Managerial Economics - 23

LIST OF ATTEMPTED QUESTIONS AND ANSWERS


Select The Blank
Question
When there is ________ in foreign demand for the goods manufactured in a country, exports increase and prices of commodities in the country Increase.
Correct Answer
Increase
Your Answer
Increase

Select The Blank
Question
Managerial ________ lies on the borderline of management and Economics.
Correct Answer
Economics
Your Answer
Economics

True/False
Question
Demand curve slopes upwards from left to right.
Correct Answer
False
Your Answer
False

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

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

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

Select The Blank
Question
Government has carried out various rounds of disinvestments of equity shareholding, realizing a total amount of ________.
Correct Answer
Rs. 20,320 crores
Your Answer
Rs. 19,320 crores

Select The Blank
Question
In a market system of an economy, producers are guided by ________ motive.
Correct Answer
Profit
Your Answer
Profit

True/False
Question
Demand is related to price, time and place.
Correct Answer
True
Your Answer
False

Match The Following
Question
Correct Answer
Your Answer
Pollution control certificate
Government action
Government action
Air pollution
Negative externality
Measure to reduce externality
Radio or TV signal
Positive externality
Positive externality
Negotiation
Private Action
Perfect Competition in the market

Select The Blank
Question
Cost-benefit analysis refers to the analysis undertaken to judge any project's ________ whether government or private and find out its worth.
Correct Answer
Investments
Your Answer
Investments

Multiple Choice Multiple Answer
Question
The entrepreneur gets Pure Profit for :-
Correct Answer
Undertaking risk & uncertainty , For co-ordination & organizing production , For innovation
Your Answer
Undertaking risk & uncertainty , For innovation , For generating employment

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

Multiple Choice Single Answer
Question
Under perfect competition, if demand increases, supply being constant, the price would :-
Correct Answer
Rise
Your Answer
Rise

True/False
Question
A firm is a technical unit of a given capacity of output.
Correct Answer
False
Your Answer
False

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
Less than one
Your Answer
Less than one

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
When a firm’s A.R. (average revenue) is greater than A.C. (average cost), it gets a profit which is :-
Correct Answer
Super normal
Your Answer
Positive

Multiple Choice Multiple Answer
Question
Features of Dumping are :-
Correct Answer
It is possible in the case of monopoly market , Selling same good at higher price in home market and at lower price in international market , It is encouraged with a view to promote the exports
Your Answer
It is possible in the case of monopoly market , Selling same good at higher price in home market and at lower price in international market , It is encouraged with a view to promote the exports

Multiple Choice Single Answer
Question
According to J.M. Keynes, there is inducement to invest, when the marginal efficiency of capital is greater than :-
Correct Answer
Rate of interest
Your Answer
Rate of interest

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
Demand for several products like ice-cream, chocolate, bhel-puri depends on :-
Correct Answer
Individual tastes
Your Answer
Individual tastes

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 Multiple Answer
Question
The phase of recovery denotes :-
Correct Answer
More employment opportunities , Increase in profitability , Wage rate increase
Your Answer
Increase in profitability , Inventories decrease

True/False
Question
There is no separation of ownership and management in case of a Joint Stock Company.
Correct Answer
False
Your Answer
False

True/False
Question
Pure public goods must be in the hands of public sector only.
Correct Answer
True
Your Answer
True

Select The Blank
Question
The salary of the proprietor or rent on own land are the ________.
Correct Answer
Implicit cost
Your Answer
Implicit cost

Multiple Choice Multiple Answer
Question
Demand Curve :-
Correct Answer
Is a graphical presentation , Slopes downward , Explain the relation between price and demand
Your Answer
Is a graphical presentation , Slopes downward , Explain the relation between price and demand

True/False
Question
The short run Average Cost (A.C.) curve is U shaped.
Correct Answer
True
Your Answer
True

Select The Blank
Question
Sole Proprietorship is also called sole ________.
Correct Answer
Tradership
Your Answer
Tradership

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

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

Multiple Choice Multiple Answer
Question
Distinction between private sector and public sector is determined on the basis of :-
Correct Answer
Economic system , Motive , Principle of pricing
Your Answer
Economic system , Motive , Principle of pricing

Multiple Choice Single Answer
Question
For an economist, Tata Eng & Locomotive Company Ltd is a :-
Correct Answer
Firm
Your Answer
Firm

True/False
Question
In any business, while formulating a profit policy, the possibility of emergence of rival firms must be taken into account.
Correct Answer
True
Your Answer
True

Multiple Choice Multiple Answer
Question
Government intervention is needed in free market mechanism to :-
Correct Answer
Provide employment to all who willing to work at prevailing wage rate , Factors of production which are optimally allocated between the various industries , Get sufficient income to meet their basic needs by all
Your Answer
Provide employment to all who willing to work at prevailing wage rate , Factors of production which are optimally allocated between the various industries , Get sufficient income to meet their basic needs by all

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 , Tastes and habits

Match The Following
Question
Correct Answer
Your Answer
Human wants
Unlimited
Unlimited
Managerial economics
Decision making and forward planning
Decision making and forward planning
Resources
Scarce
Limited
Commodities
Goods and services
Goods and services

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
Types of income elasticity of demand :-
Correct Answer
Negative income elasticity , Zero income elasticity , Unit income elasticity
Your Answer
Negative income elasticity , Unit income elasticity , Neutral income elasticity

Multiple Choice Single Answer
Question
In general, the demand for necessaries is relatively :-
Correct Answer
Inelastic
Your Answer
Inelastic

Multiple Choice Multiple Answer
Question
The causes of inflation are :-
Correct Answer
Increase in public expenditure , Increase in private expenditure , Increase in foreign demand
Your Answer
Increase in public expenditure , Increase in private expenditure , Increase in foreign demand

True/False
Question
Institution of private property is not an essential feature of Capitalism.
Correct Answer
False
Your Answer
False

Multiple Choice Multiple Answer
Question
In case of defense services, all the sections of the society are equally protected and benefited. The defense services in other words is :-
Correct Answer
Indivisible in character , Cannot be priced in the market , A public good
Your Answer
Indivisible in character , Cannot be priced in the market , A public good

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

Multiple Choice Single Answer
Question
Peas & beans, groundnut oil & til oil, tea & coffee are examples of :-
Correct Answer
Substitute goods
Your Answer
Substitute goods

Multiple Choice Single Answer
Question
When with a rise in price, the total outlay falls, or with a fall in price, the total outlay rises, elasticity of demand is :-
Correct Answer
Greater than one
Your Answer
Infinite