Tuesday, 8 October 2013

Managerial Economics - 25

LIST OF ATTEMPTED QUESTIONS AND ANSWERS

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

Multiple Choice Single Answer
Question During the period of depression various factors of production are
Correct Answer exhausted
Your Answer unutilized

True/False
Question When demand and supply rise and fall in the same proportion, the equilibrium price changes.
Correct Answer False
Your Answer False

Select The Blank
Question "Homeostatic Approach" as an alternative objective of firms was suggested by ________.
Correct Answer Prof. Kenneth Boulding
Your Answer Joel Dean

Select The Blank
Question The social costs and benefits are the external economies and diseconomies resulting from the ________ activities, which are known as, "externalities"
Correct Answer firm's
Your Answer firm's

Multiple Choice Single Answer
Question Economists call all human resources mental, physical , inherited and acquired as
Correct Answer Labour
Your Answer Labour

Multiple Choice Single Answer
Question According to Prof. F.H. Knight, profit is a reward for
Correct Answer uncertainty bearing
Your Answer risk bearing

Multiple Choice Multiple Answer
Question Internal Economies involves
Correct Answer Advantages of large-scale production , Low cost of production , It avails benefits of cheaper finance
Your Answer Low cost of production , It avails benefits of cheaper finance , Availability of banking facility

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

Select The Blank
Question By ' profits', the economist means total revenue minus ________.
Correct Answer All costs
Your Answer All costs

Multiple Choice Multiple Answer
Question Distinction between private sector and public sector is determined
Correct Answer on the basis of economic system , on the basis of motive , on the basis of principle of pricing
Your Answer on the basis of economic system , on the basis of motive , on the basis of infrastructure

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

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 Answer True

Select The Blank
Question The externality which causes an economic gain or an economic loss to other economic units is also referred to as ________ externality.
Correct Answer Pecuniary
Your Answer Economic

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

True/False
Question During period of depression various factors of production lie unutilized.
Correct Answer True
Your Answer True

True/False
Question In case of sole proprietorship the owner and organization are same
Correct Answer True
Your Answer True

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 above MP

Match The Following
Question Correct Answer Your Answer

Price leadership Oligopoly Monopoly

Surgical equipment Refusal pricing psychological & subjective approach

Intuitive pricing psychological & subjective approach selection of sample tests markets

Experimental pricing selection of sample tests markets Oligopoly


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

Select The Blank
Question The financing of ________ goods is done through public expenditure.
Correct Answer public
Your Answer public

Multiple Choice Multiple Answer
Question Reasons for change in Demand (Increase or Decrease in Demand)
Correct Answer Change income of consumer , Change in population , Change in fashion and customs
Your Answer Change income of consumer , Change in fashion and customs

Select The Blank
Question The form of organization which is best for self employment is ________.
Correct Answer Sole trader
Your Answer Joint sector enterprise

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 , personnel services sold

True/False
Question The short run Average Cost (A.C.) curve is U shaped.
Correct Answer True
Your Answer True

True/False
Question Demand for luxury goods is inelastic
Correct Answer False
Your Answer True

True/False
Question Market price fluctuates very often.
Correct Answer True
Your Answer True

Multiple Choice Single Answer
Question According to J.M.Keynes, the equilibrium is established at the level
Correct Answer less than full employment
Your Answer equal to full employment

Match The Following
Question Correct Answer Your Answer

The point of effective demand is the point when A.D. = A.S. A.D. = A.S.

Trade Cycle Recession Recession

Rise in costs due to an increase in factor prices a cause of inflation from supply side. a cause of inflation from supply side.

According to J. M. Keynes, there are two factors determining the investment function, namely i) the M.E.C. and ii) the rate of interest. namely i) the consumption. and ii) the rate of savings.


Multiple Choice Single Answer
Question Joint Stock Company is an incorporated association with a
Correct Answer perpetual succession
Your Answer perpetual succession

Select The Blank
Question Sole Proprietorship which is also called sole ________
Correct Answer tradership
Your Answer tradership

Multiple Choice Single Answer
Question The market which covers capital market & all banking and non-banking institutions are together taken as
Correct Answer Financial Market
Your Answer Financial Market

Multiple Choice Multiple Answer
Question According to Keynes there are three motives for holding cash for liquidity preference
Correct Answer the transactions motive , the precautionary motive , the speculative motive
Your Answer the transactions motive , the precautionary motive , the speculative motive

Multiple Choice Multiple Answer
Question The total output of all the commodities in one country over some period, usually taken as a year is called as
Correct Answer Gross National Product , National Product , National Income
Your Answer Gross National Product , National Product

Multiple Choice Multiple Answer
Question Co-operative organizations is
Correct 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

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

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 Economic problem does not recognize the boundaries of caste,creed,culture Thus economic problem is always considered as the
Correct Answer universal problem
Your Answer universal problem

Multiple Choice Multiple Answer
Question Conditions of Price Discrimination are:
Correct Answer The two markets in which the product is sold should be kept separate , The elasticity of demand in different markets should be different , Market must be imperfect
Your Answer The two markets in which the product is sold should be kept separate , The elasticity of demand in different markets should be different , Market must be imperfect

True/False
Question Pure (Net) profit contains an element of monopoly profit.
Correct Answer False
Your Answer True

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

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

Multiple Choice Multiple Answer
Question The railways use a lot of coal in firing the steam locomotives. This act causes
Correct Answer a lot of sufferings to the people near the railway. , cost to the society. , no cost to the railways.
Your Answer a lot of sufferings to the people near the railway. , affects the railways

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 proportionately
Correct Answer less
Your Answer less

Multiple Choice Single Answer
Question Slope of supply curve is
Correct Answer positive
Your Answer positive

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

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 normal

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