoothly and professionally.
Correct Answer management
Your Answer organizational
Multiple Choice Multiple Answer
* Question Increasing Returns explains
Correct Answer Total product increases at an increasing rate , Marginal product increasing and it is maximum , Average product is increasing but it is below MP
Your Answer Total product increases at an increasing rate , Marginal product increasing and it is maximum , Average product is increasing but it is below MP
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 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 Single Answer
* Question The observation of economic histories of the United States & West European countries shows that competition , the heart of market mechanism gives rise to
Correct Answer monopolies
Your Answer price competition
Match The Following
* Question 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 Answer
* Question During a period of rising prices (inflation), the goods and services are
Correct Answer scarce
Your Answer are also increasing
True/False
* Question Contraction of supply is traced by the downward movement on the supply curve
Correct Answer True
Your Answer True
Multiple Choice Single Answer
* Question Over the years in India the govt. expenditure is
Correct Answer increasing
Your Answer increasing
True/False
* Question To solve the unemployment problem , the level of effective demand must decrease.
Correct Answer False
Your Answer False
True/False
* Question Demand is related to price, time and place.
Correct Answer True
Your Answer False
Multiple Choice Single Answer
* Question Managerial economics is also understood to refer to
Correct Answer applied economics
Your 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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