Managerial Economics 1

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 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
Free riders' is a term associated with the people who would like to have benefit of a good without sharing the cost of its supply.
Correct Answer True Your Answer True

True/False
Question
The divisible goods, whose benefits can be priced, are called pure public goods.
Correct Answer False

Your Answer False

Multiple Choice Multiple Answer
Question
The term externalities may also be referred as:
Correct Answer
Spill-over effects , Neighborhood effects , Third party effects
Your Answer
Spill-over effects , Neighborhood effects , Third party effects

Select The Blank
Question
By using cost-benefit analysis we can show the measures necessary for attaining maximum ________ and optimal policy aiming at this goal.
Correct Answer net wealth
Your Answer net wealth

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Question Cost-Benefit analysis aims at ________ of social wealth.
Correct Answer maximization

Your Answer maximization

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Question
On the ________ level, the summation of maximum individual welfare does not automatically lead to maximum social welfare.
Correct Answer macro

Your Answer macro

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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 management

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Question In a market economy ________ is the best judge of personal interest.
Correct Answer individual

Your Answer individual

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Question In a market system of an economy, producers are guided by ________ motive.
Correct Answer profit

Your Answer profit

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 Multiple Answer
Question
Baumol has pointed out three main contributions of economic theory. They are
Correct Answer
Economic theory offers clarity to various concepts used in the business anlayses ,
Economic theory contributes in building anlyatical model to rocognize managerial problems ,
Economic theory contributes to ,'a set of analytical methods' which enhance the analytical capabilities of business analyasis
Your Answer
Economic theory offers clarity to various concepts used in the business anlayses , Economic theory contributes in building anlyatical model to rocognize managerial problems , Economic theory contributes to ,'a set of analytical methods' which enhance the analytical capabilities of business analyasis

Match The Following
Question Correct Answer Your Answer
Competitive Industry Homogenous Product Homogenous Product
Monopoly Firm One Firm One Firm
Plant Technical Unit Technical Unit
Public Sector Life Insurance Corporation Life Insurance Corporation

Match The Following
Question Correct Answer Your Answer
Authorized capital refers to
the maximum amount which can be raised by a company by selling shares.
the maximum amount which can be raised by a company by selling shares.
Issued capital refers to that part public of the authorized capital
which is issued for subscription by dividing into shares.
which is issued for subscription by dividing into shares.
Subscribed Capital is
that part of the issued capital which is actually subscribed by the public.
that part of the issued capital which is actually subscribed by the public.
Paid – up capital is that part of the subscribed capital
which the public directly pay – up to the company, as part payment of the share
which the public directly pay – up to the company, as part payment of the share

Multiple Choice Multiple Answer
Question The features of a Joint Stock-Company are
Correct Answer perpetual succession , limited liability , free transferability of shares
Your Answer perpetual succession , limited liability , free transferability of shares

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Question The private sector is owned by ________.
Correct Answer private individuals

Your Answer private individuals

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Question
“Homeostatic Approach” as an alternative objective of firms was suggested by ________.
Correct Answer Prof. Kenneth Boulding

Your Answer Prof. Kenneth Boulding

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Question The form of organization which is best for self employment is ________.
Correct Answer Sole trader

Your Answer Sole trader

Multiple Choice Multiple Answer
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
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
When in order to satisfy a given want , 2 or more goods are needed in combination, these goods are called
Correct Answer complimentary goods
Your Answer complimentary goods

Multiple Choice Single Answer
Question Car & petrol, tea & sugar, shoes & socks, sarees & blouse are examples of
Correct Answer complimentary goods
Your Answer complimentary goods

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

Multiple Choice Single Answer
Question The study of the supply side of product pricing is done under the
Correct Answer Theory of Production
Your Answer Theory of Distribution

Multiple Choice Single Answer
Question The slope of Supply curve of labour is always
Correct Answer backward
Your Answer backward

Multiple Choice Multiple Answer
Question
Diseconomies of small scale production includes
Correct Answer
High average cost of production in initial stages ,
Workers in the factory take some time to adjust with new techniques of production ,
Wastage of raw material & power
Your Answer
High average cost of production in initial stages , Workers in the factory take some time to adjust with new techniques of production , Wastage of raw material & power

Multiple Choice Multiple Answer
Question Implicit costs are
Correct Answer
Cost on self owned resources ,
Costs of salary of the proprietor ,
Interest on the entrepreneur's own investment
Your Answer
Cost on self owned resources , Costs of salary of the proprietor , Interest on the entrepreneur's own investment

Select The Blank
Question Under the decreasing returns to scale, the marginal output curve slopes ________.
Correct Answer downward
Your Answer downward

Select The Blank
Question The cost which enter the accounts book of the firm are referred as ________.
Correct Answer Accounting cost
Your Answer Accounting cost

Multiple Choice Single Answer
Question Every seller and a buyer under pure competition
Correct Answer is Price taker
Your Answer is Price maker

True/False
Question In market period supply is elastic.
Correct Answer False
Your Answer False

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

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

True/False
Question Macro economic studies are based on empirical evidence.
Correct Answer True

Your Answer True

Multiple Choice Multiple Answer
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

Multiple Choice Single Answer
Question Market economy or private enterprise economy is a economy which is
Correct Answer planless

Your Answer planless

Multiple Choice Single Answer
Question If supply of goods and services can be increased to correspond with every increase in demand, price level will tend to
Correct Answer be stable

Your Answer rise

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 imports

Multiple Choice Single Answer
Question Market mechanism is characterized by
Correct Answer instability

Your Answer instability

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

Your Answer True

True/False
Question
In India, the first phase of economic reforms is believed to have begun in 1985 when Vishwanath Pratap Singh was the Prime Minister of the country.
Correct Answer False

Your Answer False

True/False

Question
During period of depression various factors of production lie unutilized.
Correct Answer True
Your Answer False

True/False
Question
The three more items which the Government of India had decided to dereserve from the list of 18 industries in April 1993 were motor cars, white goods and raw hides and skins and patented leather.
Correct Answer True
Your Answer True