Tuesday, 8 October 2013

Managerial Economics - 20

LIST OF ATTEMPTED QUESTIONS AND ANSWERS

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 Answer registered or authorized capital , issued capital , paid-up capital

Match The Following
Question Correct Answer Your Answer

Equilibrium price is the price where the quantity demanded equals quantity supplied quantity demanded equals quantity supplied

Excess supply can be defined as quantity supplied minus quantity demanded. quantity supplied minus quantity demanded.

Tea and sugar Complimentary goods Complimentary goods

Excess demand can be defined as quantity demanded minus quantity supplied quantity demanded minus quantity supplied


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

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

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

Select The Blank
Question Demand for a commodity depends on the relative price of its ________
Correct Answer substitute goods
Your Answer substitute goods

Multiple Choice Multiple Answer
Question reasonable profit' are
Correct Answer Capital Attraction , Plough Back , Normal earnings
Your Answer Capital Attraction , Plough Back , Normal earnings

Multiple Choice Multiple Answer
Question Features of Long -run market are
Correct Answer It is durable goods market , Supply can be increased or reduced according to the demand , Sellers at least recover minimum price for their goods
Your Answer It is durable goods market , Supply can be increased or reduced according to the demand , Sellers at least recover minimum price for their goods

Multiple Choice Single Answer
Question The type economic problem is
Correct Answer universal
Your Answer universal

Select The Blank
Question In a market system of an economy, producers are guided by ________ motive.
Correct Answer profit
Your Answer profit

Multiple Choice Single Answer
Question An individual consumer or particular market for a given commodity are the subject matter of
Correct Answer Micro Economics
Your Answer Micro Economics

Select The Blank
Question The index numbers which measure the changes in the general price level of a country refers to ________
Correct Answer Wholesale prices index
Your Answer Wholesale prices index

Multiple Choice Single Answer
Question While calculating accounting profit, the costs which are considered are by nature
Correct Answer explicit
Your Answer implicit

Multiple Choice Single Answer
Question Given the price, if the cost of production increases because of higher price of raw materials, the supply
Correct Answer decreases
Your Answer decreases

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

Multiple Choice Single Answer
Question The concept of just distribution of national product is a
Correct Answer normative
Your Answer normative

Multiple Choice Single Answer
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

True/False
Question In case of the co-operative societies supplying cheap inputs or supplying consumer products at fair prices, a system of subsidized pricing is followed.
Correct Answer True
Your Answer True

Select The Blank
Question Modern economists treat social cost and benefits as ________ of private investment and production decisions.
Correct Answer externalities
Your Answer externalities

Multiple Choice Multiple Answer
Question The market system of economy is based on the following foundations:
Correct Answer Consumer's Sovereignty , Non-interference by the state. , Private Profit Motive
Your Answer Consumer's Sovereignty , Private Profit Motive , Existence of monopoly

Select The Blank
Question The indivisible goods to which the principle exclusion does not apply are called ________ goods.
Correct Answer pure public
Your Answer private

Select The Blank
Question The 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 Answer indivisible
Your Answer public

Multiple Choice Single Answer
Question The city of Banaras has specialized in the manufacture of
Correct Answer silk
Your Answer silk

True/False
Question During inflation, the pensioners whose income is permanently fixed, are substantially benefited.
Correct Answer False
Your Answer False

Select The Blank
Question Economists like A.C.Harberger have shown that the cost benefit analysis can be applied to ________ analysis.
Correct Answer general equilibrium
Your Answer general equilibrium

True/False
Question Generally, the larger the income of a consumer, his demand for overall commodities tends to be relatively elastic.
Correct Answer False
Your Answer False

Multiple Choice Single Answer
Question In economics the questions related to the division of society’s output of goods and services among its members are topics in
Correct Answer theory of distribution
Your Answer theory of distribution

True/False
Question Supply management is related to the volume ofsupply & its distribution system.
Correct Answer True
Your Answer True

Select The Blank
Question Demand for safety pins is ________
Correct Answer inelastic
Your Answer inelastic

Multiple Choice Single Answer
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

True/False
Question Under the disinvestments process, there is full transfer of ownership
Correct Answer True
Your Answer False

Multiple Choice Single Answer
Question In cost - benefit analysis, after the step of appraisal and selection of the project is the step of
Correct Answer comparison of the cash flow
Your Answer comparison of the cash flow

Multiple Choice Single Answer
Question When a company rasies 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 Debentures

Multiple Choice Multiple Answer
Question Features of market period are
Correct Answer Related to few hours or few days , Related to perishable goods , The entire supply is to be disposed off on the same day
Your Answer Related to few hours or few days , Related to perishable goods , The entire supply is to be disposed off on the same day

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 organizational

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

Multiple Choice Multiple Answer
Question Scope 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 Single Answer
Question The observation of economic histories of the United States & West European countries shows that competition , the heart of market mechanism gives rise to
Correct Answer monopolies
Your Answer price competition

Match The Following
Question Correct Answer Your Answer

Chance profit Outbreak of war Outbreak of war

Innovation theory of profit Joseph Schumpeter Joseph Schumpeter

Uncertainly bearing F. H. Knight theory F. H. Knight theory

Implicit cost Opportunity cost Opportunity cost


Multiple Choice Single Answer
Question During a period of rising prices (inflation), the goods and services are
Correct Answer scarce
Your Answer are also increasing

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

Multiple Choice Single Answer
Question Over the years in India the govt. expenditure is
Correct Answer increasing
Your Answer increasing

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

True/False
Question Demand is related to price, time and place.
Correct Answer True
Your Answer False

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

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

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