School of Distance Education

UNIVERSITYOFCALICUT
SCHOOLOFDISTANCEEDUCATION

BCOM/BBA(2011Admn.Onwards)
ISEMESTER
COMPLEMENTARYCOURSE
MANAGERIALECONOMICS
QUESTIONBANK
1. ThefamousbookoneconomicsAnEnquiryintotheNatureandCauseofWealthofNationwas
Writtenby
a. AlfredMarshall
b. AdamSmith
c. JMKeynes
d. ACPigou
2. Wealth(Classical)definitionofeconomicsisgivenby
a. ACPigou
b. LionelRobbins
c. AdamSmith
d. AlfredMarshall
3. .isknownasthefatherofeconomics
a. ACPigou
b. LionelRobbins
c. AdamSmith
d. AlfredMarshall
4. Welfare(neoclassical)definitionofeconomicsisgivenby
a. JBSay
b. LionelRobbins
c. AdamSmith
d. AlfredMarshall
5. Thescarcity(New)definitionissuggestedby
a. ACPigou
b. LionelRobbins
c. AdamSmith
d. AlfredMarshall
6. Microeconomicsstudiestheeconomicactionsandbehaviorof
a. Individualunits
b. Economicaggregates
c. Totalemployment
d. Generalpricelevel
7. Macroeconomicsisconcernedwith
a. Thetheoryoffirm
b. Householdexpenditure
c. Generalpricelevel
d. Individualconsumerbehavior
8. TheauthorofthebookTheGeneralTheoryofEmployment,InterestandMoney
a. AlfredMarshall
b. AdamSmith
c. JMKeynes
d. ACPigou
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9. ManagerialEconomicsis
a. Dealingonlymicroaspects
b. Onlyanormativescience
c. Dealswithpracticalaspects
d. Alloftheabove
10. Moderndefinitionisalsocalledas
a. Growthdefinition
b. Welfaredefinition
c. scarcitydefinition
d. Neoclassicaldefinition
11. Economicswasclassifiedintomicroandmacroby
a. RagnarFrisch
b. AdamSmith
c. JMKeynes
d. ACPigou
12. WhoisregardedasafatherofBusinessEconomics
a. JoelDean
b. AdamSmith
c. JMKeynes
d. RagnarFrisch
13. Decisionmakingandarethetwoimportantfunctionsofexecutiveofbusinessfirms
a. Forwardplanning
b. Directing
c. Supervising
d. Administration
14. Arupeetomorrowisworthlessthanarupeetodayrelatesto
a. Opportunitycostprinciple
b. Discountingprinciple
c. Equimarginalprinciple
d. Noneofthese
15. .ismicroeconomictheory
a. Demandtheory
b. Pricetheory
c. Incometheory
d. Noneofthese
16. Macroeconomictheoryisalsocalledas
a. Demandtheory
b. Pricetheory
c. Incometheory
d. Noneofthese
17. Allocationofavailableresourcesamongalternativesisbasedontheprinciple
a. Opportunitycostprinciple
b. Discountingprinciple
c. Equimarginalprinciple
d. Noneofthese
18. Thetechniquesofoptimizationinclude
a. Marginalanalysis
b. Calculus
c. Linearprogramming
d. Alloftheabove

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19. Whichoneisnotacharacteristicsofmanagerialeconomics
a. Microeconomics
b. Normativescience
c. Positivescience
d. Pragmatic
20. Whichisthecharacteristicsofmanagerialeconomics
a. Dealswithbothmicroandmacroaspects
b. Bothpositiveandnormativescience
c. Dealswiththeoreticalaspects
d. Dealswithpracticalaspects.
21. .is economic theory used in business whereas .is economics theory used in business and
nonbusinessorganization
a. Microeconomics,macroeconomics
b. Businesseconomics,managerialeconomics
c. Positiveeconomicsandnormativeeconomics
d. Noneofthese
22. Managerialeconomicsisalsocalled
a. Microeconomics
b. Theoryofthefirm
c. Economicsofthefirm
d. Alloftheabove.
23. Whichofthefollowingisnotincludedinfunctionsofmanagerialeconomists
a. Salesforecasting
b. Industrialmarketresearch
c. Adviceonforeignexchange
d. Noneoftheabove
24. Whichofthefollowingisincludedinspecificfunctionsofmanagerialeconomists
a. Economicanalysisofcompetingcompanies
b. Adviceonpricingproblemsofindustry
c. Environmentalforecasting
d. Alloftheabove
25. Whichofthefollowingisnotafunctionofmanagerialeconomists
a. Adviceontradeandpublicrelations
b. Economicanalysisofagriculture
c. Investmentanalysis
d. Supervisionandcontrol
26. Whichofthefollowingisnotafunctionofmanagerialeconomist
a. Analysisofunderdevelopedeconomies
b. Capitalprojectappraisal
c. Adviceonprimarycommodities
d. Noneofthese
27. Basiceconomictoolsofmanagerialeconomicsinclude
a. Opportunitycostprinciple
b. Incrementalprinciple
c. Discountingprinciple
d. Alloftheabove
28. Basiceconomictoolsofmanagerialeconomicsdoesnotinclude
a. Principleoftimeperspective
b. Equimarginalprinciple
c. Incrementalprinciple
d. Noneofthese

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29. ..principleiscloselyrelatedtothemarginalcostsandmarginalrevenueofeconomictheory
a. Principleoftimeperspective
b. Equimarginalprinciple
c. Incrementalprinciple
d. Noneofthese
30. Analysisoflongrunandshortrunaffectsofdecisionsonrevenueaswellascostsisbasedon
a. Principleoftimeperspective
b. Equimarginalprinciple
c. incrementalprinciple
d. Noneofthese
31. ineconomicsmeansdemandbackedupbyenoughmoneytopayforthegoodsdemanded
a. Utility
b. Consumption
c. Supply
d. Demand
32. Wantsatisfyingpowerofcommodityiscalled
a. Demand
b. Utility
c. Satisfaction
d. Consumption
33. Ineconomics,desirebackedbypurchasingpowerisknownas
a. Utility
b. Demand
c. Consumption
d. Scarcity
34. ThedemandhasthreeessentialsDesire,Purchasingpowerand..
a. Quantity
b. Cash
c. Supply
d. Willingnesstopurchase
35. means an attempt to determine the factors affecting the demand of a commodity or service
andtomeasuresuchfactorsandtheirinfluences
a. Demandplanning
b. Demandforecasting
c. Demandanalysis
d. Demandestimation
36. isknownasthefirstlawinmarket
a. Lawofsupply
b. Lawofconsumption
c. Lawofdemand
d. Lawofproduction
37. Demand=Desires++willingnesstopay
a. Supply
b. utility
c. Want
d. Purchasingpower
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38. Lawofdemandshowsthefunctionalrelationshipbetween.andquantitydemanded
a. Supply
b. Cost
c. Price
d. Requirements
39. Therelationshipbetweenpriceandquantitydemandedis
a. Direct
b. Inverse
c. Linear
d. Nonlinear
40. .meansrelationshipbetweendemandanditsvariousdeterminantsexpressedmathematically
a. Demandextension
b. Demandcontraction
c. Demandanalysis
d. Demandfunction
41. D=f(P,Y,T,Ps,U),wheretheletterUstandsfor
a. Utility
b. Unitsofconsumption
c. Usage
d. Consumerexpectation&others
42. Intheabovefunction,thelettersPsstandsfor
a. Preferenceofconsumers
b. Priceofcommodity
c. Priceofsubstitutes
d. Productsupply
43. Intheabovefunction,theletterYstandsfor
a. Yieldofproduction
b. Incomeofconsumers
c. Utility
d. Supply
44. Intheabovefunction,theletterTstandsfor
a. Targetprice
b. Totalsupply
c. Totalconsumption
d. Tasteandpreferenceofconsumers
45. Basicassumptionsoflawofdemanddoesnotinclude
a. Thereisnochangeinconsumerstasteandpreference
b. Incomeshouldremainconstant.
c. Pricesofothergoodsshouldchange.
d. Thereshouldbenosubstituteforthecommodity
46. Basicassumptionsoflawofdemandinclude
a. Pricesofothergoodsshouldchange.
b. Thereshouldbesubstituteforthecommodity.
c. Thecommodityshouldnotconferanydistinction.
d. Thedemandforthecommodityshouldnotbecontinuous

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47. Generallydemandcurvehave
a. Negativeslope
b. Positiveslope
c. Horizontalline
d. Verticalline
48. The change in demand due to change in price only, where other factors remaining constant, it is
called.
a. Shiftindemand
b. Extensionofdemand
c. Contractionofdemand
d. Bothextensionandcontraction
49. Whenthequantitydemandedofacommodityrisesduetoafallinprice,itiscalled
a. Extension
b. Upwardshift
c. Downwardshift
d. Contraction
50. Whenthequantitydemandedfallsduetoariseinprice,itiscalled
a. Extension
b. Upwardshift
c. Downwardshift
d. Contraction
51. Whenthedemandchangesduetochangesinotherfactors,liketasteandpreferences,income,price
ofrelatedgoodsetc...,itiscalled
a. Extensionofdemand
b. Contractionofdemand
c. Shiftindemand
d. Noneofthese
52. InthecaseofConsumermaymovestohigherorlowerdemandcurve
a. Extensionofdemand
b. Contractionofdemand
c. Shiftindemand
d. Slopesindemand
53. TheGiffengoodsare.Goods
a. Inferiorgoods
b. Superiorgoods
c. Relatedgoods
d. Samegoods
54. Higherthepriceofcertainluxuriousarticles,higherwillbethedemand,thisconceptiscalled
a. Giffeneffects
b. Vebleneffects
c. Demonstrationeffects
d. Bothb&cabove
55. Demandformilk,sugar,teaformakingtea,isanexampleof
a. Compositedemand
b. Derivativedemand
c. Jointdemand
d. Directdemand
56. Demandforelectricityisanexampleof
a. Compositedemand
b. Derivativedemand
c. Jointdemand
d. Directdemand
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57. Demandfortyresdependsondemandofvehicles,thedemandfortyrescalledas
a. Compositedemand
b. Derivativedemand
c. Jointdemand
d. Directdemand
58. Determinantsofdemandincludes
a. Priceofacommodity
b. Natureofcommodity
c. Incomeandwealthofconsumer
d. Alltheabove
59. ExceptionalDemandCurve(Perversedemandcurve)
a. Movingupwardfromlefttoright
b. Movingupwardfromrighttoleft
c. Movinghorizontally
d. Movingvertically
60. Whichofthefollowingisnotanexceptiontothedownwardslopingofdemandcurve
a. Giffenparadox
b. Vebleneffects
c. Necessaries
d. Incomeeffect
61. TheconceptofElasticityofDemandwasintroducedby
a. AlfredMarshall
b. LionelRobbins
c. Adamsmith
d. JMKeynes
62. PriceElasticityofdemand=
a. Proportionatechangeinquantitydemanded
Proportionatechangeinprice
b. ChangeinQuantitydemanded/Quantitydemanded

ChangeinPrice/price
c. (Q2Q1)/Q1
(P2P1)/P1
d. Alltheabove
63. Whenasmallchangeinpriceleadstoinfinitechangeinquantitydemanded,itiscalled
a. Perfectlyelasticdemand
b. Perfectlyinelasticdemand
c. Relativeelasticdemand
d. Relativeinelasticdemand
64. Quantityremainsthesamewhateverthechangeinprice,thisisthecaseof
a. Perfectlyelasticdemand
b. Perfectlyinelasticdemand
c. Relativeelasticdemand
d. Relativeinelasticdemand
65. Inthecaseofasmallchangeinpriceleadstoverybigchangeinquantitydemanded
a. Perfectlyelasticdemand
b. Perfectlyinelasticdemand
c. Relativeelasticdemand
d. Unitelasticdemand

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66. Incaseof..quantitydemandedchangeslessthanproportionatetochangesinprice
a. Perfectlyelasticdemand
b. Perfectlyinelasticdemand
c. Relativeelasticdemand
d. Relativeinelasticdemand
67. Whenthechangeindemandisexactlyequaltothechangeinprice,itiscalled
a. Perfectlyelasticdemand
b. Perfectlyinelasticdemand
c. Relativeelasticdemand
d. Unitaryelasticdemand
68. Ep=0inthecaseofelasticity
a. Perfectlyelasticdemand
b. Perfectlyinelasticdemand
c. Relativeelasticdemand
d. Unitaryelasticdemand
69. Perfectelasticityisknownas
a. Finiteelastic
b. Infiniteelastic
c. Unitaryelastic
d. Zeroelastic
70. Inthecaseofperfectelasticity,thedemandcurveis
a. Vertical
b. Horizontal
c. Flat
d. Steep
71. inthecaseofperfectinelasticity,thedemandcurveis
a. Vertical
b. Horizontal
c. Flat
d. Steep
72. EP=.inthecaseofrelativelyelasticdemand
a. 1
b. >1
c. <1
d. 0
73. EP=incaseofrelativelyinelasticdemand
a. 0
b. Infinite
c. 1
d. <1
74. Inthecaseofunitaryelasticdemand,theshapeofdemandcurveis
a. Verticalline
b. Horizontalline
c. Rectangularhyperbola
d. Steep
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75. Unitaryelasticityofdemandmean
a. EP=>1
b. EP=<1
c. EP=o
d. EP=1
76. showsthechangeinquantitydemandedasaresultofachangeinconsumersincome
a. Priceelasticity
b. Crosselasticity
c. Incomeelasticity
d. Noneofthese
77. Forthecommoditieslikesalt,sugaretc.,theincomeelasticitywillbe
a. Zero
b. Negative
c. Positive
d. Unitary
78. whenincomeincreases,quantitydemandedfalls,itis
a. Positiveincomeelasticity
b. Zeroincomeelasticity
c. Negativeincomeelasticity
d. Unitaryincomeelasticity
79. Anincreaseinincomemayleadtoanincreaseinthequantitydemanded,itis
a. Positiveincomeelasticity
b. Zeroincomeelasticity
c. Negativeincomeelasticity
d. Unitaryincomeelasticity
80. Apositiveincomeelasticitymaybe
a. Unitincomeelasticity
b. Incomeelasticitygreaterthanunity
c. Incomeelasticitylessthanunity
d. Anyoftheabove
81. Theproportionatechangeinthequantitydemandedofacommodityinresponsetochangeintheprice
ofanotherrelatedcommodityiscalled
a. Priceelasticity
b. Relatedelasticity
c. Crosselasticity
d. Incomeelasticity
82. Teaandcoffeeare
a. Complimentarygoods
b. Substitutegoods
c. Supplementarygoods
d. Reservegoods
83. Carandpetrolare
a. Complimentarygoods
b. Substitutegoods
c. Supplementarygoods
d. Reservegoods
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84. Ifthecommoditiesaresubstituteinnature,crosselasticitywillbe
a. Negative
b. Positive
c. Zero
d. Anyoftheabove
85. Ifthecommoditiesarecomplimentary,crosselasticitywillbe
a. Negative
b. Positive
c. Zero
d. Anyoftheabove
86. Theresponsivenessofdemandduetoachangeinpromotionalexpensesiscalled
a. Expenditureelasticity
b. Advertisementelasticity
c. Promotionalelasticity
d. Aboveborc
87. Whichoneisthemethodformeasurementofelasticity
a. ProportionalorPercentageMethod
b. OutlayMethod
c. Geometricmethod
d. Alltheabove
88. Outlaymethodofmeasurementofelasticityisalsocalledas
a. Percentagemethod
b. Expendituremethod
c. Pointmethod
d. Geometricmethod
89. .methodmeasureselasticitybetweentwopoints
a. ProportionalorPercentageMethod
b. OutlayMethod
c. Geometricmethod
d. ArcMethod
90. Demandfornecessarygoods(salt,rice,etc,)is.anddemandforcomfortandluxurygoodis
a. Elastic,inelastic
b. Inelastic,elastic
c. Elastic,elastic
d. Inelastic,inelastic
91. ..istheprocessoffindingcurrentvaluesofdemandforvariousvaluesofpricesandother
determiningvariables.
a. DemandEstimation
b. Demandanalysis
c. Demandfunction
d. Demandforecasting
92. Toolsandtechniquesfordemandestimationincludes;
a. Consumersurveys.
b. consumerclinicsandfocusgroups
c. MarketExperiment
d. Allotheabove
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93. isanobjectiveassessmentofthefuturecourseofdemand
a. DemandEstimation
b. Demandanalysis
c. Demandfunction
d. Demandforecasting
94. .demandforecastingisrelatedtothebusinessconditionsprevailingintheeconomyasawhole
a. Macrolevel
b. Industrylevel
c. Firmlevel
d. Noneofthese
95. demandforecastingispreparedbydifferenttradeassociationinordertoestimatethe
demandforparticularindustriesproducts
a. Macrolevel
b. Industrylevel
c. Firmlevel
d. Noneofthese
96. forecasting is more important from managerial view point as it helps the management in
decisionmakingwithregardtothefirmsdemandandproduction.
a. Macrolevel
b. Industrylevel
c. Firmlevel
d. Noneofthese
97. PurposesofShorttermDemandforecastingincludes;
a. Makingasuitableproductionpolicy.
b. Toreducethecostofpurchasingrawmaterialsandtocontrolinventory.
c. Decidingsuitablepricepolicy
d. Alltheabove
98. PurposesofShorttermDemandforecastingdoesntincludes;
a. Decidingsuitablepricepolicy
b. Settingcorrectsalestargetonthebasisoffuturedemand
c. Forecastingshorttermfinancialrequirements
d. Noneofthese
99. PurposesofShorttermDemandforecastingdoesntincludes;
a. Makingasuitableproductionpolicy.
b. Toreducethecostofpurchasingrawmaterialsandtocontrolinventory.
c. Decidingsuitablepricepolicy
d. Planningofanewunitorexpansionofexistingunit
100.
PurposesoflongtermDemandforecastingdoesntincludes;
a. Planningofanewunitorexpansionofexistingunit.
b. Planninglongtermfinancialrequirements.
c. Planningofmanpowerrequirements.
d. Decidingsuitablepricepolicy
101.
PurposesoflongtermDemandforecastingincludes
a. Makingasuitableproductionpolicy.
b. Toreducethecostofpurchasingrawmaterialsandtocontrolinventory.
c. Decidingsuitablepricepolicy
d. Planningofanewunitorexpansionofexistingunit

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102.

Surveymethodofdemandforecastingincludes
a. Opinionsurvey
b. Expertopinion
c. Delphimethod
d. Alltheabove
103.
MethodisalsoknownasSalesForceCompositemethodorcollectiveopinionmethod
a. Opinionsurvey
b. Expertopinion
c. Delphimethod
d. Consumerinterviewmethod
104.
Under..Method,apanelisselectedtogivesuggestionstosolvetheproblemsinhand
a. Opinionsurvey
b. Expertopinion
c. Delphimethod
d. Consumerinterview
105.
ConsumerInterviewmethodofdemandforecastingmayundertakenby;
a. Completeenumeration
b. Samplesurvey
c. Endusemethod
d. Alltheabove
In .. approach, the demand for new product is estimated on the basis demand of existing
106.
product
a. Growthcurveapproach
b. Evolutionaryapproach.
c. Opinionpollingapproach
d. Vicariousapproach.
107.
In.approach,Consumersreactionsonthenewproductsarefoundoutindirectlywiththehelp
ofspecializeddealers
a. Growthcurveapproach
b. Evolutionaryapproach.
c. Opinionpollingapproach
d. Vicariousapproach.
108.
Inapproach,onthebasisofthegrowthofanestablishedproduct,thedemandforthenew
productisestimated
a. Growthcurveapproach
b. Evolutionaryapproach.
c. Opinionpollingapproach
d. vicariousapproach
109.
Methodofdemandforecastingisalsocalledeconomicmodelbuilding
a. Opinionsurvey
b. Completeenumeration
c. Correlationandregression
d. Delphimethod
110.
Criteriaforgooddemandforecastingincludes;
a. Plausibility
b. Simplicity
c. Economy
d. Alltheabove.
111.
..isthebaseofmarketingplanning
a. DemandEstimation
b. Demandanalysis
c. Demandfunction
d. Demandforecasting

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112.

Growthcurveapproachisusedforforecastingdemandof.products
a. New
b. Old
c. Existing
d. Botholdandexisting.
113.
Whichofthefollowingisnotamethodofdemandforecastingofnewproducts
a. Trendprojection
b. Substituteapproach
c. Evolutionaryapproach
d. Salesexperienceapproach
114.
..=R2R1/Q2Q1
a. Averagerevenue
b. Totalrevenue
c. Marginalrevenue
d. Incrementalrevenue
115.
..Measuresthedifferencesbetweenthenewtotalrevenueandexistingtotalrevenue
.a.Averagerevenue
b. Totalrevenue
c. Marginalrevenue
d. Incrementalrevenue
116.
.meansthetotalreceiptsfromsalesdividedbythenumberofunitsold.
a.Averagerevenue
b. Totalrevenue
c. Marginalrevenue
d. Incrementalrevenue
117.
SolongasAverageRevenueisfalling,MarginalRevenuewillbe.AverageRevenue
a. Lessthan
b. Morethan
c. Equalto
d. Noneofthese
118.
WhereMarginalrevenueisnegative,TRwillbe..
a. Rising
b. Falling
c. Zero
d. One
119.
TotalRevenuewillbemaximumatthepointwhereMarginalRevenueis
a. One
b. Zero
c. <1
d. >1
120.
..isthechangeintotalrevenueirrespectiveofchangesinpriceorduetotheeffectof
managerialdecisiononrevenue
a. Averagerevenue
b. Totalrevenue
c. Marginalrevenue
d. Incrementalrevenue
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121.

122.

123.

124.

125.

126.

127.

128.

129.

In..pricingfixedcostareexcluded.
a. skimmingpricing
b. goingratepricing
c. administeredpricing
d. marginalcostpricing
Fixinghighpriceduringtheintroductioniscalled
a. skimming
b. penetrating
c. fullcostpricing
d. targetpricing
Thefirmchargespriceintunewiththeindustryspriceiscalled
a. competitivepricing
b. goingratepricing
c. tunepricing
d. targetpricing
Methodofcharginglowpriceinitiallycalled
a. skimming
b. penetrating
c. fullcostpricing
d. targetpricing
Pricingisdoneonthebasisofmanagerialdecisions,notonthebasisofcost,demandetc
a. Managerialpricing
b. Administeredpricing
c. Fullcostpricing
d. Competitivepricing
Whichofthefollowingmethodofpricingispopularinwholesaleandretailtrades
a. skimming
b. penetrating
c. fullcostpricing
d. targetpricing
Whichoneofthefollowingisnotaninternalfactorinfluencingpricingpolicy
a. cost
b. objectives
c. marketingmix
d. demand
Whichoneofthefollowingisaninternalfactorinfluencingpricing
a. demand
b. competition
c. distributionchannel
d. productlifecycle
Costpluspricingisalsocalled
a. marginpricing
b. fullcostpricing
c. markuppricing
d. alltheabove

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130.

Averagecostpricingisalsocalledas
a. costpluspricing
b. marginalcostpricing
c. marginpricing
d. botha&c
131.
Underwhichmethod,thecostisaddedwiththepredeterminedtargetrateofreturnoncapital
invested
a. Costpluspricing
b. Targetpricing
c. Markuppricing
d. Noneofthese
132.
Targetpricingisalsocalledas
a. Costpluspricing
b. Rateofreturnpricing
c. Markuppricing
d. Noneofthese
133.
UndertheMarginalcostpricing,thepriceisdeterminedonthebasisof;
a. Fixedcost
b. Variablecost
c. Totalcost
d. Averagecost
134.
CinemaTheater,telephonebillsetc..arefollowing
a. Fullcostpricing
b. Marginalcostpricing
c. Differentialpricing
d. Markuppricing
135.
Pricediscriminationisalsocalledas
a. Discriminatorypricing
b. Differentialpricing
c. Averagecostpricing
d. a&babove
136.
ThemethodofpricingwhichisalsoknownasParitypricingandAcceptancepricingis
a. Differentialpricing
b. Goingratepricing
c. Discriminatorypricing
d. Markuppricing
137.
Thepricingofcupofteaorcoffee,isanexampleof
a. Markuppricing
b. Marginalcostpricing
c. Conventionalpricing
d. Costpluspricing
138.
isthemethodofleadershippricing
a. Goingratepricing
b. Followuppricing
c. Barometricpricing
d. Paritypricing
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139.

140.

141.

142.

143.

144.

145.

146.

147.

Generallyusedstrategyforpricingnewproductsis/are
a. Skimmingpricestrategy
b. Penetrationpricestrategy
c. Botha&b
d. Noneofthese
provideguidelinestocarryout
a. Pricingstrategies,pricingpolicies
b. Pricingpolicies,pricingstrategies
c. Pricingrules,pricingpolicies
d. Pricingrules,pricingstrategies
Psychologicalpricingisalsocalledas;
a. Penetrationpricing
b. Skimmingpricing
c. Oddpricing
d. Noneofthese
PricesofBatashoeasRs.99.99,thispricingis
a. Markuppricing
b. Oddpricing
c. Marginalcostpricing
d. Followuppricing.
Whichoneofthefollowingisnotareasonforadoptingskimmingpricestrategy
a. Whenthedemandofnewproductisrelativelyinelastic.
b. Whenthereisnoclosesubstitutes
c. Elasticityofdemandisnotknown
d. Producthashighpriceelasticityintheinitialstage
Whichoneofthefollowingisnotareasonforadoptingpenetrationpricestrategy
a. Producthashighpriceelasticityintheinitialstage.
b. Theproductisacceptedbylargenumberofcustomers.
c. Economiesoflargescaleproductionavailabletofirm
d. Whenthebuyersarenotabletocomparethevalueandutility
Customarypricingisalsoknownas
a. Consumerpricing
b. Conventionalpricing
c. Costpluspricing
d. Fullcostpricing
Whichofthefollowingis/arethereasonforadoptingpenetrationpricestrategy
a. Economiesoflargescaleproductionavailabletofirm.
b. Potentialmarketfortheproductislarge.
c. Costofproductionislow.
d. Alltheabove
Whichofthefollowingis/arethereasonforadoptingskimmingpricestrategy
a. Whenthebuyersarenotabletocomparethevalueandutility.
b. Toattractthehighincomecustomers.
c. Whentheproducthasdistinctivequalities,luxuries
d. Alltheabove

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148. In a perfectly competitive market, individual firm

a)
b)
c)
d)

cannot influence the price of its product

can influence the price of its product
can fix the price of its product
can influence the market force

149. Perfect competition is characterized by

a)
b)
c)
d)

large number of buyers and sellers

homogeneous product
free entry and exit of firms
all the above

150. The market with a single producer

a)
b)
c)
d)

perfect competition
monopolistic competition
oligopoly
monopoly

151. Selling cost is the feature of the market form

a)
b)
c)
d)

monopoly
monopolistic competition
oligopoly
none of these

152 The product under monopolistic competition are

a)
b)
c)
d)

differentiated with close substitute

perfect substitute
differentiated without close substitute
homogeneous

153. In the oligopoly market there are

a)
b)
c)
d)

large no. of firms

a few firms
a single firm
an infinite no. of firms

154. The concept of product differentiation was introduced by

a)
b)
c)
d)

TR Malthus
JM Keynes
Mrs. Robinson
Chamberlin

155. The short run production function is called;

a)
b)
c)
d)

Returns to scale
law of variable proportion
Production possibility frontier
None of these

156. Under oligopoly a single seller cannot influence significantly

a)
b)
c)
d)

market price
quantity supplied
advertisement cost
all the above

157. Average revenue is the revenue per

a)
b)
c)
d)

unit commodity sold

total commodity sold
marginal commodity sold
none of these

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158. The distinction between variable cost and fixed cost is relevant only in
a)
b)
c)
d)

long period
short period
medium term
mixed period

159. The condition for the long run equilibrium of a perfectly competitive firm
a)
b)
c)
d)

Price=MC=AC
Price=TC
MC=AVC
MC=MR

160. Product differentiation is the important feature of

a)
b)
c)
d)

monopoly
perfect competition
monopolistic competition
monophony

161. The architect of the theory of monopolistic competition

a)
b)
c)
d)

Rosenstein Roden
JR Hicks
Karl Marx
Chamberlin

162. The no. of firms under oligopoly is

a)
b)
c)
d)

1
2
many
few

163. The law of diminishing returns applies more to

a)
b)
c)
d)

agriculture
industry
services
commerce

164. The opportunity cost of a given activity is

a)
b)
c)
d)

the value of next best activity

the value of material used
the cost of input used
none of these

165. The function of combining the other factors of production is done by

a)
b)
c)
d)

land
labour
Capital
Entrepreneurship

166. The factors used in the production

a)
b)
c)
d)

Land and labor

capital & entrepreneurship
both a&b
only capital

167. In a perfect market both buyers and sellers are

a)
b)
c)
d)

price maker
price giver
price taker
all the above

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168. Which is the determinant of the pricing policy of a firm?

a) Channel of distribution
b) Age of product
c) Consumer association
d) All of these
169. Information for pricing decisions involves:
a) Product information
b) Market information
c) Information at the micro level
d) All of these
170. Which is the reason of skimming price?
a) Inelastic demand
b) Diversion of market
c) Safer price policy
d) All of these
171. Which is the condition of for market penetration?
a) High price elasticity of demand in the short run
b) Savings in production costs
c) Threat of potential competition
d) All of these
172. Production may be defined as an act of:
a) Creating utility
b) Earning profit
c) Destroying utility
d) Providing services
173. The demand curve of a firm in the case of perfect competition is:
a) Parallel to output axis
b) Increasing with the output axis
c) Decreasing with the output axis
d) Complete
174. The implication of the kinked demand curve is reflected in a discontinuity in the:
a) Marginal revenue curve
b) Marginal cost curve
c) Total revenue curve
d) Total cost curve
175. The concept of monopsony was invented by:
a) Marshall
b) AP. Learner
c) Chamberlin
d) Mrs. J. Robinson
176. A firm that is the sole seller of a product without close substitutes called:
a) Monopoly
b) Oligopoly
c) Competition
d) Bureaucracy
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177. When all the productive services are increased in a given proportion, the product is
increased in the same proportion. This situation is called:
a) Law of increasing
b) Situation of constant returns
c) Fixed cost
d) Variable cost
178. Which factors is/are influencing price policy?
a) Cost of product
b) Time factor
c) Government policy
d) All of these
179. Pricing methods are:
a) Standard cost method
b) Learning curve method
c) Marginal cost method
d) All of these
180. Which is the feature of perfect competition?
a) Large number of buyers and sellers
b) Freedom of entry and exit
c) Normal profit in the long run
d) All of these
181. Which is/are the salient features of monopolistic competition?
a) Large number of sellers
b) Normal profit
c) Free entry and exit of firms in industry
d) All of these
182. Which are the characteristics of monopoly?
a) Single seller or producer
b) No close substitutes
c) Inelastic demand curve
d) All of these
183. The causes of emergence of monopoly is/are:
a) Concentration of ownership of raw materials
b) State regulation
c) Public utility services
d) All of these
184. Which are not the features of oligopoly?
a) Few sellers
b) Advertising and sales promotion
c) One firm
d) Conflicting attitudes of firms
185. The monopoly can be controlled by:
a) Social boycott
b) Antimonopoly legislation
c) Public ownership
d) All of these
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186. The properties of indifference curves are:

a) Indifference curve slops downwards from left to right
b) Convex to the point of origin
c) Two indifference curve never cut each other
d) All of these
187. Price discrimination occurs when variation in prices for a product in different markets does not
reflect variation?
a) Costs
b) Price
c) Demand
d) All of these
188. A cost that has already been committed and cannot be recovered known as:
a) Sunk cost
b) Total cost
c) Full cost
d) Variable cost
189. The competitive firms long run supply curve is the portion of its ..curve lies above
average total cost.
a) Marginal cost
b) Revenue cost
c) Fixed cost
d) All of these
190. Whenever marginal cost is more than average total cost is falling:
a) Average total revenue
b) Average total cost
c) Average profit
d) All of these
191. Whenever ..is greater than average total cost, average total cost is rising.
a) Marginal cost
b) Variable cost
c) Fixed cost
d) Full cost
192. The claim that, other things equal, the quantity supplied of a goods rises when the price of
goods raises known as:
a) Law of economics
b) Law of supply
c) Law of demand
d) All of these
193. The marginal revenue equation can be derived from the:
a) Demand equation
b) Supply equation
c) Cost equation
d) Price equation

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194. Marginal revenue is .at the quantity that generate maximum total revenue and
negative beyond that point.
a) Zero
b) One
c) +1
d) -1
195. ------------is situation of severely falling prices and lowest level of economic activities
a) Boom
b) Recovery
c) Recession
d) Depression
196. ------------is situation with increased investment and increased price
a) Recession
b) Progress
c) Boom
d) Recovery
197. Which of the following is not a macroeconomic concept?
a) Business cycle
b) National income
c) Government policy
d) None of these
198. Where boom ends,.. starts
a) Recovery
b) Recession
c) Progress
d) Depression
199. Factors which change over a long period of time are called..factors
a) Business
b) Cyclic
c) Secular
d) All the above
200. In business cycle concept, the period of long wave is of;
a) 25 years
b) 50 years
c) 100 years
d) 200 years
201. In business cycle concept, the period (approximately) of Kit chin cycle is of:
a) 5 years
b) 10 months
c) 2 years
d) 4 months
202. The law of variable proportion is first explained by
a) Edward west
b) Marshall
c) Veblen
d) Keynes
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203. Functional relationship between input and output known as

a) Conversion
b) Production function
c) Work in progress
d) Output function
204. Iso-cost line indicate the price of
a) Output
b) Inputs
c) Finished goods
d) Raw material
205. ..product will never be zero or negative
a) Marginal
b) Total
c) Average
d) All the above
206. A graph indicating different combination of inputs with different level of output is called
a) Iso-cost map
b) BEP map
c) Input-output map
d) Iso-quant map
207. Which is not a property of ISOQUANT?
a) Downward sloping
b) Convex
c) Negative slope
d) Positive slope
208. Which of the following is not a variable input?
a) Raw material
b) Power
c) Equipment
d) None of these
209. Which of the following is a short run law?
a) Law of constant return to scale
b) Law of increasing return to scale
c) Law of diminishing return
d) None of these
210. is called produced means of production
a) Land
b) Labour
c) Capital
d) Raw material
211. In the long run all input become
a) Fixed
b) Variable
c) Semi variable
d) None of these
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212. The term Economies refers to

a) Product advantage
b) Cost advantage
c) Sales advantage
d) All of the above
213. Who classified economies of scale into internal and external?
a) Robinson
b) Marshall
c) Edward west
d) Pigue
214. Related to production function, MRTS stand for;
a) Marginal revenue and total sales
b) Minimum revenue from total sales
c) Marginal rate of total supply
d) Marginal rate of technical substitution
215. Which of the following is not coming under imperfect competition?
a) Oligopoly
b) Duopoly
c) Monopoly
d) Monopolistic
216. in economics ..means a state of rest or stability
a) Depression
b) Equilibrium
c) Maturity
d) growth
217. In perfect completion, a firm is a
a) Price maker
b) Price taker
c) Both of the above
d) None of these
218. Selling at a lower price in export market and at a higher price at home market is called
a) Export subsidy
b) Dumping
c) Price cut
d) All the above
219. Which of the following is not a feature of monopolistic completion?
a) Large number of producers
b) Free entry and exit
c) More elastic demand
d) Price competition

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Answerkey

QuestionNo
01
02
03
04
05
06
07
08
09
10

Answer
b
c
c
d
b
a
c
c
d
a

QuestionNo
11
12
13
14
15
16
17
18
19
20

Answer
a
a
a
b
b
c
c
d
c
d

QuestionNo Answer
21
b
22
d
23
d
24
d
25
d
26
d
27
d
28
d
29
c
30
a

Answer
d
c
b
d
c
c
a
d
a
d

QuestionNo
51
52
53
54
55
56
57
58
59
60

QuestionNo
31
32
33
34
35
36
37
38
39
40

QuestionNo
61
62
63
64
65
66
67
68
69
70

Answer
d
b
b
d
c
c
d
c
b
d

Answer
a
d
a
b
c
d
d
b
b
b

QuestionNo
41
42
43
44
45
46
47
48
49
50

QuestionNo
71
72
73
74
75
76
77
78
79
80

Answer
a
b
d
c
d
c
a
c
a
d

QuestionNo
81
82
83
84
85
86
87
88
89
90

Answer
c
c
a
b
c
a
b
d
a
d

Answer
c
b
a
b
a
d
d
b
d
b

QuestionNo
91
92
93
94
95
96
97
98
99
100
ManagerialEconomics

Answer
a
d
d
a
b
c
d
d
d
d

QuestionNo
101
102
103
104
105
106
107
108
109
110

Answer
d
d
a
c
d
b
d
a
c
d

QuestionNo
111
112
113
114
115
116
117
118
119
120

Answer
d
a
a
c
d
a
a
b
b
d
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QuestionNo
121
122
123
124
125
126
127
128
129
QuestionNo
148
149
150
151
152
153
154
155
156

QuestionNo
175
176
177
178
179
180
181
182
183
QuestionNo
202
203
204
205
206
207

Answer
d
a
b
b
b
c
d
d
d
Answer
a
d
d
b
a
b
d
b
d

QuestionNo
130
131
132
133
134
135
136
137
138

Answer
d
b
b
b
c
d
b
c
c

QuestionNo
157
158
159
160
161
162
163
164
165

QuestionNo
139
140
141
142
143
144
145
146
147

Answer
a
b
a
c
d
d
a
a
b

Answer
c
b
c
b
d
d
b
d
d

QuestionNo Answer
166
c
167
c
168
d
169
d
170
d
171
d
172
a
173
a
174
a

Answer
d
a
b
d
d
d
d
d
d

QuestionNo
184
185
186
187
188
189
190
191
192

Answer
c
d
d
a
a
a
b
a
b

QuestionNo Answer
193
a
194
a
195
d
196
c
197
d
198
b
199
c
200
b
201
d

Answer
a
b
b
c
d
d

QuestionNo
208
209
210
211
212
213

Answer
c
c
c
b
b
b

QuestionNo Answer
214
d
215
c
216
b
217
b
218
b
219
d

Reserved

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