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
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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
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