managerial economics 1-10 scdl

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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 AnswerPure competition

Multiple Choice Single AnswerQuestion

An entrepreneur may earn high profits just by luck, say because of outbreak of war. This is known as :-

Correct AnswerChance Profits

Your Answer

Monopoly Profits


Managerial economics is also understood to refer to

Correct Answerapplied 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 isencouraged 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


QuestionThe type economic problem is

Correct Answer

universalYour Answer

universal

True/False

Question

In macroeconomic analysis the behavior of economic agents such as firms, households and government is seen in total, disregarding details atparticular 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 AnswerTrue


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
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inventory of the company was used first is :-

Correct AnswerLIFO

Your Answer

LIFO


Question

The act of making goods and services is calledCorrect Answer

production

Your Answer

production

Select The Blank

Question

The partnership between private sector & government is called ________.Correct Answer

Joint sector enterprise

Your AnswerJoint sector enterprise

Multiple Choice Multiple AnswerQuestion

According to Keynes there are three motives for holding cash for liquidity preference :-

Correct AnswerThe speculative motive , The transactions motive , The precautionary motive

Your AnswerThe transactions motive , The precautionary motive , The speculative motive


If the substitutes are relatively costly then the demand for the commodity in question will be :-

Correct AnswerMore

Your Answer

More


QuestionThe 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 scaleYour Answer

Law of Decreasing Returns to scale


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 AnswerTotal product increases at an increasing rate , Marginal product increasing and it is maximum , Average product is increasing but it is below MP


An individual consumer or particular market for a given commodity are the subject matter of :-

Correct Answer

Micro EconomicsYour Answer

Micro Economics

True/False

QuestionThe prosperity phase is characterized by rise in the level of employment.

Correct Answer

True

Your Answer

True


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Select The Blank

QuestionBaumol has suggested as an alternative objective for profit maximization, the maximization of ________.

Correct Answer

SalesYour Answer

Sales


The profit which is surplus of revenue over and above all paid out cost is :-

Correct Answer

Accounting Profit

Your AnswerGross Profit

Select The BlankQuestion

In perfect competition various factors of production are assumed to be ________.

Correct AnswerPerfectly mobile

Your Answer

Perfectly mobile

Select The Blank

QuestionKeynes, on the basis of a fundamental psychological law, observed that as income ________, consumption Increases.

Correct AnswerIncreases

Your Answer

Increases

True/False

QuestionDuring the period of depression, a large part of a countrys resources lie involuntarily idle.

Correct Answer

TrueYour 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


The taxation & public expenditure policies are called as ________ ..

Correct AnswerBudgetary Policy

Your Answer

Budgetary Policy


Question

The disinvestments of industries is needed for :-Correct Answer

Phased privatization , Reducing deficit , Capital support to plansYour Answer

Phased privatization , Reducing deficit , Capital support to plans


Question

The act of using goods and services to satisfy wants is called

Correct Answer

consumption

Your Answer


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consumption


Question

The things that are produced by factors of production are calledCorrect 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 AnswerSocial

Your Answer

Social


QuestionThe concept of just distribution of national product is a

Correct Answer

normativeYour Answer

normative

True/False

QuestionThe government also fixes minimum procurement prices for major crops on the recommendation of the Agricultural Prices Commission (APC).

Correct Answer

TrueYour Answer

True


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 AnswerStudies human behaviour , Relationship between ends and scares resources , Scarce means have alternate uses


Under perfect competition, price is determined by the interaction of total demand and ________.

Correct Answer

Total supply

Your Answer

Total selling cost


QuestionFeatures of monopolistic Competition are :-

Correct Answer

Fairly large number of firms , Product differentiation , Selling costs are existedYour Answer

Fairly large number of firms , Product differentiation , Selling costs are existed


Steps in cost benefit analysis are :-Correct Answer

Identification of a project , Formulation of the project , Appraisal and selection of the project

Your AnswerIdentification 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


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False

Your AnswerFalse


During a period of rising prices (inflation), the goods and services are :-

Correct Answer

ScarceYour Answer

Scarce


QuestionThe cost recorded in the books of accounts are considered as :-

Correct Answer

Explicit costsYour Answer

Explicit costs


Question

Variable cost are those costs which vary with the level of :-Correct Answer

Output

Your AnswerOutput

Select The Blank

Question

Open market operations measures are ________.Correct Answer

Quantitative credit control

Your AnswerQuantitative credit control


Managerial ________ lies on the borderline of management and Economics.

Correct AnswerEconomics

Your Answer

Economics

True/False

Question

The demand for life saving drugs is elastic.

Correct Answer

FalseYour Answer

False


Question

Managerial economics generally refers to the integration of economic theory with businessCorrect Answer

Practice

Your Answer

Practice

Match The FollowingQuestion

Correct Answer

Your AnswerResource allocation decisions in free market economy

Theory of price

Theory of price

Economic problem

Universal

Universal


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Managerial Economics

Applied branch of knowledgeApplied branch of knowledge

Inflation

Reduction in purchasing powerReduction in purchasing power

Waste of resources

Involuntary unemployment

Involuntary unemployment


Question

According J.B.Clark, profit is the reward paid for :-

Correct AnswerDynamism

Your Answer

Risk bearing


QuestionThe characteristics of a sole proprietorship firm is :-

Correct Answer

Unlimited Capital , Ownership by a single person , Easy to formYour Answer

Ownership by a single person , Easy to form

Select The Blank

QuestionThe 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 AnswerYour Answer

Human wants

unlimitedunlimited

General Theory of Employment, Interest and Money

J. M. KeynesJ. M. Keynes

Managerial economics

Decision making and forward planning


Resources

scarcescarce

Commodities

goods and servicesgoods and services


Every nations resources which are used to produce the quantities of goods and services that would be required to satisfy allits citizens wants are

Correct Answer

insufficientYour Answer

insufficient

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List Of Attempted Questions And Answers

Select The Blank

Question The sum of all individual demands constitutes________

Correct Answer market demandYour 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


Question Price of a product under perfect competition is determined by the interaction of total supply andCorrect 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 costYour Answer Accounting cost

Multiple Choice Multiple AnswerQuestion Keyness theory of employment explains

Correct Answer Effective demand , Aggregate supply , Aggregate demand

Your Answer Effective demand , Aggregate supply , Aggregate demand

Multiple Choice Single AnswerQuestion The type economic problem is

Correct Answer universal

Your Answer universal


Question An individual consumer or particular market for a given commodity are the subject matter ofCorrect Answer Micro Economics

Your Answer Micro Economics


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 companyYour 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 AnswerQuestion 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


Question Co-operative organizations isCorrect 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


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 unchangedYour 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


Question Expansion of supply is shown by the movement in the supply curve which isCorrect Answer upward

Your Answer upward


Question Liability of a sole trader is

Correct Answer unlimited


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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


Question Every nations resources which are used to produce the quantities of goods and services that would be required to satisfy all its citizenswants are

Correct Answer insufficient

Your Answer insufficient


Question The act of making goods and services is calledCorrect Answer production

Your Answer production


Question Question related to the efficient production and allocation belong to the branch of economic theory called

Correct Answer Welfare EconomicsYour Answer Welfare Economics


Question The act of using goods and services to satisfy wants is called

Correct Answer consumptionYour Answer consumption

Multiple Choice Multiple AnswerQuestion 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 AnswerQuestion 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 AnswerQuestion All the buyers and sellers operating under perfect competition have knowledge which is

Correct Answer perfectYour Answer perfect

Match The FollowingQuestion 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


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Waste of resources Involuntary unemployment Involuntary unemployment


Question 16. The phase of recovery denotesCorrect Answer More employment opportunities , Increase in profitability , Wage rate increase

Your Answer More employment opportunities , Increase in profitability , Wage rate increase

Select The BlankQuestion Supply is predominantly determined by ________.

Correct Answer stock

Your Answer demand

Select The BlankQuestion The form of organization which is best for self employment is ________.

Correct Answer Sole trader

Your Answer Sole trader


Question The suggestion of maximization of balanced growth rate as another alternative objective of a firm's profit is suggested byCorrect Answer Prof. Morris

Your Answer Baumol

True/False

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

Correct Answer TrueYour Answer True


Question J.M. Keynes, on the basis of a fundamental psychological law of consumption, observed that as income increases, consumption also

increases, but proportionatelyCorrect Answer less

Your Answer less


Question The Risk theory of profit was developed by

Correct Answer HawleyYour Answer Hawley

True/FalseQuestion 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.


Multiple Choice Multiple AnswerQuestion 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


Question Methods of forecasting demand for new products areCorrect Answer Product life cycle analysis , Test marketing , Evolutionary approach

Your Answer Evolutionary approach


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



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Question The methods of calculating depreciation is

Correct Answer Diminishing Balance Method , Annuity Method , Service Unit MethodYour Answer Diminishing Balance Method , Annuity Method , Service Unit Method

Match The FollowingQuestion Correct Answer Your Answer

Human wants unlimited unlimited

General Theory of Employment, Interest and Money J. M. Keynes J. M. KeynesManagerial 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.


Multiple Choice Multiple AnswerQuestion 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 , Aplace 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


Question Managerial economics is also understood to refer toCorrect Answer applied economics

Your Answer applied economics

True/False

Question Private profit motive is an essential feature of Capitalism.


Monday, February 4, 2008



True/False

Question

In case of a proprietary firm the liability of the proprietor is limited.Correct Answer

FalseYour Answer

False


Question

Accounting profit includes :-Correct Answer

Wages , Rent , Interest

Your AnswerInterest , Total revenue


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True/FalseQuestion

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


Question

Defects of market system:-

Correct AnswerInequalities 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


QuestionIn case of perfectly elastic supply, the supply curve is :-

Correct Answer

HorizontalYour Answer

Vertical


QuestionEvery nations resources which are used to produce the quantities of goods and services that would be required to satisfy all its citizens wants are

Correct Answer


insufficient


Question

Managerial economics is also understood to refer toCorrect Answer

applied economics

Your Answerapplied economics


Economists have pointed out that the real world is full of :-

Correct Answer

Imperfect competition

Your Answer

Pure competition


QuestionCharacteristics 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 pricedYour Answer

They are completely indivisible , Their benefits cannot be priced


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 domesticentrepreneur 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


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QuestionUnder perfect competition, generally demand and supply act and react upon each other and determine the price

Correct Answer

equilibriumYour Answer

equilibrium


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 AnswerInventory Valuation , Depreciation , Unaccounted value changes in the assets & liabilities


Super-normal profit is also called ________.

Correct AnswerExcess profit

Your Answer

Excess profit


QuestionUnder cost plus pricing :-

Correct AnswerActual 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

QuestionCorrect Answer

Your Answer

Human wantsunlimited

unlimited

General Theory of Employment, Interest and MoneyJ. M. Keynes

J. M. Keynes

Managerial economicsDecision making and forward planning


Resources

scarce

scarce

Commoditiesgoods and services

goods and services

True/False

Question

Consumers protection involves protection to the consumers from unfair trade practices.Correct Answer

True

Your Answer

True


When Government repays old loans, the purchasing power at the disposal of the people ________.

Correct AnswerIncreases

Your Answer

Becomes negative

True/False

Question


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The law of supply is not hypothetical.

Correct AnswerFalse

Your Answer

True


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 AnswerTrue


Managerial economics generally refers to the integration of economic theory with business

Correct AnswerPractice

Your AnswerPractice


Propensity to consume is defined as the relationship between consumption and ________.

Correct AnswerIncome

Your Answer

Income

True/False

QuestionPublic enterprises have shown a very high rate of return of the capital invested.

Correct Answer

FalseYour 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 AnswerExternal

True/FalseQuestion

In the traditional concept of equilibrium, a firm attains the equilibrium when the firms Total Revenue (T.R.) =Total Cost (T .C.).

Correct Answer

FalseYour Answer

True


QuestionThe 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


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True/FalseQuestion

Supply management is related to the volume of supply & its distribution system.

Correct AnswerTrue

Your Answer

True


Question

Demand is determined by :-

Correct Answer

Price of the product , Relative prices of other goods , Tastes and habitsYour Answer

Price of the product , Relative prices of other goods , Tastes and habits


Question

Different types of Elasticity of Demand are :-Correct Answer

Cross elasticity of demand , Price elasticity of demand , Income elasticity of demand

Your AnswerPrice elasticity of demand , Income elasticity of demand , Cross elasticity of demand


In case of a Joint-Stock Company, the liability of share holders is :-Correct Answer

Limited

Your AnswerLimited


Expansion of supply is shown by the movement in the supply curve which is : -

Correct AnswerUpward

Your Answer

Upward


QuestionSaving is a :-

Correct Answer

Private virtue

Your Answer

Private virtue


Question

According to the Government, the building up of inflationary pressure during the Nineties was attributed to :-Correct Answer

Higher Fiscal deficit

Your AnswerHigher Fiscal deficit


QuestionA competitive industry has three basic characteristics :-

Correct AnswerLarge Number of Firms , Homogeneous Product , Free entry and exit

Your Answer

Large Number of Firms , Homogeneous Product , Free entry and exit


Question

The income which a businessman might expect from the second best alternative use of his resources is called as :-

Correct Answer

Opportunity cost


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Your Answer

Opportunity cost

Select The Blank

QuestionAdvertising formsan integral part of decis ion-making and________.

Correct Answer

Forward - planning

Your AnswerForward - planning


Question

Exceptions to the Law of Demand are :-Correct Answer

Griffin goods , Articles of snob appeal , Speculation

Your AnswerGriffin goods , Articles of snob appeal , Speculation


True inflation starts only after reaching ________.

Correct AnswerLevel of full employment

Your Answer

Level of full employment


The financing of ________ goods is done through Public expenditure.

Correct AnswerPublic

Your Answer

Public


QuestionAssumptions of the Law of Demand are :-

Correct Answer

No change in consumers income , No change in consumers preferences , No change in fashionYour Answer

No change in consumers income , No change in consumers preferences , No change in fashion


Question

Types of Share capital of Joint-Stock Company are :-

Correct Answer

Registered or authorized capital , Issued capital , Paid-up capital

Your AnswerRegistered or authorized capital , Issued capital , Paid-up capital

True/FalseQuestion

The sum of total fixed costs and total variable costs is the total cost.

Correct AnswerTrue

Your Answer

True

True/False

QuestionDuring the period of depression, a large part of a countrys resources lie involuntarily idle.

Correct Answer

TrueYour 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


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foreign investment upto 51% equity in such industries.

Correct AnswerTrue

Your Answer

True

Tuesday, August 19, 2008




Question

Economists call all human resources asCorrect Answer

labor

Your Answerlabor

True/FalseQuestion

Economic problem arises only in case of an overpopulated country.Correct Answer

False

Your Answer

False


QuestionAll the buyers and sellers operating under perfect competition have knowledge

Correct Answer

perfectYour Answer

perfect

True/False

Question

The meaning ofthe word economic is most closely associated with the word unlimited

Correct AnswerTrue

Your AnswerTrue


Question

The conditions of equilibrium of a firm are applicable to all markets

Correct AnswerNone

Your Answer

particular

True/False

QuestionIn case of the co-operative societies supplying cheap inputs or supplying consumer products at fair prices, a system of subsidized pricing is

followedCorrect AnswerTrue

Your Answer

True


QuestionThe price of a good and the exclusion princople together is

Correct Answer
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divisibility

Your Answerindivisibility


The liability of a sole proprietary firm is

Correct Answer

unlimitedYour Answer

unlimited

True/False

QuestionInstitution of private property is not an essential feature of Capitalism

Correct Answer

FalseYour Answer

False

True/False

Question

There never was in any country at any time pure capitalism or pure communismCorrect Answer

True

Your AnswerTrue

True/False

Question

The railways using a lot of coal in firing the steam locomotives put the residential and other areas near the loco shades to a lot of sufferings onaccount of smoke nuisance, is an example of pr

Correct Answer

FalseYour Answer

True

True/False

Question

A Joint stock company has perpetual succession.Correct Answer

True

Your AnswerTrue

True/FalseQuestion

The management of the cooperative form of business organization is totalitarian in nature.

Correct AnswerFalse

Your Answer

True


Question

In Trade cycles the economic activity areCorrect Answer

ups and downsYour Answer

ups and downs

True/False

Question

In macroeconomic analysis the behavior of economic agents such as firms, households and government is seen in total, disregarding details at

particular level

Correct Answer

True


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Your Answer

True


QuestionMarket economy or private enterprise economy is a economy which is

Correct Answer

planless

Your Answerplanned


Question

New commodities due to technotogical progress may result in demand for traditional type of goodsCorrect Answer

decrease

Your Answerdecrease


If a person is habituated to the consumption of a commodity and if he cannot easily give up its use, demand for it is generally

Correct Answerinelastic

Your Answer

inelastic

Match The Following

Question


Normal demand curve

Downwards to rightDownwards to right

Income consumption curve

Upwards to the rightUpwards to the right

Inelastic demand curve

Vertical straight lineVertical straight line

Cross elasticity of demand between two perfect substitute will be

Infinity

Infinity

A demand curve, which takes the form of a horizontal line parallelto the quantity axis illustrates elasticity

Infinity.Infinity.


The law of diminishing returns is applicable to agriculture provided the state of technology is given and

Correct Answerconstant

Your Answer

resources


QuestionUnder the system of dual prices in case of essential goods, adopted by the government, the weaker sections of the community are supplied these

goods through fair price shops whi

Correct Answerfair

Your Answer

neorich


Question


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The Government attempts to increase supplies of food grains and other essential goods in times of internal shortage through larger

Correct Answerimports

Your Answer

borrowings

True/False

QuestionExternal economies are the advantages of large scale production enjoyed exclusively an individual firm alone.

Correct Answer

FalseYour Answer

False


Question

Equilibrium isCorrect Answer

The stage of maximum satisfaction , The stage of balance , The stage of stationary

Your AnswerThe stage of balance


Question

Conditions of equilibriumCorrect Answer

Marginal Revenue should be equal to Marginal Cost , The Marginal cost curve should cut the marginal revenue curve from below at the

equilibrium point , Marginal cost curve should be increasing at equilibrium pointYour Answer

Marginal Revenue should be equal to Marginal Cost , The Marginal cost curve should cut the marginal revenue curve from below at the

equilibrium point , Average cost curve should cut the Average Revenue curve

Select The Blank

QuestionCost-benefit analysis refers to the analysis undertaken to judge any projects ________ whether government or private and find out its ________

and facilities its comparison with other available oppor

Correct Answerinvestments

Your Answer

investments

Correct Answer

worth

Your Answerprofit


Aggregate supply function

Correct AnswerRefers to that price at which the seller is willing to supply , Refers to show the varying level of supply at different prices , Explains the level of

out put varies with the level of employment

Your Answer

Refers to show the varying level of supply at different prices


QuestionCharacteristics 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 , The level of national income declines rapidly


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QuestionRecession includes

Correct Answer

The demand is halted , Increase in production of goods , Inventories piling up in stocksYour Answer

The demand is halted , Inventories piling up in stocks , The growth of discrepancy between supply and demand is very fast


The causes of inflation

Correct Answer

Increase in public expenditure , Increase in private expenditure , Increase in foreign demand

Your AnswerIncrease in public expenditure , Increase in foreign demand , Increase in taxation


In the ________ terminology, the ________ demand function refers to the schedule of maximum sales proceeds, which the entrepreneurial

community actually does expect to be received from the sale ofCorrect Answer

Keynesian

Your AnswerKeynesian

Correct Answer

aggregateYour Answer

total

Select The Blank

QuestionThe rate of interest, according to ________ , depends upon two factors: (i) ________ and (ii) the quantity of money

Correct Answer

KeynesYour Answer

Keynes

Correct Answerthe liquidity preference function

Your Answer

speculative


Question

Reasons for need of public distribution system

Correct Answer

To maintain stable price conditions , An efficient management of the supply , To supply the necessary goods to people at reasonable priceYour Answer

To maintain stable price conditions , An efficient management of the supply , To supply the necessary goods to people at reasonable price


Question

The consumer protection Act includesCorrect Answer

Protection from hazardous commodities , Right to a competitive price , Right to information regarding protection

Your Answer

Protection from hazardous commodities , Right to information regarding protection , Protest against price discrimination


Objectives of economic policy

Correct AnswerTo 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


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QuestionScope 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.


Assumptions of the Law of Demand are:

Correct Answer

No change in consumers income , No change in consumers preferences , No change in fashion

Your AnswerNo change in consumers income , No change in consumers preferences , No change in fashion , No Change in government policy.


Types of income elasticity of demand

Correct AnswerNegative income elasticity , Zero income elasticity , Unit income elasticity

Your AnswerNegative income elasticity , Zero income elasticity , Unit income elasticity


Managerial ________s generally refers to the integration of economic theory with ________ practice.

Correct Answereconomic

Your Answer

economicCorrect Answer

business

Your Answerbusiness


The problem of unlimited wants and limited ________ with ________ uses has been forever confronting mankind.

Correct Answer

means

Your Answer

meansCorrect Answer

alternative

Your Answeralternative


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 AnswerCo-operation

Your AnswerCo-operation

Correct Answer

voluntaryYour Answer

voluntary


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Select The Blank

Question

Like all organism, the ________ , too is an organism, according to the ________ theory.

Correct Answerfirm

Your Answer

firm

Correct Answer

life-cycle theoryYour Answer

homeostatic theory

Select The Blank

Question

The ________-taking theory was developed by the ________ . According to him, profit arises because considerable amount of risk is involved inbusiness.

Correct Answer

American economist HawleyYour Answer

risk

Correct Answerrisk

Your AnswerAmerican economist Hawley


The extent of the change of demand for a commodity to a given change in ________ , other demand determinants remaining constant, is termed

as the ________ of demand.Correct Answer

price

Your Answerprice

Correct Answer

price elasticityYour Answer

price elasticity

Select The Blank

Question

Indices constructed for one ________ should not be ________ for other purposes where they not be fully appropriate and given erroneous

conclusions.

Correct Answer

purposeYour Answer

purpose

Correct Answerused

Your Answer

used

Select The Blank

QuestionThe law of diminishing returns states that, as the proportion of one factor in a combination of factors is ________ after apoint, first the

________ and then the average product of that factor w

Correct Answerincreased

Your Answer

increased

Correct Answer

marginal

Your Answer


23/52

marginal

Match The Following

Question


Statutory Reserve Ratio

Quantitative credit Control Measure

Quantitative credit Control MeasureTrade cycle

Wavelike movement

Wavelike movement

Keynesian theory

ShortPeriod AnalysisJ. M. Keynes

Aggregate Demand Function

Maximum sale proceeds expected by entrepreneursShortPeriod Analysis

Effective Demand

J. M. KeynesMaximum sale proceeds expected by entrepreneurs






Correct AnswerPractice

Your Answer

Practice


QuestionEvery nations resources which are used to produce the quantities of goods and services that would be required to satisfy all its cit izens wants are

Correct Answer


insufficient


Question

Managerial economics is also understood to refer toCorrect Answer

applied economics

Your Answer

applied economics


The type economic problem isCorrect Answer

universal

Your Answeruniversal


The act of making goods and services is called

Correct Answerproduction

Your Answer


24/52

production


Question

The act of using goods and services to satisfy wants is calledCorrect Answer

consumption

Your Answer

consumption


Question

The concept of just distribution of national product is a

Correct Answernormative

Your Answer

objective

True/False

QuestionResources are said to be involuntarily un employed when their wastage occur.

Correct Answer

TrueYour Answer

True

Match The Following


Your Answer



Resourcesscarce

scarce

Commoditiesgoods and services

goods and services

Human wantsunlimited

unlimited

General Theory of Employment, Interest and MoneyJ. M. Keynes

J. M. Keynes


Question

In cost - benefit analysis, after the step of appraisal and selection of the project is the step ofCorrect Answer

comparison of the cash flow

Your Answercomparison of the cash flow

True/FalseQuestion

Social costs cannot be included in a firm's account book.

Correct Answer

TrueYour Answer

False


Question

Steps in cost benefit analysis


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Correct Answer

Identification of a project , Formulation of the project , Appraisal and selection of the projectYour Answer

Identification of a project , Formulation of the project , Appraisal and selection of the project


Question

The advantage of cost-benefit analysis are

Correct AnswerMaximization 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


Cost-Benefit analysis aims at ________ of social wealth.

Correct Answermaximization

Your Answer

maximization

Select The Blank

QuestionModern economists treat social cost and benefits as ________ of private investment and production decisions.

Correct Answer

externalitiesYour Answer

externalities


QuestionAccording to many economists, the root cause of economic problem is

Correct Answer

scarcityYour Answer

scarcity


Question

Managerial economics aims at providing guidance to the firms forCorrect Answer

decision making

Your Answerdecision making


Question

In case of a Joint-Stock Company, the liability of share holders is

Correct Answerlimited

Your Answer

limited


QuestionFor an economist, Tata Eng & Locomotive Company Ltd is a

Correct Answer

firm

Your Answerfirm


Question

Preference Shares can be classified asCorrect Answer

Simple Shares , Cumulative Shares , Redeemable Shares

Your Answer

Simple Shares , Cumulative Shares , Redeemable Shares



26/52

Question

The promoters of a company can get incorporated by filing with the registrarof companies various documents such asCorrect Answer

Memorandum of Association , Articles of Associat ion , Prospectus

Your AnswerMemorandum of Association , Articles of Association


QuestionForms of Public Enterprises

Correct Answer

departmental management , company management or management by boards , public corporations

Your Answer

departmental management , public corporations , non-profit organization

Select The Blank

QuestionBaumol has suggested as an alternative objective for profit maximization , the maximization of ________

Correct Answer

salesYour Answer

sales

Select The Blank

Question

The partnership between private sector & government is called ________Correct Answer

Joint sector enterpriseYour Answer

Joint sector enterprise

Select The Blank

Question

The minimum number of directors which public limited should have is ________.Correct Answer

3

Your Answer3


The profit which is surplus of revenue over and above all paid out cost is

Correct AnswerAccounting Profit

Your Answer

Gross Profit

True/False

QuestionMeasurement of profit becomes difficult because of the difficulty involved in the calculation of depreciation.

Correct Answer

TrueYour Answer

True


Question

In economics, demand means desire backed by adequate

Correct Answerpurchasing power

Your Answerpurchasing power


When more units of a commodity are purchased in response to decline in price of that commodity, it is called as expansion of

Correct Answer

demand

Your Answer

demand


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Demand for products like tea, betel, tobacoo, sigaratte is a matter of

Correct Answerhabit

Your Answer

habit


Question

If the substitutes are relatively cheaper then the demand for the commodity in question will be

Correct Answer

lessYour Answer

less

True/False

Question

A shift in the demand curve to the left shows increase in demand.Correct Answer

False

Your AnswerFalse

True/FalseQuestion

Demand for luxury goods is inelasticCorrect Answer

False

Your AnswerFalse

True/FalseQuestion

The demand for life saving drugs is elastic.

Correct AnswerFalse

Your Answer

False

Select The Blank

QuestionA normal demand curve has ________+B299

Correct Answer

negative slope

Your Answer

negative slope


Question

Cost function denotesCorrect Answer

The prices of such inputs as labour and capital material , The rate of output , The size of the plant

Your AnswerThe prices of such inputs as labour and capital material , The rate of output , The size of the plant , The cost of technology

Select The Blank

QuestionThe law of constant returns to scale is depicted by the marginal output curve which is ________.

Correct Answerhorizontal

Your Answer

upward sloping

Select The Blank

Question

In the 3rd stage of operation of the law of variable proportions, the marginal product becomes ________.

Correct Answer

negative


28/52

Your Answer

negative

Select The Blank

QuestionThe costs which cover the cost of advertising is ________.

Correct Answer

Selling cost

Your AnswerSelling cost


Question

Features of Oligopoly Market areCorrect Answer

Few sellers , Restriction to entry of new firms , Price leadership

Your AnswerFew sellers , Restriction to entry of new firms , No Advertisement cost


Saving is a

Correct Answerprivate virtue

Your Answer

social virtue

True/FalseQuestion

During periods of inflation, the income of farmers as a class decreases.

Correct AnswerTrue

Your Answer

False

True/False

QuestionTo solve the unemployment problem , the level of effective demand must decrease.

Correct Answer

FalseYour Answer

False

Match The Following

Question

Correct Answer

Your Answer

Prosperity

Expansion of creditContraction of credit

The general theory of employment, Interest and money

J.M. KeynesJ.M. Keynes

Trade cycle

Wave like movementWave like movement

Statutory reserve ratio

Quantitative credit control measure

Quantitative credit control measure


The characteristics of Inflation are

Correct AnswerExcess of demand , Sustained rise in prices , Cannot be anticipated

Your Answer

Sustained rise in prices , Cannot be anticipated , It is limited to some geographical areas

True/False

Question


29/52

Market system or market economy suffers from time to time from economic depressions.

Correct AnswerTrue

Your Answer

True


Question

Main aims of the New Industrial Policy (1991) areCorrect 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


Your AnswerTo 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






QuestionIn economics the question related to the selection of methods with which commodities are produced is a subject matter of

Correct Answer

theory of productionYour Answer

theory of production


Question

In economics the questions related to the division of societys output of goods and services among its members are topics in

Correct Answer

theory of distribution

Your Answertheory of distribution


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 Answertheory of economic growth

Your Answer

theory of production


Question

All the free gifts of nature which are commonly called natural resources are known to economists as

Correct Answer

LandYour Answer

capital


QuestionAll the man made resources which are used in the process of making other goods and services are called

Correct Answer

capitalYour Answer

labor


Question


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Managerial economics aims at providing help in the firms is

Correct Answerdecision making

Your Answer

decision making

True/False

Question

Economic problem is faced by poor countrys only.Correct Answer

False

Your Answer

False


Question

An industry is a group of firms dealing in the same line ofCorrect Answer

business

Your Answerbusiness

True/FalseQuestion

Micro-economics is primarily concerned with the problem of what, how and for whom to produce

Correct AnswerTrue

Your AnswerTrue

True/FalseQuestion

Pure public goods must be in the hands of public sector only.

Correct AnswerTrue

Your Answer

False

Select The Blank

QuestionThe 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 Answerindivisible

Your Answer

public

Select The Blank

QuestionThe externality which causes an economic gain or an economic loss to other economic units is also referred to as ________ externality.

Correct Answer

PecuniaryYour Answer

Economic

Select The Blank

Question

In a market economy ________ is the best judge of personal interest.

Correct Answerindividual

Your Answerfirm


Correct Answer

Your Answer

Managerial economics




31/52

Resources

ScarceScarce

Commodities

Goods and servicesGoods and services

Human wants

Unlimited

Unlimited

Match The Following

Question

Correct Answer

Your AnswerGeneral theory of employment, interest and money

J. M. Keynes

J. M. KeynesInflation

Reduction in purchasing power

Reduction in purchasing powerServices

Intangible goods

Intangible goodsMethods of production of commodities

Theory of production

Theory of production


The characteristics of a sole proprietorship firm is

Correct AnswerUnlimited Capital , Ownership by a single person , Easy to form

Your Answer

Ownership by a single person , Easy to form


QuestionDifferent types of business organizations are

Correct Answer

private sector , public sector , joint sectorYour Answer

private sector , public sector , joint sector

Select The Blank

Question

Reasonable profit target as an alternative to the objective of profit maximization was suggested by ________.

Correct Answer

Joel Dean

Your AnswerJoel Dean


The form of organization which is best for self employment is ________.

Correct AnswerSole trader

Your Answer

Sole trader


QuestionEconomic Profit takes in to account the

Correct Answer

implicit costYour Answer

implicit cost

True/False

Question

In any business, while formulating a profit policy, the possibility of emergence of rival firms must be taken in to account


32/52

Correct Answer

TrueYour Answer

True


Question

The payments made out of the Gross Profit are

Correct AnswerRemuneration to factors of production , Depreciation , Maintenance Charges

Your Answer

Remuneration to factors of production , Depreciation , Maintenance Charges


reasonable profit' are

Correct AnswerCapital Attraction , Plough Back , Normal earnings

Your Answer

Capital Attraction , Plough Back , Normal earnings


QuestionComplementary goods are demanded

Correct Answer

jointlyYour Answer

separately


QuestionEmergence of close substitutes to the commodity in question may bring about demand to

Correct Answer

decreaseYour Answer

decrease


Question

The demand for a commodity depends on the prices of its substitutes which areCorrect Answer

relative

Your Answerrelative

True/False

Question

Demand curve slopes downwards from left to right.

Correct AnswerTrue

Your Answer

True

Select The Blank

QuestionThe index numbers which measure the changes in the general price level of a country refers to ________

Correct Answer

Wholesale prices index

Your AnswerWholesale prices index


Question

Different types of Elasticity of Demand areCorrect Answer

Price elasticity of demand , Income elasticity of demand , Cross elasticity of demand

Your Answer

Price elasticity of demand , Income elasticity of demand , Cross elasticity of demand



33/52

Question

If the increase in all factors leads to a less than proportionate increase in output, then the returns to scale areCorrect Answer

decreasing

Your Answerdecreasing

True/False

QuestionThe supply of factory made goods of daily consumption is inelastic.

Correct Answer

False

Your Answer

True


QuestionMajor types of costs are

Correct Answer

Accounting costs , Economic costs , Opportunity costsYour Answer

Accounting costs , Economic costs , Opportunity 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 scaleYour Answer

decreasing returns to scale

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 Answerincreasing returns to scale.


Under monopoly the demand curve slopes

Correct Answerdownward

Your Answer

downward


QuestionDalal Street in Bombay is known as

Correct Answer

Bombay Stock ExchangeYour Answer

Bombay Stock Exchange


Question

The city of Banaras has specialized in the manufacture of

Correct Answersilk

Your Answersilk

True/FalseQuestion

A firm under perfect competition is a price maker.

Correct Answer

False

Your Answer

False


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True/FalseQuestion

Long period supply is relatively inelastic.

Correct AnswerFalse

Your Answer

True


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 companyYour Answer

It is a business unit organized under one ownership , It is a sole proprietorship , It is a partnership or joint stock company


Question

Equilibrium is the stage ofCorrect Answer

maximum satisfaction , balance , stationary

Your Answermaximum satisfaction , balance , stationary

True/FalseQuestion

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

False

Your AnswerTrue


According to the Government, the buildup of inflationary pressure during the Nineties was attributed to

Correct AnswerHigher Fiscal deficit

Your Answer

Higher Fiscal deficit

True/False

QuestionThe government also fixes minimum procurement prices for major crops on the recommendation of the Agricultural Prices Commission (APC).

Correct Answer

True

Your Answer

True

True/False

Question

There is considerable slush money with politicians & Government servants.Correct Answer

True

Your AnswerTrue


QuestionGovernment intervention is needed in free market mechanism to

Correct AnswerTo provide employment to all who willing to work at prevailing wage rate , Factors of production are optimally allocated between the various

industries , All will get sufficient income to meet their basic needs

Your AnswerTo provide employment to all who willing to work at prevailing wage rate , Factors of production are optimally allocated between the various

industries , All will get sufficient income to meet their basic needs


Question

Defects of market system:


35/52

Correct Answer

Inequalities of income and wealth , Emergence of monopolies , Failure to provide full employmentYour Answer

Inequalities of income and wealth , Emergence of monopolies , Failure to provide full employment

Monday, August 25, 2008




Question


Correct Answer

Practice

Your AnswerPractice


Question

Every nations resources which are used to produce the quantities of goods and services that would be required to satisfy allits citizens wants are

Correct Answerinsufficient

Your Answer

sufficient


QuestionAll the buyers and sellers operating under perfect competition have knowledge

Correct Answer

perfectYour Answer

perfect

True/False

Question

Inflation reduces the purchasing power of money and savings.Correct Answer

True

Your AnswerFalse


The supply curve during market period is perfectly


Your Answer

inelastic

True/False

QuestionMicro-economics is primarily concerned with the problem of what, how and for whom to produce

Correct AnswerTrue

Your Answer

True

Match The Following


Your Answer




36/52

Resources

scarcegoods and services

Commodities

goods and servicesscarce

Human wants

unlimited

unlimitedGeneral Theory of Employment, Interest and Money

J. M. Keynes

J. M. Keynes

True/FalseQuestion

The price policy under monopolistic competition is dependent on the prices charged by other rival firms

Correct AnswerTrue

Your Answer

False


QuestionAll firms producing the same or similar product together make

Correct Answer

an industryYour Answer

an industry


QuestionJoint Stock Company succession is

Correct Answer

perpetualYour Answer

perpetual

True/False

Question

Private profit motive is an essential feature of CapitalismCorrect Answer

True

Your AnswerTrue

True/False

Question

Free riders is a term associated with the people who would like to have benefit of a good without sharing the cost of its supply

Correct AnswerTrue

Your Answer

False


QuestionMacroeconomics provides an exploration to the functioning of an economy in

Correct Answer

general

Your Answergeneral

True/False

Question

Inflation is a great opportunity for merchants to benefit more.Correct Answer

True

Your Answer

True

True/False


37/52

Question

The various phases of business cycles are shown by the line of cycle which moves up and down the steady growth lineCorrect Answer

True

Your AnswerTrue

True/False

QuestionIn the measurement of profit, the differences in the concept of profit arise out of the differences in cost concepts

Correct Answer

True

Your Answer

False


QuestionIn economics demand means desire backed by adequate

Correct Answer

purchasing powerYour Answer

ability to pay


Question

The law of diminishing returns is applicable to agriculture provided the state of technology is given andCorrect Answer

constantYour Answer

constant


Question

Under the monetary measures to control inflation, the R. B. I relies heavily on selective credit controls on bank loans against food grains, sugar,oils, oilseeds, cotton etc so as to discourage

Correct Answer

Speculative hoardingYour Answer

Speculative hoarding


Question

Slope of supply curve isCorrect Answer

positive

Your Answer

positive


Costs which increase because of the expansion of a firm are called costs

Correct Answerincremental

Your Answer

incremental

True/False

Question

The opportunity cost of a product is the opportunity gained of being able to produce some other product.Correct Answer

FalseYour Answer

False

True/False

Question

The supply curve in case of unitary elastic supply is rectangular hyperbola.

Correct Answer

False

Your Answer


38/52

False


Question

An IndustryCorrect Answer

Is a group of firms , All firms dealing in the same line of business , The ownership and management of each firm is different

Your Answer

Is a group of firms , All firms dealing in the same line of business , The ownership and management of each firm is different

Select The Blank

Question

Under monopoly, there is ________ seller who controls the entire ________ in the market

Correct Answeronly one

Your Answer

only oneCorrect Answer

supply

Your Answersupply


Under monopsony, there are ________ sellers but ________ buyer

Correct Answermany

Your Answermany

Correct Answer

only oneYour Answer

only one

Match The Following

Question


Marginal utility

Addition to total utilityAddition to total utility

Total utility increases marginal

Posative and decliningMarginal utility is zero

At the saturation point for a commodity x the Mux is

Zero

Demand curve of a commodity

Marginal utilities are

Demand curve of a commodityPosative and declining

Total utility is

Marginal utility is zeroZero


By using cost-benefit analysis we can show the ________ necessary for attaining maximum ________ and optimal policy aiming at this goal

Correct Answer

measuresYour Answer

Gross Domestic ProductCorrect Answer

net wealth

Your Answergross wealth


Question

Average propensity to consume

Correct Answer


39/52


40/52

Integration of economic theory with business practice , Using logic of economics, mathematics & statistics.


Question

The sources of economic problems are:Correct Answer

Man has unlimited wants or ends , The means or resources to satisfy them are limited. , These resources are not specific but have alternative uses.

Your Answer

Man has unlimited wants or ends , The means or resources to satisfy them are limited. , These resources are not specific but have alternative uses.


Question

Different types of business organizations are;

Correct AnswerPrivate sector. , Public sector. , Joint sector.

Your Answer

Joint sector.


QuestionProprietary firm is

Correct Answer

Owned by a single person. , Easy to form. , An organization of single person.Your Answer

Owned by a single person.


QuestionMethods of measurement of elasticity

Correct Answer

Percentage Method , Point elasticity Method , Total outlay expenditure methodYour Answer

Percentage Method , Point elasticity Method , Total outlay expenditure method


Question

Demand forecastsare necessary for:Correct Answer

Fulfillment of objective of the plans , Preparation of a budget , Expansion of firms

Your AnswerPreparation of a budget , Expansion of firms


Economic theory provides the basis for the ________ _ making process, there is some difference between the generalization based on abstraction

and actual practices. Besides economic theory, mat

Correct Answer

decision making

Your Answeroptimal

Correct Answer

statisticsYour Answer

Select The Blank

Question

The resources of a society consist not only of the free gifts of nature such as ________ but also of ________ and of all sorts of man made aids to

further production.Correct Answer

land and mineralsYour Answer

land and minerals

Correct Answerhuman capacity

Your Answer

human capacity

Select The Blank

Question


41/52

Individual or sole ________ , which is also called sole- ________ , or single entrepreneurship is the most common, the simplest and the oldest

form of business organisation.Correct Answer

proprietorship

Your Answerproprietorship

Correct Answer

trader ship

Your Answertrader ship

Select The Blank

Question

Nominal cost is the ________ cost of production, it is also called expenses of production. The real cost is the ________ cost of production.Correct Answer

money

Your Answeropportunity

Correct Answer

opportunityYour Answer

gross

Select The Blank

Question

Costs may be classified as : (a) ________ , including material costs, wage cost and interest cost (b) ________ , including costs of advertising and(c) other costs, including insurance ch

Correct AnswerProduction costs

Your Answer

Production costsCorrect Answer

Selling costs

Your AnswerSelling costs


The costs of self owned resources, which are employed by the ________ , are non- expenditure or , ________

Correct Answerfirm

Your Answer

firmCorrect Answer

implicit costs .

Your Answer

implicit costs .

Monday, August 25, 2008



Question

The study of the working and allocation of resources in the free market economies is the topic in theCorrect Answer

theory of price

Your Answertheory of production


Managerial economics aims at providing help in the firms is

Correct Answerdecision making


42/52

Your Answer

decision making

True/False

QuestionThe federal government of U.S.A. does not face the basic economic problem.

Correct Answer

False

Your AnswerFalse


Question

In equilibrium analysis of a firm, it is assumed that every individual proprietor exhibits rational economicCorrect Answer

behavior

Your Answerbehavior


Correct Answer

Your AnswerManagerial Economics

Prescriptive in nature

The theory of distributionResources

Alternative usesAlternative uses

Division of societys output of goods and services

The theory of distributionPrescriptive in nature

Motor cars

Tangible goodsTangible goods

Wants

InsatiableInsatiable

True/FalseQuestion

Market price fluctuates very often

Correct AnswerTrue

Your Answer

False


QuestionThe firm is the unit that makes the decisions regarding employment of and the output of commodities are

Correct Answer

factors of productionYour Answer

factors of production


Question

The principle of exclusion cannot be applied to the goods which are

Correct Answerindivisible

Your Answerinvisible


In the costbenefit 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


43/52


Market system of economy is characterized by consumers

Correct Answersovereignty

Your Answer

demand


Question

In case of a joint stock company, the liability of share holders is

Correct Answer

limitedYour Answer

limited

True/False

Question

The divisible goods, whose benefits can be priced, are called pure public goodsCorrect Answer

False

Your AnswerTrue

True/FalseQuestion

In case of a proprietary firm the liability of the proprietor is limitedCorrect Answer

False

Your AnswerFalse

True/FalseQuestion

During the phase of depression, the level of national income and expenditure rises rapidly

Correct AnswerFalse

Your Answer

False


QuestionAccording J.B.Clark, profit is the reward paid for

Correct Answer

dynamism

Your Answer

risk bearing


Question

Gross profit is the excess of total revenue of a firm over totalCorrect Answer

expenditure

Your Answerexpenditure


QuestionIn general, the demand for necessaries is relatively


Your Answer

elastic

True/False

Question

Demand for food grains is inelastic but the demand for wheat is elastic.

Correct Answer

True


44/52

Your Answer

False

Match The Following


Your Answer

Excess supply can be defined as

Quantity supplied minus quantity demandedQuantity 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 whichThe supply is perfectly elastic

A rise in equilibrium quantity

The responsiveness of demand to change in price is measuredElasticity of demand

In the same proportion

Unit income elasticity implies that asincome rises demand for a commodity risesIn 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 leftto some private companies

Correct Answerprivate

Your Answer

investmentCorrect Answer

disinvestments

Your Answergrowth


Goods produced on small scale of supply is


Your Answer

zero elastic

True/False

Question

The sum of total fixed costs and total variable costs is the total cost.

Correct Answer

TrueYour 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/FalseQuestion

The laws of returns to scale explain the behavior of output in response to changes in scale.

Correct AnswerTrue

Your Answer

True

True/False

Question


45/52

In the stage I of the law of diminishing returns, the marginal product goes on increasing

Correct AnswerTrue

Your Answer

False


Question

Features of monopolistic CompetitionCorrect 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 DumpingCorrect Answer

monopolist

Your Answera firm

Correct Answer

higher priceYour Answer

higher price

Select The Blank

QuestionThe number of sellers operating under this type of competition is ________ under oligopoly, but less than under ________

Correct Answer

larger thanYour Answer

complementary

Correct Answerperfect ompetition

Your Answer

perfect ompetition


QuestionMarginal 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 asincome 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


Investment

Correct AnswerIt 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 M

managerial economics 1-10 scdl

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