Managerial Economics (2)

QUIZ OF MANAGERIAL ECONOMICS

Q1-Adam Smith’s invisible hand is the ?a) Government policies

b) The bond market

c) The self regulating

d) Change in interest rates

Q1-Adam Smith’s invisible hand is the ?a) Government policies

b) The bond market

c) The self regulating

d) Change in interest rates

The right Answer is:c) the self regulating

Q2-The subject of economics is

a) A physical science

b) A natural science

c) An exact science

d) A social science

Q2-The subject of economics is

a) A physical science

b) A natural science

c) An exact science

d) A social science

The right Answer is :d) A social science

Q3-Wantlessness definition is given by:a) David Ricardo

b) J.S Mill

c) J.K Mehta

d) None of these

Q3-Wantlessness definition is given by:a) David Ricardo

b) J.S Mill

c) J.K Mehta

d) None of these

The right Answer is :c) J.K mehta

Q4-What does the outward slope in the production possibility curve show?

a) Scarcityb) Unlimited wantsc) Increasing opportunity costd) Unemployment

Q4-What does the outward slope in the production possibility curve show?

a) Scarcityb) Unlimited wants

c) Increasing opportunity costd) Unemployment

The right Answer is :c) Increasing opportunity cost

Q5. The terms Micro & Macro economics were introduced by?a) Adam Smithb) L. Robbinsc) Ragnar Frischd) J. N keynes

Q5. The terms Micro & Macro economics were introduced by?a) Adam Smithb) L. Robbinsc) Ragnar Frischd) J. N keynes

The right Answer is :c) Ragnar frisch

Q6.The centre of economic activity is:a) Choice of using unlimited resourcesb) Absence of choice of resourcesc) Wants are unlimited but resources are

scarced) Wants are limited

Q6.The centre of economic activity is:a) Choice of using unlimited resourcesb) Absence of choice of resourcesc) Wants are unlimited but resources are

scarced) Wants are limited

The right Answer is : d) Wants are unlimited but resources are scarce

Q.7 All of the following are sources of growth except:a) Growth of labourb) Growth of currency and capitalc) Growth of currencyd) Growth of capital

Q.7 All of the following are sources of growth except:a) Growth of labourb) Growth of currency and capitalc) Growth of currencyd) Growth of capital

The right Answer is :c) Growth of currency

Q8. Micro economics helps determine the following:

a) Equilibrium of the economy and firmb) Equilibrium of an industryc) Equilibrium of industry and individuald) Equilibrium of a firm

Q8. Micro econimics helps determine the following:a) Equilibrium of the economy and firmb) Equilibrium of an industryc) Equilibrium of industry and individuald) Equilibrium of a firm

The right Answer is :d) Equilibrium of a firm

Q9. A machine produces only one product. What will be its opportunity cost?a)Highb)Very highc)Lowd)infinite

Q9. A machine produces only one product. What will be its opportunity cost?a)Highb)Very highc)Lowd)infinite

The right Answer is :c) Low

Q10. Incremental reasoning considers a decision profitable when:a) IR= ICb) IR< ICc) IR> ICd) None of the above

Q10. Incremental reasoning considers a decision profitable when:a) IR= ICb) IR< ICc) IR> ICd) None of the above

The right Answer is :c) IR>IC

Q11. PVF refers to present value _____

a) Financeb) Forecastc) Fosterd) factor

Q11. PVF refers to present value _____.

a) Financeb) Forecastc) Fosterd) factor

The right Answer is :d) factor

Q12. Full employment is a situation in which ____ unemployment is reduced to the minimum possible level .

a) Seasonalb) Voluntary c) Frictionald) involuntary

Q12. Full employment is a situation in which ____ unemployment is reduced to the minimum possible level .

a) Seasonalb) Voluntary c) Frictionald) involuntary

The right Answer is :d) Involuntary

Q13. The PPC is also know as _____ curve.a) formationb) transformation c) Frictionald) structural

Q13. The PPC is also know as _____ curve.

The right Answer is :d) Transformation

a) formationb) transformation c) Frictionald) structural

Q14. _____ is the father of economics.

a) Prof. vinerb) L.robbins c) Adam smithd) Alfred marshal

Q14. _____ is the father of economics.

The right Answer is :c) Adam Smith

a) Prof. vinerb) L.Robbins c) Adam smithd) Alfred marshal

Q15. the word economics is derived from greek word oikos which means _____ and nomikos which means _____.

a) Household b) Decisionc) Managementd) Planning

Q15. the word economics is derived from greek word oikos which means _____ and nomikos which means _____.

The right Answer is :a) Household c) Management

a) Household b) Decisionc) Managementd) Planning

Q16. Theory of exchange is also known as ______.

a) Profit theoryb) Price theoryc) Demand theoryd) Exchange theory

Q16. Theory of exchange is also known as ______.

The right Answer is :

b) Price theory

a) Profit theoryb) Price theoryc) Demand theoryd) Exchange theory

Q17. Welfare definition of economics is given by _____.a) David Richardb) J.S Millc) Alfred Marshald) KG Seth

Q17. Welfare definition of economics is given by _____.

The right Answer is :

c) Alfred Marshal

a) David Richardb) J.S Millc) Alfred Marshald) KG Seth

Q18. Application of economics to solve business problems is _____ economics.

a) Microb) Positivec) Manageriald) Partial

Q18. Application of economics to solve business problems is _____ economics.

The right Answer is :c) Managerial

a) Microb) Positivec) Manageriald) Partial

Q19. _____ is a state of balance that occur in a model.a) Alternative b) Equiryc) Equilibriumd) Partial

Q19. _____ is a state of balance that occur in a model.

The right Answer is :c) Equilibrium

a) Alternative b) Equiryc) Equilibriumd) Partial

Q20. Managerial economics is a scope of :

a) Theory of exchangeb) Social issuesc) Environment Issuesd) Both a and c

Q20. Managerial economics is a scope of :

a) Theory of exchangeb) Social issuesc) Environment Issuesd) Both a and c

The right Answer is :d) Both a and c

Q21. PPC is _____ sloping curve.a) Upwardb) Downward c) Lateral d) Horizontal

Q21. PPC is _____ sloping curve.

The right Answer is :b) Downward

a) Upwardb) Downward c) Lateral d) Horizontal

Q22. Two assumptions of economics are ______ and ______.

a) Cetrus paribus b) Rationality c) All of the aboved) None of the above

Q22. Two assumptions of economics are ______ and ______.

The right Answer is :c) All of the above

a) Cetrus paribus b) Rationality c) All of the aboved) None of the above

Q 23. Human wants are unlimited but human capacity to satisfy such want is limited. This concept is known as ______.

a) Scarcity b) Wealth c) wantlessnessd) Welfare

Q 23. Human wants are unlimited but human capacity to satisfy such want is limited. This concept is known as ______.

The right Answer is :a) Scarcity

a) Scarcity b) Wealth c) wantlessnessd) Welfare

Q24.MCn = TCn - ____.

a) TCn-3b) TCn-0c) TCn-1d) TCn-2

Q24.MCn = TCn - ____.

The right Answer is :c) TCn-1

a) TCn-3b) TCn-0c) TCn-1d) TCn-2

Q25. ______ principle refers to the time value of money.

a) Dimnishing b) Additional c) Discounting d) Commodities

Q25. ______ principle refers to the time value of money.

The right Answer is :

c) Discounting

a) Dimnishing b) Additional c) Discounting d) Commodities

Q26. What are the kinds of economic decisions?

The right Answer is:What to Produce?How to produce?For whom to produce?

Q27. Positive economics analysis problems on the basis of facts.True or False

The right Answer is :True

Q28. opportunity cost is same as economic cost.True or false

The right Answer is:false

Q29.a producer can change his product line in the short run.True or false

The right Answer is :false

Q30. Outflow and Inflow of money and resources in business take place at different points of time.True or false

The right Answer is:true

Q31. The most important aspects of decision sciences that are used in managerial economics

include all of these except:

a) Numerical and algebraic analysisb) Optimizationc) Game theoryd) Opportunity cost

Q31. The most important aspects of decision sciences that are used in managerial economics

include all of these except:

a) Numerical and algebraic analysisb) Optimizationc) Game theoryd) Opportunity cost

The right Answer is: d) Opportunity cost

Q32. The problem with the marginal concept is thata) Change in variable may not be in bulk b) Change in variable may not be in single unitc) Outflow and inflow of resources may not be

equald) None of these

Q32. The problem with the marginal concept is thata) Change in variable may not be in bulk b) Change in variable may not be in single unitc) Outflow and inflow of resources may not be

equald) None of these

The right Answer is :b) Change in variable may not be in single unit.

Q33. The assumptions behind PPC include :a) Variable supply of Factor of Production b) Allocation of factors inputs to a single unitc) Both a and bd) Full employment of economy

Q33. The assumptions behind PPC include :a) Variable supply of Factor of Production b) Allocation of factors inputs to a single unitc) Both a and bd) Full employment of economy

The right Answer is :d) Full employment of economy

Q34.Which of the problems can be solved by managerial economics.a) Investment decisionb) Pricing problemc) Resource allocationd) All of the above

Q34.Which of the problems can be solved by managerial economics.a) Investment decisionb) Pricing problemc) Resource allocationd) All of the above

The right Answer is :d) All of the above

Q35. What is the outward slope in the PPC show?a) Scarcityb) Unlimited wantsc) Increasing opportunity costd) Unemployment

Q35. What is the outward slope in the PPC show?a) Scarcityb) Unlimited wantsc) Increasing opportunity costd) Unemployment

The right Answer is :c) Increasing opportunity cost

Q36. IC stands for ____ and IR stands for _____.

a) Individual costb) Incremental costc) Individual revenued) Incremental revenue

Q36. IC stands for ____ and IR stands for _____.

The right Answer is :b) Incremental costd)Incremental Revenue

a) Individual costb) Incremental costc) Individual revenued) Incremental revenue

Q37. The profit of a firm is expressed in simple term is:a) Profit = MC – MRb) Profit= TR – TCc) Profit= TC – Salesd) Profit= TR- MR

Q37. The profit of a firm is expressed in simple term is:a) Profit = MC – MRb) Profit= TR – TCc) Profit= TC – Salesd) Profit= TR- MR

The right Answer is :b) Profit= TR – TC

Q38. MC and MR are always defined in the term of ______.a) Unit change in outputb) Unit change in factorc) Unit change in total costd) None of the above

Q38. MC and MR are always defined in the term of ______.a) Unit change in outputb) Unit change in factorc) Unit change in total costd) None of the above

The right Answer is :a) Unit change in output

Q39. The centre of economic activity is:a) Choice of using unlimited resourcesb) Absence of choice of resourcesc) Wants are limited but resource are

abundantd) Wants are unlimited but resources are

scarce

Q39. The centre of economic activity is:a) Choice of using unlimited resources

b) Absence of choice of resources

c) Wants are limited but resource are abundant

d) Wants are unlimited but resources are scarce

The right Answer is :d) Wants are unlimited but resources are scarce

Q40. Utility is measured in ______.a) Satisfaction b) Dissatisfactionc) Utils d) Money

Q40. Utility is measured in ______.

The right Answer is :

c) Utils

a) Satisfaction b) Dissatisfactionc) Utils d) Money

Q41.What is the opportunity cost of opting for higher studies rather than a job?

The right Answer is: It is the amount of wage/salary the person would have earn a job.

Q42.What is the biggest economic problem?

a) Resources are scarceb) Wants are unlimitedc) Resources have alternative usesd) All of the above

Q42.What is the biggest economic problem?

a) Resources are scarceb) Wants are unlimitedc) Resources have alternative usesd) All of the above

The right Answer is :d) All of the above

Q43.If resources are increased PPC curve will shift to?

a) Rightb) Leftc) Will not shiftd) None of the above

Q43.If resources are increased PPC curve will shift to?

a) Rightb) Leftc) Will not shiftd) None of the above

The right Answer is :a) right

Q44.PPC curve is ______ to the point of origin?a) Convex b) Positive concavec) Concave d) Positive convex

Q44.PPC curve is ______ to the point of origin?a) Convex b) Positive concavec) Concave d) Positive convex

The right Answer is :a) Conave

Q45. Managerial economics is concerned with _____ and ____?a) Decision makingb) Cetrus paribus c) Forward planningd) Rationality

Q45. Managerial economics is concerned with _____ and ____?a) Decision makingb) Cetrus paribus c) Forward planningd) Rationality

The right Answer is:a) Decision making c) Forward planning

Q46.Which is not vital component of microeconomics?

a) Theory of consumer behaviourb) Theory of pricec) Theory of producer behaviourd) Theory of multiplier

Q46.Whichis not vital component of microeconomics?

a) Theory of consumer behaviourb) Theory of pricec) Theory of producer behaviourd) Theory of multiplier

The right Answer is :d) Theory of multipler

Q47.PPC is also known as production possibility frontier?True or False

The right Answer is: True

Q48.Economic activities include?a) Investmentb) Consumptionc) Both a and bd) None of the above

Q48.Economic activities include?a) Investmentb) Consumptionc) Both a and bd) None of the above

The right Answer is :c) Both a and b

Q49. The cost of sacrificed alternatives is called ______?

a) Marginal costb) Consumptionc) Opportunity costd) Managerial cost

Q49. The cost of sacrificed alternatives is called ______?

a) Marginal costb) Consumptionc) Opportunity costd) Managerial cost

The right Answer is :c) Opportunity cost

Q50. _______is defined as the change in the total cost as the result of change in level of output?

a) Marginal costb) Incremental costc) Opporunity costd) Managerial cost

Q50. _______is defined as the change in the total cost as the result of change in level of output?

a) Marginal costb) Incremental costc) Opporunity costd) Managerial cost

The right Answer is :b) Incremental cost