Managerial Economics 2

True/False
Question A supply schedule is a graphical presentation of supply patterns.
Correct Answer False
Your Answer True

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

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 unity

Multiple Choice Multiple Answer
Question Features of stage of expansion in business cycle are
Correct Answer Rise in national output , Rise in consumer and capital expenditure , Bank advances grow rapidly
Your Answer Rise in national output , Rise in consumer and capital expenditure , Bank advances grow rapidly

Multiple Choice Multiple Answer
Question Explicit costs are
Correct Answer Out of pocket costs , These are firms accounting expenses , Expenditure costs
Your Answer Out of pocket costs , These are firms accounting expenses , Expenditure costs

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 If the substitutes are relatively cheaper then the demand for the commodity in Question will be
Correct Answer Less
Your Answer Less

Multiple Choice Single Answer
Question An assembly of several machines, linked together either physically or by processes, capable of producing a given quantity of a product per day is
Correct Answer Plant
Your Answer Plant

Multiple Choice Single Answer
Question The Risk Taking Theory was developed by Hawley, who was an
Correct Answer American Economist
Your Answer American Economist

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

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Question The persons who own the ________hip concern are called Partners.
Correct Answer Partners
Your Answer Partners

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

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

Multiple Choice Multiple Answer
Question Features of the firm are
Correct Answer It is a business unit organized under one ownership
It is a sole proprietorship
It is a partnership or joint stock company
Your Answer It is a business unit organized under one ownership , It is a sole proprietorship , It is a partnership or joint stock company

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 Inflation is a great opportunity for merchants to earn more profit.
Correct Answer True
Your Answer True

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

Multiple Choice Multiple Answer
Question The advantage of cost-benefit analysis are
Correct Answer Maximization of social welfare
Objective measurement of the trade-off
Maximization of difference between total benefits & total costs
Your Answer Maximization of social welfare , Objective measurement of the trade-off , Maximization of difference between total benefits & total costs

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

True/False
Question A plant is an economic unit which takes various decisions related to production and distribution.
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

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

True/False
Question During recession, on account of decline in investment by producers, there is decline in income and consumption.
Correct Answer True
Your Answer True

Multiple Choice Multiple Answer
Question The fiscal policy includes
Correct Answer Monitoring of public expenditure
Formation of taxation policy
It is an instrument for economic stabilization
Your Answer Formation of taxation policy , It is an instrument for economic stabilization , Monitoring of public expenditure

Multiple Choice Single Answer
Question Forecasts made either through experience or through methodigistic are
Correct Answer Statistical
Your Answer Statistical

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 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 Social

Multiple Choice Single Answer
Question According to Prof. F.H. Knight, profit is a reward for
Correct Answer uncertainty bearing
Your Answer uncertainty bearing

Multiple Choice Single Answer
Question The principle of full employment equilibrium was stated by
Correct Answer Say's Law of Market
Your Answer Law of Demand

Multiple Choice Multiple Answer
Question Phases of business cycle
Correct Answer Expansion , Peak , Recession
Your Answer Expansion , Peak , Recession , Trough

True/False
Question In case of a Joint Stock Company the liability of the share holders is unlimited.
Correct Answer False
Your Answer False

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

Multiple Choice Multiple Answer
Question Assumptions underlying the law of Supply are
Correct Answer The cost of production is unchanged
No change in technique of production
Government policies are unchanged
Your Answer The cost of production is unchanged , No change in technique of production , Government policies are unchanged

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

Select The Blank
Question The indivisible goods to which the principle exclusion does not apply are called ________ goods.
Correct Answer pure public
Your Answer pure public

True/False
Question Micro-economics is primarily concerned with the problem of what, how and for whom to produce?
Correct Answer False
Your Answer True

Multiple Choice Single Answer
Question Gross profit is the excess of total revenue of a firm over total
Correct Answer expenditure
Your Answer expenditure

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

Multiple Choice Multiple Answer
Question Co-operative organizations is
Correct Answer voluntary organization , managed by democratic principle , organization, which performs its business within the members
Your Answer voluntary organization , managed by democratic principle , organization, which performs its business within the members , non profit motive organization

Multiple Choice Single Answer
Question Macro economics is the study of the
Correct Answer aggregate behavior of economy
Your Answer aggregate behavior of economy

True/False
Question To solve the unemployment problem, the level of effective demand must decrease.
Correct Answer False
Your Answer False

Multiple Choice Single Answer
Question The public sector is owned & controlled by
Correct Answer state enterprises
Your Answer state enterprises

Select The Blank
Question Demand for safety pins is ________
Correct Answer inelastic
Your Answer relatively inelastic

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

True/False
Question During the period of recession there is increase in incomes of wage and interest earners.
Correct Answer False
Your Answer False

Select The Blank
Question In a market economy ________ is the best judge of personal interest.
Correct Answer individual
Your Answer firm

Select The Blank
Question Demand for safety pins is ________
Correct Answer inelastic
Your Answer elastic