Managerial Economics - 28

LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Multiple Choice Single Answer   Question   The externality in which the consumption or production levels of an economic unit affect the other economic units in the economy is called :-   Correct Answer   Technological externality   Your Answer   Technological externality  Select The Blank   Question   By ' profits', the economist means total revenue minus ________.   Correct Answer   All costs   Your Answer   All costs  Multiple Choice Single Answer   Question   The act of using goods and services available in the market to satisfy wants is called :-   Correct Answer   Consumption   Your Answer   Consumption  True/False   Question   Marginal Cost (M.C.) is the rate of change of fixed cost.   Correct Answer   False   Your Answer   False  Select The Blank   Question   The factors of production are called inputs and may be combined to yield the maximum ________.   Correct Answer   Output   Your Answer   Output  Multiple Choice Single Answer   Question   Depreciation is the value caused by the continuous use of a capital asset, which indicates :-   Correct Answer   Loss   Your Answer   Loss  True/False   Question   The externalities or economic effects, which flow from the production or use of the goods to other parties or economic units, are termed as 'neighborhood effects.'   Correct Answer   True   Your Answer   False  Multiple Choice Single Answer   Question   When a company raises additional finance by borrowing from the public for a specific period of time at a particular rate of interest, it is called as :-   Correct Answer   Debentures   Your Answer   Redeemable Shares  Multiple Choice Multiple Answer   Question   At the level of the society, the macro economic objectives are :-   Correct Answer   Economic stabilization , Employment generation , Poverty reduction   Your Answer   Economic stabilization , Employment generation , Poverty reduction  True/False   Question   Any point on the production possibility curve indicates under utilization of resources.   Correct Answer   False   Your Answer   True  Multiple Choice Multiple Answer   Question   Index numbers may broadly be classified as :-   Correct Answer   Special purpose indices , Price indices , Quantity indices   Your Answer   Price indices , Quantity indices , Special purpose indices  Multiple Choice Single Answer   Question   In case of a pure public good, its marginal cost is :-   Correct Answer   Zero   Your Answer   Low  Multiple Choice Single Answer   Question   An entrepreneur may earn high profits just by luck, say because of outbreak of war. This is known as :-   Correct Answer   Chance Profits   Your Answer   Chance Profits  Multiple Choice Multiple Answer   Question   Methods of measurement of elasticity are :-   Correct Answer   Percentage method , Point elasticity method , Total outlay expenditure method   Your Answer   Percentage method , Point elasticity method , Total outlay expenditure method  Multiple Choice Single Answer   Question   The firm is an economic unit that makes the decisions regarding employment of :-   Correct Answer   Factors of production   Your Answer   Factors of production  Multiple Choice Multiple Answer   Question   Reasons for change in Demand (Increase or Decrease in Demand) are :-   Correct Answer   Change income of consumer , Change in population , Change in fashion and customs   Your Answer   Change income of consumer , Change in population , Change in fashion and customs  True/False   Question   A firm is a technical unit of a given capacity of output.   Correct Answer   False   Your Answer   True  Multiple Choice Single Answer   Question   During the period of depression various factors of production are :-   Correct Answer   Unutilized   Your Answer   Exhausted  Select The Blank   Question   The rate of interest, according to Keynes depends upon two factors: the liquidity preference function and ________.   Correct Answer   The quantity of money.   Your Answer   The supply of money  Select The Blank   Question   By what methods are commodities produced and the consequences of choices about ________ and the consequences of choice about production methods are topics in Theory of Production.   Correct Answer   Production   Your Answer   Production  True/False   Question   The demand for life saving drugs is elastic.   Correct Answer   False   Your Answer   True  Select The Blank   Question   The minimum number of directors which private limited should have is ________.   Correct Answer   2   Your Answer   2  Multiple Choice Single Answer   Question   The market which deals with all the goods as a whole are considered as :-   Correct Answer   Commodity Market   Your Answer   Commodity Market  Multiple Choice Single Answer   Question   In case of increase in the income, the rich person's demand for goods will be :-   Correct Answer   More   Your Answer   More  Select The Blank   Question   The supply of agricultural goods is ________.   Correct Answer   Inelastic   Your Answer   Inelastic  Select The Blank   Question   The products sold by different sellers under pure competition are ________.   Correct Answer   Homogeneous   Your Answer   Homogeneous  Select The Blank   Question   Fiscal Policy refers to variations in ________.   Correct Answer   Levels of taxation   Your Answer   Total supply of money  Multiple Choice Multiple Answer   Question   Price discrimination is possible in case of :-   Correct Answer   Public utilities with legal sanction , Personnel services sold , Geographical barriers   Your Answer   Monopolistic market , Public utilities with legal sanction , Geographical barriers  True/False   Question   Consumer’s protection involves protection to the consumers from unfair trade practices.   Correct Answer   True   Your Answer   True  Multiple Choice Single Answer   Question   In the Long run, perfect competition and monopolistic competition, the firm make profits which are :-   Correct Answer   Normal   Your Answer   Super normal  True/False   Question   In case of decrease in supply, the supply curve shifts to left side of the original supply curve.   Correct Answer   True   Your Answer   False  Multiple Choice Multiple Answer   Question   In case of defense services, all the sections of the society are equally protected and benefited. The defense services in other words is :-   Correct Answer   Indivisible in character , Cannot be priced in the market , A public good   Your Answer   Indivisible in character , Cannot be priced in the market  True/False   Question   Demand for luxury goods is inelastic.   Correct Answer   False   Your Answer   True  Select The Blank   Question   A normal demand curve has ________.   Correct Answer   Negative slope   Your Answer   Positive slope  Match The Following Question Correct Answer Your Answer Experimental pricing Trial and error method Multiple products A.C.> A.R Two firms Trial and error method Monopoly Low cross elasticity of demand Single products Excess capacity Multiple products High cross elasticity of demand  Select The Blank   Question   If there is reduction in the taxes levied by the Government, people are left with ________.   Correct Answer   More money   Your Answer   Has no effect on the money with people  Select The Blank   Question   In a market economy ________ is the best judge of personal interest.   Correct Answer   Individual   Your Answer   Individual  Multiple Choice Multiple Answer   Question   Under cost plus pricing :-   Correct Answer   The price is set to cover material, labour cost , Actual costs, standard costs are included , Certain percentage of profit also included   Your Answer   The price is set to cover material, labour cost , Full cost is not covered , Actual costs, standard costs are included  Multiple Choice Multiple Answer   Question   The criteria to be taken into account while setting the standards for a 'reasonable profit' are :-   Correct Answer   Capital Attraction , Plough Back , Normal earnings   Your Answer   Capital Attraction , Plough Back , Normal earnings  Multiple Choice Multiple Answer   Question   Quantitative credit control measures are :-   Correct Answer   Open market operations , Changes in bank rates , Changes in statutory reserve ratio   Your Answer   Open market operations , Changes in bank rates , Changes in statutory reserve ratio  Multiple Choice Multiple Answer   Question   Features of public sector enterprises are as follows :-   Correct Answer   It is controlled by the state , Separate funds to undertake their activity , They are accountable to public   Your Answer   It is controlled by the state , Separate funds to undertake their activity , They are accountable to public  True/False   Question   Complementary goods are jointly demanded but jointly demanded goods may not be Complementary.   Correct Answer   True   Your Answer   True  Multiple Choice Multiple Answer   Question   Types of income elasticity of demand :-   Correct Answer   Negative income elasticity , Zero income elasticity , Unit income elasticity   Your Answer   Negative income elasticity , Zero income elasticity , Unit income elasticity  True/False   Question   In case of a partnership firm, the liability of a partner is limited.   Correct Answer   False   Your Answer   False  Match The Following Question Correct Answer Your Answer Break even point T.R. = T.C. T.R. = T.C. Normal profit Implicit cost Implicit cost Average variable cost (A.V.C.) Short run cost Short run cost Change in supply Increase and decrease in supply Increase and decrease in supply  Multiple Choice Single Answer   Question   Prof. Samuelson calls the air and water pollution or dangers from drunken drivers as economies that are :-   Correct Answer   Negative   Your Answer   Large scale  Multiple Choice Multiple Answer   Question   The sole proprietorship type of organization is found in :-   Correct Answer   Agriculture , Retail trade , Hotel   Your Answer   Agriculture , Retail trade