Managerial Economics - 17

LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Question In India, the first phase of economic reforms is believed to have begun in 1985 when Vishwanath Pratap Singh was the Prime Minister of the country.
Correct Answer False
Your Answer False

Question Price discrimination is possible in case of
Correct Answer public utilities with legal sanction , personnel services sold , geographical barriers
Your Answer public utilities with legal sanction , personnel services sold , geographical barriers

Question The methods of calculating depreciation is
Correct Answer Diminishing Balance Method , Annuity Method , Service Unit Method
Your Answer Diminishing Balance Method , Annuity Method , Service Unit Method

Question Correct Answer Your Answer

Break even point T.R. = T.C. T.R. = T.C.

Normal profit Implicit cost Short run cost

Average variable cost (A.V.C.) Short run cost Explicit cost

Change in supply Increase and decrease in supply Expansion and contraction of supply

Question A competitive industry has three basic characteristics
Correct Answer Large Number of Firms , Homogeneous Product , Free entry and exit
Your Answer Large Number of Firms , Homogeneous Product , Free entry and exit

Question To solve the unemployment problem , the level of effective demand must decrease.
Correct Answer False
Your Answer True

Question The act of using goods and services to satisfy wants is called
Correct Answer consumption
Your Answer consumption

Question The minimum number of directors which public limited should have is ________.
Correct Answer 3
Your Answer 3

Question The factors of production are
Correct Answer Labour , Land , Capital
Your Answer Labour , Land , Profit

Question Economists have pointed out that the real world is full of
Correct Answer Imperfect competition
Your Answer Monopolistic competition

Question According to J.M. Keynes, the equilibrium between the aggregate demand function and the aggregate supply function can, and often does take place at
Correct Answer less than full employment
Your Answer full employment

Question Important theories of profits are
Correct Answer Uncertainty-bearing theory of profit , Dynamic theory of profit , Life cycle theory
Your Answer Risk taking theory , Uncertainty-bearing theory of profit , Dynamic theory of profit

Question The things that are produced by factors of production are called
Correct Answer commodities
Your Answer commodities

Question Demand is determined by
Correct Answer Price of the product , Relative prices of other goods , Tastes and habits
Your Answer Price of the product , Relative prices of other goods , Tastes and habits

Question The necessary condition of profit maximization of a firm is that Marginal Revenue (M.R) must be equal to ________.
Correct Answer Marginal cost (M.C)
Your Answer Marginal cost (M.C)

Question The concept of just distribution of national product is a
Correct Answer normative
Your Answer objective

Question Dalal Street in Bombay is known as
Correct Answer Bombay Stock Exchange
Your Answer Bombay Stock Exchange

Question The type economic problem is
Correct Answer universal
Your Answer universal

Question Preference share holders get a rate of dividend which is
Correct Answer fixed
Your Answer high

Question The act of making goods and services is called
Correct Answer production
Your Answer production

Question Contraction of supply is traced by the downward movement on the supply curve
Correct Answer True
Your Answer True

Question Baumol has suggested as an alternative objective for profit maximization , the maximization of ________
Correct Answer sales
Your Answer sales

Match The Following
Question Correct Answer Your Answer

Commodities goods and services goods and services

Human wants unlimited unlimited

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

Managerial economics Decision making and forward planning Decision making and forward planning

Resources scarce scarce

Question In the traditional concept of equilibrium, a firm attains the equilibrium when the firm’s Total Revenue (T.R.) =Total Cost (T.C.).
Correct Answer False
Your Answer True

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 , Actual costs, standard costs are included , Certain percentage of profit also included

Question In economics, supply is considered to be a
Correct Answer relative term
Your Answer relative term

Question In economics the question related to the selection of methods with which commodities are produced is a subject matter of
Correct Answer theory of production
Your Answer theory of production

Question Under the decreasing returns to scale, the marginal output curve slopes ________.
Correct Answer downward
Your Answer downward

Question Managerial economics generally refers to the integration of economic theory with business
Correct Answer Practice
Your Answer Practice

Question Steps in cost benefit analysis
Correct Answer Identification of a project , Formulation of the project , Appraisal and selection of the project
Your Answer Identification of a project , Formulation of the project , Appraisal and selection of the project

Question Slope of supply curve is
Correct Answer positive
Your Answer positive

Question The salary of the proprietor or rent on own land are the ________.
Correct Answer Implicit cost
Your Answer Implicit cost

Question The profits which must be deducted from the gross profits to arrive at net profits are
Correct Answer Monopoly Profits
Your Answer Monopoly Profits

Question We say that a nation faces economic problems , under following conditions
Correct Answer Man has unlimited wants or ends , The means or resources to satisfy them are limited , These resources are not specific but have alternative uses
Your Answer Man has unlimited wants or ends , The means or resources to satisfy them are limited , These resources are not specific but have alternative uses

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

Question The sum of total fixed costs and total variable costs is the total cost.
Correct Answer True
Your Answer True

Question A Joint- Stock Company is owned by its share holders but it is managed by
Correct Answer Board of Directors
Your Answer Non-government organization

Question The liability of a Karta in a Joint Hindu Family Business firm is ________.
Correct Answer limited
Your Answer joint

Question A fall in price tends the demand for goods to ________
Correct Answer expand
Your Answer increase

Question The supply curve slopes downwards from left to right.
Correct Answer False
Your Answer False

Question Poverty is the root cause of Economic problem.
Correct Answer False
Your Answer False

Question Every nation’s resources which are used to produce the quantities of goods and services that would be required to satisfy all its citizen’s wants are
Correct Answer insufficient
Your Answer insufficient

Question In case of a proprietory firm, the liability for all his debts is
Correct Answer unlimited
Your Answer unlimited

Question The city of Kashmir has specialized in the manufacture of
Correct Answer shawls
Your Answer shawls

Question The Laws of Returns to scale are
Correct Answer Law of Increasing Returns to Scale , Law of Constant Returns to Scale , Law of Decreasing Returns to scale
Your Answer Law of Increasing Returns to Scale , Law of Constant Returns to Scale , Law of Decreasing Returns to scale

Question Managerial economics is also understood to refer to
Correct Answer applied economics
Your Answer applied economics

Question The registration of a partnership firm is voluntary
Correct Answer True Your Answer True