Managerial Economics

Thursday, October 7, 2010

LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Multiple Choice Single Answer
Question	In case of a pure public good, its marginal cost is
Correct Answer	zero
Your Answer	high
True/False
Question	During the period of depression, a large part of a country’s resources lie involuntarily idle.
Correct Answer	True
Your Answer	True
Select The Blank
Question	Goods which are paradoxical to the law of demand are ________
Correct Answer	Giffen goods, ,
Your Answer	Giffen goods, ,
True/False
Question	In contrast to the normative concept of justice, efficiency and inefficiency are positive concepts.
Correct Answer	True
Your Answer	False
True/False
Question	Pure private goods are completely divisible and to them the principle of exclusion applies in full measure.
Correct Answer	True
Your Answer	False
True/False
Question	Macro-economies is a policy oriented science.
Correct Answer	True
Your Answer	True
Select The Blank
Question	On the ________ level, the summation of maximum individual welfare does not automatically lead to maximum social welfare.
Correct Answer	macro
Your Answer	macro
Multiple Choice Multiple Answer
Question	Equilibrium is the stage of
Correct Answer	maximum satisfaction , balance , stationary
Your Answer	maximum satisfaction , balance , stationary
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	management
Multiple Choice Multiple Answer
Question	The subject matter of Micro economics includes the study of
Correct Answer	an individual consumer , particular market for a given commodity , operation of a firm
Your Answer	an individual consumer , particular market for a given commodity , operation of a firm
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
Select The Blank
Question	Demand for safety pins is ________
Correct Answer	inelastic
Your Answer	perfectly elastic
Multiple Choice Single Answer
Question	Supply curve shifts to the right side of the original supply curve when, the supply
Correct Answer	increases
Your Answer	increases
Multiple Choice Multiple Answer
Question	The consumer protection Act includes
Correct Answer	Protection from hazardous commodities , Right to a competitive price , Right to information regarding protection
Your Answer	Protection from hazardous commodities , Right to a competitive price , Right to information regarding protection
Match The Following
Question Correct Answer Your Answer
Resource allocation optimum combination of inputs Land
Natural Resources Land Scarcity
Economic problem Scarcity Micro Economics
Managerial Economics inventory management inventory management
Elasticity of demand Micro Economics optimum combination of inputs
Select The Blank
Question	In a market system of an economy, producers are guided by ________ motive.
Correct Answer	profit
Your Answer	price
Multiple Choice Multiple Answer
Question	Features of the firm are
Correct Answer	It is a business unit organized under one ownership , It is a sole proprietorship , It is a partnership or joint stock company
Your Answer	It is a business unit organized under one ownership , It is a sole proprietorship
Select The Blank
Question	The chemical effluents recklessly released by a chemical factory in the river causing water pollution, is an example of ________ cost.
Correct Answer	social
Your Answer	environmental
Multiple Choice Multiple Answer
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
True/False
Question	Price discrimination is possible in perfect competition
Correct Answer	False
Your Answer	False
Select The Blank
Question	The index numbers which are compiled to measure the changes in retail prices of various commodities refers to ________
Correct Answer	Retail prices index
Your Answer	Retail prices index
Select The Blank
Question	In the context of formulation of an investment project, ________ feasibility means the availability of land, plant, machinery, raw materials and technical know how etc.
Correct Answer	technical
Your Answer	technical
Multiple Choice Single Answer
Question	Managerial economics is also understood to refer to
Correct Answer	applied economics
Your Answer	applied economics
Multiple Choice Single Answer
Question	The type economic problem is
Correct Answer	universal
Your Answer	universal
True/False
Question	When price of a commodity falls, the supply of that commodity increases.
Correct Answer	False
Your Answer	True
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	If supply of goods and services can be increased to correspond with every increase in demand, price level will tend to
Correct Answer	be stable
Your Answer	rise
Multiple Choice Single Answer
Question	Complementary goods are demanded
Correct Answer	jointly
Your Answer	jointly
Match The Following
Question Correct Answer Your Answer
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
Commodities goods and services goods and services
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
True/False
Question	Inflation is characterized by excess of demand.
Correct Answer	True
Your Answer	True
Select The Blank
Question	The good becomes ________ so far as its use is concerned only when it is priced in the market and the principle of exclusion is applied to it.
Correct Answer	divisible
Your Answer	profitable
True/False
Question	Institution of private property is not an essential feature of Capitalism.
Correct Answer	False
Your Answer	False
Multiple Choice Single Answer
Question	Firm is an
Correct Answer	economic unit
Your Answer	economic unit
Multiple Choice Single Answer
Question	The city of Ahmedabad has specialized in the manufacture of
Correct Answer	textiles
Your Answer	textiles
Multiple Choice Single Answer
Question	When more units of a commodity are purchased in response to decline in price of that commodity, it is called as expansion of
Correct Answer	demand
Your Answer	demand
Multiple Choice Multiple Answer
Question	Different types of Elasticity of Demand are
Correct Answer	Price elasticity of demand , Income elasticity of demand , Cross elasticity of demand
Your Answer	Perfectly elastic demand
Multiple Choice Single Answer
Question	According to Prof. F.H. Knight, profit is a reward for
Correct Answer	uncertainty bearing
Your Answer	uncertainty bearing
Multiple Choice Multiple Answer
Question	The disinvestments of industries is needed for
Correct Answer	Phased privatization , Reducing deficit , Capital support to plans
Your Answer	Phased privatization , Reducing deficit , Capital support to plans
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
Select The Blank
Question	The form of organization which is best for self employment is ________.
Correct Answer	Sole trader
Your Answer	Sole trader
Multiple Choice Single Answer
Question	Managerial economics refers to the integration of economic theory with business
Correct Answer	practices
Your Answer	practices
Select The Blank
Question	The cost which enter the accounts book of the firm are referred as ________.
Correct Answer	Accounting cost
Your Answer	Accounting cost
True/False
Question	The most significant feature of perfect competition is the existence of an automatic price mechanism.
Correct Answer	True
Your Answer	True
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 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 liberalization policy, Government added another list of nine industries for which automatic approval upto 74 % would be allowed
Correct Answer	True
Your Answer	True