Managerial Economics 3

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

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Question Increase in consumer’s income leads in the demand for inferior goods to ________
Correct Answer decrease
Your Answer increase

Select The Blank
Question The minimum number of directors which private limited should have is ________.
Correct Answer 2
Your Answer 2

Multiple Choice Single Answer
Question An enterpreneur may earn high profits just by luck., say because of outbreak of war. This is known as
Correct Answer Chance Profits
Your Answer Chance Profits

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 factors of production are
Correct Answer Labour , Land , Capital
Your Answer Labour , Land , Capital

Multiple Choice Multiple Answer
Question Characteristics of the phase of Depression are
Correct Answer Decrease in economic activities , The growth rate becomes negative , The level of national income declines rapidly
Your Answer Decrease in economic activities , The growth rate becomes negative , The level of national income declines rapidly

True/False
Question The wage and salary earners who get fixed income in terms of money are benefited during inflation.
Correct Answer False
Your Answer False

Multiple Choice Single Answer
Question When the price of one commodity decreases, the demand for its complementary product will tend to
Correct Answer increase
Your Answer increase

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Question Like all organism, the firm too is an organism according to the ________
Correct Answer life-cycle theory.
Your Answer life-cycle theory.

Multiple Choice Multiple Answer
Question Demand forecasts are necessary for
Correct Answer Fulfillment of objective of the plans , Preparation of a budget , Expansion of firms
Your Answer Fulfillment of objective of the plans , Preparation of a budget , Expansion of firms

Multiple Choice Single Answer
Question Substantial reduction in the cost of production of a firm because of the use of improved and up- to –date machinery is an example of economy known as
Correct Answer technical
Your Answer technical

Select The Blank
Question Demand for a commodity depends on the relative price of its ________
Correct Answer substitute goods
Your Answer substitute goods

Multiple Choice Single Answer
Question While calculating accounting profit, the costs which are considered are by nature
Correct Answer explicit
Your Answer explicit

Multiple Choice Single Answer Inflation Deficit financing General and selective credit control measures
Question Partnership in case of general business consists of minimum two persons and maximum R.B.I. General and selective credit control measures Administered prices
Correct Answer 20 persons
Your Answer 20 persons

True/False
Question While Disinvestments process, Government retains 50% of the equity with itself & transfers 49% to private sectors
Correct Answer FALSE
Your Answer FALSE

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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

True/False
Question Contraction of supply is traced by the downward movement on the supply curve
Correct Answer True
Your Answer True

True/False
Question Any point on the production possibility curve indicates under utilization of resources.
Correct Answer False
Your Answer False

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

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 & liabilties
Your Answer Inventory Valuation , Depreciation , Unaccounted value changes in the assets & liabilties

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

True/False
Question While Disinvestments process, Government retains 50% of the equity with itself & transfers 49% to private sectors
Correct Answer False
Your Answer True

Match The Following
Question Correct Answer Your Answer
Break even point T.R. = T.C. T.R. = T.C.
Normal profit Implicit cost Explicit cost
Average variable cost (A.V.C.) Short run cost Short run cost
Change in supply Increase and decrease in supply Increase and decrease in supply

True/False
Question In case of decrease in supply, the supply curve shifts to left side of the original supply curve.
Correct Answer True
Your Answer True

Multiple Choice Multiple Answer
Question Index numbers may broadly be classified as
Correct Answer Price indices , Quantity indices , Special purpose indices
Your Answer Price indices , Quantity indices , Special purpose indices

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

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

Multiple Choice Multiple Answer
Question The factors of production are
Correct Answer Labour , Land , Capital
Your Answer Labour , Land , Capital

Multiple Choice Single Answer
Question While calculating accounting profit, the costs which are considered are by nature
Correct Answer explicit
Your Answer explicit

Multiple Choice Single Answer
Question When the price of one commodity decreases, the demand for its complementary product will tend to
Correct Answer increase
Your Answer increase

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 The General Theory of Employment, Interest and Money in 1936 was published by
Correct Answer J.M. Keynes
Your Answer J.M. Keynes

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 Evolutionary approach

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

Select The Blank
Question If the output rises in the greater proportion than that of the increase in factor inputs, it is referred to as ________.
Correct Answer increasing returns to scale.
Your Answer increasing returns to scale.