Managerial Economics - 21

LIST OF ATTEMPTED QUESTIONS AND ANSWERS

True/False
Question Macro economic studies are based on empirical evidence.
Correct Answer True
Your Answer True

Select The Blank
Question According to the World Bank's approach, the trade able items would be valued at the corresponding world prices and the non-trade able items at the ________.
Correct Answer shadow prices
Your Answer market prices

Multiple Choice Single Answer
Question The study of the working and allocation of resources in the free market economies is the topic in the
Correct Answer theory of price
Your Answer theory of price

Multiple Choice Single Answer
Question Costs which increase because of the expansion of a firm are called
Correct Answer incremental
Your Answer incremental

True/False
Question In the Long- run, supply of goods can be adjusted to the demand and therefore supply curve is horizontal to the X-axis.
Correct Answer False
Your Answer True

Select The Blank
Question By ' profits', the accountant means total revenue minus________.
Correct Answer Explicit costs
Your Answer Implicit cost

Multiple Choice Multiple Answer
Question Features of short run period are
Correct Answer Supply of goods can be adjusted to the demand to some extent , Supply and demand determine the price , Some factors can be changed
Your Answer Supply of goods can be adjusted to the demand to some extent , Supply and demand determine the price , Some factors can be changed

Select The Blank
Question The law of constant returns to scale is depicted by the marginal output curve which is ________.
Correct Answer horizontal
Your Answer horizontal

Multiple Choice Single Answer
Question The method of calculating depreciation in which the actual working hours of a capital asset are taken in to account is
Correct Answer service unit
Your Answer service unit

True/False
Question Demand curve slopes upwards from left to right.
Correct Answer False
Your Answer False

Multiple Choice Single Answer
Question All the free gifts of nature which are commonly called natural resources are known to economists as
Correct Answer Land
Your Answer Land

True/False
Question Macro-economies is a policy oriented science.
Correct Answer True
Your Answer True

Multiple Choice Single Answer
Question The assumption of perfect competition in all the analytical theories is made by
Correct Answer Classical economists
Your Answer Keynesian economists

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 positive

Multiple Choice Multiple Answer
Question Reasons for need of public distribution system are
Correct Answer To maintain stable price conditions , To bring an efficient management of the supply , To supply the necessary goods to people at reasonable price
Your Answer To maintain stable price conditions , To bring an efficient management of the supply , To supply the necessary goods to people at reasonable price

Select The Blank
Question When demand for the product increases in the same proportion in which income increases, Income elasticity of demand will be equal to________
Correct Answer unity
Your Answer greater than unity

Multiple Choice Multiple Answer
Question Accounting profit includes
Correct Answer wages , rent , interest
Your Answer wages , rent , interest

Multiple Choice Multiple Answer
Question The fiscal policy includes
Correct Answer Formation of taxation policy , It is an instrument for economic stabilization , Monitoring of public expenditure
Your Answer Formation of taxation policy , It is an instrument for economic stabilization , Monitoring of public expenditure

Multiple Choice Single Answer
Question 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 inventory of the company was used first is
Correct Answer LIFO
Your Answer LIFO

Select The Blank
Question A private limited company can be formed with 2 to 50 members maximum, excluding ________
Correct Answer employee shareholders
Your Answer employee shareholders

Multiple Choice Single Answer
Question The number of sellers operating under monopolistic competition as compare to oligopoly is
Correct Answer larger
Your Answer larger

Multiple Choice Multiple Answer
Question Causes for rise in prices in India
Correct Answer Mounting government expenditure , Deficit financing and increase in money supply , Role of black money
Your Answer Mounting government expenditure , Deficit financing and increase in money supply , Increase in demand

True/False
Question Social costs cannot be included in a firm's account book.
Correct Answer True
Your Answer False

Multiple Choice Single Answer
Question AVC is the per unit variable cost of
Correct Answer production
Your Answer total revenue

Multiple Choice Multiple Answer
Question Exceptions to the Law of Demand are
Correct Answer Giffen goods , Articles of snob appeal , Speculation
Your Answer Giffen goods , Articles of snob appeal , Speculation

Question In the cost - benefit analysis, the first step involved is that the investor has to choose a few project alternatives promising a
Correct Answer high rate of return
Your Answer high rate of return

Question In the Dynamic Theory of Profit, Prof. Clark has pointed out the types of changes, which are
Correct Answer Changes in the supply of capital , Changes in population , Changes in the techniques of production
Your Answer Changes in the supply of capital , Changes in population , Changes in the techniques of production

Question Economic problem is faced by poor countrys only.
Correct Answer False
Your Answer False

Match The Following
Question Correct Answer Your Answer

Pure private goods Divisible goods Divisible goods

Self -interest Market economy Neighborhood

Danger from drunken drivers Negative economies Negative economies

Impure public goods Quasi - public goods Quasi - public goods


Multiple Choice Multiple Answer
Question Types of imperfect competition are
Correct Answer Monopoly , Duopoly , Oligopoly
Your Answer Monopoly , Duopoly , Oligopoly

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.

Question Investment is significant because
Correct Answer Addition to the real capital assets , It leads to increase in level of income , Increases accumulated wealth of the society
Your Answer Addition to the real capital assets , It leads to increase in level of income , Increases accumulated wealth of the society

Question In the context of externalities, driving the smoke-emitting buses and trucks in the cities is an example of ________ cost.
Correct Answer social
Your Answer social

Question According to Lionel Robbins, "Economics is a science which studies
Correct Answer human behavior
Your Answer economic variables behavior

Question The out of pocket costs are ________.
Correct Answer Explicit costs
Your Answer Explicit costs

Question A firm gets an opportunity to produce multiple products because changes in business activity in a firms is
Correct Answer cyclical
Your Answer rapid

Question Market system or market economy suffers from time to time from economic depressions.
Correct Answer True
Your Answer True

Question Under competitive conditions, market mechanism would automatically bring equilibrium at the level of
Correct Answer full employment
Your Answer optimum produce

Question Micro-economics is primarily concerned with the problem of what, how and for whom to produce?
Correct Answer False
Your Answer True

Question Factors influencing selling costs are
Correct Answer Type of product , Introduction of new goods , Technology changes
Your Answer Type of product , Introduction of new goods , Advertising by customers

Question The important determinants of supply are
Correct Answer Always referred to in relation to price & time , Government policy , Availability of factors of production
Your Answer Always referred to in relation to price & time , Government policy , Availability of factors of production

Question The slope of Supply curve of labour is always
Correct Answer backward
Your Answer upward

Question 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 Answer theory of economic growth
Your Answer theory of economic growth

Question Features of monopolistic Competition are
Correct 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

Question Under perfect competition,firms are free to enter and exit in the market.
Correct Answer True
Your Answer True

Match The Following
Question Correct Answer Your Answer

Motor cars Tangible goods Tangible goods

Wants Insatiable Insatiable

Managerial Economics Prescriptive in nature Prescriptive in nature

Resources Alternative uses Alternative uses

Division of society’s output of goods and services The theory of distribution The theory of distribution

Question Under perfect competition single seller can influence the price.
Correct Answer False Your Answer False