Friday, July 2, 2010

Managerial Economics - 29

This solved paper has been contributed by Jyoti Agrawal

THANKS TO : Jyoti Agrawal
 
Multiple Choice Single Answer    
  Question      Managerial economics generally refers to the integration of economic theory with business
  Correct 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

Multiple Choice Single Answer    
  Question      Managerial economics is also understood to refer to
  Correct Answer      applied economics

 Multiple Choice Single Answer    
  Question      The type economic problem is
  Correct Answer      Universal

 Multiple Choice Single Answer    
  Question      The act of making goods and services is called
  Correct Answer      production

 Multiple Choice Single Answer    
  Question      The act of using goods and services to satisfy wants is called
  Correct Answer      Consumption

 Multiple Choice Single Answer    
  Question      The things that are produced by factors of production are called
  Correct Answer      Commodities

 Multiple Choice Single Answer    
  Question      The concept of just distribution of national product is a
  Correct Answer      normative

 True/False    
  Question      A firm under perfect competition is a price maker
  Correct Answer      False

 True/False    
  Question      When demand and supply rise and fall in the same proportion, the equilibrium price changes.
  Correct Answer      False

 True/False    
  Question      Market means a particular area where buyers and sellers meet
  Correct Answer      False

 Multiple Choice Single Answer    
  Question      Goods which are completely divisible and to them the principle of exclusion applies in full measure are
  Correct Answer      Pure private goods

 Multiple Choice Single Answer    
  Question      Market system of economy is characterized by consumer’s
  Correct Answer      sovereignty

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

 Multiple Choice Single Answer    
  Question      Macro – economics provides an exploration to the functioning of an economy in
  Correct Answer      general

 True/False    
  Question      The subject matter of macro – economics includes the theory of income and employment at an individual level
  Correct Answer      False

 Match The Following    
  Question        Correct Answer
Dual prices    Two different prices
Inflation    Deficit financing
P.D.S.    Essential commodities
R.B.I.    General and selective credit control measures
The consumers’ Protection Act 1986    Right to information

 Multiple Choice Single Answer    
  Question      Depreciation is the value caused by the continuous use of a capital asset is
  Correct Answer      loss

 True/False    
  Question      Accounting profit takes in to account opportunity cost.
  Correct Answer      False

 True/False    
  Question      According to Prof Knight, profit is the reward for uncertainty bearing.
  Correct Answer      True

 True/False    
  Question      According to J.B. Clark, profit is the reward paid to the entrepreneur for dynamism.
  Correct Answer      True

 Multiple Choice Single Answer    
  Question      Complementary goods are demanded
  Correct Answer      jointly

 Match The Following    
  Question        Correct Answer
Cross demand is the change in the quantity demanded of a given commodity in response to the    Change in the price of anothercommodity
Incase there were no changes in the quantity of food sold even when its price had fallen we would know that    Demand was entirely inelastic
The elasticity of demand for product will be higher    The more available are substitutes for that product
The law of demand indicates    Relationship between the price of a commodity and the quantity Demanded
The law of demand states    When price falls demand rises

 Multiple Choice Single Answer    
  Question      As per the law marginal product becomes negative when total product
  Correct Answer      falls

 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

 Multiple Choice Single Answer    
  Question      Under the system of dual prices adopted by the Government for essential goods, the weaker sections of the community are supplied those goods through fair price shops which are
  Correct Answer      fair

 Select The Blank    
  Question      Quantitative credit control measures such as ________ operations, change in the bank rate, and changes in the ________ ratios
  Correct Answer      open market
  Correct Answer      statutory reserve

 Multiple Choice Single Answer    
  Question      AVC is the per unit variable cost of
  Correct Answer      production

 True/False    
  Question      Given the price, if the cost of production of a commodity decreases because of the use of improved technique of production, there will be increase in supply.
  Correct Answer      True

 True/False    
  Question      The laws of returns to scale explain the behavior of output in response to changes in scale.
  Correct Answer      True

 Multiple Choice Multiple Answer    
  Question      An Industry
  Correct Answer      Is a group of firms , All firms dealing in the same line of business , The ownership and management of each firm is different

 Multiple Choice Multiple Answer    
  Question      Dumping
  Correct Answer      It is possible in the case of Monopoly Market , Selling same good at higher price in home market and lower at price in the international market , It is encourage with a view to promote the exports

 Select The Blank    
  Question      Under perfect competition, ________ is determined by the interaction of total ________ and total supply in the market
  Correct Answer      price
  Correct Answer      demand

 Multiple Choice Multiple Answer    
  Question      Advantages of Cost-Benefit Analysis
  Correct Answer      It aims at maximization of social welfare , In following this principle, the problem of infinite target value does not arise , It shows the measures necessary for attaining maximum net wealth

 Multiple Choice Multiple Answer    
  Question      Effective Demand
  Correct Answer      Determine the level of income and output in an economy , Is total expenditure is equal to total income in an economy , Study of aggregate demand and aggregate supply

 Select The Blank    
  Question      According to Prof. Ackley, “________ economics deals with economic affairs in the large it concerns the ________ of economic life”.
  Correct Answer      macro
  Correct Answer      overall dimensions

 Multiple Choice Multiple Answer    
  Question      Different types of business organizations are;
  Correct Answer      Private sector. , Public sector. , Joint sector.

 Multiple Choice Multiple Answer    
  Question      Distinction between private sector and public sector is determined
  Correct Answer      On the basis of economic system , On the basis of motive , On the basis of principle of pricing

 Multiple Choice Multiple Answer    
  Question      Methods of Demand forecasting for new Products are:
  Correct Answer      Product life Cycle Analysis , Test Marketing , Evolutionary Approach
 Multiple Choice Multiple Answer    
  Question      Index numbers may broadly be classified as:
  Correct Answer      Price indices , Quantity Indices , Special purpose indices

 Select The Blank    
  Question      Economics is a ________ , which studies human behaviour as a relationship between ________ , which have alternative uses.
  Correct Answer      science
  Correct Answer      ends and scarce means

 Select The Blank    
  Question      The production function is the name given to the ________ between the rates of ________ of productive services and rate of output of a product
  Correct Answer      relationship
  Correct Answer      input

 Select The Blank    
  Question      Internal economies are those advantages of large- scale ________ , which accrue to a ________ on account of its superior techniques and management
  Correct Answer      production
  Correct Answer      firm

 Select The Blank    
  Question      Elasticity of supply may be defined as the ratio of the percentage ________ or the ________ change in quantity supplied to the percentage or proportionate change in Price.
  Correct Answer      proportionate
  Correct Answer      change

 Select The Blank    
  Question      Costs may be classified as : (a) ________ , including material costs, wage cost and interest cost (b) ________ , including costs of advertising and (c) other costs, including insurance ch
  Correct Answer      Production costs
  Correct Answer      Selling costs

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