Questions for Marketing Management of SCDL, SCDL Assignments Marketing Management

Question for Marketing Management of SCDL

True/False

Question
This question is from the case study "Air Cool India Ltd." : The launch got delayed because the dealers were not ready.

Correct Answer
False

Your Answer
False



Multiple Choice Single Answer

Question
This question is from the case study "Solar Energy" : What is the Product Benefit of a Solar operated Products?

Correct Answer
Saves electricity & Money

Your Answer
Saves electricity & Money



Multiple Choice Single Answer

Question
This question is from the case study "Saloni - Chocolates" : Developing Contacts with the local schools was a :-

Correct Answer
PR Activty

Your Answer
Promotional Activity



Multiple Choice Multiple Answer

Question
This question is from the case study "Wall Mart - Logistic Leader" : What problems did Wall Mart faced in some markets?

Correct Answer
Lack of Historical data , Inexperienced manpower

Your Answer
Lack of Historical data , Inexperienced manpower



True/False

Question
This question is from the case study "Ice-Kool" : Studying consumer behavior is important to any business.

Correct Answer
True

Your Answer
True



Multiple Choice Multiple Answer

Question
This question is from the case study "Paramount Fertilisers" : Why was the production of four products suspended ?

Correct Answer
They were uneconomical , Seasonal , Poor Product life cycles

Your Answer
They were uneconomical , Seasonal , Poor Product life cycles



True/False

Question
This question is from the case study "Vacuum Flasks" : The company has state of the art plant with a Japanese collaboration.

Correct Answer
True

Your Answer
True



Select The Blank

Question
This question is from the case " Coca-Cola " : Analysts felt that Belgian recall was the worst________ problem.

Correct Answer
Public Relations

Your Answer
Public Relations



Match The Following

Question
Correct Answer
Your Answer



Marriott International
International hospitality giant
International hospitality giant



Sukhi and Bhoopy
Brand name "S&B"
Brand name "S&B"



Crunchy and Crispy Ltd.
Processed food business
Processed food business



Pratima Ltd.
WPDC-3 Waterproof Disposal Camera
WPDC-3 Waterproof Disposal Camera





Select The Blank

Question
This question is from the case study "Shri Krishnan Ranganathan" : Between 1978 & 1994 Glow had under gone six ________.

Correct Answer
Brand extensions

Your Answer
Brand extensions



Select The Blank

Question
This question is from the case study "Food Processing Industry" : According to union, the worker was employed as sweeper & not ________.

Correct Answer
Wet sweeper

Your Answer
Wet sweeper



Multiple Choice Single Answer

Question
This question is from the case study "Indian Aluminium Company" : What was the target Audience for Super Wrap?

Correct Answer
Housewives

Your Answer
Housewives



Multiple Choice Multiple Answer

Question
This question is from the case study "Job Satisfaction" : What was the effect of Jayant continuing in the same job?

Correct Answer
Frustration , Demoralisation

Your Answer
Frustration , Demoralisation



Multiple Choice Multiple Answer

Question
This question is from the case study "Marriott International" : Who were the established competitors of Marriott?

Correct Answer
Holiday Inn , Ramada , Quality Inn

Your Answer
Holiday Inn , Ramada , Quality Inn



Multiple Choice Single Answer

Question
This question is from the case "Coca-Cola" : Coke's products were banned from sale in Belgium because :-

Correct Answer
They made more than 100 children ill

Your Answer
They made more than 100 children ill



Select The Blank

Question
This question is from the case study " Sukhi and Bhoopy" : Sukhi and Bhoopy are engaged in ________sports equipments.

Correct Answer
Manufacture and selling

Your Answer
Manufacture and selling



Multiple Choice Multiple Answer

Question
This question is from the case "Ethel Graff" : Why do Europeans come to India to work?

Correct Answer
Indian Experience matter in International market , Challenge of working in Unfamiliar environment

Your Answer
Challenge of working in Unfamiliar environment , Indian Experience matter in International market



Multiple Choice Single Answer

Question
This question is from the case study "Blue Shield Company" : What type of promotion was planned in high sale period by Benson & Johnson?

Correct Answer
Discount offer

Your Answer
Discount offer



Multiple Choice Single Answer

Question
This question is from the case study "Blue Shield Company" :What problem is faced by Benson & Johnson?

Correct Answer
Retailers could not sell the stocks

Your Answer
Retailers could not sell the stocks



Multiple Choice Single Answer

Question
This question is from the case study "Samadhan Sakhali Udyog" : Samadhan Sakhali Udyog's Distribution channel contains :-

Correct Answer
Own Chain of Shops

Marketing Management SCDL Solved Papers, SCDL Assignments, SCDL Sample Papers

List of Question for Marketing Management of SCDL

True/False

Question
This question is from the case study "Air Cool India Ltd." : The launch got delayed because the dealers were not ready.

Correct Answer
False

Your Answer
False



Multiple Choice Single Answer

Question
This question is from the case study "Solar Energy" : What is the Product Benefit of a Solar operated Products?

Correct Answer
Saves electricity & Money

Your Answer
Saves electricity & Money



Multiple Choice Single Answer

Question
This question is from the case study "Saloni - Chocolates" : Developing Contacts with the local schools was a :-

Correct Answer
PR Activty

Your Answer
Promotional Activity



Multiple Choice Multiple Answer

Question
This question is from the case study "Wall Mart - Logistic Leader" : What problems did Wall Mart faced in some markets?

Correct Answer
Lack of Historical data , Inexperienced manpower

Your Answer
Lack of Historical data , Inexperienced manpower



True/False

Question
This question is from the case study "Ice-Kool" : Studying consumer behavior is important to any business.

Correct Answer
True

Your Answer
True



Multiple Choice Multiple Answer

Question
This question is from the case study "Paramount Fertilisers" : Why was the production of four products suspended ?

Correct Answer
They were uneconomical , Seasonal , Poor Product life cycles

Your Answer
They were uneconomical , Seasonal , Poor Product life cycles



True/False

Question
This question is from the case study "Vacuum Flasks" : The company has state of the art plant with a Japanese collaboration.

Correct Answer
True

Your Answer
True



Select The Blank

Question
This question is from the case " Coca-Cola " : Analysts felt that Belgian recall was the worst________ problem.

Correct Answer
Public Relations

Your Answer
Public Relations



Match The Following

Question
Correct Answer
Your Answer



Marriott International
International hospitality giant
International hospitality giant



Sukhi and Bhoopy
Brand name "S&B"
Brand name "S&B"



Crunchy and Crispy Ltd.
Processed food business
Processed food business



Pratima Ltd.
WPDC-3 Waterproof Disposal Camera
WPDC-3 Waterproof Disposal Camera





Select The Blank

Question
This question is from the case study "Shri Krishnan Ranganathan" : Between 1978 & 1994 Glow had under gone six ________.

Correct Answer
Brand extensions

Your Answer
Brand extensions



Select The Blank

Question
This question is from the case study "Food Processing Industry" : According to union, the worker was employed as sweeper & not ________.

Correct Answer
Wet sweeper

Your Answer
Wet sweeper



Multiple Choice Single Answer

Question
This question is from the case study "Indian Aluminium Company" : What was the target Audience for Super Wrap?

Correct Answer
Housewives

Your Answer
Housewives



Multiple Choice Multiple Answer

Question
This question is from the case study "Job Satisfaction" : What was the effect of Jayant continuing in the same job?

Correct Answer
Frustration , Demoralisation

Your Answer
Frustration , Demoralisation



Multiple Choice Multiple Answer

Question
This question is from the case study "Marriott International" : Who were the established competitors of Marriott?

Correct Answer
Holiday Inn , Ramada , Quality Inn

Your Answer
Holiday Inn , Ramada , Quality Inn



Multiple Choice Single Answer

Question
This question is from the case "Coca-Cola" : Coke's products were banned from sale in Belgium because :-

Correct Answer
They made more than 100 children ill

Your Answer
They made more than 100 children ill



Select The Blank

Question
This question is from the case study " Sukhi and Bhoopy" : Sukhi and Bhoopy are engaged in ________sports equipments.

Correct Answer
Manufacture and selling

Your Answer
Manufacture and selling



Multiple Choice Multiple Answer

Question
This question is from the case "Ethel Graff" : Why do Europeans come to India to work?

Correct Answer
Indian Experience matter in International market , Challenge of working in Unfamiliar environment

Your Answer
Challenge of working in Unfamiliar environment , Indian Experience matter in International market



Multiple Choice Single Answer

Question
This question is from the case study "Blue Shield Company" : What type of promotion was planned in high sale period by Benson & Johnson?

Correct Answer
Discount offer

Your Answer
Discount offer



Multiple Choice Single Answer

Question
This question is from the case study "Blue Shield Company" :What problem is faced by Benson & Johnson?

Correct Answer
Retailers could not sell the stocks

Your Answer
Retailers could not sell the stocks



Multiple Choice Single Answer

Question
This question is from the case study "Samadhan Sakhali Udyog" : Samadhan Sakhali Udyog's Distribution channel contains :-

Correct Answer
Own Chain of Shops

SCDL Marketing Management Solved Papers SCDL Assignments SCDL Sample Papers

Match The Following
Question
Correct Answer
Your Answer
Deep Assortment
Carrying a product family in depth, drawing on many producer's output
Carrying the line of only one manufacturer
Exclusive Assortment
Carrying the line of only one manufacturer
Carrying several product lines that fall within the resellers type of business
Open bid
Contract awarded to lowest bidder
Direct negotiation with one or more companies covering project and terms
Negotiated Contract
Direct negotiation with one or more companies covering project and terms
Contract awarded to lowest bidder

Multiple Choice Multiple Answer
Question
Types of Organisational Market
Correct Answer
Reseller market , Industrial market , Government market
Your Answer
Industrial market , Consumer market

True/False
Question
The super structure indicates ways in which company's tasks are integrated or coordinated
Correct Answer
True
Your Answer
True

True/False
Question
A channel's length is also called as horizontal dimension.
Correct Answer
False
Your Answer
False

Multiple Choice Single Answer
Question
An example of Want is :
Correct Answer
Continental food
Your Answer
Continental food

True/False
Question
Product, place and promotion elements in the marketing mix are viewed as cost factors.
Correct Answer
True
Your Answer
False

Select The Blank
Question
The demand for a product is ________ when price cut causes revenue to increase.
Correct Answer
Price elastic
Your Answer
Price elastic

Select The Blank
Question
________ eliminates the risk of losing customer's goodwill
Correct Answer
One price policy
Your Answer
One price policy

Select The Blank
Question
There are more number of substitutes for ________ products.
Correct Answer
Multi use
Your Answer
Multi use

True/False
Question
Storage helps firms balance supply and demand.
Correct Answer
True
Your Answer
True

Select The Blank
Question
________ are difficult to change
Correct Answer
Attitudes
Your Answer
Habits

Select The Blank
Question
Market ________ is more prevalent than Mass marketing
Correct Answer
Segmentation
Your Answer
Segmentation

Multiple Choice Single Answer
Question
The price of a product is determined by estimating the cost of producing and marketing and then add a percentage of profits. This orientation is called:
Correct Answer
Cost
Your Answer
Demand

Multiple Choice Single Answer
Question
What is product concept?
Correct Answer
Detailed version of idea stated in consumer terms
Your Answer
Consumer's perception of an actual product

Match The Following
Question
Correct Answer
Your Answer
This refers to the number of product items within each product line.
Product depth
Product height
This includes all product item's a company offers.
Product mix
Product mix
This is a group of products that are related.
Product line.
Product line.
This is the total number of product lines.
Product breadth
Product breadth

Multiple Choice Multiple Answer
Question
Planning of long term strategies are based on following factors:
Correct Answer
Opportunity , Objectives, Strategies, Situation assessment, Organisation mission , Resources
Your Answer
Strengths , Objectives, Strategies, Situation assessment, Organisation mission , Resources

Multiple Choice Multiple Answer
Question
Types of psychological pricing are
Correct Answer
Prestige , Leader
Your Answer
Odd , Leader , Prestige

Multiple Choice Single Answer
Question
Marketer tries to seek what kind of response from the other party?
Correct Answer
Behavioural
Your Answer
Transaction

True/False
Question
Warehouses are needed when supply sources and markets are located close by.
Correct Answer
False
Your Answer
False

Select The Blank
Question
The onus of advertising, pricing and sales promotion policies is put on ________ distribution.
Correct Answer
Exclusive
Your Answer
Integral

True/False
Question
Marketer discourages his brand users for brand switching.
Correct Answer
True
Your Answer
True

Multiple Choice Single Answer
Question
Marketing arises from ?
Correct Answer
Exchange
Your Answer
Exchange

Multiple Choice Multiple Answer
Question
A transaction takes place when
Correct Answer
There is time and place of agreement , Two things of value , Agreed upon conditions
Your Answer
There is time and place of agreement , Two things of value , Agreed upon conditions

Select The Blank
Question
An organisational assessment uncovers________
Correct Answer
Weaknesses
Your Answer
Weaknesses

Multiple Choice Multiple Answer
Question
Shorter distribution channel results in
Correct Answer
Reduced costs , Limited market coverage
Your Answer
Reduced costs , High market coverage

Multiple Choice Single Answer
Question
The output of Stimulus Response Model is
Correct Answer
Product decision
Your Answer
Product

Select The Blank
Question
________ exists when a few large independent firm accounts for bulk of an industry's sales.
Correct Answer
Oligopoly
Your Answer
Oligopoly

Multiple Choice Single Answer
Question
A diet conscious person after playing football is thirsty. He opts for :-
Correct Answer
Diet coke
Your Answer
Diet coke

Multiple Choice Single Answer
Question
It concentrates on organisation design and work flow
Correct Answer
Flotilla
Your Answer
Systems approach

Multiple Choice Single Answer
Question
The input to 'Stimulus Response Model' is
Correct Answer
Stimuli
Your Answer
Stimuli

Multiple Choice Multiple Answer
Question
Characteristics of Effective segmentation
Correct Answer
Actionable , Measurable , Accessible
Your Answer
Actionable , Measurable , Accessible

Multiple Choice Multiple Answer
Question
Types of strategic business units are :
Correct Answer
Stars , Cash cows , Question marks
Your Answer
Stars , Cash cows , Question marks

Multiple Choice Single Answer
Question
Pricing that enables sales people to tailor their prices to a prospect's situation is called
Correct Answer
Price shading
Your Answer
Variable pricing

Multiple Choice Single Answer
Question
This pricing objective involves setting a low price to discourage entry of new firms.
Correct Answer
Stay out
Your Answer
Elimination

Multiple Choice Single Answer
Question
This distribution is necessary for most shopping and speciality goods.
Correct Answer
Selective
Your Answer
Selective

True/False
Question
The cultural environment shows long term trends towards a hedonistic society.
Correct Answer
True
Your Answer
True

Multiple Choice Single Answer
Question
This portfolio involves major capital investments which will result in either large pay offs or large losses
Correct Answer
Big bets
Your Answer
No-regret moves

Multiple Choice Multiple Answer
Question
What is Statistical Quality Control(SQC)
Correct Answer
Identifies quality and productivity from a production process , Identifies impact of any change on performance , Instantly spots malfunctions and show where they occur
Your Answer
Identifies quality and productivity from a production process , Identifies impact of any change on performance , Integrates manufacturing with business strategy

Select The Blank
Question
Optimum marketing mix is obtained using analysis, ________, implementation and control.
Correct Answer
Planning
Your Answer
Feedback

Multiple Choice Multiple Answer
Question
What are the stages in new product development ?
Correct Answer
Idea screening , Market testing , Commercialisation
Your Answer
Idea screening , Market testing , Commercialisation

Multiple Choice Single Answer
Question
These are moves that will pay off irrespective of what happens in the future
Correct Answer
No-regret moves
Your Answer
Big bets

Multiple Choice Single Answer
Question
A centralised inventory means
Correct Answer
Fast delivery to customers
Your Answer
Building and stocking one warehouse

Select The Blank
Question
________ of physical distribution activities increases it's productivity as well as of manufacturer.
Correct Answer
Automation
Your Answer
Maximisation

True/False
Question
Shorter production runs are required to produce large number of products in multi-segment strategy
Correct Answer
True
Your Answer
False

SCDL Solved Papers and Assignments - Management Accounting

Match The Following
Question Correct Answer Your Answer
Accounting Process of analyzing & interpretation Process of analyzing & interpretation
Profitability statement Indicates the amount of profit earned Indicates the amount of profit earned
Balance-sheet Financial status Financial status
Book-Keeping Books of Accounts Books of Accounts
Financial statement Profitability statement & Balance-sheet Profitability statement & Balance-sheet

Multiple Choice Single Answer
Question Salary paid to employee amounted Rs. 10,000, transferred to Trading A/C is an example of_______
Correct Answer Error of Commission
Your Answer Error of Commission

Multiple Choice Single Answer
Question Labour cost indicates that labour cost which cannot be identified with the individual cost centre and is incurred for those employees who are not engaged in the manufacturing process but only assist i
Correct Answer Remuneration
Your Answer Indirect

True/False
Question To take make or buy decision under the marginal costing , if purchase price of the product is less than its variable cost it is advisable to go for manufacturing proposition.
Correct Answer False
Your Answer False

Select The Blank
Question Over absorption of overheads may take place due to the reasons like ________ overheads being less than the ________ overheads
Correct Answer actual
Your Answer estimated
Correct Answer estimated
Your Answer actual

True/False
Question Income received in advance transfer to current liabilities
Correct Answer True
Your Answer True

Select The Blank
Question Bank reconciliation statement is the statement prepared to explain the ________ as to why the bank balance as per ________ and bank balance as per bank book does not match
Correct Answer reasons
Your Answer reasons
Correct Answer pass book
Your Answer pass book

Select The Blank
Question Fixed cost is the cost that tend to remain ________ irrespective of ________
Correct Answer constant
Your Answer constant
Correct Answer level of activity
Your Answer level of activity

True/False
Question A business is an activity carried out with the intention of earning the profit.
Correct Answer True
Your Answer True

Multiple Choice Single Answer
Question If wages for the month of January, February and March are Rs.4,000, Rs.4,400 and Rs.4,600 respectively and if delay in payment of wages is ½ month , payment of wages for the month of February is
Correct Answer 4,200
Your Answer 4,000

Select The Blank
Question Management Accounting has a very ________ scope and it requires ________ organizational structure
Correct Answer wide
Your Answer wide
Correct Answer elaborate
Your Answer elaborate

True/False
Question Accounting is an art of recording, classifying & summarizing in a significant manner.
Correct Answer True
Your Answer True

Multiple Choice Single Answer
Question For a unit, if opening stock of raw material is 10,000 units, closing stock of raw material is 5,000 units and consumption is 3,20,000 units, what will be the quantum of raw material to be purchased
Correct Answer 3,15,000
Your Answer 3,15,000

Multiple Choice Multiple Answer
Question Important advantages of Uniform Costing can be said to be
Correct Answer It is a useful tool for management control , It avoids cut throat competition , Weaker units can take advantage of settled systems of better managed units
Your Answer It is a useful tool for management control , It avoids cut throat competition , Weaker units can take advantage of settled systems of better managed units

Multiple Choice Multiple Answer
Question P/L A/C debit side includes
Correct Answer salary , discount allowed , postage & telegram
Your Answer postage & telegram , salary , discount allowed

Multiple Choice Multiple Answer
Question Actual costs may be affected due to inefficient functioning such as
Correct Answer Abnormal expenses , In efficient use of labour , In efficient use of material
Your Answer Abnormal expenses , In efficient use of labour , In efficient use of material

Multiple Choice Single Answer
Question Calculate Labour Efficiency Variance, If actual rate per hour is Rs.3.50/- , Standard rate is Rs.3/- per unit and standard hours are 15,000 and Actual hours are 13, 500.
Correct Answer Rs.4500/- ( Favorable )
Your Answer Rs.4500/- ( Favorable )

Multiple Choice Multiple Answer
Question Sales quantity may be forecasted after taking into consideration various factors such as
Correct Answer Analysis of past trends , Market research , Reports by salesmen
Your Answer Analysis of past trends , Market research , Reports by salesmen

True/False
Question For taking make or buy decision marginal costing technique provide useful assistance.
Correct Answer True
Your Answer True

True/False
Question Profitability statement indicates the amount of assets & liabilities.
Correct Answer False
Your Answer False

Multiple Choice Single Answer
Question It is an appropriate basis of apportionment of depreciation expenditure
Correct Answer value of assets
Your Answer value of assets

True/False
Question The variable costs are controllable at the lower level.
Correct Answer True
Your Answer True

True/False
Question Balance sheet indicates the expenditure & income from the business.
Correct Answer False
Your Answer False

Match The Following
Question Correct Answer Your Answer
Journal Book of original entry Book of original entry
Ledger Maintain all types of Accounts Maintain all types of Accounts
Assets All the properties owned by the business All the properties owned by the business
Liabilities All the amount owed by the business All the amount owed by the business
Drawing Withdrawn for personal use Withdrawn for personal use

Select The Blank
Question A budget manual is a document setting out the ________ of the persons and ________ required for the budget control.
Correct Answer Responsibilities
Your Answer Responsibilities
Correct Answer Forms and procedures
Your Answer Forms and procedures

True/False
Question Credit balances in all the Personal & Real accounts appear on asset side.
Correct Answer False
Your Answer True

True/False
Question The process of accounting split into three steams i.e. financial, cost, management accounting.
Correct Answer True
Your Answer True

Multiple Choice Single Answer
Question Omission of posting an amount in the ledger
Correct Answer Error of Omission
Your Answer Error of Omission

True/False
Question Non-operating / financial expenses are added while calculating net profit.
Correct Answer False
Your Answer True

True/False
Question Balance sheet indicates the financial status of the business at given period.
Correct Answer True
Your Answer True

Multiple Choice Multiple Answer
Question A Budget Manual may contain the following particulars
Correct Answer Duties and responsibilities of various executives , Functions and duties of Budget Officer , Scope of the Budget and area to be covered
Your Answer Duties and responsibilities of various executives , Functions and duties of Budget Officer , Scope of the Budget and area to be covered

Select The Blank
Question Semi ________ overheads are neither ________ nor variable in nature.
Correct Answer fixed
Your Answer variable
Correct Answer variable
Your Answer fixed

True/False
Question Due to errors of principle the arithmetical accuracy of the trial balance does not get affected.
Correct Answer True
Your Answer True

Multiple Choice Multiple Answer
Question Direct Cost includes
Correct Answer Direct material , Direct labour , Direct expenses
Your Answer Direct material , Direct labour , Direct expenses

Select The Blank
Question Financial Accounting protects the interest of outsiders . it considers ________ transaction and it is a ________ requirement
Correct Answer historical
Your Answer historical
Correct Answer legal
Your Answer legal

True/False
Question Bin Card is having all the information of item received and issued.
Correct Answer False
Your Answer True

Select The Blank
Question Budgetary Control is useful for ________-and ________-as a powerful tool in the hands of management
Correct Answer Cost control
Your Answer Cost control
Correct Answer Maximization of profits
Your Answer Maximization of profits

True/False
Question Accounting refers to the process of analyzing & interpreting the information already recorded in the books of accounts.
Correct Answer True
Your Answer True



Management Accounting Paper No2 of 1st Sem SCDL:

True/False
Question
Credit balances in all the Personal & Real accounts appear on asset side.
Correct Answer
False
Your Answer
False

Multiple Choice Multiple Answer
Question
Contents of Uniform Cost Manual are
Correct Answer
Organization , Cost Accounting system , Presentation of information
Your Answer
Organization , Cost Accounting system , Presentation of information

Multiple Choice Multiple Answer
Question
Uniform Costing Methods may be advantageously applied to . . .
Correct Answer
Single organization having number of branches. , Number of companies in same industry , Similar Industries such as cotton, jute etc.
Your Answer
Single organization having number of branches. , Number of companies in same industry , Similar Industries such as cotton, jute etc.

True/False
Question
1) Financial statements are basically in two forms i.e. profitability statement and balance sheet.
Correct Answer
True
Your Answer
True

Multiple Choice Multiple Answer
Question
The process of accounting has three streams of accounting ---------------,--------and ----------------------.
Correct Answer
Financial Accounting , Cost Accounting , Management Accounting
Your Answer
Financial Accounting , Cost Accounting , Management Accounting

True/False
Question
Long term loan borrowed from financial institution comes under the heading of long term liabilities.
Correct Answer
True
Your Answer
True

Match The Following
Question
Correct Answer
Your Answer
Book-Keeping
Books of Accounts
Books of Accounts
Financial statement
Profitability statement & Balance-sheet
Profitability statement & Balance-sheet
Accounting
Process of analyzing & interpretation
Process of analyzing & interpretation
Profitability statement
Indicates the amount of profit earned
Indicates the amount of profit earned
Balance-sheet
Financial status
Financial status

Multiple Choice Single Answer
Question
Judge the statement according to the criteria given : ' The accounting period for XYZ Ltd. ends on 31st December, 2003. It is noted that office rent for the month of December, 2003 is paid on 15th January, 2004. "According to concept of matching expenses with the revenues, this expenditure should be recorded in the books of accounts in January,
Correct Answer
The statement and its reason are both incorrect
Your Answer
The statement is correct but its reason is incorrect

Multiple Choice Multiple Answer
Question
Features of money measurement concept are . . .
Correct Answer
Only those transactions and facts are included expressed in terms of money are considered , Imposes severe restrictions on the kind of information available from financial statements , Works as a major drawback of financial accounting
Your Answer
Only those transactions and facts are included expressed in terms of money are considered , Imposes severe restrictions on the kind of information available from financial statements , Works as a major drawback of financial accounting

Multiple Choice Single Answer
Question
The installation and operation of ___________ accounting requires a very elaborate organizational structure and large number of rules & regulations
Correct Answer
Management
Your Answer
Management

Select The Blank
Question
________account can be defined as the record of all the transactions pertaining to a person, asset, liability income or expenditure which have taken place in a specified period.
Correct Answer
Ledger
Your Answer
Trading

Match The Following
Question
Correct Answer
Your Answer
Sunk Cost
Historical Cost
Historical Cost
Cost Centre
Facilitate the fixation of responsibility
Facilitate the fixation of responsibility
Cost Control
Process of controlling costs of operations
Process of controlling costs of operations
Differential Cost
Increase or Decrease in cost
Increase or Decrease in cost

Multiple Choice Multiple Answer
Question
Which of the following transactions should be excluded while preparing a cost sheet ?
Correct Answer
Interest on loan , Bad debts , Expenses on criminal law suit
Your Answer
Sale of scrap material , Interest on loan , Bad debts

True/False
Question
In a Balance-Sheet right hand side is referred as assets side and left hand side is referred as liabilities.
Correct Answer
True
Your Answer
True

True/False
Question
Credit note is an intimation send to person dealing with the business that his account being debited for the purpose indicated therein.
Correct Answer
False
Your Answer
False

True/False
Question
Primary distribution is effected on the basis of service rendered to the service departments by the production departments.
Correct Answer
False
Your Answer
True

Multiple Choice Multiple Answer
Question
Marginal costing is found to be unsuccessful in the following situations :-
Correct Answer
Impossible to distinguish costs into fixed and variable component. , With respect to capital intensive industries where fixed costs are very large and hence cannot be ignored , With respect to service industries where employee costs are very large and almost fixed in nature
Your Answer
Impossible to distinguish costs into fixed and variable component. , With respect to capital intensive industries where fixed costs are very large and hence cannot be ignored , With respect to service industries where employee costs are very large and almost fixed in nature

True/False
Question
Debit Note is an intimation sent to person dealing with the business that his account is being credited for the purpose indicated therein.
Correct Answer
False
Your Answer
True

Multiple Choice Multiple Answer
Question
Labour efficiency variance arises due to:
Correct Answer
Inefficient supervisor , Poor working conditions , Use of sub-standard quality of material
Your Answer
Inefficient supervisor , Poor working conditions , Use of sub-standard quality of material

True/False
Question
Financial Accounting discloses the financial performance & financial statements of the business as a whole.
Correct Answer
True
Your Answer
True

True/False
Question
Balance sheet indicates the expenditure & income from the business.
Correct Answer
False
Your Answer
True

Select The Blank
Question
The indirect material cost, indirect labour cost and indirect expenses cost, collectively are termed as ________.
Correct Answer
Overhead
Your Answer
Overhead

Select The Blank
Question
A person in charge of a ________ may be held responsible for its proper functioning and cost control.
Correct Answer
Cost centre
Your Answer
Cost centre

Multiple Choice Multiple Answer
Question
The organization chart shows the following aspects :
Correct Answer
Functional responsibility of different functional managers , Delegation of authority to various managers , Inter-functional relationships of these managers
Your Answer
Functional responsibility of different functional managers , Delegation of authority to various managers , Inter-functional relationships of these managers

True/False
Question
Uniform costing system is a pre-requisite to an inter-firm comparison of firms belonging to the different industries.
Correct Answer
False
Your Answer
False

True/False
Question
P&L statement which is a period statement & relates to a certain period tells about results of operations.
Correct Answer
True
Your Answer
False

Select The Blank
Question
Depreciation charged on office furniture on straight line basis is an example of ________.
Correct Answer
Administration overheads
Your Answer
Administration overheads

True/False
Question
Under time rate system a worker is paid on the basis of production achieved by him in a given time.
Correct Answer
False
Your Answer
False

Select The Blank
Question
Information as to the cost and profit / loss associated with the firm's operations is provided to the ________ by Management accounting.
Correct Answer
Management
Your Answer
Management

True/False
Question
Danger level for inventory of materials means the safety stock of inventory.
Correct Answer
False
Your Answer
True

True/False
Question
The role of the budget committee may be taken as an advisory role to the Chief Executive.
Correct Answer
True
Your Answer
True

Multiple Choice Multiple Answer
Question
The main advantages of profit sharing are :
Correct Answer
Employees try to increase productivity , Incentives are shared by all the employees , Augments emplyees' efficiency
Your Answer
Employees try to increase productivity , Incentives are shared by all the employees , Augments emplyees' efficiency

Select The Blank
Question
________ Accounting assists the management in establishing the plans to attain the economic objectives and take proper decisions for the attainment of its objectives.
Correct Answer
Management
Your Answer
Management

Multiple Choice Multiple Answer
Question
Which of the following is likely to be a contributory factor to the incidence of excess expenditure on material cost?
Correct Answer
The level of control of the used of material in the production cycle , The incorrect choice of purchase order quantity , Failure to control the issue of materials from stores
Your Answer
An increase in the maximum material inventory level , The incorrect choice of purchase order quantity , Failure to control the issue of materials from stores

Multiple Choice Multiple Answer
Question
Management accounting is concerned with the following activities :
Correct Answer
Decision making , Safeguarding assets , Planning and controlling activities
Your Answer
Decision making , Safeguarding assets , Planning and controlling activities

Multiple Choice Multiple Answer
Question
Features of double entry accounting system are . . .
Correct Answer
Every business transaction has two elements , When business receives something, it has to pay something , Every debit has a corresponding credit
Your Answer
Every business transaction has two elements , When business receives something, it has to pay something , Every debit has a corresponding credit

Select The Blank
Question
Under Differential Time Rate method payment is made at Rs. 1.40 per hour when the level of efficiency is between________.
Correct Answer
90% to 100%
Your Answer
90% to 100%

True/False
Question
Maintenance Department is a service cost centre.
Correct Answer
True
Your Answer
True

True/False
Question
The process of accounting split into three steams i.e. financial, cost, management accounting.
Correct Answer
True
Your Answer
True

Select The Blank
Question
The difference between sales and cost of sales is termed as ________.
Correct Answer
Net Profit
Your Answer
Net Profit

Select The Blank
Question
The final result disclosed by trading account is the ________profit earned by the organization.
Correct Answer
Gross
Your Answer
Gross

Multiple Choice Multiple Answer
Question
Select the accounts to be disclosed on the liability side of the Balance sheet.
Correct Answer
Loan , Outstanding expenses , Creditors
Your Answer
Loan , Outstanding expenses , Creditors

True/False
Question
Penalty paid for delay in payment to creditors represents uncontrollable cost.
Correct Answer
False
Your Answer
False

Multiple Choice Single Answer
Question
Which document facilitates estimating material cost of a particular job, before completion of that job?
Correct Answer
Bill of material
Your Answer
Material requisition note

Multiple Choice Single Answer
Question
Purchases returns of Rs.18,000/- were wrongly transferred to the sales returns account. Calculate its impact on net profit.
Correct Answer
The net profit will not be affected
Your Answer
The net profit will not be affected

SCDL Solved Papers and Assignments - Principles and Practices of Management

Multiple Choice Multiple Answer
Question
The external environmental factors that influence management are
Correct Answer
Economic , Political , Technological
Your Answer
Economic , Political , Technological

True/False
Question
Event management has to pay only entertainment tax not the service tax.
Correct Answer
False
Your Answer
False

Multiple Choice Single Answer
Question
Name the service which has two prime necessities like co-ordination and infiltration.
Correct Answer
Staff
Your Answer
Staff

Select The Blank
Question
________ decisions relate to the day to day operations of the enterprise generally taken by middle and lower level management.
Correct Answer
Operative
Your Answer
Organisational

Multiple Choice Single Answer
Question
Successful consultants should promote their consultancy through what ?
Correct Answer
Network
Your Answer
Network

True/False
Question
Decision-Making is a process of making a choice of poor alternatives.
Correct Answer
False
Your Answer
False

Select The Blank
Question
MBO was invented by ________.
Correct Answer
Peter Drucker
Your Answer
Peter Drucker

Multiple Choice Single Answer
Question
Profession requires definite period of what?
Correct Answer
Learning
Your Answer
Practice

Multiple Choice Multiple Answer
Question
Barriers to delegation of authority would be :
Correct Answer
Lack of trust in subordinates , Fear of loosing status by managers , Over-confidence among managers
Your Answer
Lack of trust in subordinates , Prompt decision making , Over-confidence among managers

Multiple Choice Single Answer
Question
Organization is apart of which type of system?
Correct Answer
Social
Your Answer
Scientific

Multiple Choice Multiple Answer
Question
David C Mc Celland identified three motives those are
Correct Answer
Affiliation , Power , Achievement
Your Answer
Affiliation , Power , Achievement

Multiple Choice Multiple Answer
Question
International consultancy is said to be
Correct Answer
Glamorous , Challenging , Trendy
Your Answer
Glamorous , Challenging , Reliant

Select The Blank
Question
Failure to give ________ to goal setters is a weakness of MBO.
Correct Answer
guidelines
Your Answer
guidelines

True/False
Question
Management is the combination of Arts,Science and Profession.
Correct Answer
True
Your Answer
True

Select The Blank
Question
Under the types of motivators, non-financial motivators are encouragement, freedom ________.
Correct Answer
recognition
Your Answer
recognition

Multiple Choice Single Answer
Question
Who said, the heart of administration is the directing function.
Correct Answer
Dimock
Your Answer
Dimock

True/False
Question
Management is that important process which continues till the objectives set by the administrator are actually achieved.
Correct Answer
True
Your Answer
False

True/False
Question
Communication is a composite (a) information given and received (b) a listening effort by some of them involved.
Correct Answer
False
Your Answer
True

Multiple Choice Multiple Answer
Question
A vision statement should have the following components
Correct Answer
ability to inspire people , achievable , precise and objective
Your Answer
ability to inspire people , achievable , precise and objective

Multiple Choice Single Answer
Question
One of the key features of services is that they are
Correct Answer
intangible
Your Answer
non-perishable

Select The Blank
Question
The process of control is complete only when the organisation take ________ action.
Correct Answer
corrective
Your Answer
effective

Multiple Choice Multiple Answer
Question
The factors coming under philosophy of scientific management are:
Correct Answer
Co-operation , Maximum output , Harmony
Your Answer
Co-operation , Maximum output , Harmony

Multiple Choice Single Answer
Question
Who is the most effective person are alike in one crucial way, they all have a high degree of emotional intelligence.
Correct Answer
Entrepreneur
Your Answer
Entrepreneur

Multiple Choice Multiple Answer
Question
The activities of the communicator while communicating a message will include,
Correct Answer
ideation , encoding , transmission
Your Answer
encoding , response , transmission

Multiple Choice Multiple Answer
Question
Features of Management are as follows
Correct Answer
goal oriented , universal , continuous process
Your Answer
goal oriented , universal , continuous process

Multiple Choice Single Answer
Question
Professional managers help organizations in chalking out which type of strategies?
Correct Answer
Corporate
Your Answer
Corporate

Select The Blank
Question
________provides a corporate responsibility and it is the application of a proven and systematic body of knowledge.
Correct Answer
Profession
Your Answer
Management

True/False
Question
Management as a discipline needs certificate of practice.
Correct Answer
False
Your Answer
False

Multiple Choice Multiple Answer
Question
For most hi-tech service industries the major components are
Correct Answer
Infrastructure , Knowledge , labour
Your Answer
Infrastructure , Knowledge , Information technology

Match The Following
Question
Correct Answer
Your Answer
Management
Creative
Dynamic
Professional Manager
Dynamic
Profession
Art
Skill
Science
Code of Conduct
Profession
Creative
Predictive Power
Science
Skill

True/False
Question
Science is a body of organized knowledge
Correct Answer
True
Your Answer
True

Select The Blank
Question
A superior should always establish a ________ control so that his subordinates report to him periodically.
Correct Answer
Feedback
Your Answer
Appropriate

Multiple Choice Single Answer
Question
It is said that communication is a meaningful
Correct Answer
interaction
Your Answer
interaction

Multiple Choice Single Answer
Question
What does the insurance company compensate for if and when the event insured against an incident occurs?
Correct Answer
Losses
Your Answer
Losses

Multiple Choice Single Answer
Question
Management exists at which levels of the organization?
Correct Answer
All
Your Answer
All

True/False
Question
The Indian consumer does not see shopping as an end in itself.
Correct Answer
False
Your Answer
True

Source: http://scdlpapers.blogspot.com

SCDL Managerial Economics Solved Papers

SCDL Managerial Economics Papers and Assignments
Select The Blank
Question The sum of all individual demands constitutes________
Correct Answer market demand
Your Answer market demand

True/False
Question Under perfect competition, price is determined by the interaction of total demand and total supply in the market.
Correct Answer False
Your Answer True

Multiple Choice Single Answer
Question Price of a product under perfect competition is determined by the interaction of total supply and
Correct Answer total demand
Your Answer total demand

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

Multiple Choice Multiple Answer
Question Keynes’s theory of employment explains
Correct Answer Effective demand , Aggregate supply , Aggregate demand
Your Answer Effective demand , Aggregate supply , Aggregate demand

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

Multiple Choice Single Answer
Question An individual consumer or particular market for a given commodity are the subject matter of
Correct Answer Micro Economics
Your Answer Micro Economics

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 Single Answer
Question Whether the economy's capacity to produce goods and services is growing from year to year or remaining static is studied under the
Correct Answer Theory of economic growth
Your Answer Theory of economic growth

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 , non profit motive organization

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

True/False
Question Macro-economies is a policy oriented science.
Correct Answer True
Your Answer True

Multiple Choice Single Answer
Question Expansion of supply is shown by the movement in the supply curve which is
Correct Answer upward
Your Answer upward

Multiple Choice Single Answer
Question Liability of a sole trader is
Correct Answer unlimited
Your Answer unlimited

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.

Select The Blank
Question An upward sloping demand curve is called ________
Correct Answer exceptional demand curve
Your Answer exceptional demand curve

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 act of making goods and services is called
Correct Answer production
Your Answer production

Multiple Choice Single Answer
Question Question related to the efficient production and allocation belong to the branch of economic theory called
Correct Answer Welfare Economics
Your Answer Welfare Economics

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

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

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 The Keynesian theory emphasizes effective supply as a crucial factor in determining the level of income and employment.
Correct Answer False
Your Answer False

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

Select The Blank
Question By ' profits', the accountant means total revenue minus________.
Correct Answer Explicit costs
Your Answer Explicit costs

Multiple Choice Single Answer
Question All the buyers and sellers operating under perfect competition have knowledge which is
Correct Answer perfect
Your Answer perfect

Match The Following
Question Correct Answer Your Answer

Resource allocation decisions in free market economy Theory of price Theory of price
Economic problem Universal Universal
Managerial Economics Applied branch of knowledge Applied branch of knowledge
Inflation Reduction in purchasing power Theory of price
Waste of resources Involuntary unemployment Involuntary unemployment


Multiple Choice Multiple Answer
Question 16. The phase of recovery denotes
Correct Answer More employment opportunities , Increase in profitability , Wage rate increase
Your Answer More employment opportunities , Increase in profitability , Wage rate increase

Select The Blank
Question Supply is predominantly determined by ________.
Correct Answer stock
Your Answer demand

Select The Blank
Question The form of organization which is best for self employment is ________.
Correct Answer Sole trader
Your Answer Sole trader

Multiple Choice Single Answer
Question The suggestion of maximization of balanced growth rate as another alternative objective of a firm's profit is suggested by
Correct Answer Prof. Morris
Your Answer Baumol

True/False
Question Under perfect competition,firms are free to enter and exit in the market.
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 The Risk theory of profit was developed by
Correct Answer Hawley
Your Answer Hawley

True/False
Question The congress government led by Narsimha Rao announced the New Industrial Policy in July 1991.
Correct Answer True
Your Answer True

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

True/False
Question The distinction between fixed costs and variable costs is relevant in the short period only.
Correct Answer True
Your Answer True

Multiple Choice Multiple Answer
Question The term externalities may also be referred as:
Correct Answer Spill-over effects , Neighborhood effects , Third party effects
Your Answer Spill-over effects , Neighborhood effects , Third party effects

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 Single Answer
Question Often monopolies purposely keep certain factors of production idle creating artificial scarcities of their products as a result the prices
Correct Answer rise
Your Answer rise

Multiple Choice Multiple Answer
Question The methods of calculating depreciation is
Correct Answer Diminishing Balance Method , Annuity Method , Service Unit Method
Your Answer Diminishing Balance Method , Annuity Method , Service Unit Method

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


Select The Blank
Question In the context of formulating an investment project, ________ feasibility means the availability of supervisors for implementing and running the project smoothly and professionally.
Correct Answer management
Your Answer management

True/False
Question The sum of total fixed costs and total variable costs is the total cost.
Correct Answer True
Your Answer True

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

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

SCDL Managerial Economics Solved Papers and Assignments

SCDL Managerial Economics Solved Papers and Assignments
True/False
Question The damage being done by the factories at and around Agra to Taj Mahal is an example of social cost for private benefit.
Correct Answer True
Your Answer True

Multiple Choice Single Answer
Question The Risk theory of profit was developed by
Correct Answer Hawley
Your Answer Hawley

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 Expansion of supply is shown by the movement in the supply curve which is
Correct Answer upward
Your Answer upward

Multiple Choice Multiple Answer
Question Forms of Public Enterprises
Correct Answer departmental management , company management or management by boards , public corporations
Your Answer departmental management , company management or management by boards , public corporations

Select The Blank
Question The financing of ________ goods is done through public expenditure.
Correct Answer public
Your Answer public

Multiple Choice Single Answer
Question A Joint- Stock Company is owned by its share holders but it is managed by
Correct Answer Board of Directors
Your Answer Board of Directors

Multiple Choice Multiple Answer
Question The examples of negative externalities are
Correct Answer nuclear power plants , gargantuan trucks , unsafe factories
Your Answer nuclear power plants , gargantuan trucks , unsafe factories

Match The Following
Question Correct Answer Your Answer

Reduction in demand due to a new substitute in market Uncertainity Uncertainity

Accounting profit Explicit costs Explicit costs

Economic profit Pure profit Pure profit

Risk taking theory Hawley Hawley


Multiple Choice Single Answer
Question Peas & beas, groundnut oil & til oil, tea & coffee are examples of
Correct Answer substitutes goods
Your Answer complimentary goods

Select The Blank
Question Output rises in a lesser proportion to that of the increase in input, under the case of ________.
Correct Answer decreasing returns to scale
Your Answer decreasing returns to scale

True/False
Question A monopolist in a price maker.
Correct Answer True
Your Answer True

Select The Blank
Question The chemical effluents recklessly released by a chemical factory in the river causing water pollution, is an example of ________ cost.
Correct Answer social
Your Answer environmental

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 A firm is a unit of production, where production is done with the aim to maximize
Correct Answer profits
Your Answer profits

Select The Blank
Question By ' profits', the economist means total revenue minus ________.
Correct Answer All costs
Your Answer Explicit costs

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

True/False
Question Giffen goods are superior goods.
Correct Answer False
Your Answer False

Multiple Choice Multiple Answer
Question The railways use a lot of coal in firing the steam locomotives. This act causes
Correct Answer a lot of sufferings to the people near the railway. , cost to the society. , no cost to the railways.
Your Answer a lot of sufferings to the people near the railway. , cost to the society. , no cost to the railways.

Multiple Choice Single Answer
Question All the buyers and sellers operating under perfect competition have knowledge
Correct Answer perfect
Your Answer perfect

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 question regarding the nature and quantities of commodities to be produced is solely restricted to capitalist economies.
Correct Answer False
Your Answer False

Match The Following
Question Correct Answer Your Answer

Implicit costs are the cost of resources owned by the firm. of resources owned by the firm.

Opportunity costs are also known as alternative costs alternative costs

The difference between average total cost &average fixed cost shows variable cost variable cost

The difference between average cost and average revenue is average profit average profit


True/False
Question During the period of depression, a large part of a country’s resources lie involuntarily idle.
Correct Answer True
Your Answer True

Multiple Choice Single Answer
Question The demand curve (A.R.) of a firm under perfect competition is
Correct Answer perfectly elastic
Your Answer perfectly elastic

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 Pecuniary

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

Select The Blank
Question Under the decreasing returns to scale, the marginal output curve slopes ________.
Correct Answer downward
Your Answer downward

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

Multiple Choice Multiple Answer
Question Major types of costs are
Correct Answer Accounting costs , Economic costs , Opportunity costs
Your Answer Accounting costs , Economic costs , Opportunity costs

True/False
Question The short run Average Cost (A.C.) curve is U shaped.
Correct Answer True
Your Answer True

True/False
Question Cyclical fluctuations are recurrent in nature
Correct Answer True
Your Answer True

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 statutory reserve ratio

True/False
Question Private profit motive is an essential feature of Capitalism.
Correct Answer True
Your Answer True

Multiple Choice Single Answer
Question The number of buyers & sellers operating under perfect competition is
Correct Answer large
Your Answer large

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

Select The Blank
Question The costs which cover the cost of advertising is ________.
Correct Answer Selling cost
Your Answer Selling cost

Multiple Choice Single Answer
Question The relation between variable input and ouput
Correct Answer is direct
Your Answer is direct

Multiple Choice Single Answer
Question With decline in price of a commodity, total expenditure spent on the commodity is less than before, then elasticity of demand for the commodity is
Correct Answer < 1
Your Answer < 1

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

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 Single Answer
Question A downward movement from one point to another point on the same demand curve implies
Correct Answer expansion
Your Answer expansion

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 Product life cycle analysis , Test marketing , Evolutionary approach

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

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 Joel Dean

Multiple Choice Single Answer
Question Inflation is characterized by demand which is in
Correct Answer excess of supply
Your Answer surplus

Select The Blank
Question Defence service is an example of ________ good.
Correct Answer indivisible
Your Answer public
at 6:43 AM 2 comments Links to this post
Labels: Managerial Economics (Set VII)
Managerial Economics - 21
LIST OF ATTEMPTED QUESTIONS AND ANSWERS

True/False
Question Macro economic studies are based on empirical evidence.
Correct Answer True
Your Answer True

Select The Blank
Question According to the World Bank's approach, the trade able items would be valued at the corresponding world prices and the non-trade able items at the ________.
Correct Answer shadow prices
Your Answer market prices

Multiple Choice Single Answer
Question The study of the working and allocation of resources in the free market economies is the topic in the
Correct Answer theory of price
Your Answer theory of price

Multiple Choice Single Answer
Question Costs which increase because of the expansion of a firm are called
Correct Answer incremental
Your Answer incremental

True/False
Question In the Long- run, supply of goods can be adjusted to the demand and therefore supply curve is horizontal to the X-axis.
Correct Answer False
Your Answer True

Select The Blank
Question By ' profits', the accountant means total revenue minus________.
Correct Answer Explicit costs
Your Answer Implicit cost

Multiple Choice Multiple Answer
Question Features of short run period are
Correct Answer Supply of goods can be adjusted to the demand to some extent , Supply and demand determine the price , Some factors can be changed
Your Answer Supply of goods can be adjusted to the demand to some extent , Supply and demand determine the price , Some factors can be changed

Select The Blank
Question The law of constant returns to scale is depicted by the marginal output curve which is ________.
Correct Answer horizontal
Your Answer horizontal

Multiple Choice Single Answer
Question The method of calculating depreciation in which the actual working hours of a capital asset are taken in to account is
Correct Answer service unit
Your Answer service unit

True/False
Question Demand curve slopes upwards from left to right.
Correct Answer False
Your Answer False

Multiple Choice Single Answer
Question All the free gifts of nature which are commonly called natural resources are known to economists as
Correct Answer Land
Your Answer Land

True/False
Question Macro-economies is a policy oriented science.
Correct Answer True
Your Answer True

Multiple Choice Single Answer
Question The assumption of perfect competition in all the analytical theories is made by
Correct Answer Classical economists
Your Answer Keynesian economists

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 positive

Multiple Choice Multiple Answer
Question Reasons for need of public distribution system are
Correct Answer To maintain stable price conditions , To bring an efficient management of the supply , To supply the necessary goods to people at reasonable price
Your Answer To maintain stable price conditions , To bring an efficient management of the supply , To supply the necessary goods to people at reasonable price

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 greater than unity

Multiple Choice Multiple Answer
Question Accounting profit includes
Correct Answer wages , rent , interest
Your Answer wages , rent , interest

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

Multiple Choice Single Answer
Question The method of inventory valuation in which , the cost of production is calculated on the assumption that the material which was last to enter the inventory of the company was used first is
Correct Answer LIFO
Your Answer LIFO

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

Multiple Choice Single Answer
Question The number of sellers operating under monopolistic competition as compare to oligopoly is
Correct Answer larger
Your Answer larger

Multiple Choice Multiple Answer
Question Causes for rise in prices in India
Correct Answer Mounting government expenditure , Deficit financing and increase in money supply , Role of black money
Your Answer Mounting government expenditure , Deficit financing and increase in money supply , Increase in demand

True/False
Question Social costs cannot be included in a firm's account book.
Correct Answer True
Your Answer False

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

Multiple Choice Multiple Answer
Question Exceptions to the Law of Demand are
Correct Answer Giffen goods , Articles of snob appeal , Speculation
Your Answer Giffen goods , Articles of snob appeal , Speculation

Question In the cost - benefit analysis, the first step involved is that the investor has to choose a few project alternatives promising a
Correct Answer high rate of return
Your Answer high rate of return

Question In the Dynamic Theory of Profit, Prof. Clark has pointed out the types of changes, which are
Correct Answer Changes in the supply of capital , Changes in population , Changes in the techniques of production
Your Answer Changes in the supply of capital , Changes in population , Changes in the techniques of production

Question Economic problem is faced by poor countrys only.
Correct Answer False
Your Answer False

Match The Following
Question Correct Answer Your Answer

Pure private goods Divisible goods Divisible goods

Self -interest Market economy Neighborhood

Danger from drunken drivers Negative economies Negative economies

Impure public goods Quasi - public goods Quasi - public goods


Multiple Choice Multiple Answer
Question Types of imperfect competition are
Correct Answer Monopoly , Duopoly , Oligopoly
Your Answer Monopoly , Duopoly , Oligopoly

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.

Question Investment is significant because
Correct Answer Addition to the real capital assets , It leads to increase in level of income , Increases accumulated wealth of the society
Your Answer Addition to the real capital assets , It leads to increase in level of income , Increases accumulated wealth of the society

Question In the context of externalities, driving the smoke-emitting buses and trucks in the cities is an example of ________ cost.
Correct Answer social
Your Answer social

Question According to Lionel Robbins, "Economics is a science which studies
Correct Answer human behavior
Your Answer economic variables behavior

Question The out of pocket costs are ________.
Correct Answer Explicit costs
Your Answer Explicit costs

Question A firm gets an opportunity to produce multiple products because changes in business activity in a firms is
Correct Answer cyclical
Your Answer rapid

Question Market system or market economy suffers from time to time from economic depressions.
Correct Answer True
Your Answer True

Question Under competitive conditions, market mechanism would automatically bring equilibrium at the level of
Correct Answer full employment
Your Answer optimum produce

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

Question Factors influencing selling costs are
Correct Answer Type of product , Introduction of new goods , Technology changes
Your Answer Type of product , Introduction of new goods , Advertising by customers

Question The important determinants of supply are
Correct Answer Always referred to in relation to price & time , Government policy , Availability of factors of production
Your Answer Always referred to in relation to price & time , Government policy , Availability of factors of production

Question The slope of Supply curve of labour is always
Correct Answer backward
Your Answer upward

Question In economics the questions related to the dynamic or static ( otherwise) capacity of the economy to produce goods and services are topics in the
Correct Answer theory of economic growth
Your Answer theory of economic growth

Question Features of monopolistic Competition are
Correct Answer Fairly large number of firms , Product differentiation , Selling costs are existed
Your Answer Fairly large number of firms , Product differentiation , Selling costs are existed

Question Under perfect competition,firms are free to enter and exit in the market.
Correct Answer True
Your Answer True

Match The Following
Question Correct Answer Your Answer

Motor cars Tangible goods Tangible goods

Wants Insatiable Insatiable

Managerial Economics Prescriptive in nature Prescriptive in nature

Resources Alternative uses Alternative uses

Division of society’s output of goods and services The theory of distribution The theory of distribution

Question Under perfect competition single seller can influence the price.
Correct Answer False Your Answer False
at 6:42 AM 0 comments Links to this post
Labels: Managerial Economics (Set VII)
Managerial Economics - 20
LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Multiple Choice Multiple Answer
Question Types of Share capital of Joint-Stock Company are
Correct Answer registered or authorized capital , issued capital , paid-up capital
Your Answer registered or authorized capital , issued capital , paid-up capital

Match The Following
Question Correct Answer Your Answer

Equilibrium price is the price where the quantity demanded equals quantity supplied quantity demanded equals quantity supplied

Excess supply can be defined as quantity supplied minus quantity demanded. quantity supplied minus quantity demanded.

Tea and sugar Complimentary goods Complimentary goods

Excess demand can be defined as quantity demanded minus quantity supplied quantity demanded minus quantity supplied


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 The act of using goods and services to satisfy wants is called
Correct Answer consumption
Your Answer consumption

Select The Blank
Question The liability of a Karta in a Joint Hindu Family Business firm is ________.
Correct Answer limited
Your Answer limited

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 Multiple Answer
Question reasonable profit' are
Correct Answer Capital Attraction , Plough Back , Normal earnings
Your Answer Capital Attraction , Plough Back , Normal earnings

Multiple Choice Multiple Answer
Question Features of Long -run market are
Correct Answer It is durable goods market , Supply can be increased or reduced according to the demand , Sellers at least recover minimum price for their goods
Your Answer It is durable goods market , Supply can be increased or reduced according to the demand , Sellers at least recover minimum price for their goods

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

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 An individual consumer or particular market for a given commodity are the subject matter of
Correct Answer Micro Economics
Your Answer Micro Economics

Select The Blank
Question The index numbers which measure the changes in the general price level of a country refers to ________
Correct Answer Wholesale prices index
Your Answer Wholesale prices index

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

Multiple Choice Single Answer
Question Given the price, if the cost of production increases because of higher price of raw materials, the supply
Correct Answer decreases
Your Answer decreases

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

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

Multiple Choice Single Answer
Question In economics the question related to the selection of methods with which commodities are produced is a subject matter of
Correct Answer theory of production
Your Answer theory of production

True/False
Question In case of the co-operative societies supplying cheap inputs or supplying consumer products at fair prices, a system of subsidized pricing is followed.
Correct Answer True
Your Answer True

Select The Blank
Question Modern economists treat social cost and benefits as ________ of private investment and production decisions.
Correct Answer externalities
Your Answer externalities

Multiple Choice Multiple Answer
Question The market system of economy is based on the following foundations:
Correct Answer Consumer's Sovereignty , Non-interference by the state. , Private Profit Motive
Your Answer Consumer's Sovereignty , Private Profit Motive , Existence of monopoly

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

Select The Blank
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

Multiple Choice Single Answer
Question The city of Banaras has specialized in the manufacture of
Correct Answer silk
Your Answer silk

True/False
Question During inflation, the pensioners whose income is permanently fixed, are substantially benefited.
Correct Answer False
Your Answer False

Select The Blank
Question Economists like A.C.Harberger have shown that the cost benefit analysis can be applied to ________ analysis.
Correct Answer general equilibrium
Your Answer general equilibrium

True/False
Question Generally, the larger the income of a consumer, his demand for overall commodities tends to be relatively elastic.
Correct Answer False
Your Answer False

Multiple Choice Single Answer
Question In economics the questions related to the division of society’s output of goods and services among its members are topics in
Correct Answer theory of distribution
Your Answer theory of distribution

True/False
Question Supply management is related to the volume ofsupply & its distribution system.
Correct Answer True
Your Answer True

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

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

True/False
Question Under the disinvestments process, there is full transfer of ownership
Correct Answer True
Your Answer False

Multiple Choice Single Answer
Question In cost - benefit analysis, after the step of appraisal and selection of the project is the step of
Correct Answer comparison of the cash flow
Your Answer comparison of the cash flow

Multiple Choice Single Answer
Question When a company rasies 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 Debentures

Multiple Choice Multiple Answer
Question Features of market period are
Correct Answer Related to few hours or few days , Related to perishable goods , The entire supply is to be disposed off on the same day
Your Answer Related to few hours or few days , Related to perishable goods , The entire supply is to be disposed off on the same day

Select The Blank
Question In the context of formulating an investment project, ________ feasibility means the availability of supervisors for implementing and running the project smoothly and professionally.
Correct Answer management
Your Answer organizational

Multiple Choice Multiple Answer
Question Increasing Returns explains
Correct Answer Total product increases at an increasing rate , Marginal product increasing and it is maximum , Average product is increasing but it is below MP
Your Answer Total product increases at an increasing rate , Marginal product increasing and it is maximum , Average product is increasing but it is below MP

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 Scope of Managerial Economics deals with
Correct Answer Demand analysis and forecasting , Production function & cost analysis , Inventory management adverting, price system
Your Answer Demand analysis and forecasting , Production function & cost analysis , Inventory management adverting, price system

Multiple Choice Single Answer
Question The observation of economic histories of the United States & West European countries shows that competition , the heart of market mechanism gives rise to
Correct Answer monopolies
Your Answer price competition

Match The Following
Question Correct Answer Your Answer

Chance profit Outbreak of war Outbreak of war

Innovation theory of profit Joseph Schumpeter Joseph Schumpeter

Uncertainly bearing F. H. Knight theory F. H. Knight theory

Implicit cost Opportunity cost Opportunity cost


Multiple Choice Single Answer
Question During a period of rising prices (inflation), the goods and services are
Correct Answer scarce
Your Answer are also increasing

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

Multiple Choice Single Answer
Question Over the years in India the govt. expenditure is
Correct Answer increasing
Your Answer increasing

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

True/False
Question Demand is related to price, time and place.
Correct Answer True
Your Answer False

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 A fall in price tends the demand for goods to ________
Correct Answer expand Your Answer expand


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

Match The Following
Question
Correct Answer
Your Answer
Managerial economics
Decision making and forward planning
Decision making and forward planning
Resources
scarce
scarce
Commodities
goods and services
goods and services
Human wants
unlimited
unlimited
General Theory of Employment, Interest and Money
J. M. Keynes
J. M. Keynes

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
As far as its use is concerned, tuning in of a radio can be categorized as:
Correct Answer
Divisible
Your Answer
Divisible

True/False
Question
In a market system of economy, there is no harmony between individual interests and interests of the community.
Correct Answer
False
Your Answer
False

True/False
Question
Institution of private property is not an essential feature of Capitalism.
Correct Answer
False
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

Select The Blank
Question
On the ________ level, the summation of maximum individual welfare does not automatically lead to maximum social welfare.
Correct Answer
macro
Your Answer
micro

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
exceptions

Select The Blank
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

Select The Blank
Question
In the context of formulation of an investment project, ________ feasibility means the availability of land, plant, machinery, raw materials and technical know how etc.
Correct Answer
technical
Your Answer
technical

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

True/False
Question
Inflation reduces the purchasing power of people's income and savings.
Correct Answer
True
Your Answer
True

True/False
Question
In a free-enterprise economy, the problems of what how and for whom are solved by a planning committee
Correct Answer
False
Your Answer
False

Multiple Choice Single Answer
Question
A technical unit of given capacity of output is
Correct Answer
plant
Your Answer
plant

Multiple Choice Multiple Answer
Question
Preference Shares can be classified as
Correct Answer
Simple Shares , Cumulative Shares , Redeemable Shares
Your Answer
Simple Shares , Redeemable Shares

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, , Hotel,

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 , non profit motive organization

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

Multiple Choice Single Answer
Question
The method of inventory valuation in which , the cost of production is calculated on the assumption that the material which was last to enter the inventory of the company was used first is
Correct Answer
LIFO
Your Answer
LIFO

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

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

Multiple Choice Multiple Answer
Question
Profit is regarded as
Correct Answer
income accruing to the equity holders , wages accrue to the labour , rent accrue to the owner
Your Answer
income accruing to the equity holders , rent accrue to the owner

Multiple Choice Single Answer
Question
Change in income of a person may result in demand for goods to
Correct Answer
change
Your Answer
change

Multiple Choice Single Answer
Question
With decline in price of a commodity, total expenditure spent on the commodity is less than before, then elasticity of demand for the commodity is
Correct Answer
< 1
Your Answer
>1

Multiple Choice Single Answer
Question
Peas & beas, groundnut oil & til oil, tea & coffee are examples of
Correct Answer
substitutes goods
Your Answer
substitutes goods

True/False
Question
Demand for luxury goods is inelastic
Correct Answer
False
Your Answer
False

Match The Following
Question
Correct Answer
Your Answer
Increase in demand
Upward shift of the demand curve
Upward movement on the demand curve
Extension of demand
Downward movement on the demand curve
Vertical Demand curve
Decrease in Demand
Leftward shift of the demand curve
Downward movement on the demand curve
Contraction of Demand
Upward movement on the demand curve
Leftward shift of the demand curve

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

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

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

True/False
Question
The sum of total fixed costs and total variable costs is the total cost.
Correct Answer
True
Your Answer
True

Multiple Choice Multiple Answer
Question
The production function can be explained by
Correct Answer
Law of variable proportions , Laws of returns to scale , Optimum combinations of inputs
Your Answer
Law of variable proportions , Laws of returns to scale

Select The Blank
Question
Output rises in a lesser proportion to that of the increase in input, under the case of ________.
Correct Answer
decreasing returns to scale
Your Answer
decreasing returns to scale

Select The Blank
Question
The costs which cover the cost of advertising is ________.
Correct Answer
Selling cost
Your Answer
Incremental cost

Select The Blank
Question
The out of pocket costs are ________.
Correct Answer
Explicit costs
Your Answer
Explicit costs

Select The Blank
Question
By ' profits', the accountant means total revenue minus________.
Correct Answer
Explicit costs
Your Answer
Fixed costs

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

Multiple Choice Single Answer
Question
Under monopoly entry of new firms is
Correct Answer
prohibited
Your Answer
limited

True/False
Question
In case of the co-operative societies supplying cheap inputs or supplying consumer products at fair prices, a system of subsidized pricing is followed.
Correct Answer
True
Your Answer
True

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

Multiple Choice Multiple Answer
Question
Macro Economics is the study of
Correct Answer
The aggregate behavior of the economy , The behavior of economic agents , Problems such as the rates of inflation, the balance of payments, etc
Your Answer
The aggregate behavior of the economy , Problems such as the rates of inflation, the balance of payments, etc , Economic welfare

Multiple Choice Multiple Answer
Question
The subject matter of Micro economics includes the study of
Correct Answer
an individual consumer , particular market for a given commodity , operation of a firm
Your Answer
an individual consumer , particular market for a given commodity , major economic issues , problems & policies

Multiple Choice Multiple Answer
Question
16. The phase of recovery denotes
Correct Answer
More employment opportunities , Increase in profitability , Wage rate increase
Your Answer
More employment opportunities , Increase in profitability , Wage rate increase

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 , moral suasion

Multiple Choice Single Answer
Question
The government has adopted a system of dual prices in the case of
Correct Answer
essential goods
Your Answer
essential goods

Multiple Choice Multiple Answer
Question
The disinvestments of industries is needed for
Correct Answer
Phased privatization , Reducing deficit , Capital support to plans
Your Answer
Phased privatization , Reducing deficit , Capital support to plans
at 6:38 AM 0 comments Links to this post
Labels: Managerial Economics (Set V)
Managerial Economics - 15
LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Multiple Choice Single Answer
Question Pure public goods are subject to the law of decreasing average cost, because of the
Correct Answer economies of scale
Your Answer economies of scale

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

True/False
Question Bargaining is one of the remedies of corrective action.
Correct Answer False
Your Answer True

Match The Following
Question Correct Answer Your Answer

Defence service Indivisible Indivisible

Economic effects of public goods are Spill over effect Spill over effect

Selection or implementation Step of cost benefit analysis Step of cost benefit analysis

Production possibility frontier Maximization of output Maximization of output


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

Multiple Choice Multiple Answer
Question The term externalities may also be referred as:
Correct Answer Spill-over effects , Neighborhood effects , Third party effects
Your Answer Spill-over effects , Neighborhood effects , Third party effects

Select The Blank
Question Modern economists treat social cost and benefits as ________ of private investment and production decisions.
Correct Answer externalities
Your Answer disadvantages

Select The Blank
Question Economists like A.C.Harberger have shown that the cost benefit analysis can be applied to ________ analysis.
Correct Answer general equilibrium
Your Answer general equilibrium

Select The Blank
Question In the context of formulating an investment project, ________ feasibility means the availability of supervisors for implementing and running the project smoothly and professionally.
Correct Answer management
Your Answer management

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

Multiple Choice Single Answer
Question According to Lionel Robbins, "Economics is a science which studies
Correct Answer human behavior
Your Answer social behavior

Multiple Choice Single Answer
Question Question related to the efficient production and allocation belong to the branch of economic theory called
Correct Answer Welfare Economics
Your Answer Business Economics

Multiple Choice Multiple Answer
Question Managerial economics deals with
Correct Answer Integration of economic theory with business practice , Using logic of economics, mathematics & statistics , The use of economic modes of thought to analyze business solution
Your Answer Integration of economic theory with business practice , Using logic of economics, mathematics & statistics , The use of economic modes of thought to analyze business solution

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

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 Joel Dean

Select The Blank
Question “Homeostatic Approach” as an alternative objective of firms was suggested by ________.
Correct Answer Prof. Kenneth Boulding
Your Answer Prof. Kenneth Boulding

Select The Blank
Question The form of organization which is best for self employment is ________.
Correct Answer Sole trader
Your Answer Sole trader

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

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

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 same

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

True/False
Question Demand curve slopes downwards from left to right.
Correct Answer True
Your Answer True

Select The Blank
Question An upward sloping demand curve is called ________
Correct Answer exceptional demand curve
Your Answer exceptional demand curve

Select The Blank
Question Goods which are paradoxical to the law of demand are ________
Correct Answer Giffen goods, ,
Your Answer Giffen goods, ,

Match The Following
Question Correct Answer Your Answer

Normally the isoquant slopes upward from right to left. downward from right to left

Any straight line supply curve which cuts y axis will have zero elasticity of supply. perfectly elastic

The market period supply curve for perishable commodities is perfectly inelastic. perfectly inelastic.

A rightwards shift in supply schedule indicates an increase in supply. an increase in supply.


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

Select The Blank
Question Output rises in a lesser proportion to that of the increase in input, under the case of ________.
Correct Answer decreasing returns to scale
Your Answer decreasing returns to scale

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

Multiple Choice Single Answer
Question Jevons' , the economists who defined the term 'market' different from that of the traditional sense is an
Correct Answer English economists
Your Answer English economists

Multiple Choice Single Answer
Question Economists have pointed out that the real world is full of
Correct Answer Imperfect competition
Your Answer Imperfect competition

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

True/False
Question Under perfect competition single seller can influence the price.
Correct Answer False
Your Answer False

Multiple Choice Multiple Answer
Question Types of imperfect competition are
Correct Answer Monopoly , Duopoly , Oligopoly
Your Answer Monopoly , Duopoly , Oligopoly

Multiple Choice Multiple Answer
Question Features of Pure Competition are
Correct Answer Large number of buyers and sellers , Homogeneous products , Free entry and free exit of firms
Your Answer Large number of buyers and sellers , Homogeneous products , Free entry and free exit of firms

Multiple Choice Multiple Answer
Question Equilibrium is the stage of
Correct Answer maximum satisfaction , balance , stationary
Your Answer maximum satisfaction , balance

Multiple Choice Single Answer
Question Inflation is a phenomena in which prices
Correct Answer rise
Your Answer rise

Multiple Choice Single Answer
Question True inflation starts only after reaching the level of full
Correct Answer Employment
Your Answer Employment

True/False
Question During inflation, the pensioners whose income is permanently fixed, are substantially benefited.
Correct Answer False
Your Answer False

True/False
Question Saving is a private virtue
Correct Answer True
Your Answer True

Multiple Choice Multiple Answer
Question According to Keynes, Aggregate supply function refers to
Correct Answer the minimum price of revenue which the entrepreneurs must get , Associated with different levels of employment , Explains that the level of out put varies with the level of employment
Your Answer the minimum price of revenue which the entrepreneurs must get , Associated with different levels of employment , Explains that the level of out put varies with the level of employment

Multiple Choice Multiple Answer
Question Marginal Propensity to consume is characterized as follows
Correct Answer It is defined as the ratio of the change in consumption to the change in income , It is rate of change in the average propensity to consume as income changes , It is derived by the formula mpc= change in c/change in y
Your Answer It is rate of change in the average propensity to consume as income changes , It is derived by the formula mpc= change in c/change in y , It is derived by dividing the change in income by change in the consumption expenditure

Multiple Choice Single Answer
Question During the period of depression various factors of production are
Correct Answer exhausted
Your Answer unutilized

True/False
Question In general SBI uses its monetary policy to achieve a judicious balance between the growth of production and control of the general price level.
Correct Answer False
Your Answer False

True/False
Question Public enterprises have shown a very high rate of return of the capital invested
Correct Answer False
Your Answer False

Multiple Choice Multiple Answer
Question The meaning of monetary policy is
Correct Answer It is programmed of the central bank , It controls the total supply of money , The basic objective is to achieve economic stability
Your Answer It is programmed of the central bank , It controls the total supply of money , The basic objective is to achieve economic stability

Multiple Choice Multiple Answer
Question Main aims of the New Industrial Policy (1991) are
Correct Answer To unshackle the indian industrial economy from the cobwebs of unnecessary bureaucratic control , To introduce liberalization with a view to integrate the indian economy with the world economy , To remove restrictions on direct foreign investment as also to free the domestic entrepreneur from the restriction of MRTP act
Your Answer To unshackle the indian industrial economy from the cobwebs of unnecessary bureaucratic control , To introduce liberalization with a view to integrate the indian economy with the world economy , To remove restrictions on direct foreign investment as also to free the domestic entrepreneur from the restriction of MRTP act

Multiple Choice Multiple Answer
Question Objectives of economic policy are
Correct Answer To increase the efficiency and international competitiveness of industrial production , To improve the performance and rationalize the scope of the public sector , To reform and modernize the financial sector
Your Answer To increase the efficiency and international competitiveness of industrial production , To improve the performance and rationalize the scope of the public sector , To reform and modernize the financial sector
at 6:37 AM 0 comments Links to this post
Labels: Managerial Economics (Set V)
Managerial Economics - 14
Multiple Choice Single Answer
Question
The study of the working and allocation of resources in the free market economies is the topic in the
Correct Answer
theory of price
Your Answer
theory of production

Multiple Choice Single Answer
Question
Managerial economics aims at providing help in the firms is
Correct Answer
decision making
Your Answer
decision making

True/False
Question
The federal government of U.S.A. does not face the basic economic problem.
Correct Answer
False
Your Answer
False

Multiple Choice Single Answer
Question
In equilibrium analysis of a firm, it is assumed that every individual proprietor exhibits rational economic
Correct Answer
behavior
Your Answer
behavior

Match The Following
Question
Correct Answer
Your Answer
Managerial Economics
Prescriptive in nature
The theory of distribution
Resources
Alternative uses
Alternative uses
Division of society’s output of goods and services
The theory of distribution
Prescriptive in nature
Motor cars
Tangible goods
Tangible goods
Wants
Insatiable
Insatiable

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

Multiple Choice Single Answer
Question
The firm is the unit that makes the decisions regarding employment of and the output of commodities are
Correct Answer
factors of production
Your Answer
factors of production

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

Multiple Choice Single Answer
Question
In the cost – benefit analysis, the firm step involved is that the investor has to choose a few project alternatives promising a rate of return which is
Correct Answer
high
Your Answer
high

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

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

True/False
Question
The divisible goods, whose benefits can be priced, are called pure public goods
Correct Answer
False
Your Answer
True

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

True/False
Question
During the phase of depression, the level of national income and expenditure rises rapidly
Correct Answer
False
Your Answer
False

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

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

Multiple Choice Single Answer
Question
In general, the demand for necessaries is relatively
Correct Answer
inelastic
Your Answer
elastic

True/False
Question
Demand for food grains is inelastic but the demand for wheat is elastic.
Correct Answer
True
Your Answer
False

Match The Following
Question
Correct Answer
Your Answer
Excess supply can be defined as
Quantity supplied minus quantity demanded
Quantity supplied minus quantity demanded
If demand remain unchanged on increase in supply will result in
A rise in equilibrium quantity
The supply is perfectly elastic
Market Price is a situation which
The supply is perfectly elastic
A rise in equilibrium quantity
The responsiveness of demand to change in price is measured
Elasticity of demand
In the same proportion
Unit income elasticity implies that asincome rises demand for a commodity rises
In the same proportion
Elasticity of demand

Select The Blank
Question
Greater scope for the ________ sector may mean incremental ________ , which connotes the expansion of public sector undertakings, can be left to some private companies
Correct Answer
private
Your Answer
investment
Correct Answer
disinvestments
Your Answer
growth

Multiple Choice Single Answer
Question
Goods produced on small scale of supply is
Correct Answer
inelastic
Your Answer
zero elastic

True/False
Question
The sum of total fixed costs and total variable costs is the total cost.
Correct Answer
True
Your Answer
True

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

True/False
Question
In the stage I of the law of diminishing returns, the marginal product goes on increasing
Correct Answer
True
Your Answer
False

Multiple Choice Multiple Answer
Question
Features of monopolistic Competition
Correct Answer
Fairly Large number of firms , Product differentiation , Selling costs are existed
Your Answer
Fairly Large number of firms , Product differentiation , Selling costs are existed

Select The Blank
Question
Where ________ is charging a ________ in the home market and a lower price in the international market, it is called Dumping
Correct Answer
monopolist
Your Answer
a firm
Correct Answer
higher price
Your Answer
higher price

Select The Blank
Question
The number of sellers operating under this type of competition is ________ under oligopoly, but less than under ________
Correct Answer
larger than
Your Answer
complementary
Correct Answer
perfect ompetition
Your Answer
perfect ompetition

Multiple Choice Multiple Answer
Question
Marginal Propensity to consume
Correct Answer
It is defined as the ratio of the change in consumption to the change in income , It is rate of change in the average propensity to consume as income changes , It is derived by the formula mpc= change in C/change in Y
Your Answer
It is defined as the ratio of the change in consumption to the change in income , It is derived by the formula mpc= change in C/change in Y , It is derived by dividing the change in income by change in the consumption expenditure

Multiple Choice Multiple Answer
Question
Investment
Correct Answer
It adds to capital equipments , It leads to increase in level of income , It includes new plant and equipment
Your Answer
It adds to capital equipments , It leads to increase in level of income , It includes new plant and equipment

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
Characteristics of Depression
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

Multiple Choice Multiple Answer
Question
Recession includes
Correct Answer
The demand is halted , Increase in production of goods , Inventories piling up in stocks
Your Answer
The demand is halted , Inventories piling up in stocks

Multiple Choice Multiple Answer
Question
The causes of inflation
Correct Answer
Increase in public expenditure , Increase in private expenditure , Increase in foreign demand
Your Answer
Increase in public expenditure , Increase in foreign demand , Increase in taxation

Select The Blank
Question
The rate of interest, according to ________ , depends upon two factors: (i) ________ and (ii) the quantity of money
Correct Answer
Keynes
Your Answer
Keynes
Correct Answer
the liquidity preference function
Your Answer
the liquidity preference function

Select The Blank
Question
In the words of ________ , “inflation occurs when the ________ of prices and cost is rising”.
Correct Answer
Prof. Samuelson
Your Answer
Prof. Samuelson
Correct Answer
general level
Your Answer
general level

Multiple Choice Multiple Answer
Question
Forms of Public Enterprises
Correct Answer
Public Corporations , Departmental management , Company Management or management by boards
Your Answer
Departmental management , Public Corporations

Multiple Choice Multiple Answer
Question
Specific organizational goals of Firms are:
Correct Answer
Maximisation of profit , Reasonable Profit Target , Sales revenue Maximization
Your Answer
Maximisation of profit , Reasonable Profit Target , Sales revenue Maximization

Multiple Choice Multiple Answer
Question
Individual Demand Schedule:
Correct Answer
Is in tabular form , It shows the prices of goods , It shows the quantities of a commodity purchased
Your Answer
Is in tabular form , It shows the prices of goods , It shows the quantities of a commodity purchased

Multiple Choice Multiple Answer
Question
The production function can be explained by:
Correct Answer
Law of variable proportions , Laws of returns to scale , Optimum combinations of inputs
Your Answer
Law of variable proportions , Laws of returns to scale , Optimum combinations of inputs

Multiple Choice Multiple Answer
Question
Implicit costs are:
Correct Answer
Cost on self owned resources , Costs of salary of the proprietor , Interest on the entrepreneur's own investment
Your Answer
Cost on self owned resources , Interest on the entrepreneur's own investment

Select The Blank
Question
Managerial ________s generally refers to the integration of economic theory with ________ practice.
Correct Answer
economic
Your Answer
economic
Correct Answer
business
Your Answer
business

Select The Blank
Question
In a competitive industry, there is a large number of firms so that the action of ________ firm has ________ on the price and output of the whole industry.
Correct Answer
a single
Your Answer
a single
Correct Answer
no effect
Your Answer
no effect

Select The Blank
Question
As per the International Labour Organisation (ILO), _ ________ is a ________ association of individuals with limited income on the basis of equal rights and responsibilities for achieving certa
Correct Answer
Co-operation
Your Answer
Co-operation
Correct Answer
voluntary
Your Answer
voluntary

Select The Blank
Question
The word ________ has different meanings to businessmen, ________ , tax collectors, workers and economists and it is often used in a loose sense that buries its real significance
Correct Answer
Profit
Your Answer
Profit
Correct Answer
accountants
Your Answer
accountants

Select The Blank
Question
The demand curve is ________ representation of a demand schedule, demand curve slopes ________ ward from left to right.
Correct Answer
graphical
Your Answer
graphical
Correct Answer
down
Your Answer
down

Select The Blank
Question
The ________ that is ________ is the opportunity cost of the commodity produced.
Correct Answer
sacrificed
Your Answer
commodity
Correct Answer
commodity
Your Answer
sacrificed


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

True/False
Question Under perfect competition, price is determined by the interaction of total demand and total supply in the market.
Correct Answer False
Your Answer True

Multiple Choice Single Answer
Question Price of a product under perfect competition is determined by the interaction of total supply and
Correct Answer total demand
Your Answer total demand

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

Multiple Choice Multiple Answer
Question Keynes’s theory of employment explains
Correct Answer Effective demand , Aggregate supply , Aggregate demand
Your Answer Effective demand , Aggregate supply , Aggregate demand

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

Multiple Choice Single Answer
Question An individual consumer or particular market for a given commodity are the subject matter of
Correct Answer Micro Economics
Your Answer Micro Economics

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 Single Answer
Question Whether the economy's capacity to produce goods and services is growing from year to year or remaining static is studied under the
Correct Answer Theory of economic growth
Your Answer Theory of economic growth

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 , non profit motive organization

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

True/False
Question Macro-economies is a policy oriented science.
Correct Answer True
Your Answer True

Multiple Choice Single Answer
Question Expansion of supply is shown by the movement in the supply curve which is
Correct Answer upward
Your Answer upward

Multiple Choice Single Answer
Question Liability of a sole trader is
Correct Answer unlimited
Your Answer unlimited

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.

Select The Blank
Question An upward sloping demand curve is called ________
Correct Answer exceptional demand curve
Your Answer exceptional demand curve

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 act of making goods and services is called
Correct Answer production
Your Answer production

Multiple Choice Single Answer
Question Question related to the efficient production and allocation belong to the branch of economic theory called
Correct Answer Welfare Economics
Your Answer Welfare Economics

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

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

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 The Keynesian theory emphasizes effective supply as a crucial factor in determining the level of income and employment.
Correct Answer False
Your Answer False

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

Select The Blank
Question By ' profits', the accountant means total revenue minus________.
Correct Answer Explicit costs
Your Answer Explicit costs

Multiple Choice Single Answer
Question All the buyers and sellers operating under perfect competition have knowledge which is
Correct Answer perfect
Your Answer perfect

Match The Following
Question Correct Answer Your Answer

Resource allocation decisions in free market economy Theory of price Theory of price
Economic problem Universal Universal
Managerial Economics Applied branch of knowledge Applied branch of knowledge
Inflation Reduction in purchasing power Theory of price
Waste of resources Involuntary unemployment Involuntary unemployment


Multiple Choice Multiple Answer
Question 16. The phase of recovery denotes
Correct Answer More employment opportunities , Increase in profitability , Wage rate increase
Your Answer More employment opportunities , Increase in profitability , Wage rate increase

Select The Blank
Question Supply is predominantly determined by ________.
Correct Answer stock
Your Answer demand

Select The Blank
Question The form of organization which is best for self employment is ________.
Correct Answer Sole trader
Your Answer Sole trader

Multiple Choice Single Answer
Question The suggestion of maximization of balanced growth rate as another alternative objective of a firm's profit is suggested by
Correct Answer Prof. Morris
Your Answer Baumol

True/False
Question Under perfect competition,firms are free to enter and exit in the market.
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 The Risk theory of profit was developed by
Correct Answer Hawley
Your Answer Hawley

True/False
Question The congress government led by Narsimha Rao announced the New Industrial Policy in July 1991.
Correct Answer True
Your Answer True

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

True/False
Question The distinction between fixed costs and variable costs is relevant in the short period only.
Correct Answer True
Your Answer True

Multiple Choice Multiple Answer
Question The term externalities may also be referred as:
Correct Answer Spill-over effects , Neighborhood effects , Third party effects
Your Answer Spill-over effects , Neighborhood effects , Third party effects

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 Single Answer
Question Often monopolies purposely keep certain factors of production idle creating artificial scarcities of their products as a result the prices
Correct Answer rise
Your Answer rise

Multiple Choice Multiple Answer
Question The methods of calculating depreciation is
Correct Answer Diminishing Balance Method , Annuity Method , Service Unit Method
Your Answer Diminishing Balance Method , Annuity Method , Service Unit Method

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


Select The Blank
Question In the context of formulating an investment project, ________ feasibility means the availability of supervisors for implementing and running the project smoothly and professionally.
Correct Answer management
Your Answer management

True/False
Question The sum of total fixed costs and total variable costs is the total cost.
Correct Answer True
Your Answer True

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

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

True/False
Question Private profit motive is an essential feature of Capitalism.
Correct Answer True
Your Answer True
at 5:20 AM 0 comments Links to this post
Labels: Managerial Economics
Monday, February 4, 2008
Managerial Economics - 1
LIST OF ATTEMPTED QUESTIONS AND ANSWERS



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

Multiple Choice Multiple Answer
Question
Accounting profit includes :-
Correct Answer
Wages , Rent , Interest
Your Answer
Interest , Total revenue

True/False
Question
In experimental price approach the firms takes some cognizance of the demand for the product and proceeds to fix a price by a trial and error method.
Correct Answer
True
Your Answer
True

Multiple Choice Multiple Answer
Question
Defects of market system:-
Correct Answer
Inequalities of income and wealth , Emergence of monopolies , Failure to provide full employment
Your Answer
Emergence of monopolies , Failure to provide full employment , Prevailing of barter system

Multiple Choice Single Answer
Question
In case of perfectly elastic supply, the supply curve is :-
Correct Answer
Horizontal
Your Answer
Vertical

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

Multiple Choice Single Answer
Question
Economists have pointed out that the real world is full of :-
Correct Answer
Imperfect competition
Your Answer
Pure competition

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 benefits cannot be priced

Multiple Choice Multiple Answer
Question
Main aims of the New Industrial Policy (1991) are :-
Correct Answer
To unshackle the Indian industrial economy from the cobwebs of unnecessary bureaucratic control , To introduce liberalization with a view to integrate the Indian economy with the world economy , To remove restrictions on direct foreign investment as also to free the domestic entrepreneur from the restriction of MRTP act
Your Answer
To unshackle the Indian industrial economy from the cobwebs of unnecessary bureaucratic control , To introduce liberalization with a view to integrate the Indian economy with the world economy , To remove restrictions on direct foreign investment as also to free the domestic entrepreneur from the restriction of MRTP act

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

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

Select The Blank
Question
Super-normal profit is also called ________.
Correct Answer
Excess profit
Your Answer
Excess profit

Multiple Choice Multiple Answer
Question
Under cost plus pricing :-
Correct Answer
Actual costs, standard costs are included , Certain percentage of profit also included , The price is set to cover material, labour cost
Your Answer
The price is set to cover material, labour cost , Actual costs, standard costs are included

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

True/False
Question
Consumer’s protection involves protection to the consumers from unfair trade practices.
Correct Answer
True
Your Answer
True

Select The Blank
Question
When Government repays old loans, the purchasing power at the disposal of the people ________.
Correct Answer
Increases
Your Answer
Becomes negative

True/False
Question
The law of supply is not hypothetical.
Correct Answer
False
Your Answer
True

Multiple Choice Single Answer
Question
A firm gets an opportunity to produce multiple products because changes in business activity in a firms is :-
Correct Answer
Cyclical
Your Answer
Cyclical

True/False
Question
When a change in income has no effect upon the quantity demanded of a product, the income elasticity of demand is zero.
Correct Answer
True
Your Answer
True

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

Select The Blank
Question
Propensity to consume is defined as the relationship between consumption and ________.
Correct Answer
Income
Your Answer
Income

True/False
Question
Public enterprises have shown a very high rate of return of the capital invested.
Correct Answer
False
Your Answer
False

Select The Blank
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
External

True/False
Question
In the traditional concept of equilibrium, a firm attains the equilibrium when the firm’s Total Revenue (T.R.) =Total Cost (T.C.).
Correct Answer
False
Your Answer
True

Multiple Choice Single Answer
Question
The method of inventory valuation in which, the cost of production is calculated on the assumption that the material which was last to enter the inventory of the company was used first is :-
Correct Answer
LIFO
Your Answer
LIFO

True/False
Question
Supply management is related to the volume of supply & its distribution system.
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 Multiple Answer
Question
Different types of Elasticity of Demand are :-
Correct Answer
Cross elasticity of demand , Price elasticity of demand , Income elasticity of demand
Your Answer
Price elasticity of demand , Income elasticity of demand , Cross elasticity of demand

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
Expansion of supply is shown by the movement in the supply curve which is :-
Correct Answer
Upward
Your Answer
Upward

Multiple Choice Single Answer
Question
Saving is a :-
Correct Answer
Private virtue
Your Answer
Private virtue

Multiple Choice Single Answer
Question
According to the Government, the building up of inflationary pressure during the Nineties was attributed to :-
Correct Answer
Higher Fiscal deficit
Your Answer
Higher Fiscal deficit

Multiple Choice Multiple Answer
Question
A competitive industry has three basic characteristics :-
Correct Answer
Large Number of Firms , Homogeneous Product , Free entry and exit
Your Answer
Large Number of Firms , Homogeneous Product , Free entry and exit

Multiple Choice Single Answer
Question
The income which a businessman might expect from the second best alternative use of his resources is called as :-
Correct Answer
Opportunity cost
Your Answer
Opportunity cost

Select The Blank
Question
Advertising forms an integral part of decision-making and________.
Correct Answer
Forward - planning
Your Answer
Forward - planning

Multiple Choice Multiple Answer
Question
Exceptions to the Law of Demand are :-
Correct Answer
Griffin goods , Articles of snob appeal , Speculation
Your Answer
Griffin goods , Articles of snob appeal , Speculation

Select The Blank
Question
True inflation starts only after reaching ________.
Correct Answer
Level of full employment
Your Answer
Level of full employment

Select The Blank
Question
The financing of ________ goods is done through Public expenditure.
Correct Answer
Public
Your Answer
Public

Multiple Choice Multiple Answer
Question
Assumptions of the Law of Demand are :-
Correct Answer
No change in consumer’s income , No change in consumer’s preferences , No change in fashion
Your Answer
No change in consumer’s income , No change in consumer’s preferences , No change in fashion

Multiple Choice Multiple Answer
Question
Types of Share capital of Joint-Stock Company are :-
Correct Answer
Registered or authorized capital , Issued capital , Paid-up capital
Your Answer
Registered or authorized capital , Issued capital , Paid-up capital

True/False
Question
The sum of total fixed costs and total variable costs is the total cost.
Correct Answer
True
Your Answer
True

True/False
Question
During the period of depression, a large part of a country’s resources lie involuntarily idle.
Correct Answer
True
Your Answer
True

True/False
Question
Under the New Industrial Policy, in order to invite foreign investment in high priority industries, it was decided to provide approval for direct foreign investment upto 51% equity in such industries.
Correct Answer
True
Your Answer
True
at 5:13 AM 0 comments Links to this post
Labels: Managerial Economics
Thursday, January 24, 2008
Managerial Economics - 1
LIST OF ATTEMPTED QUESTIONS AND ANSWERS



Multiple Choice Single Answer
Question
The concept of Perfect competition includes all the features of :-
Correct Answer
Pure competition
Your Answer
Pure competition

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
Monopoly Profits

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

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 at lower 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 , It is encouraged with a view to promote the exports

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

True/False
Question
In macro – economic analysis the behavior of economic agents such as firms, households and government is seen in total, disregarding details at particular level.
Correct Answer
True
Your Answer
True

True/False
Question
Changes in the value of money because of inflation, make inventory valuation of finished products difficult.
Correct Answer
True
Your Answer
True

Multiple Choice Single Answer
Question
The method of inventory valuation in which, the cost of production is calculated on the assumption that the material which was last to enter the inventory of the company was used first is :-
Correct Answer
LIFO
Your Answer
LIFO

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

Select The Blank
Question
The partnership between private sector & government is called ________.
Correct Answer
Joint sector enterprise
Your Answer
Joint sector enterprise

Multiple Choice Multiple Answer
Question
According to Keynes there are three motives for holding cash for liquidity preference :-
Correct Answer
The speculative motive , The transactions motive , The precautionary motive
Your Answer
The transactions motive , The precautionary motive , The speculative motive

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
The Laws of Returns to scale are :-
Correct Answer
Law of Increasing Returns to Scale , Law of Constant Returns to Scale , Law of Decreasing Returns to scale
Your Answer
Law of Decreasing Returns to scale

Multiple Choice Multiple Answer
Question
Increasing Returns explains :-
Correct Answer
Total product increases at an increasing rate , Marginal product increasing and it is maximum , Average product is increasing but it is below MP
Your Answer
Total product increases at an increasing rate , Marginal product increasing and it is maximum , Average product is increasing but it is below MP

Multiple Choice Single Answer
Question
An individual consumer or particular market for a given commodity are the subject matter of :-
Correct Answer
Micro Economics
Your Answer
Micro Economics

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

Select The Blank
Question
Baumol has suggested as an alternative objective for profit maximization, the maximization of ________.
Correct Answer
Sales
Your Answer
Sales

Multiple Choice Single Answer
Question
The profit which is surplus of revenue over and above all paid out cost is :-
Correct Answer
Accounting Profit
Your Answer
Gross Profit

Select The Blank
Question
In perfect competition various factors of production are assumed to be ________.
Correct Answer
Perfectly mobile
Your Answer
Perfectly mobile

Select The Blank
Question
Keynes, on the basis of a fundamental psychological law, observed that as income ________, consumption Increases.
Correct Answer
Increases
Your Answer
Increases

True/False
Question
During the period of depression, a large part of a country’s resources lie involuntarily idle.
Correct Answer
True
Your Answer
True

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
False

Select The Blank
Question
The taxation & public expenditure policies are called as ________ ..
Correct Answer
Budgetary Policy
Your Answer
Budgetary Policy

Multiple Choice Multiple Answer
Question
The disinvestments of industries is needed for :-
Correct Answer
Phased privatization , Reducing deficit , Capital support to plans
Your Answer
Phased privatization , Reducing deficit , Capital support to plans

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

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

Select The Blank
Question
In the context of externalities, driving the smoke-emitting buses and trucks in the cities is an example of ________ cost.
Correct Answer
Social
Your Answer
Social

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

True/False
Question
The government also fixes minimum procurement prices for major crops on the recommendation of the Agricultural Prices Commission (APC).
Correct Answer
True
Your Answer
True

Multiple Choice Multiple Answer
Question
According to Lionel Robbins definition of economics, "Economics is a science which :-
Correct Answer
Studies human behaviour , Relationship between ends and scares resources , Scarce means have alternate uses
Your Answer
Studies human behaviour , Relationship between ends and scares resources , Scarce means have alternate uses

Select The Blank
Question
Under perfect competition, price is determined by the interaction of total demand and ________.
Correct Answer
Total supply
Your Answer
Total selling cost

Multiple Choice Multiple Answer
Question
Features of monopolistic Competition are :-
Correct Answer
Fairly large number of firms , Product differentiation , Selling costs are existed
Your Answer
Fairly large number of firms , Product differentiation , Selling costs are existed

Multiple Choice Multiple Answer
Question
Steps in cost benefit analysis are :-
Correct Answer
Identification of a project , Formulation of the project , Appraisal and selection of the project
Your Answer
Identification of a project , Formulation of the project , Appraisal and selection of the project

True/False
Question
There is no separation of ownership and management in case of a Joint Stock Company.
Correct Answer
False
Your Answer
False

Multiple Choice Single Answer
Question
During a period of rising prices (inflation), the goods and services are :-
Correct Answer
Scarce
Your Answer
Scarce

Multiple Choice Single Answer
Question
The cost recorded in the books of accounts are considered as :-
Correct Answer
Explicit costs
Your Answer
Explicit costs

Multiple Choice Single Answer
Question
Variable cost are those costs which vary with the level of :-
Correct Answer
Output
Your Answer
Output

Select The Blank
Question
Open market operations measures are ________.
Correct Answer
Quantitative credit control
Your Answer
Quantitative credit control

Select The Blank
Question
Managerial ________ lies on the borderline of management and Economics.
Correct Answer
Economics
Your Answer
Economics

True/False
Question
The demand for life saving drugs is elastic.
Correct Answer
False
Your Answer
False

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
Resource allocation decisions in free market economy
Theory of price
Theory of price
Economic problem
Universal
Universal
Managerial Economics
Applied branch of knowledge
Applied branch of knowledge
Inflation
Reduction in purchasing power
Reduction in purchasing power
Waste of resources
Involuntary unemployment
Involuntary unemployment

Multiple Choice Single Answer
Question
According J.B.Clark, profit is the reward paid for :-
Correct Answer
Dynamism
Your Answer
Risk bearing

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

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 quantity of money.

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 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