Managerial Economics - 29

This solved paper has been contributed by Jyoti Agrawal

THANKS TO : Jyoti Agrawal

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

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

 Multiple Choice Single Answer    
  Question      The type economic problem is
  Correct Answer      Universal

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

 Multiple Choice Single Answer    
  Question      The act of using goods and services to satisfy wants is called
  Correct Answer      Consumption

 Multiple Choice Single Answer    
  Question      The things that are produced by factors of production are called
  Correct Answer      Commodities

 Multiple Choice Single Answer    
  Question      The concept of just distribution of national product is a
  Correct Answer      normative

 True/False    
  Question      A firm under perfect competition is a price maker
  Correct Answer      False

 True/False    
  Question      When demand and supply rise and fall in the same proportion, the equilibrium price changes.
  Correct Answer      False

 True/False    
  Question      Market means a particular area where buyers and sellers meet
  Correct Answer      False

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

 Multiple Choice Single Answer    
  Question      Market system of economy is characterized by consumer’s
  Correct Answer      sovereignty

 True/False    
  Question      In case of a proprietary firm the liability of the proprietor is limited
  Correct Answer      False

 Multiple Choice Single Answer    
  Question      Macro – economics provides an exploration to the functioning of an economy in
  Correct Answer      general

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

 Match The Following    
  Question        Correct Answer
Dual prices    Two different prices
Inflation    Deficit financing
P.D.S.    Essential commodities
R.B.I.    General and selective credit control measures
The consumers’ Protection Act 1986    Right to information

 Multiple Choice Single Answer    
  Question      Depreciation is the value caused by the continuous use of a capital asset is
  Correct Answer      loss

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

 True/False    
  Question      According to Prof Knight, profit is the reward for uncertainty bearing.
  Correct Answer      True

 True/False    
  Question      According to J.B. Clark, profit is the reward paid to the entrepreneur for dynamism.
  Correct Answer      True

 Multiple Choice Single Answer    
  Question      Complementary goods are demanded
  Correct Answer      jointly

 Match The Following    
  Question        Correct Answer
Cross demand is the change in the quantity demanded of a given commodity in response to the    Change in the price of anothercommodity
Incase there were no changes in the quantity of food sold even when its price had fallen we would know that    Demand was entirely inelastic
The elasticity of demand for product will be higher    The more available are substitutes for that product
The law of demand indicates    Relationship between the price of a commodity and the quantity Demanded
The law of demand states    When price falls demand rises

 Multiple Choice Single Answer    
  Question      As per the law marginal product becomes negative when total product
  Correct Answer      falls

 Multiple Choice Single Answer    
  Question      The law of diminishing returns is applicable to agriculture provided the state of technology is given and
  Correct Answer      constant

 Multiple Choice Single Answer    
  Question      Under the system of dual prices adopted by the Government for essential goods, the weaker sections of the community are supplied those goods through fair price shops which are
  Correct Answer      fair

 Select The Blank    
  Question      Quantitative credit control measures such as ________ operations, change in the bank rate, and changes in the ________ ratios
  Correct Answer      open market
  Correct Answer      statutory reserve

 Multiple Choice Single Answer    
  Question      AVC is the per unit variable cost of
  Correct Answer      production

 True/False    
  Question      Given the price, if the cost of production of a commodity decreases because of the use of improved technique of production, there will be increase in supply.
  Correct Answer      True

 True/False    
  Question      The laws of returns to scale explain the behavior of output in response to changes in scale.
  Correct Answer      True

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

 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

 Select The Blank    
  Question      Under perfect competition, ________ is determined by the interaction of total ________ and total supply in the market
  Correct Answer      price
  Correct Answer      demand

 Multiple Choice Multiple Answer    
  Question      Advantages of Cost-Benefit Analysis
  Correct Answer      It aims at maximization of social welfare , In following this principle, the problem of infinite target value does not arise , It shows the measures necessary for attaining maximum net wealth

 Multiple Choice Multiple Answer    
  Question      Effective Demand
  Correct Answer      Determine the level of income and output in an economy , Is total expenditure is equal to total income in an economy , Study of aggregate demand and aggregate supply

 Select The Blank    
  Question      According to Prof. Ackley, “________ economics deals with economic affairs in the large it concerns the ________ of economic life”.
  Correct Answer      macro
  Correct Answer      overall dimensions

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

 Multiple Choice Multiple Answer    
  Question      Distinction between private sector and public sector is determined
  Correct Answer      On the basis of economic system , On the basis of motive , On the basis of principle of pricing

 Multiple Choice Multiple Answer    
  Question      Methods of Demand forecasting for new Products are:
  Correct Answer      Product life Cycle Analysis , Test Marketing , Evolutionary Approach
 Multiple Choice Multiple Answer    
  Question      Index numbers may broadly be classified as:
  Correct Answer      Price indices , Quantity Indices , Special purpose indices

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

 Select The Blank    
  Question      The production function is the name given to the ________ between the rates of ________ of productive services and rate of output of a product
  Correct Answer      relationship
  Correct Answer      input

 Select The Blank    
  Question      Internal economies are those advantages of large- scale ________ , which accrue to a ________ on account of its superior techniques and management
  Correct Answer      production
  Correct Answer      firm

 Select The Blank    
  Question      Elasticity of supply may be defined as the ratio of the percentage ________ or the ________ change in quantity supplied to the percentage or proportionate change in Price.
  Correct Answer      proportionate
  Correct Answer      change

 Select The Blank    
  Question      Costs may be classified as : (a) ________ , including material costs, wage cost and interest cost (b) ________ , including costs of advertising and (c) other costs, including insurance ch
  Correct Answer      Production costs
  Correct Answer      Selling costs

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Posted in: Managerial Economics (Set X)

Managerial Economics - 28

	LIST OF ATTEMPTED QUESTIONS AND ANSWERS
	Multiple Choice Single Answer   Question   The externality in which the consumption or production levels of an economic unit affect the other economic units in the economy is called :-   Correct Answer   Technological externality   Your Answer   Technological externality    Select The Blank   Question   By ' profits', the economist means total revenue minus ________.   Correct Answer   All costs   Your Answer   All costs    Multiple Choice Single Answer   Question   The act of using goods and services available in the market to satisfy wants is called :-   Correct Answer   Consumption   Your Answer   Consumption    True/False   Question   Marginal Cost (M.C.) is the rate of change of fixed cost.   Correct Answer   False   Your Answer   False    Select The Blank   Question   The factors of production are called inputs and may be combined to yield the maximum ________.   Correct Answer   Output   Your Answer   Output    Multiple Choice Single Answer   Question   Depreciation is the value caused by the continuous use of a capital asset, which indicates :-   Correct Answer   Loss   Your Answer   Loss    True/False   Question   The externalities or economic effects, which flow from the production or use of the goods to other parties or economic units, are termed as 'neighborhood effects.'   Correct Answer   True   Your Answer   False    Multiple Choice Single Answer   Question   When a company raises additional finance by borrowing from the public for a specific period of time at a particular rate of interest, it is called as :-   Correct Answer   Debentures   Your Answer   Redeemable Shares    Multiple Choice Multiple Answer   Question   At the level of the society, the macro economic objectives are :-   Correct Answer   Economic stabilization , Employment generation , Poverty reduction   Your Answer   Economic stabilization , Employment generation , Poverty reduction    True/False   Question   Any point on the production possibility curve indicates under utilization of resources.   Correct Answer   False   Your Answer   True    Multiple Choice Multiple Answer   Question   Index numbers may broadly be classified as :-   Correct Answer   Special purpose indices , Price indices , Quantity indices   Your Answer   Price indices , Quantity indices , Special purpose indices    Multiple Choice Single Answer   Question   In case of a pure public good, its marginal cost is :-   Correct Answer   Zero   Your Answer   Low    Multiple Choice Single Answer   Question   An entrepreneur 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   Methods of measurement of elasticity are :-   Correct Answer   Percentage method , Point elasticity method , Total outlay expenditure method   Your Answer   Percentage method , Point elasticity method , Total outlay expenditure method    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   Factors of production    Multiple Choice Multiple Answer   Question   Reasons for change in Demand (Increase or Decrease in Demand) are :-   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    True/False   Question   A firm is a technical unit of a given capacity of output.   Correct Answer   False   Your Answer   True    Multiple Choice Single Answer   Question   During the period of depression various factors of production are :-   Correct Answer   Unutilized   Your Answer   Exhausted    Select The Blank   Question   The rate of interest, according to Keynes depends upon two factors: the liquidity preference function and ________.   Correct Answer   The quantity of money.   Your Answer   The supply of money    Select The Blank   Question   By what methods are commodities produced and the consequences of choices about ________ and the consequences of choice about production methods are topics in Theory of Production.   Correct Answer   Production   Your Answer   Production    True/False   Question   The demand for life saving drugs is elastic.   Correct Answer   False   Your Answer   True    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   The market which deals with all the goods as a whole are considered as :-   Correct Answer   Commodity Market   Your Answer   Commodity Market    Multiple Choice Single Answer   Question   In case of increase in the income, the rich person's demand for goods will be :-   Correct Answer   More   Your Answer   More    Select The Blank   Question   The supply of agricultural goods is ________.   Correct Answer   Inelastic   Your Answer   Inelastic    Select The Blank   Question   The products sold by different sellers under pure competition are ________.   Correct Answer   Homogeneous   Your Answer   Homogeneous    Select The Blank   Question   Fiscal Policy refers to variations in ________.   Correct Answer   Levels of taxation   Your Answer   Total supply of money    Multiple Choice Multiple Answer   Question   Price discrimination is possible in case of :-   Correct Answer   Public utilities with legal sanction , Personnel services sold , Geographical barriers   Your Answer   Monopolistic market , Public utilities with legal sanction , Geographical barriers    True/False   Question   Consumer’s protection involves protection to the consumers from unfair trade practices.   Correct Answer   True   Your Answer   True    Multiple Choice Single Answer   Question   In the Long run, perfect competition and monopolistic competition, the firm make profits which are :-   Correct Answer   Normal   Your Answer   Super normal    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   False    Multiple Choice Multiple Answer   Question   In case of defense services, all the sections of the society are equally protected and benefited. The defense services in other words is :-   Correct Answer   Indivisible in character , Cannot be priced in the market , A public good   Your Answer   Indivisible in character , Cannot be priced in the market    True/False   Question   Demand for luxury goods is inelastic.   Correct Answer   False   Your Answer   True    Select The Blank   Question   A normal demand curve has ________.   Correct Answer   Negative slope   Your Answer   Positive slope    Match The Following Question Correct Answer Your Answer Experimental pricing Trial and error method Multiple products A.C.> A.R Two firms Trial and error method Monopoly Low cross elasticity of demand Single products Excess capacity Multiple products High cross elasticity of demand    Select The Blank   Question   If there is reduction in the taxes levied by the Government, people are left with ________.   Correct Answer   More money   Your Answer   Has no effect on the money with people    Select The Blank   Question   In a market economy ________ is the best judge of personal interest.   Correct Answer   Individual   Your Answer   Individual    Multiple Choice Multiple Answer   Question   Under cost plus pricing :-   Correct Answer   The price is set to cover material, labour cost , Actual costs, standard costs are included , Certain percentage of profit also included   Your Answer   The price is set to cover material, labour cost , Full cost is not covered , Actual costs, standard costs are included    Multiple Choice Multiple Answer   Question   The criteria to be taken into account while setting the standards for a 'reasonable profit' are :-   Correct Answer   Capital Attraction , Plough Back , Normal earnings   Your Answer   Capital Attraction , Plough Back , Normal earnings    Multiple Choice Multiple Answer   Question   Quantitative credit control measures are :-   Correct Answer   Open market operations , Changes in bank rates , Changes in statutory reserve ratio   Your Answer   Open market operations , Changes in bank rates , Changes in statutory reserve ratio    Multiple Choice Multiple Answer   Question   Features of public sector enterprises are as follows :-   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    True/False   Question   Complementary goods are jointly demanded but jointly demanded goods may not be Complementary.   Correct Answer   True   Your Answer   True    Multiple Choice Multiple Answer   Question   Types of income elasticity of demand :-   Correct Answer   Negative income elasticity , Zero income elasticity , Unit income elasticity   Your Answer   Negative income elasticity , Zero income elasticity , Unit income elasticity    True/False   Question   In case of a partnership firm, the liability of a partner is limited.   Correct Answer   False   Your Answer   False    Match The Following Question Correct Answer Your Answer Break even point T.R. = T.C. T.R. = T.C. Normal profit Implicit cost Implicit 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    Multiple Choice Single Answer   Question   Prof. Samuelson calls the air and water pollution or dangers from drunken drivers as economies that are :-   Correct Answer   Negative   Your Answer   Large scale    Multiple Choice Multiple Answer   Question   The sole proprietorship type of organization is found in :-   Correct Answer   Agriculture , Retail trade , Hotel   Your Answer   Agriculture , Retail trade

 

 

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Posted in: Managerial Economics (Set X)