Intuk 2-1 online bits of MANAGERIAL ECONOMICS AND FINANCIAL ANALYSIS for ME,ese,ECE,IT Q)The branch of economics that deals with the aggregates is called--> Macro economics Q)Earlier, economics was defined as a science of--> Wealth Q)Which of the following cannot be verified by looking at the facts?--> Normative statement QJThe pre-requisite for rational decision-making is~> Consistency between goals and choices QyThe decision that deals with the changes in the production consequent upon the changes in inputs is called--> Input-output analysis Q)Who said that economics is the study of nature and uses of national wealth?--> Adam Smith Q)Managerial economics is close to--> Micro economics QJOptimization refers to of costs~> Minimization Q)Which of the following pairs of goods is an example of substitutes?--> Tea a Q)Which of the following has highest consumer surplus?~> Necessities QJThe additional utility derived from consumption of an additional unit Q)Which of the following indicates micro approach from national per; factory QJThe quantity for a particular product at a given the price of a relat demand Q)An extension is the ~ Q)The duration of short-run is shorter than th QJA group of firms carrying on similar act Q)—---——— deals with consumer behavior~> Cons nm Q)Rate of responsiveness is demand of a com cttygecagiven change in price is called--> > movernent along a de! Elasticity Q)Wants are unlimited but resources Q)Economic forecasting and forew: Q)Any activity aimed at earniag Q)Demand forecasting is relati products~> Established Q)The market demand for a given’ -> Market forecast Q)Survey method is disadvantageou: Q)Which of the followingisat a demapu forecasting method?~> Static approach Q)The elasticity b twoSeparate points of demand curve is called--> Arc elas Q)Cross snip arate to the quantity demanded of a product in response to a change in theipric product, whether it is substitute or complementary--> Related Qhin case ofene ity, the elasticity is equal to--> One Q)The d urve'Slopes--> Downwards away lowing is not a part of trend projection method?--> Test marketing Q)Which of the following is also called the long term trend?--> Trend (T) QjUnder the one set of data is used to predict another set-> Barometric techniques Q)Forecasting in terms of total sales can be viewed as ---—-- forecast--> General Q)Market demand is not affected by--> Social factors Q)The features of a good forecasting method is--> Demographics Q)Market potential is--> Maximum possible level of demand QJin case of two variables influencing each other, which of the method is appropriate?--> Multiple linear regression QJTime series method is disadvantageous because--> The long term trend and seasonal trends > about the future--> Risk www.jntukdu.com http://intukresults.org |https://jntubook.comIntuk 2-1 online bits of MANAGERIAL ECONOMICS AND FINANCIAL ANALYSIS for ME,ese,ECE,IT can be forecast Q)Forecasts in terms of total sales can be viewed as--> General forecast Q)A long-run forecast provides information for major--> Strategic decisions Q)Census method is also called--> Total enumeration Q)When the past data is arranged chronologically emerge-> Time series method Q)- - describes the degree of association between two variables--> Correlation Q)Judge mental approach is not useful when --> Historical data for long periods is available Q)Expansion path is also called--> Seale line Q)Cobb-douglas production function is of the form--> P = BL” C'* QJThe ratio of input to output is called--> Productivity QJThe quantities of output throughout a given are equal--> Isoat Q)L shaped isocost denotes ~ coefficients of production--> Fixed QJTrend projection methods are generally based on analysis of--> Past sal rns Q}simultaneous equation methed is dificult to compute where the Fmnbetof equations are-> Larger Q)If the level of production changes, the total cost cl tfe isocost curve--> Moves urd oar Q)How many stages are there in the law of retu Q)in Cobb-Douglas production function K rea Q)The locus of different combinations of inputs whiehoyield same output is-> Isoquant Q)isoquants are also called--> Isoproduct she Q)The economies that accrue to all th an ipdlustrial estate is called--> External economies Q)The production function is also ki x utput relationship Q)The difference between the totghirevenué and total cost is called--> Profit Q)Which of the following results be€ause of ncrease in the scale of production?--> Economies of scale " QJShort run cost curves eer, erating curves Q)Which of the followin rtined for a change in the level of activity?--> Incremental Q)Which of the fol Been as expenses in the books of accounting records?--> Accounting cost Q)Cost-out ip doesnt facilitate-> Merit rating Q)The he proportionally with production~> Increases Q)Produttion' = ed by certain laws of returns to scale, which are known as--> Economies of, rae mane cit ea costs are also called--> Book costs Q)Historical costs are also called--> Past costs QJThe costs of the next best alternative foregone is known as~> Opportunity costs QJExplicit costs are called~-> Out of pocket costs Q)Average fixed cost per unit ~ as the volume or production increases--> Declines QJTiming of cash flows are determined in ~ costs.-> Economic costs Q)Which of the following are fixed in the short run?--> Fixed costs Q)Fixed cost per unit changes with--> Volume of production QJOne of the following does not affect the current production. What is that?.-> Sunk costs www.jntukdu.com http://intukresults.org |https://jntubook.comIntuk 2-1 online bits of MANAGERIAL ECONOMICS AND FINANCIAL ANALYSIS for ME,ese,ECE,IT costs Break even analysis Q)Such costs that involve an immediate outflow of cash are called~> Expl Q)Which of the following is a technique for profit planning and control?~ QJA firm is said to be attain the BEP where--> TR=TC Q)Break even analysis is also called~-> Cost volume profit anlaysis Q)The LAC curve is to all the SACs~-> Tangential Q)When variable cost decreases, the BEP -> Decreases Q)Contribution minus fixed cost is called--> Profit Q)Which of the following is economical when the consumption is large?--> Make decision Q)A market in which there is freedom of entry and exit for the traders is called--> Perfect market Q)Break even analysis is a valuable tool to~> Compare the efficiency of the di QJWhich of the following constitutes the elements of total cost?--> Fixed, vai Q|Contribution margin is defines as~> Selling price per unit-variable co: Q)Which of the following represents the ratio between the contributi ot si Profit- volume ratio Q)Which of the following will increase if selling price increase?--> on agus margin Q|Perfect competition is based on~> Perfect mobility of factots of prodiietior Q)Which of the following refers to the change in reve 10% nga seling one more unit?- -> Marginal revenue Q)Based on which of the following, the a, “ vi Rerfck markets an markets?--> Degree of competition Q)The market with a few sellers is called--> eee Q)in monopoly, the marginal revenue js le a QJThe seller is a ~ in perfect cor Q)The structure of the market is not Q)Which of the following refers ct different buyers?--> Price discrimination QJin a perfect competition, the fir rand curve is also known as~> Averages revenue curve QJTo attain equilibrium in = petition, MC curve should cut the MR curve--> From perfect ee rage revenue taker dition of exit from the market 9f selling the same product at different price to below < Q)Under perfect compet ition "the price is equal to-> AR = MR Q\A mnonsbolt eitherGontrol the price or ~ but not both--> Output Q)Based on of sellers, imperfect markets are categorized as~-> Monopolistic ccompeti Qywhicl rota |oWing refers to a position where a firm enjoys maximum profits and has no incenti reduce or increase its output level?--> Equilibrium point QJPrice disteimination is also called as--> Differential pricing Q)The basis of price discrimination is not due to~> Quality sold Q)The average revenue curve for a firm under monopoly is 2~> Downward curve QJin the short period equilibrium, the price at which the available stock can be sold is called--> Market price Q)Price in the long run is called--> Normal price QJThe case of monopoly exists when-> MR < AR Q)The cause for monopoly is not due to-> Control over outputs Q)- - which refers to the ratio of retained profits to the total profits--> Retention ratio www.jntukdu.com http://intukresults.org |https://jntubook.comIntuk 2-1 online bits of MANAGERIAL ECONOMICS AND FINANCIAL ANALYSIS for ME,ese,ECE,IT tries to maximize the rate of Q)According to Marris, the manager of firm, instead of growth of the firm~> Maximizing profits Q)- - refers to the strength of the managerial team and their skills~> Managerial constr QJThe nature of demand curve in monopoly is--> Inelastic Q)Which of the following is not a feature of monopoly?--> Products with elastic demand QJThe method of pricing where the firm prices its output of its internal operations in such a way to optimize the overall profits is called--> Transfer pricing Q)- implies that firms sacrifice current profits in order to deter entry of new firms and earn future profits~> Limit pricing QJThis is a technique widely used in the hotel sector, but equally valid in all mai Contribution pricing Q)Rate of return pricing is a modified form of —--— pricing--> Full cost a, Q)smart Market mechanism as a possible model to price--> Internet usa QJAll pricing models require ----- to be pervasive on the internet--#E-cor @|—— monopoly refers to’a market situation in which a single prodwgerfapes a single buyer-—> Bilateral monopoly QJIt is a period of more than ten years in which chat eye themselves to supply--> Secular period QJThere will be place for ---— under monopoly be b i ie production--> Supernormal profits ice is greater than cost of Q)|f marginal revenue exceeds marginal contig Broiluct, the monopolist can increase his profit by increasing his --~-~> Production ei Q)- are not totally absent, such i found in some areas~> Competitive markets Q)The businesses involved iran financial ability to make the ne t¥pe of industry are typically snt-> Very large because they have the Q\----- are those which are just stifficlent to induce the firms to stay in business--> Normal profits Othe price at which derma and > Eq QJA high retention rat fof groypth, as retained profits provide--> Internal source of funds Q\Galbralth and of Managerial Utility Maximisation is called--> Managerial mse Theory {Ss is 1 pater of the theory of monopolistic competition--> Prof. Chamberliin jeature of monopolistic competition is --~-~-» Product differentiation an meet ise Of different oligopolies is another remarkable feature--> Lack of uniformity cee opposite of --—----> Competition www.jntukdu.com http://intukresults.org |https://jntubook.com