Managerial Economics 4

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

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

Match The Following
Question Correct Answer Your Answer
Commodities goods and services goods and services
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

Multiple Choice Multiple Answer
Question Features of public sector enterprises
Correct Answer it is controlled by the state , separate funds to undertake their activity , they are accountable to public
Your Answer it is controlled by the state , separate funds to undertake their activity , they are accountable to public

Multiple Choice Single Answer
Question There is separation of ownership and management in a
Correct Answer Joint Stock Company
Your Answer Joint Stock Company

True/False
Question There are no real exceptions to the law of demand
Correct Answer False
Your Answer True

Multiple Choice Multiple Answer
Question Marginal cost pricing explains that the
Correct Answer Price charged should be equal to the marginal cost , Cost price sets the lower limits for firm’s price , Cost price ensures the possible level of profitability
Your Answer Price charged should be equal to the marginal cost , Cost price sets the lower limits for firm’s price , Cost price ensures the possible level of profitability

True/False
Question The financing of the pure public goods has to be through public expenditure and not through market pricing.
Correct Answer True
Your Answer True

Multiple Choice Single Answer
Question J.M. Keynes, on the basis of a fundamental psychological law of consumption, observed that as income increases, consumption also increases, but proportionately
Correct Answer less
Your Answer less

Multiple Choice Single Answer
Question If the substitutes are relatively costly then the demand for the commodity in Question will be
Correct Answer more
Your Answer more

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 lower at 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 lower at price in international market , It is encouraged with a view to promote the exports

Multiple Choice Single Answer
Question In the cost - benefit analysis, after formulating various alternative project capacity, each of them has to be examined in terms of its
Correct Answer feasibility
Your Answer feasibility

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

Multiple Choice Multiple Answer
Question Characteristics of Pure Public goods are:
Correct Answer They are completely indivisible , Their marginal cost would be zero or close to zero , Their benefits cannot be priced
Your Answer They are completely indivisible , Their marginal cost would be zero or close to zero , Their benefits cannot be priced

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

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 Single Answer
Question The feasibility, which includes the prospects of employment generation, development of backward areas, social groups comprises of
Correct Answer Economic feasibility
Your Answer Economic feasibility

Multiple Choice Single Answer
Question 'Output' which means supply of product depends upon the
Correct Answer cost of production
Your Answer cost of production

True/False
Question The concept of economic profit differs from that of normal profit.
Correct Answer False
Your Answer True

Multiple Choice Single Answer
Question Public corporations are managed by the board of directors appointed by
Correct Answer Government
Your Answer Government

Multiple Choice Single Answer
Question According J.B.Clark, profit is the reward paid for
Correct Answer dynamism
Your Answer dynamism

Multiple Choice Single Answer
Question The supply curve during market period is
Correct Answer perfectly inelastic
Your Answer relatively inelastic

Select The Blank
Question The sum of all individual demands constitutes________
Correct Answer market demand
Your Answer market demand

Select The Blank
Question In the 3rd stage of operation of the law of variable proportions, the marginal product becomes ________.
Correct Answer negative
Your Answer negative

True/False
Question Market price fluctuates very often.
Correct Answer True
Your Answer True

Multiple Choice Multiple Answer
Question The characteristics of a sole proprietorship firm is
Correct Answer Unlimited Capital , Ownership by a single person , Easy to form
Your Answer Ownership by a single person , Easy to form

Multiple Choice Single Answer
Question The conditions of equilibrium of a firm are applicable to all markets
Correct Answer None
Your Answer specific

Multiple Choice Single Answer
Question Under oligopoly firms are dependent on each other
Correct Answer mutually
Your Answer mutually

Multiple Choice Single Answer
Question The principle of exclusion cannot be applied to the goods which are
Correct Answer indivisible
Your Answer indivisible

Select The Blank
Question Indices constructed for one ________ should not be ________ for other purposes where they not be fully appropriate and given erroneous conclusions.
Correct Answer purpose
Your Answer purpose

Correct Answer used
Your Answer used

True/False
Question The supply of factory made goods of daily consumption is inelastic.
Correct Answer False
Your Answer False

Multiple Choice Multiple Answer
Question When is price discrimination possible
Correct Answer In Monopoly Market , In case of Services sold , In case of geographical barriers
Your Answer In Monopoly Market , In case of Services sold , In case of geographical barriers

Select The Blank
Question In the words of Mr. Kuchhal, a joint-stock company is an ________ association, which is an artificial legal person, having ________ legal entity, with a perpetual succession, a carrying a l
Correct Answer incorporated
Your Answer incorporated
Correct Answer independent
Your Answer independent

Multiple Choice Single Answer
Question According to J.M. Keynes, the equilibrium between the aggregate demand function and the aggregate supply function can, and often does take, place at
Correct Answer less than full employment
Your Answer less than full employment

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

Select The Blank
Question In the ________ terminology, the ________ demand function refers to the schedule of maximum sales proceeds, which the entrepreneurial community actually does expect to be received from the sale of
Correct Answer Keynesian
Your Answer Keynesian
Correct Answer aggregate
Your Answer aggregate

True/False
Question Pure private goods are completely divisible and to them the principle of exclusion applies in full measure
Correct Answer True
Your Answer True

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

Correct Answer ends and scarce means
Your Answer ends and scarce means

Multiple Choice Multiple Answer
Question Marginal cost pricing explains
Correct Answer Price charged should be equal to the marginal cost , It sets the lower limits for firm’s price , It ensures the possible level of profitability
Your Answer Price charged should be equal to the marginal cost , It sets the lower limits for firm’s price , It ensures the possible level of profitability

Multiple Choice Single Answer
Question The movement in Trade cycle is
Correct Answer wave –like
Your Answer wave –like

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 Multiple Answer
Question Accounting profit includes:
Correct Answer Wages , Rent , Interest
Your Answer Wages , Rent , Interest

True/False
Question Monetary policy refers to the programmes of the Central Bank’s variations, in the total supply of money and cost of money to achieve certain predetermined objectives
Correct Answer True
Your Answer True

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 , Relative prices of other Goods , Tastes and Habits

Multiple Choice Single Answer
Question The type economic problem is
Correct Answer universal
Your Answer universal

Select The Blank
Question A tabular statement of ________ relationship is known as the ________ schedule, there are two types of demand schedules: (1) the individual demand schedule, and (ii) the market demand schedule
Correct Answer Price-quantity
Your Answer Price-quantity
Correct Answer demand
Your Answer demand

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

True/False
Question The prosperity phase is characterized by rise in the level of employment
Correct Answer True
Your Answer True

Multiple Choice Single Answer
Question In case of a joint stock company, the liability of share holders is
Correct Answer limited
Your Answer limited

Multiple Choice Single Answer
Question One of the causes of the nineties according to the Government of India is the higher in deficit is
Correct Answer fiscal
Your Answer fiscal