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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
Multiple Choice Single AnswerQuestion
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
Multiple Choice Single Answer
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
Multiple Choice Single AnswerQuestion
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
Multiple Choice Single Answer
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
Multiple Choice Single AnswerQuestion
If the substitutes are relatively costly then the demand for the commodity in question will be :-
Correct AnswerMore
Your Answer
More
Multiple Choice Multiple Answer
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
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 AnswerTotal 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 AnswerQuestion
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
Multiple Choice Single AnswerQuestion
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
Select The BlankQuestion
The taxation & public expenditure policies are called as ________ ..
Correct AnswerBudgetary 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 plansYour 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
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consumption
Multiple Choice Single Answer
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
Multiple Choice Single Answer
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
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 AnswerStudies human behaviour , Relationship between ends and scares resources , Scarce means have alternate uses
Select The BlankQuestion
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
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
Multiple Choice Multiple AnswerQuestion
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
Multiple Choice Single AnswerQuestion
During a period of rising prices (inflation), the goods and services are :-
Correct Answer
ScarceYour Answer
Scarce
Multiple Choice Single Answer
QuestionThe cost recorded in the books of accounts are considered as :-
Correct Answer
Explicit costsYour Answer
Explicit costs
Multiple Choice Single Answer
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
Select The BlankQuestion
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
Multiple Choice Single Answer
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
Multiple Choice Single Answer
Question
According J.B.Clark, profit is the reward paid for :-
Correct AnswerDynamism
Your Answer
Risk bearing
Multiple Choice Multiple Answer
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
Decision making and forward planning
Resources
scarcescarce
Commodities
goods and servicesgoods and services
Multiple Choice Single AnswerQuestion
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
Thursday, February 7, 2008
Managerial Economics - 2
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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
Multiple Choice Single Answer
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
Multiple Choice Single Answer
Question An individual consumer or particular market for a given commodity are the subject matter ofCorrect 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 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
Multiple Choice Multiple Answer
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
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 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
Multiple Choice Single Answer
Question Expansion of supply is shown by the movement in the supply curve which isCorrect Answer upward
Your Answer upward
Multiple Choice Single Answer
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
Multiple Choice Single Answer
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
Multiple Choice Single Answer
Question The act of making goods and services is calledCorrect 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 EconomicsYour Answer Welfare Economics
Multiple Choice Single Answer
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
Multiple Choice Multiple Answer
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
Multiple Choice Single Answer
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
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 proportionatelyCorrect Answer less
Your Answer less
Multiple Choice Single Answer
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.
Correct Answer TrueYour Answer True
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
Multiple Choice Multiple Answer
Question Methods of forecasting demand for new products areCorrect 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
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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.
Correct Answer TrueYour Answer True
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
Multiple Choice Single Answer
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.
Correct Answer TrueYour Answer True
Monday, February 4, 2008
Managerial Economics - 3
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
True/False
Question
In case of a proprietary firm the liability of the proprietor is limited.Correct Answer
FalseYour Answer
False
Multiple Choice Multiple Answer
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
Multiple Choice Multiple Answer
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
Multiple Choice Single Answer
QuestionIn case of perfectly elastic supply, the supply curve is :-
Correct Answer
HorizontalYour Answer
Vertical
Multiple Choice Single Answer
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
insufficientYour Answer
insufficient
Multiple Choice Single Answer
Question
Managerial economics is also understood to refer toCorrect Answer
applied economics
Your Answerapplied economics
Multiple Choice Single AnswerQuestion
Economists have pointed out that the real world is full of :-
Correct Answer
Imperfect competition
Your Answer
Pure competition
Multiple Choice Multiple Answer
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
Multiple Choice Multiple AnswerQuestion
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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Multiple Choice Single Answer
QuestionUnder perfect competition, generally demand and supply act and react upon each other and determine the price
Correct Answer
equilibriumYour Answer
equilibrium
Multiple Choice Multiple AnswerQuestion
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
Select The BlankQuestion
Super-normal profit is also called ________.
Correct AnswerExcess profit
Your Answer
Excess profit
Multiple Choice Multiple Answer
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
Decision 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
Select The BlankQuestion
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
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 AnswerTrue
Multiple Choice Single AnswerQuestion
Managerial economics generally refers to the integration of economic theory with business
Correct AnswerPractice
Your AnswerPractice
Select The BlankQuestion
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
Multiple Choice Single Answer
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
Multiple Choice Multiple Answer
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
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 AnswerPrice elasticity of demand , Income elasticity of demand , Cross elasticity of demand
Multiple Choice Single AnswerQuestion
In case of a Joint-Stock Company, the liability of share holders is :-Correct Answer
Limited
Your AnswerLimited
Multiple Choice Single AnswerQuestion
Expansion of supply is shown by the movement in the supply curve which is : -
Correct AnswerUpward
Your Answer
Upward
Multiple Choice Single Answer
QuestionSaving 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 AnswerHigher Fiscal deficit
Multiple Choice Multiple Answer
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
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
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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
Multiple Choice Multiple Answer
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
Select The BlankQuestion
True inflation starts only after reaching ________.
Correct AnswerLevel of full employment
Your Answer
Level of full employment
Select The BlankQuestion
The financing of ________ goods is done through Public expenditure.
Correct AnswerPublic
Your Answer
Public
Multiple Choice Multiple Answer
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
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 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
Managerial Economics - 4
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Single Answer
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
Multiple Choice Single Answer
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
Multiple Choice Single Answer
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
Multiple Choice Single Answer
QuestionThe price of a good and the exclusion princople together is
Correct Answer
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divisibility
Your Answerindivisibility
Multiple Choice Single AnswerQuestion
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
Multiple Choice Single Answer
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
Multiple Choice Single Answer
QuestionMarket economy or private enterprise economy is a economy which is
Correct Answer
planless
Your Answerplanned
Multiple Choice Single Answer
Question
New commodities due to technotogical progress may result in demand for traditional type of goodsCorrect Answer
decrease
Your Answerdecrease
Multiple Choice Single AnswerQuestion
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
Correct AnswerYour Answer
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.
Multiple Choice Single AnswerQuestion
The law of diminishing returns is applicable to agriculture provided the state of technology is given and
Correct Answerconstant
Your Answer
resources
Multiple Choice Single Answer
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
Multiple Choice Single Answer
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
Multiple Choice Multiple Answer
Question
Equilibrium isCorrect Answer
The stage of maximum satisfaction , The stage of balance , The stage of stationary
Your AnswerThe stage of balance
Multiple Choice Multiple Answer
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
Multiple Choice Multiple AnswerQuestion
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
Multiple Choice Multiple Answer
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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Multiple Choice Multiple Answer
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
Multiple Choice Multiple AnswerQuestion
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
Select The BlankQuestion
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
Multiple Choice Multiple Answer
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
Multiple Choice Multiple Answer
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
Multiple Choice Multiple AnswerQuestion
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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Multiple Choice Multiple Answer
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.
Multiple Choice Multiple AnswerQuestion
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.
Multiple Choice Multiple AnswerQuestion
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
Select The BlankQuestion
Managerial ________s generally refers to the integration of economic theory with ________ practice.
Correct Answereconomic
Your Answer
economicCorrect Answer
business
Your Answerbusiness
Select The BlankQuestion
The problem of unlimited wants and limited ________ with ________ uses has been forever confronting mankind.
Correct Answer
means
Your Answer
meansCorrect Answer
alternative
Your Answeralternative
Select The BlankQuestion
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
Select The BlankQuestion
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
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marginal
Match The Following
Question
Correct AnswerYour Answer
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
Tuesday, August 19, 2008
Managerial Economics - 5
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Single AnswerQuestion
Managerial economics generally refers to the integration of economic theory with business
Correct AnswerPractice
Your Answer
Practice
Multiple Choice Single Answer
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
insufficientYour Answer
insufficient
Multiple Choice Single Answer
Question
Managerial economics is also understood to refer toCorrect Answer
applied economics
Your Answer
applied economics
Multiple Choice Single AnswerQuestion
The type economic problem isCorrect Answer
universal
Your Answeruniversal
Multiple Choice Single AnswerQuestion
The act of making goods and services is called
Correct Answerproduction
Your Answer
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production
Multiple Choice Single Answer
Question
The act of using goods and services to satisfy wants is calledCorrect Answer
consumption
Your Answer
consumption
Multiple Choice Single Answer
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
QuestionCorrect Answer
Your Answer
Managerial economicsDecision making and forward planning
Decision making and forward planning
Resourcesscarce
scarce
Commoditiesgoods and services
goods and services
Human wantsunlimited
unlimited
General Theory of Employment, Interest and MoneyJ. M. Keynes
J. M. Keynes
Multiple Choice Single Answer
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
Multiple Choice Multiple Answer
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
Multiple Choice Multiple Answer
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
Select The BlankQuestion
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
Multiple Choice Single Answer
QuestionAccording to many economists, the root cause of economic problem is
Correct Answer
scarcityYour Answer
scarcity
Multiple Choice Single Answer
Question
Managerial economics aims at providing guidance to the firms forCorrect Answer
decision making
Your Answerdecision making
Multiple Choice Single Answer
Question
In case of a Joint-Stock Company, the liability of share holders is
Correct Answerlimited
Your Answer
limited
Multiple Choice Single Answer
QuestionFor an economist, Tata Eng & Locomotive Company Ltd is a
Correct Answer
firm
Your Answerfirm
Multiple Choice Multiple Answer
Question
Preference Shares can be classified asCorrect Answer
Simple Shares , Cumulative Shares , Redeemable Shares
Your Answer
Simple Shares , Cumulative Shares , Redeemable Shares
Multiple Choice Multiple Answer
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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
Multiple Choice Multiple Answer
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
Multiple Choice Single AnswerQuestion
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
Multiple Choice Single Answer
Question
In economics, demand means desire backed by adequate
Correct Answerpurchasing power
Your Answerpurchasing power
Multiple Choice Single AnswerQuestion
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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Multiple Choice Single AnswerQuestion
Demand for products like tea, betel, tobacoo, sigaratte is a matter of
Correct Answerhabit
Your Answer
habit
Multiple Choice Single Answer
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
Multiple Choice Multiple Answer
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
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Your Answer
negative
Select The Blank
QuestionThe costs which cover the cost of advertising is ________.
Correct Answer
Selling cost
Your AnswerSelling cost
Multiple Choice Multiple Answer
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
Multiple Choice Single AnswerQuestion
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
Multiple Choice Multiple AnswerQuestion
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
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Market system or market economy suffers from time to time from economic depressions.
Correct AnswerTrue
Your Answer
True
Multiple Choice Multiple Answer
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
entrepreneur from the restriction of MRTP act
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
entrepreneur from the restriction of MRTP act
Tuesday, August 19, 2008
Managerial Economics - 6
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Single Answer
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
Multiple Choice Single Answer
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
Multiple Choice Single AnswerQuestion
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
Multiple Choice Single Answer
Question
All the free gifts of nature which are commonly called natural resources are known to economists as
Correct Answer
LandYour Answer
capital
Multiple Choice Single Answer
QuestionAll the man made resources which are used in the process of making other goods and services are called
Correct Answer
capitalYour Answer
labor
Multiple Choice Single Answer
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
Multiple Choice Single Answer
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
Match The FollowingQuestion
Correct Answer
Your Answer
Managerial economics
Decision making and forward planning
Decision making and forward planning
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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
Multiple Choice Multiple AnswerQuestion
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
Multiple Choice Multiple Answer
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
Select The BlankQuestion
The form of organization which is best for self employment is ________.
Correct AnswerSole trader
Your Answer
Sole trader
Multiple Choice Single Answer
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
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Correct Answer
TrueYour Answer
True
Multiple Choice Multiple Answer
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
Multiple Choice Multiple AnswerQuestion
reasonable profit' are
Correct AnswerCapital Attraction , Plough Back , Normal earnings
Your Answer
Capital Attraction , Plough Back , Normal earnings
Multiple Choice Single Answer
QuestionComplementary goods are demanded
Correct Answer
jointlyYour Answer
separately
Multiple Choice Single Answer
QuestionEmergence of close substitutes to the commodity in question may bring about demand to
Correct Answer
decreaseYour Answer
decrease
Multiple Choice Single Answer
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
Multiple Choice Multiple Answer
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
Multiple Choice Single Answer
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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
Multiple Choice Multiple Answer
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.
Multiple Choice Single AnswerQuestion
Under monopoly the demand curve slopes
Correct Answerdownward
Your Answer
downward
Multiple Choice Single Answer
QuestionDalal Street in Bombay is known as
Correct Answer
Bombay Stock ExchangeYour Answer
Bombay Stock Exchange
Multiple Choice Single Answer
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
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 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 Multiple Answer
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
Multiple Choice Single AnswerQuestion
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
Multiple Choice Multiple Answer
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
Multiple Choice Multiple Answer
Question
Defects of market system:
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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
Managerial Economics - 8
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Single Answer
Question
Managerial economics generally refers to the integration of economic theory with business
Correct Answer
Practice
Your AnswerPractice
Multiple Choice Single Answer
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
Multiple Choice Single Answer
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
Multiple Choice Single AnswerQuestion
The supply curve during market period is perfectly
Correct Answerinelastic
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
QuestionCorrect Answer
Your Answer
Managerial economicsDecision making and forward planning
Decision making and forward planning
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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
Multiple Choice Single Answer
QuestionAll firms producing the same or similar product together make
Correct Answer
an industryYour Answer
an industry
Multiple Choice Single Answer
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
Multiple Choice Single Answer
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
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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
Multiple Choice Single Answer
QuestionIn economics demand means desire backed by adequate
Correct Answer
purchasing powerYour Answer
ability to pay
Multiple Choice Single Answer
Question
The law of diminishing returns is applicable to agriculture provided the state of technology is given andCorrect Answer
constantYour Answer
constant
Multiple Choice Single Answer
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
Multiple Choice Single Answer
Question
Slope of supply curve isCorrect Answer
positive
Your Answer
positive
Multiple Choice Single AnswerQuestion
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
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False
Multiple Choice Multiple Answer
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
Select The BlankQuestion
Under monopsony, there are ________ sellers but ________ buyer
Correct Answermany
Your Answermany
Correct Answer
only oneYour Answer
only one
Match The Following
Question
Correct AnswerYour Answer
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
Select The BlankQuestion
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
Multiple Choice Multiple Answer
Question
Average propensity to consume
Correct Answer
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Integration of economic theory with business practice , Using logic of economics, mathematics & statistics.
Multiple Choice Multiple Answer
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.
Multiple Choice Multiple Answer
Question
Different types of business organizations are;
Correct AnswerPrivate sector. , Public sector. , Joint sector.
Your Answer
Joint sector.
Multiple Choice Multiple Answer
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.
Multiple Choice Multiple Answer
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
Multiple Choice Multiple Answer
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
Select The BlankQuestion
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
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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
Select The BlankQuestion
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
Managerial Economics - 9
Multiple Choice Single Answer
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
Multiple Choice Single AnswerQuestion
Managerial economics aims at providing help in the firms is
Correct Answerdecision making
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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
Multiple Choice Single Answer
Question
In equilibrium analysis of a firm, it is assumed that every individual proprietor exhibits rational economicCorrect Answer
behavior
Your Answerbehavior
Match The FollowingQuestion
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
Multiple Choice Single Answer
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
Multiple Choice Single Answer
Question
The principle of exclusion cannot be applied to the goods which are
Correct Answerindivisible
Your Answerinvisible
Multiple Choice Single AnswerQuestion
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
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Multiple Choice Single AnswerQuestion
Market system of economy is characterized by consumers
Correct Answersovereignty
Your Answer
demand
Multiple Choice Single Answer
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
Multiple Choice Single Answer
QuestionAccording 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 totalCorrect Answer
expenditure
Your Answerexpenditure
Multiple Choice Single Answer
QuestionIn general, the demand for necessaries is relatively
Correct Answerinelastic
Your Answer
elastic
True/False
Question
Demand for food grains is inelastic but the demand for wheat is elastic.
Correct Answer
True
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Your Answer
False
Match The Following
QuestionCorrect Answer
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
Multiple Choice Single AnswerQuestion
Goods produced on small scale of supply is
Correct Answerinelastic
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
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In the stage I of the law of diminishing returns, the marginal product goes on increasing
Correct AnswerTrue
Your Answer
False
Multiple Choice Multiple Answer
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
Multiple Choice Multiple Answer
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
Multiple Choice Multiple AnswerQuestion
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