Managerial Economics 5

Select The Blank
Question According to Keynes, “A trade cycle is composed of Periods of good trade characterized by rising ________ and low unemployment percentages, altering with periods of bad trade characterized by falling
Correct Answer prices
Your Answer prices


Your Answer
True/False
Question Economic stabilization broadly means preventing the extremes of ups and downs in the economy
Correct Answer True
Your Answer True

Multiple Choice Multiple Answer
Question Features of Oligopoly Market are
Correct Answer Few sellers , Restriction to entry of new firms , Advertisement cost
Your Answer Few sellers , Restriction to entry of new firms , Advertisement cost

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Question The distribution of ________ commodities through ________ shops at government controlled prices has come to be known as public distribution system
Correct Answer essential
Your Answer essential
Correct Answer fair price
Your Answer fair price

Match The Following
Question Correct Answer Your Answer
What is the coefficient of elastic demand? Ans: E.D. >1 Ans: E.D. >1
What is the index number for the base year? 100 100
What is the coefficient of perfectly elastic demand? E.D. = infinity E.D. = infinity
What is the coefficient of perfectly inelastic demand? E.D. =0 E.D. =0
What is the coefficient of unitary elastic demand? E.D. = E.D. =

True/False
Question Inflation results in increase in purchasing power of the people
Correct Answer False
Your Answer False

True/False
Question In case of sole proprietorship the owner and organization are same.
Correct Answer True
Your Answer True

Multiple Choice Single Answer
Question The externalities which cannot be priced in the market with reference to the demand and supply behavior are termed as
Correct Answer non - market
Your Answer non - market

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
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 the international market , It is encourage with a view to promote the exports

True/False
Question Demand and desire are one and the same
Correct Answer False
Your Answer False

Select The Blank
Question Aggregate supply function refers to a ________ of the various minimum amounts of proceeds or ________ , which must be expected to be received by the entrepreneur class from the sale of output result
Correct Answer schedule
Your Answer demand
Correct Answer revenues
Your Answer income

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

Multiple Choice Multiple Answer
Question Market is
Correct Answer Place where buyers and sellers meet each other , A building where a number of shops dealing in a particular commodity , A place where transaction of goods and services is undertaken
Your Answer Place where buyers and sellers meet each other , A building where a number of shops dealing in a particular commodity , A place where transaction of goods and services is undertaken , A place where people transact goods and services

Multiple Choice Multiple Answer
Question Cost-Benefit Analysis is
Correct Answer The analysis undertaken to judge the investment of any project , Refers to finding out the worth of investment , Enable ranking of optional investments
Your Answer The analysis undertaken to judge the investment of any project , Refers to finding out the worth of investment , Enable ranking of optional investments

Match The Following
Question Correct Answer Your Answer
Salt inelastic demand inelastic demand
Unit elasticity equal to one equal to one
Interior goods Giffen goods Giffen goods
Demand and price Inverse relationship Inverse relationship
Factors of production Derived demand Derived demand

Select The Blank
Question A firm is a ________ unit, which hires ________ resources for the purpose of producing goods and services
Correct Answer business
Your Answer business
Correct Answer productive
Your Answer productive

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 Single Answer
Question Feasibility means the prospects of employment generation, development of backward areas, social groups is
Correct Answer Economic
Your Answer Economic

Multiple Choice Single Answer
Question In the Long run perfect competition and monopolistic competition the firm make profits are
Correct Answer normal
Your Answer normal

Multiple Choice Multiple Answer
Question Reasons for change in Demand (Increase or Decrease in Demand)
Correct Answer Change income of consumer , Change in population , Change in fashion and customs
Your Answer Change income of consumer , Change in population , Change in fashion and customs , Change in import duty

Select The Blank
Question Every nation's ________ are insufficient to produce the quantities of ________ than would be required to satisfy all of its citizens' wants.
Correct Answer resources
Your Answer resources
Correct Answer goods and services
Your Answer goods and services

Select The Blank
Question The Indian partnership Act, ________ , defines the partnership as "the relation between two or more ________ who have agreed to share profits of a business carried on by all or any one of them act
Correct Answer 1932
Your Answer 1932
Correct Answer persons
Your Answer persons

Multiple Choice Single Answer
Question The use of a good by one more member of the society does not reduce its availability to others. This applies in case of
Correct Answer Pure public good
Your Answer Pure public good

Multiple Choice Single Answer
Question In case of a pure public good, its marginal cost is
Correct Answer zero
Your Answer zero

True/False
Question In the market, any one who agrees to pay the requisite price of a product would be excluded from their consumption.
Correct Answer FALSE
Your Answer FALSE

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 , Maximization of difference between total benefits & total costs

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

Select The Blank
Question The good becomes ________ so far as its use is concerned only when it is priced in the market and the principle of exclusion is applied to it.
Correct Answer divisible
Your Answer indivisible

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Question The goods become ________ only when each individual has an access to the entire amount of it and its use by the individual does not reduce its availability to others.
Correct Answer indivisible
Your Answer public

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Question ________ effects are those externalities which flow from the production or use of the good to other parties or economic units.
Correct Answer Third party
Your Answer Pecuniary

Select The Blank
Question Prof. Sam Nelson calls risks from unsafe factories or nuclear power plants as ________ economies.
Correct Answer negative
Your Answer hazardous

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

Multiple Choice Single Answer
Question The term Managerial economics also refers to
Correct Answer applied economics
Your Answer applied economics

Multiple Choice Single Answer
Question The study of , what commodities are being produced and in what quantites I.e the study of allocation of resources is discussed under the
Correct Answer Theory of price
Your Answer Theory of production

Multiple Choice Single Answer
Question The firm is an economic unit that makes the decisions regarding employment of
Correct Answer factors of production
Your Answer labour

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

True/False
Question The registration of a partnership firm is voluntary
Correct Answer TRUE
Your Answer FALSE

Select The Blank
Question A private limited company can be formed with 2 to 50 members maximum, excluding ________
Correct Answer employee shareholders
Your Answer officers

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

Select The Blank
Question Reasonable profit target as an alternative to the objective of profit maximization was suggested by ________.
Correct Answer Joel Dean
Your Answer Keynes

True/False
Question Profit should be large enough for a plough – back for business expansion.
Correct Answer TRUE
Your Answer TRUE

Match The Following
Question Correct Answer Your Answer
Innovation theory of profit Joseph Schumpeter Joseph Schumpeter
Uncertainly bearing F. H. Knight theory F. H. Knight theory
Implicit cost Opportunity cost Opportunity cost
Chance profit Outbreak of war Monpoly Profit

Multiple Choice Multiple Answer
Question Gross Profit includes
Correct Answer remuneration for the factors of production paid by the entrepreneur , depreciation and maintenance charges , net profit
Your Answer remuneration for the factors of production paid by the entrepreneur , depreciation and maintenance charges

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