Managerial Economics - 1

LIST OF ATTEMPTED QUESTIONS AND ANSWERS



True/False
Question
In case of a proprietary firm the liability of the proprietor is limited.
Correct Answer
False
Your Answer
False

Multiple Choice Multiple Answer
Question
Accounting profit includes :-
Correct Answer
Wages , Rent , Interest
Your Answer
Interest , Total revenue

True/False
Question
In experimental price approach the firms takes some cognizance of the demand for the product and proceeds to fix a price by a trial and error method.
Correct Answer
True
Your Answer
True

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
Emergence of monopolies , Failure to provide full employment , Prevailing of barter system

Multiple Choice Single Answer
Question
In case of perfectly elastic supply, the supply curve is :-
Correct Answer
Horizontal
Your Answer
Vertical

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
Economists have pointed out that the real world is full of :-
Correct Answer
Imperfect competition
Your Answer
Pure competition

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 benefits cannot be priced

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
Under perfect competition, generally demand and supply act and react upon each other and determine the price
Correct Answer
equilibrium
Your Answer
equilibrium

Multiple Choice Multiple Answer
Question
Factors leading to differences in the economic & the traditional concepts of valuation are :-
Correct Answer
Inventory Valuation , Depreciation , Unaccounted value changes in the assets & liabilities
Your Answer
Inventory Valuation , Depreciation , Unaccounted value changes in the assets & liabilities

Select The Blank
Question
Super-normal profit is also called ________.
Correct Answer
Excess profit
Your Answer
Excess profit

Multiple Choice Multiple Answer
Question
Under cost plus pricing :-
Correct Answer
Actual costs, standard costs are included , Certain percentage of profit also included , The price is set to cover material, labour cost
Your Answer
The price is set to cover material, labour cost , Actual costs, standard costs are included

Match The Following
Question
Correct Answer
Your Answer
Human wants
unlimited
unlimited
General Theory of Employment, Interest and Money
J. M. Keynes
J. M. Keynes
Managerial economics
Decision making and forward planning
Decision making and forward planning
Resources
scarce
scarce
Commodities
goods and services
goods and services

True/False
Question
Consumer’s protection involves protection to the consumers from unfair trade practices.
Correct Answer
True
Your Answer
True

Select The Blank
Question
When Government repays old loans, the purchasing power at the disposal of the people ________.
Correct Answer
Increases
Your Answer
Becomes negative

True/False
Question
The law of supply is not hypothetical.
Correct Answer
False
Your Answer
True

Multiple Choice Single Answer
Question
A firm gets an opportunity to produce multiple products because changes in business activity in a firms is :-
Correct Answer
Cyclical
Your Answer
Cyclical

True/False
Question
When a change in income has no effect upon the quantity demanded of a product, the income elasticity of demand is zero.
Correct Answer
True
Your Answer
True

Multiple Choice Single Answer
Question
Managerial economics generally refers to the integration of economic theory with business
Correct Answer
Practice
Your Answer
Practice

Select The Blank
Question
Propensity to consume is defined as the relationship between consumption and ________.
Correct Answer
Income
Your Answer
Income

True/False
Question
Public enterprises have shown a very high rate of return of the capital invested.
Correct Answer
False
Your Answer
False

Select The Blank
Question
________ effects are those externalities which flow from the production or use of the good to other parties or economic units.
Correct Answer
Third party
Your Answer
External

True/False
Question
In the traditional concept of equilibrium, a firm attains the equilibrium when the firm’s Total Revenue (T.R.) =Total Cost (T.C.).
Correct Answer
False
Your Answer
True

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

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

Multiple Choice Multiple Answer
Question
Demand is determined by :-
Correct Answer
Price of the product , Relative prices of other goods , Tastes and habits
Your Answer
Price of the product , Relative prices of other goods , Tastes and habits

Multiple Choice Multiple Answer
Question
Different types of Elasticity of Demand are :-
Correct Answer
Cross elasticity of demand , Price elasticity of demand , Income elasticity of demand
Your Answer
Price elasticity of demand , Income elasticity of demand , Cross elasticity of demand

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
Expansion of supply is shown by the movement in the supply curve which is :-
Correct Answer
Upward
Your Answer
Upward

Multiple Choice Single Answer
Question
Saving is a :-
Correct Answer
Private virtue
Your Answer
Private virtue

Multiple Choice Single Answer
Question
According to the Government, the building up of inflationary pressure during the Nineties was attributed to :-
Correct Answer
Higher Fiscal deficit
Your Answer
Higher Fiscal deficit

Multiple Choice Multiple Answer
Question
A competitive industry has three basic characteristics :-
Correct Answer
Large Number of Firms , Homogeneous Product , Free entry and exit
Your Answer
Large Number of Firms , Homogeneous Product , Free entry and exit

Multiple Choice Single Answer
Question
The income which a businessman might expect from the second best alternative use of his resources is called as :-
Correct Answer
Opportunity cost
Your Answer
Opportunity cost

Select The Blank
Question
Advertising forms an integral part of decision-making and________.
Correct Answer
Forward - planning
Your Answer
Forward - planning

Multiple Choice Multiple Answer
Question
Exceptions to the Law of Demand are :-
Correct Answer
Griffin goods , Articles of snob appeal , Speculation
Your Answer
Griffin goods , Articles of snob appeal , Speculation

Select The Blank
Question
True inflation starts only after reaching ________.
Correct Answer
Level of full employment
Your Answer
Level of full employment

Select The Blank
Question
The financing of ________ goods is done through Public expenditure.
Correct Answer
Public
Your Answer
Public

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

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

True/False
Question
The sum of total fixed costs and total variable costs is the total cost.
Correct Answer
True
Your Answer
True

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

True/False
Question
Under the New Industrial Policy, in order to invite foreign investment in high priority industries, it was decided to provide approval for direct foreign investment upto 51% equity in such industries.
Correct Answer
True
Your Answer
True