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Sunday, April 26, 2009

Managerial Economics - 26
LIST O F A T T E M P T E QD U E S T IO N SA N D A N S W E R S

Multiple Choice Single Answer
Question In cost - benefit analysis, after the step of appraisal and selection o
f the project is the step of
Correct Answer comparison of the cash flow
Your Answer comparison of the cash flow

Select The Blank
Question In the context of formulating an investment project, feasibili
ty means the availability of supervisors for implementing and running the projec
t smoothly and professionally.
Correct Answer management
Your Answer management

True/False
Question The externalities that may be an economic gain or economic losses to ot
her economic units are referred to as technological externalities.
Correct Answer False
Your Answer False

Select The Blank
Question The minimum number of directors which private limited should have is
.
Correct Answer 2
Your Answer 3

Multiple Choice Multiple Answer
Question Co-operative organizations is
Correct Answer voluntary organization , managed by democratic principle , organi
zation, which performs its business within the members
Your Answer voluntary organization , managed by democratic principle , organizat
ion, which performs its business within the members

Multiple Choice Multiple Answer
Question Main aims of the N ew Industrial Policy (1991) are
Correct Answer To unshackle the indian industrial economy from the cobwebs of un
necessary bureaucratic control , To introduce liberalization with a view to inte
grate the indian economy with the world economy , To remove restrictions on dire
ct foreign investment as also to free the domestic entrepreneur from the restric
tion of M R T Pact

Your Answer To unshackle the indian industrial economy from the cobwebs of unnec
essary bureaucratic control , To introduce liberalization with a view to integra
te the indian economy with the world economy , To remove restrictions on direct
foreign investment as also to free the domestic entrepreneur from the restrictio
n of M R T Pact

Multiple Choice Multiple Answer
Question Quantitative credit control measures are
Correct Answer open market operations , changes in bank rates , changes in statu

tory reserve ratio
Your Answer open market operations , changes in bank rates , changes in statutor
y reserve ratio

Multiple Choice Single Answer
Question The principle of full employment equilibrium was stated by
Correct Answer Say's Law of Market
Your Answer Say's Law of Market

Select The Blank
Question Increase in consumer's income leads in the demand for inferior goods to

Correct Answer decrease
Your Answer decrease

True/False
Question The congress government led by Narsimha Rao announced the N ew Industria
l Policy in July 1991.
Correct Answer True
Your Answer True

Select The Blank
Question The index numbers which measure the changes in the general price level
of a country refers to
Correct Answer Wholesale prices index
Your Answer Wholesale prices index

Multiple Choice Single Answer
Question Peas & beas, groundnut oil & til oil, tea & coffee are examples of
Correct Answer substitutes goods
Your Answer substitutes goods

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

Multiple Choice Single Answer
Question Variable cost are those costs which vary with the level of
Correct Answer output
Your Answer output

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

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 suggestion of reasonable profit target as an alternative to the obj
ective of profit maximization is by
Correct Answer Joel Dean
Your Answer Joel Dean

Multiple Choice Multiple Answer
Question Different types of business organizations are
Correct Answer private sector , public sector , joint sector
Your Answer public sector , joint sector , private sector

Select The Blank
Question Defence service is an example of good.
Correct Answer indivisible
Your Answer indivisible

Multiple Choice Multiple Answer
Question The advantage of cost-benefit analysis are
Correct Answer Maximization of social welfare , Objective measurement of the tra
de-off , Maximization of difference between total benefits & total costs
Your Answer Maximization of social welfare , Objective measurement of the trade-
off , Maximization of difference between total benefits & total costs

Multiple Choice Single Answer
Question The income which a businessman might expect from the second best altern
ative use of his resources is called as
Correct Answer opportunity cost
Your Answer opportunity cost

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 Th
e theory of distribution

Multiple Choice Single Answer
Question The type economic problem is
Correct Answer universal
Your Answer universal

True/False
Question The defence services are indivisible in the sense that they cannot be p

Correct Answer False Your Answer False True/False Question In a free-enterprise economy. Correct Answer True Your Answer True True/False . Correct Answer divisible Your Answer divisible Select The Blank Question Output rises in a lesser proportion to that of the increase in input. paid-up capit al Your Answer registered or authorized capital . Correct Answer False Your Answer False Multiple Choice Multiple Answer Question Types of Share capital of Joint-Stock Company are Correct Answer registered or authorized capital . u nder the case of . the problems of what how and for w hom are solved by a planning committee Correct Answer False Your Answer False Multiple Choice Single Answer Question Dalal Street in Bombay is known as Correct Answer Bombay Stock Exchange Your Answer Bombay Stock Exchange True/False Question Accounting profit takes in to account opportunity cost. issued capital . issued capital . Correct Answer decreasing returns to scale Your Answer decreasing returns to scale True/False Question The law of supply is not hypothetical. paid-up capital True/False Question A Joint Stock Company is managed by the Board of Directors elected by s hareholders.riced in the market in order to deprive some members of the society from its use or benefits. Correct Answer True Your Answer True Select The Blank Question The good becomes so far as its use is concerned only when it i s priced in the market and the principle of exclusion is applied to it.

C. Correct Answer False Your Answer False Multiple Choice Single Answer Question Every nation's resources which are used to produce the quantities of go ods and services that would be required to satisfy all its citizen's wants are Correct Answer insufficient Your Answer insufficient Multiple Choice Single Answer Question A firm gets an opportunity to produce multiple products because changes in business activity in a firms is Correct Answer cyclical Your Answer cyclical Multiple Choice Multiple Answer Question Major types of costs are Correct Answer Accounting costs .Question A plant is an economic unit which takes various decisions related to pr oduction and distribution.Harberger have shown that the cost benefit analysis can be applied to analysis. Correct Answer limited Your Answer limited Multiple Choice Multiple Answer Question The production function studies Correct Answer Input and out put relation . Factors of production and final product ion . Correct Answer general equilibrium Your Answer general equilibrium . Technology used in production Select The Blank Question A n upward sloping demand curve is called Correct Answer exceptional demand curve Your Answer exceptional demand curve Select The Blank Question Economists like A. Opportunity costs Your Answer Accounting costs . Economic costs . Opportunity costs Multiple Choice Single Answer Question Managerial economics generally refers to the integration of economic th eory with business Correct Answer Practice Your Answer Practice Select The Blank Question The liability of a Karta in a Joint Hindu Family Business firm is . Factors of production and final prod uction . Technology used in production Your Answer Input and out put relation . Economic costs .

C) Multiple Choice Multiple Answer Question Managerial economics deals with Correct Answer Integration of economic theory with business practice . Correct Answer False Your Answer False -------------------------------------------------------------------------------- ----------------------------------- Wednesday. April 22. Correct Answer Marginal cost (M. The use of economic modes of thought to analyze business solution Your Answer Integration of economic theory with business practice . 2009 Managerial Economics .C) Your Answer Marginal cost (M. The use of economic modes of thought to analyze business solution Match The Following Question Correct Answer Your Answer Implicit costs are the cost of resources owned by the firm. the entry & exit of firms is Correct Answer free Your Answer free True/False Question A supply schedule is a graphical presentation of supply patterns. of resources owned b y the firm. mathematics & statistics . Opportunity costs are also known as alternative costs alternative costs The difference between average total cost &average fixed cost shows variable cos t variable cost The difference between average cost and average revenue is average profit averag e profit Multiple Choice Single Answer Question In a market economy. a firm in the private sector basically aims at max imization of Correct Answer money profits Your Answer money profits Multiple Choice Single Answer Question Under pure competition.R) must be equal to .Select The Blank Question The necessary condition of profit maximization of a firm is that Margin al Revenue (M. mathematics & statistics . Using log ic of economics.25 LIST O F A T T E M P T E QD U E S T IO N SA N D A N S W E R S . Using logic of economics.

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. inherited and ac quired as Correct Answer Labour Your Answer Labour Multiple Choice Single Answer Question According to Prof. Low cost of production . on the basis of motive . the economist means total revenue minus . Knight. Correct Answer Prof. Kenneth Boulding Your Answer Joel Dean Select The Blank Question The social costs and benefits are the external economies and diseconomi es resulting from the activities. on the . It avails benefits of cheaper finance . are substantially benefited. the pensioners whose income is permanently fixed. I t avails benefits of cheaper finance Your Answer Low cost of production .H. "externalities" Correct Answer firm's Your Answer firm's Multiple Choice Single Answer Question Economists call all human resources mental. Correct Answer False Your Answer False Select The Blank Question "Homeostatic Approach" as an alternative objective of firms was suggest ed by . 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 . Ava ilability 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'. 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 . the equili brium price changes.True/False Question During inflation. which are known as. F. physical .

on the ba sis of infrastructure Select The Blank Question The liability of a Karta in a Joint Hindu Family Business is . Marginal product increasing and it is maximum . 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 . 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 ot her economic units is also referred to as externality. Average product is increasing but it is below M P Your Answer Total product increases at an increasing rate . Average product is increasing but it is above M P 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 te sts markets Experimental pricing / selection of sample tests / markets Oligopoly Multiple Choice Single Answer . Correct Answer Pecuniary Your Answer Economic True/False Question Micro-economics is primarily concerned with the problem of what. on the basis of motive . Correct Answer limited Your Answer unlimited True/False Question When a change in income has no effect upon the quantity demanded of a p roduct. basis of principle of pricing Your Answer on the basis of economic system . how an d for w hom to produce? Correct Answer False Your Answer True True/False Question During period of depression various factors of production lie unutilize d. Marginal product inc reasing and it is maximum .

M. 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. Trade Cycle / Recession / Recession Rise in costs due to an increase in factor prices / a cause of inflation from su pply side / a cause of inflation from supply side.S. M. geographical barriers Your Answer monopolistic market .) curve is U shaped.D. and ii) the rate of interest.Keynes. 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 . = A. = A.Question During a period of rising prices (inflation). Correct Answer True Your Answer True Multiple Choice Single Answer Question According to J. According to J. Change in fashion and customs Select The Blank Question The form of organization which is best for self employment is . 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. 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 . Change in fash ion and customs Your Answer Change income of consumer .C.E. personnel services sold True/False Question The short run Average Cost (A.C. namely i) the M. personnel services sold .D. there are two factors determining the investment func tion. Change in population . namely . the goods and services ar e Correct Answer scarce Your Answer scarce Select The Blank Question The financing of goods is done through public expenditure.S / A. Keynes.

the speculative motive Multiple Choice Multiple Answer Question The total output of all the commodities in one country over some period . National Product Multiple Choice Multiple Answer Question Co-operative organizations is Correct Answer voluntary organization . non profi t motive organization Select The Blank Question The indivisible goods to which the principle exclusion does not apply a re called goods.i) the consumption. Correct Answer profit Your Answer profit Multiple Choice Single Answer Question Economic problem does not recognize the boundaries of caste. National Product . and ii) the rate of savings. which performs its business within the members Your Answer voluntary organization . the speculat ive motive Your Answer the transactions motive . managed by democratic principle . usually taken as a year is called as Correct Answer Gross National Product . 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 in stitutions 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 liquid ity preference Correct Answer the transactions motive . National Income Your Answer Gross National Product .creed. organi zation. Correct Answer pure public Your Answer pure public Select The Blank Question In a market system of an economy.cultu re 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: . managed by democratic principle . the precautionary motive . producers are guided by moti ve. the precautionary motive .

. Oligopoly Your Answer Monopoly .Correct Answer The two markets in which the product is sold should be kept separ ate . rent . interest Multiple Choice Single Answer Question Depreciation is the value caused by the continuous use of a capital ass et. Market must be imperfect Your Answer The two markets in which the product is sold should be kept separate . no cost to the railways. Your Answer a lot of sufferings to the people near the railway. Correct Answer False Your Answer True Multiple Choice Multiple Answer Question Accounting profit includes Correct Answer wages . but proport ionately 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 . interest Your Answer wages . observed that as income increases. Duopoly . Market m u st be imperfect True/False Question Pure (Net) profit contains an element of monopoly profit.M. The elasticity of demand in different markets should be different . . consumption also increases. Oligopoly Multiple Choice Single Answer Question In the Long run perfect competition and monopolistic competition the fi rm make profits which are Correct Answer normal Your Answer normal ================================================================================ ============================================================ List Of Attempted Questions And Answers . on the basis of a fundamental psychological law of consump tion. Keynes. Duopoly . . The elasticity of demand in different markets should be different . 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. affects the ra ilways Multiple Choice Single Answer Question J. rent . This ac t causes Correct Answer a lot of sufferings to the people near the railway. cost to the society.

It is a partnership or joint stock company Multiple Choice Single Answer Question Whether the economy's capacity to produce goods and services is growing from year to year or remaining static is studied under the Correct Answer Theory of economic growth Your Answer Theory of economic growth Multiple Choice Multiple Answer Question Co-operative organizations is Correct Answer voluntary organization . Aggregate demand Your Answer Effective demand . It is a sole p roprietorship . organi zation.Select The Blank Question The sum of all individual demands constitutes Correct Answer market demand Your Answer market demand True/False Question Under perfect competition. It is a sol e proprietorship . Aggregate supply . Correct Answer Accounting cost Your Answer Accounting cost Multiple Choice Multiple Answer Question Keynes s theory of employment explains Correct Answer Effective demand . Correct Answer False Your Answer True Multiple Choice Single Answer Question Price of a product under perfect competition is determined by the inter action of total supply and Correct Answer total demand Your Answer total demand Select The Blank Question The cost which enter the accounts book of the firm are referred as . managed by democratic principle . It is a partnership or joint stock company Your Answer It is a business unit organized under one ownership . managed by democratic principle . non profi t motive organization . which performs its business within the members Your Answer voluntary organization . Aggregate supply . price is determined by the interaction of to tal demand and total supply in the market. Aggregate demand Multiple Choice Single Answer Question The type economic problem is Correct Answer universal Your Answer universal Multiple Choice Single Answer Question An individual consumer or particular market for a given commodity are t he subject matter of Correct Answer Micro Economics Your Answer Micro Economics Multiple Choice Multiple Answer Question Features of the firm are Correct Answer It is a business unit organized under one ownership .

Multiple Choice Multiple Answer Question Assumptions underlying the law of Supply are Correct Answer The cost of production is unchanged . Your Answer increasing returns to scale. Government policies are unchanged True/False Question Macro-economies is a policy oriented science. Select The Blank Question A n upward sloping demand curve is called Correct Answer exceptional demand curve Your Answer exceptional demand curve Multiple Choice Single Answer Question Every nation s resources which are used to produce the quantities of good s and services that would be required to satisfy all its citizen s wants are Correct Answer insufficient Your Answer insufficient 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 Question related to the efficient production and allocation belong to t he branch of economic theory called Correct Answer Welfare Economics Your Answer Welfare Economics Multiple Choice Single Answer Question The act of using goods and services to satisfy wants is called Correct Answer consumption Your Answer consumption Multiple Choice Multiple Answer Question Explicit costs are Correct Answer Out of pocket costs . Expen diture costs . These are firms accounting expenses . No change in technique of prod uction . Correct Answer increasing returns to scale. No change in technique of p roduction . Correct Answer True Your Answer True Multiple Choice Single Answer Question Expansion of supply is shown by the movement in the supply curve which is Correct Answer upward Your Answer upward Multiple Choice Single Answer Question Liability of a sole trader is Correct Answer unlimited Your Answer unlimited Select The Blank Question If the output rises in the greater proportion than that of the increase in factor inputs. it is referred to as . Government policies are unchanged Your Answer The cost of production is unchanged .

These are firms accounting expenses . Correct Answer stock Your Answer demand Select The Blank Question The form of organization which is best for self employment is . Correct Answer Explicit costs Your Answer Explicit costs Multiple Choice Single Answer Question All the buyers and sellers operating under perfect competition have kno wledge which is Correct Answer perfect Your Answer perfect Match The Following Question Correct Answer Your Answer Resource allocation decisions in free market economy / Theory of price / Theory of price Economic problem / Universal / Universal Managerial Economics / Applied branch of knowledge / Applied branch of knowledge Inflation / Reduction in purchasing power / Theory of price Waste of resources / Involuntary unemployment/ Involuntary unemployment Multiple Choice Multiple Answer Question 16. The phase of recovery denotes Correct Answer More employment opportunities . Increase in profitability . Correct Answer Sole trader Your Answer Sole trader Multiple Choice Single Answer . the accountant means total revenue minus . Correct Answer False Your Answer False Multiple Choice Single Answer Question The things that are produced by factors of production are called Correct Answer commodities Your Answer commodities Select The Blank Question By ' profits'. Wage rate increase Your Answer More employment opportunities . the m arginal product becomes . Correct Answer negative Your Answer negative True/False Question The Keynesian theory emphasizes effective supply as a crucial factor in determining the level of income and employment.Your Answer Out of pocket costs . Increase in profitability . Expendit ure costs Select The Blank Question In the 3rd stage of operation of the law of variable proportions. Wage rat e increase Select The Blank Question Supply is predominantly determined by .

Morris Your Answer Baumol True/False Question Under perfect competition. Evolutionary appro ach Your Answer Evolutionary approach Multiple Choice Single Answer Question Often monopolies purposely keep certain factors of production idle crea ting artificial scarcities of their products as a result the prices Correct Answer rise Your Answer rise Multiple Choice Multiple Answer Question The methods of calculating depreciation is Correct Answer Diminishing Balance Method . Third party effects Your Answer Spill-over effects . Annuity Method . Service Unit Method . Third party effects Multiple Choice Multiple Answer Question Methods of forecasting demand for new products are Correct Answer Product life cycle analysis . Keynes.firms are free to enter and exit in the marke t.M. Correct Answer True Your Answer True Select The Blank Question Perfectly elastic demand curve is Correct Answer horizontal Your Answer horizontal True/False Question The distinction between fixed costs and variable costs is relevant in t he short period only. Test marketing . Correct Answer True Your Answer True Multiple Choice Multiple Answer Question The term externalities may also be referred as: Correct Answer Spill-over effects . Correct Answer True Your Answer True Multiple Choice Single Answer Question J.Question The suggestion of maximization of balanced growth rate as another alter native objective of a firm's profit is suggested by Correct Answer Prof. consumption also increases. Neighborhood effects . but proport ionately Correct Answer less Your Answer less Multiple Choice Single Answer Question The Risk theory of profit was developed by Correct Answer Hawley Your Answer Hawley True/False Question The congress government led by Narsimha Rao announced the N ew Industria l Policy in July 1991. Neighborhood effects . observed that as income increases. on the basis of a fundamental psychological law of consump tion.

2008 Managerial Economics . A place where trans action of goods and services is undertaken Your Answer Place where buyers and sellers meet each other . Correct Answer management Your Answer management True/False Question The sum of total fixed costs and total variable costs is the total cost . M. Service Unit Method Match The Following Question Correct Answer Your Answer Hum an wants unlimited unlimited General Theory of Employment. A building where a number of shops dealing in a particular commodity exist . Annuity Method . Correct Answer True Your Answer True Multiple Choice Multiple Answer Question Features of Market are Correct Answer Place where buyers and sellers meet each other . Correct Answer True Your Answer True -=============================================================================== ============================================================ Labels: Managerial Economics Monday. Keynes J. A building where a number of shops dealing in a particular commodity exist .Your Answer Diminishing Balance Method . Interest and Money J. Keynes Managerial economics Decision making and forward planning Decision making and fo rward planning Resources scarce scarce Commodities goods and services goods and services Select The Blank Question In the context of formulating an investment project. M.1 LIST O F A T T E M P T E QD U E S T IO N SA N D A N S W E R S True/False Question In case of a proprietary firm the liability of the proprietor is limited. feasibili ty means the availability of supervisors for implementing and running the projec t smoothly and professionally. A place where transact ion of goods and services is undertaken Multiple Choice Single Answer Question Managerial economics is also understood to refer to Correct Answer applied economics Your Answer applied economics True/False Question Private profit motive is an essential feature of Capitalism. Correct Answer . February 4.

Rent . Failure to provide full employment Your Answer Emergence of monopolies . Prevailing of bar ter system Multiple Choice Single Answer Question In case of perfectly elastic supply. Emergence of monopolies . Total revenue True/False Question In experimental price approach the firms takes some cognizance of the demand for the product and proceeds to fix a price by a trial and error method.False Your Answer False Multiple Choice Multiple Answer Question Accounting profit includes :- Correct Answer Wages . the supply curve is :- Correct Answer Horizontal Your Answer Vertical Multiple Choice Single Answer Question Every nation s resources which are used to produce the quantities of goods and ser vices that would be required to satisfy all its citizen s wants are Correct Answer insufficient Your Answer insufficient 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 Economists have pointed out that the real world is full of :- Correct Answer . Interest Your Answer Interest . Failure to provide full employment . Correct Answer True Your Answer True Multiple Choice Multiple Answer Question Defects of market system:- Correct Answer Inequalities of income and wealth .

To remove restrictions on direct foreign inve stment as also to free the domestic entrepreneur from the restriction of M R T Pac t Your Answer To unshackle the Indian industrial economy from the cobwebs of unnecessary burea ucratic control . Depreciation . To introduce liberalization with a view to integrate the India n economy with the world economy .Imperfect competition Your Answer Pure competition Multiple Choice Multiple Answer Question Characteristics of Pure Public goods are:- Correct Answer They are completely indivisible . Their marginal cost would be zero or close to zero . generally demand and supply act and react upon each o ther and determine the price Correct Answer equilibrium Your Answer equilibrium Multiple Choice Multiple Answer Question Factors leading to differences in the economic & the traditional concepts of val uation are :- Correct Answer Inventory Valuation . To introduce liberalization with a view to integrate the India n economy with the world economy . Depreciation . Unaccounted value changes in the assets & l iabilities Select The Blank Question Super-normal profit is also called . Unaccounted value changes in the assets & l iabilities Your Answer Inventory Valuation . Their benefits cannot be priced Multiple Choice Multiple Answer Question Main aims of the N ew Industrial Policy (1991) are :- Correct Answer To unshackle the Indian industrial economy from the cobwebs of unnecessary burea ucratic control . To remove restrictions on direct foreign inve stment as also to free the domestic entrepreneur from the restriction of M R T Pac t Multiple Choice Single Answer Question Under perfect competition. Correct Answer Excess profit Your Answer Excess profit Multiple Choice Multiple Answer Question Under cost plus pricing :- . Their benefits cannot be priced Your Answer They are completely indivisible .

the purchasing power at the disposal of the pe ople .Correct Answer Actual costs. Correct Answer True Your Answer True Select The Blank Question W hen Government repays old loans. labour cost Your Answer The price is set to cover material. standard costs are included . Actual costs. standard costs a re included Match The Following Question Correct Answer Your Answer Hum an wants unlimited unlimited General Theory of Employment. Correct Answer Increases Your Answer Becomes negative True/False Question The law of supply is not hypothetical. M. Interest and Money J. Certain percentage of profit also in cluded . Keynes Managerial economics Decision making and forward planning Decision making and forward planning Resources scarce scarce Commodities goods and services goods and services True/False Question Consumer s protection involves protection to the consumers from unfair trade pract ices. labour cost . The price is set to cover material. M. Correct Answer False Your Answer True Multiple Choice Single Answer Question A firm gets an opportunity to produce multiple products because changes in busin ess activity in a firms is :- Correct Answer Cyclical Your Answer . Keynes J.

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 Select The Blank Question Propensity to consume is defined as the relationship between consumption and . t he income elasticity of demand is zero.). Correct Answer Third party Your Answer External True/False Question In the traditional concept of equilibrium. a firm attains the equilibrium when t he firm s Total Revenue (T. Correct Answer Income Your Answer Income True/False Question Public enterprises have shown a very high rate of return of the capital invested .C.) =Total Cost (T. the cost of production is calculated on the assumption that the material which was last to enter the inventory of th .R. Correct Answer False Your Answer True Multiple Choice Single Answer Question The method of inventory valuation in which.Cyclical True/False Question W hen a change in income has no effect upon the quantity demanded of a product. Correct Answer False Your Answer False Select The Blank Question effects are those externalities which flow from the production or use o f the good to other parties or economic units.

e company was used first is :-
Correct Answer
LIFO
Your Answer
LIFO

True/False
Question
Supply management is related to the volume of supply & its distribution system.
Correct Answer
True
Your Answer
True

Multiple Choice Multiple Answer
Question
Demand is determined by :-
Correct Answer
Price of the product , Relative prices of other goods , Tastes and habits
Your Answer
Price of the product , Relative prices of other goods , Tastes and habits

Multiple Choice Multiple Answer
Question
Different types of Elasticity of Demand are :-
Correct Answer
Cross elasticity of demand , Price elasticity of demand , Income elasticity of d
emand
Your Answer
Price elasticity of demand , Income elasticity of demand , Cross elasticity of d
emand

Multiple Choice Single Answer
Question
In case of a Joint-Stock Company, the liability of share holders is :-
Correct Answer
Limited
Your Answer
Limited

Multiple Choice Single Answer
Question
Expansion of supply is shown by the movement in the supply curve which is :-
Correct Answer
Upward
Your Answer
Upward

Multiple Choice Single Answer
Question
Saving is a :-
Correct Answer
Private virtue
Your Answer
Private virtue

Multiple Choice Single Answer
Question
According to the Government, the building up of inflationary pressure during the
Nineties was attributed to :-

Correct Answer
Higher Fiscal deficit
Your Answer
Higher Fiscal deficit

Multiple Choice Multiple Answer
Question
A competitive industry has three basic characteristics :-
Correct Answer
Large Number of Firms , Homogeneous Product , Free entry and exit
Your Answer
Large Number of Firms , Homogeneous Product , Free entry and exit

Multiple Choice Single Answer
Question
The income which a businessman might expect from the second best alternative use
of his resources is called as :-
Correct Answer
Opportunity cost
Your Answer
Opportunity cost

Select The Blank
Question
Advertising forms an integral part of decision-making and .
Correct Answer
Forward - planning
Your Answer
Forward - planning

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

Select The Blank
Question
True inflation starts only after reaching .
Correct Answer
Level of full employment
Your Answer
Level of full employment

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

Multiple Choice Multiple Answer
Question
Assumptions of the Law of Demand are :-
Correct Answer
No change in consumer s income , No change in consumer s preferences , No change in
fashion

Your Answer
No change in consumer s income , No change in consumer s preferences , No change in
fashion

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

True/False
Question
The sum of total fixed costs and total variable costs is the total cost.
Correct Answer
True
Your Answer
True

True/False
Question
During the period of depression, a large part of a country s resources lie involun
tarily idle.
Correct Answer
True
Your Answer
True

True/False
Question
Under the N ew Industrial Policy, in order to invite foreign investment in high p
riority industries, it was decided to provide approval for direct foreign invest
ment upto 51% equity in such industries.
Correct Answer
True
Your Answer
True
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Labels: Managerial Economics
Thursday, January 24, 2008
Managerial Economics - 1
LIST O F A T T E M P T E QD U E S T IO N SA N D A N S W E R S

Multiple Choice Single Answer
Question
The concept of Perfect competition includes all the features of :-
Correct Answer
Pure competition
Your Answer
Pure competition

Multiple Choice Single Answer
Question
An entrepreneur may earn high profits just by luck, say because of outbreak of w
ar. This is known as :-
Correct Answer
Chance Profits

Correct Answer True Your Answer True True/False Question Changes in the value of money because of inflation. Selling same good at higher pric e in home market and at lower price in international market . househ olds and government is seen in total. disregarding details at particular level. Correct Answer True Your Answer True 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 th e company was used first is :- Correct Answer LIFO Your Answer LIFO Multiple Choice Single Answer Question . make inventory valuation of finished products difficult.Your Answer Monopoly Profits Multiple Choice Single Answer Question Managerial economics is also understood to refer to Correct Answer applied economics Your Answer applied economics Multiple Choice Multiple Answer Question Features of Dumping are :- Correct Answer It is possible in the case of monopoly market . It is encouraged w ith a view to promote the exports Your Answer It is possible in the case of monopoly market . It is encouraged with a view to promote the exports Multiple Choice Single Answer Question The type economic problem is Correct Answer universal Your Answer universal True/False Question In macro economic analysis the behavior of economic agents such as firms.

Average product is increasing but it is below M P Multiple Choice Single Answer Question An individual consumer or particular market for a given commodity are the subjec t matter of :- Correct Answer Micro Economics Your Answer Micro Economics . The precautionary motive . Law of Constant Returns to Scale . The speculative motive Multiple Choice Single Answer Question If the substitutes are relatively costly then the demand for the commodity in qu estion will be :- Correct Answer More Your Answer More Multiple Choice Multiple Answer Question The Laws of Returns to scale are :- Correct Answer Law of Increasing Returns to Scale . Law of D ecreasing Returns to scale Your Answer Law of Decreasing Returns to scale Multiple Choice Multiple Answer Question Increasing Returns explains :- Correct Answer Total product increases at an increasing rate . The transactions motive . Average product is increasing but it is below M P Your Answer Total product increases at an increasing rate . Marginal product increasing and it is maximum . The precautionary motive Your Answer The transactions motive . Correct Answer Joint sector enterprise Your Answer Joint sector enterprise Multiple Choice Multiple Answer Question According to Keynes there are three motives for holding cash for liquidity prefe rence :- Correct Answer The speculative motive . Marginal product increasing and it is maximum .The act of making goods and services is called Correct Answer production Your Answer production Select The Blank Question The partnership between private sector & government is called .

Correct Answer Sales Your Answer Sales Multiple Choice Single Answer Question The profit which is surplus of revenue over and above all paid out cost is :- Correct Answer Accounting Profit Your Answer Gross Profit Select The Blank Question In perfect competition various factors of production are assumed to be . Correct Answer Increases Your Answer Increases True/False Question During the period of depression. Correct Answer Perfectly mobile Your Answer Perfectly mobile Select The Blank Question Keynes. on the basis of a fundamental psychological law. Correct Answer True Your Answer True Select The Blank Question Baumol has suggested as an alternative objective for profit maximization. observed that as income . Correct Answer True Your Answer True True/False Question Pure private goods are completely divisible and to them the principle of exclusi on applies in full measure.True/False Question The prosperity phase is characterized by rise in the level of employment. consumption Increases. Correct Answer True Your Answer False . a large part of a country s resources lie involun tarily idle. the ma ximization of .

Capital support to plans Multiple Choice Single Answer Question The act of using goods and services to satisfy wants is called Correct Answer consumption Your Answer consumption Multiple Choice Single Answer Question The things that are produced by factors of production are called Correct Answer commodities Your Answer commodities Select The Blank Question In the context of externalities. driving the smoke-emitting buses and trucks in the cities is an example of cost. Correct Answer Budgetary Policy Your Answer Budgetary Policy Multiple Choice Multiple Answer Question The disinvestments of industries is needed for :- Correct Answer Phased privatization . Correct Answer True Your Answer True Multiple Choice Multiple Answer Question . Reducing deficit . Reducing deficit .Select The Blank Question The taxation & public expenditure policies are called as . Correct Answer Social Your Answer Social Multiple Choice Single Answer Question The concept of just distribution of national product is a Correct Answer normative Your Answer normative True/False Question The government also fixes minimum procurement prices for major crops on the reco mmendation of the Agricultural Prices Commission (APC). Capital support to plans Your Answer Phased privatization ..

Appraisal and selecti on of the project True/False Question There is no separation of ownership and management in case of a Joint Stock Comp any.According to Lionel Robbins definition of economics. Appraisal and selecti on of the project Your Answer Identification of a project . Product differentiation . the goods and services are :- Correct Answer Scarce Your Answer Scarce Multiple Choice Single Answer Question The cost recorded in the books of accounts are considered as :- Correct Answer Explicit costs . Formulation of the project . Scarc e means have alternate uses Select The Blank Question Under perfect competition. Relationship between ends and scares resources . Selling costs are exist ed Multiple Choice Multiple Answer Question Steps in cost benefit analysis are :- Correct Answer Identification of a project . Selling costs are exist ed Your Answer Fairly large number of firms . price is determined by the interaction of total deman d and . Correct Answer Total supply Your Answer Total selling cost Multiple Choice Multiple Answer Question Features of monopolistic Competition are :- Correct Answer Fairly large number of firms . Scarc e means have alternate uses Your Answer Studies human behaviour . Relationship between ends and scares resources . "Economics is a science whi ch :- Correct Answer Studies human behaviour . Product differentiation . Formulation of the project . Correct Answer False Your Answer False Multiple Choice Single Answer Question During a period of rising prices (inflation).

Correct Answer Quantitative credit control Your Answer Quantitative credit control Select The Blank Question Managerial lies on the borderline of management and Economics. Correct Answer False Your Answer False Multiple Choice Single Answer Question Managerial economics generally refers to the integration of economic theory with business Correct Answer Practice Your Answer Practice Match The Following Question Correct Answer Your Answer Resource allocation decisions in free market economy Theory of price Theory of price Economic problem Universal Universal Managerial Economics Applied branch of knowledge Applied branch of knowledge Inflation Reduction in purchasing power Reduction in purchasing power .Your Answer Explicit costs Multiple Choice Single Answer Question Variable cost are those costs which vary with the level of :- Correct Answer Output Your Answer Output Select The Blank Question Open market operations measures are . Correct Answer Economics Your Answer Economics True/False Question The demand for life saving drugs is elastic.

Your Answer The quantity of money.Waste of resources Involuntary unemployment Involuntary unemployment Multiple Choice Single Answer Question According J. M. M. Keynes J. profit is the reward paid for :- Correct Answer Dynamism Your Answer Risk bearing Multiple Choice Multiple Answer Question The characteristics of a sole proprietorship firm is :- Correct Answer Unlimited Capital . Easy to form Select The Blank Question The rate of interest. Interest and Money J. Match The Following Question Correct Answer Your Answer Hum an wants unlimited unlimited General Theory of Employment. Easy to form Your Answer Ownership by a single person . according to Keynes depends upon two factors: the liquidit y preference function and .B. Ownership by a single person . Correct Answer The quantity of money.6 . August 19. 2008 Managerial Economics . 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 Single Answer Question Every nation s resources which are used to produce the quantities of goods and ser vices that would be required to satisfy all its citizen s wants are Correct Answer insufficient Your Answer insufficient Tuesday.Clark.

Correct Answer False .LIST O F A T T E M P T E QD U E S T IO N SA N D A N S W E R S Multiple Choice Single Answer Question In economics the question related to the selection of methods with which commodi ties are produced is a subject matter of Correct Answer theory of production Your Answer theory of production Multiple Choice Single Answer Question In economics the questions related to the division of society s output of goods an d services among its members are topics in Correct Answer theory of distribution Your Answer theory of distribution Multiple Choice Single Answer Question In economics the questions related to the dynamic or static ( otherwise) capacit y of the economy to produce goods and services are topics in the Correct Answer theory of economic growth Your Answer theory of production Multiple Choice Single Answer Question All the free gifts of nature which are commonly called natural resources are kno wn to economists as Correct Answer Land Your Answer capital Multiple Choice Single Answer Question All the man made resources which are used in the process of making other goods a nd services are called Correct Answer capital Your Answer labor Multiple Choice Single Answer Question Managerial economics aims at providing help in the firms is Correct Answer decision making Your Answer decision making True/False Question Economic problem is faced by poor countrys only.

Your Answer
False

Multiple Choice Single Answer
Question
An industry is a group of firms dealing in the same line of
Correct Answer
business
Your Answer
business

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

True/False
Question
Pure public goods must be in the hands of public sector only.
Correct Answer
True
Your Answer
False

Select The Blank
Question
The goods become only when each individual has an access to the entire
amount of it and its use by the individual does not reduce its availability to o
thers.
Correct Answer
indivisible
Your Answer
public

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

Select The Blank
Question
In a market economy is the best judge of personal interest.
Correct Answer
individual
Your Answer
firm

Match The Following
Question
Correct Answer
Your Answer
Managerial economics

Decision making and forward planning
Decision making and forward planning
Resources
Scarce
Scarce
Commodities
Goods and services
Goods and services
Hum an wants
Unlimited
Unlimited

Match The Following
Question
Correct Answer
Your Answer
General theory of employment, interest and money
J. M. Keynes
J. M. Keynes
Inflation
Reduction in purchasing power
Reduction in purchasing power
Services
Intangible goods
Intangible goods
Methods of production of commodities
Theory of production
Theory of production

Multiple Choice Multiple Answer
Question
The characteristics of a sole proprietorship firm is
Correct Answer
Unlimited Capital , Ownership by a single person , Easy to form
Your Answer
Ownership by a single person , Easy to form

Multiple Choice Multiple Answer
Question
Different types of business organizations are
Correct Answer
private sector , public sector , joint sector
Your Answer
private sector , public sector , joint sector

Select The Blank
Question
Reasonable profit target as an alternative to the objective of profit maximizati
on was suggested by .
Correct Answer
Joel Dean
Your Answer
Joel Dean

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
Economic Profit takes in to account the
Correct Answer
implicit cost
Your Answer
implicit cost

True/False
Question
In any business, while formulating a profit policy, the possibility of emergence
of rival firms must be taken in to account
Correct Answer
True
Your Answer
True

Multiple Choice Multiple Answer
Question
The payments made out of the Gross Profit are
Correct Answer
Remuneration to factors of production , Depreciation , Maintenance Charges
Your Answer
Remuneration to factors of production , Depreciation , Maintenance Charges

Multiple Choice Multiple Answer
Question
reasonable profit' are
Correct Answer
Capital Attraction , Plough Back , Normal earnings
Your Answer
Capital Attraction , Plough Back , Normal earnings

Multiple Choice Single Answer
Question
Complementary goods are demanded
Correct Answer
jointly
Your Answer
separately

Multiple Choice Single Answer
Question
Emergence of close substitutes to the commodity in question may bring about dema
nd to
Correct Answer
decrease
Your Answer
decrease

Multiple Choice Single Answer
Question
The demand for a commodity depends on the prices of its substitutes which are
Correct Answer
relative
Your Answer
relative

under the case of . Economic costs . Income elasticity of demand . then the returns to scale are Correct Answer decreasing Your Answer decreasing True/False Question The supply of factory made goods of daily consumption is inelastic. Income elasticity of demand . Correct Answer True Your Answer True Select The Blank Question The index numbers which measure the changes in the general price level of a coun try refers to Correct Answer Wholesale prices index Your Answer Wholesale prices index Multiple Choice Multiple Answer Question Different types of Elasticity of Demand are Correct Answer Price elasticity of demand .True/False Question Demand curve slopes downwards from left to right. Economic costs . Opportunity costs Select The Blank Question Output rises in a lesser proportion to that of the increase in input. Correct Answer decreasing returns to scale Your Answer decreasing returns to scale . Opportunity costs Your Answer Accounting costs . Cross elasticity of d emand Your Answer Price elasticity of demand . Correct Answer False Your Answer True Multiple Choice Multiple Answer Question Major types of costs are Correct Answer Accounting costs . Cross elasticity of d emand Multiple Choice Single Answer Question If the increase in all factors leads to a less than proportionate increase in ou tput.

It is a sole proprietorshi p . Multiple Choice Single Answer Question Under monopoly the demand curve slopes Correct Answer downward Your Answer downward Multiple Choice Single Answer Question Dalal Street in Bombay is known as Correct Answer Bombay Stock Exchange Your Answer Bombay Stock Exchange Multiple Choice Single Answer Question The city of Banaras has specialized in the manufacture of Correct Answer silk Your Answer silk True/False Question A firm under perfect competition is a price maker. Correct Answer False Your Answer True Multiple Choice Multiple Answer Question Features of the firm are Correct Answer It is a business unit organized under one ownership . It is a partnership or joint stock company . it is referred to as . Your Answer increasing returns to scale.Select The Blank Question If the output rises in the greater proportion than that of the increase in facto r inputs. Correct Answer False Your Answer False True/False Question Long period supply is relatively inelastic. It is a sole proprietorshi p . Correct Answer increasing returns to scale. It is a partnership or joint stock company Your Answer It is a business unit organized under one ownership .

Correct Answer True Your Answer True True/False Question There is considerable slush money with politicians & Government servants. All wi ll get sufficient income to meet their basic needs Multiple Choice Multiple Answer Question Defects of market system: Correct Answer Inequalities of income and wealth .Multiple Choice Multiple Answer Question Equilibrium is the stage of Correct Answer maximum satisfaction . stationary Your Answer maximum satisfaction . balance . Facto rs of production are optimally allocated between the various industries . balance . the buildup of inflationary pressure during the Nin eties was attributed to Correct Answer Higher Fiscal deficit Your Answer Higher Fiscal deficit True/False Question The government also fixes minimum procurement prices for major crops on the reco mmendation of the Agricultural Prices Commission (APC). Emergence of monopolies . All wi ll get sufficient income to meet their basic needs Your Answer To provide employment to all who willing to work at prevailing wage rate . Failure to provide . Facto rs of production are optimally allocated between the various industries . stationary True/False Question The Keynesian theory emphasizes effective supply as a crucial factor in determin ing the level of income and employment. Correct Answer True Your Answer True Multiple Choice Multiple Answer Question Government intervention is needed in free market mechanism to Correct Answer To provide employment to all who willing to work at prevailing wage rate . Correct Answer False Your Answer True Multiple Choice Single Answer Question According to the Government.

full employment Your Answer Inequalities of income and wealth . Emergence of monopolies .5 LIST O F A T T E M P T E QD U E S T IO N SA N D A N S W E R S 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 ser vices that would be required to satisfy all its citizen s wants are Correct Answer insufficient Your Answer insufficient 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 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 The act of using goods and services to satisfy wants is called Correct Answer consumption Your Answer consumption Multiple Choice Single Answer . Failure to provide full employment Posted by MindGrill at 5:17 A M 0 comments Links to this post Labels: Managerial Economics (Set II) Managerial Economics .

Correct Answer True Your Answer True Match The Following Question Correct Answer Your Answer Managerial economics Decision making and forward planning Decision making and forward planning Resources scarce scarce Commodities goods and services goods and services Hum an wants unlimited unlimited General Theory of Employment. Keynes Multiple Choice Single Answer Question In cost . Correct Answer True Your Answer False Multiple Choice Multiple Answer Question Steps in cost benefit analysis .Question The concept of just distribution of national product is a Correct Answer normative Your Answer objective True/False Question Resources are said to be involuntarily un employed when their wastage occur. M. Interest and Money J. after the step of appraisal and selection of the pro ject is the step of Correct Answer comparison of the cash flow Your Answer comparison of the cash flow True/False Question Social costs cannot be included in a firm's account book.benefit analysis. Keynes J. M.

Formulation of the project . Objective measurement of the trade-off . Correct Answer externalities Your Answer externalities Multiple Choice Single Answer Question According to many economists. Correct Answer maximization Your Answer maximization Select The Blank Question Modern economists treat social cost and benefits as of private investme nt and production decisions.Correct Answer Identification of a project . Maximi zation of difference between total benefits & total costs Select The Blank Question Cost-Benefit analysis aims at of social wealth. the root cause of economic problem is Correct Answer scarcity Your Answer scarcity Multiple Choice Single Answer Question Managerial economics aims at providing guidance to the firms for Correct Answer decision making Your Answer decision making Multiple Choice Single Answer Question In case of a Joint-Stock Company. Appraisal and selecti on of the project Multiple Choice Multiple Answer Question The advantage of cost-benefit analysis are Correct Answer Maximization of social welfare . Objective measurement of the trade-off . Maximi zation of difference between total benefits & total costs Your Answer Maximization of social welfare . Appraisal and selecti on of the project Your Answer Identification of a project . the liability of share holders is Correct Answer limited Your Answer limited Multiple Choice Single Answer Question . Formulation of the project .

Cumulative Shares . Prospectus Your Answer Memorandumof Association . public co rporations Your Answer departmental management . Cumulative Shares . Redeemable Shares Your Answer Simple Shares . public corporations . Tata Eng & Locomotive Company Ltd is a Correct Answer firm Your Answer firm Multiple Choice Multiple Answer Question Preference Shares can be classified as Correct Answer Simple Shares . Correct Answer 3 Your Answer 3 Multiple Choice Single Answer Question The profit which is surplus of revenue over and above all paid out cost is . Redeemable Shares Multiple Choice Multiple Answer Question The promoters of a company can get incorporated by filing with the registrarof c ompanies various documents such as Correct Answer Memorandumof Association . non-profit organization Select The Blank Question Baumol has suggested as an alternative objective for profit maximization . Articles of Association . Articles of Association Multiple Choice Multiple Answer Question Forms of Public Enterprises Correct Answer departmental management . the m aximization of Correct Answer sales Your Answer sales Select The Blank Question The partnership between private sector & government is called Correct Answer Joint sector enterprise Your Answer Joint sector enterprise Select The Blank Question The minimum number of directors which public limited should have is . company management or management by boards .For an economist.

it is called as expansion of Correct Answer demand Your Answer demand Multiple Choice Single Answer Question Demand for products like tea. betel. tobacoo. demand means desire backed by adequate Correct Answer purchasing power Your Answer purchasing power Multiple Choice Single Answer Question W hen more units of a commodity are purchased in response to decline in price of that commodity. Correct Answer False Your Answer False True/False Question Demand for luxury goods is inelastic Correct Answer . sigaratte is a matter of Correct Answer habit Your Answer habit Multiple Choice Single Answer Question If the substitutes are relatively cheaper then the demand for the commodity in q uestion will be Correct Answer less Your Answer less True/False Question A shift in the demand curve to the left shows increase in demand.Correct Answer Accounting Profit Your Answer Gross Profit True/False Question Measurement of profit becomes difficult because of the difficulty involved in th e calculation of depreciation. Correct Answer True Your Answer True Multiple Choice Single Answer Question In economics.

Correct Answer negative Your Answer negative Select The Blank Question The costs which cover the cost of advertising is . Correct Answer False Your Answer False Select The Blank Question A normal demand curve has +B299 Correct Answer negative slope Your Answer negative slope Multiple Choice Multiple Answer Question Cost function denotes Correct Answer The prices of such inputs as labour and capital material . Correct Answer Selling cost Your Answer Selling cost Multiple Choice Multiple Answer Question Features of Oligopoly Market are Correct Answer . the marginal p roduct becomes . Correct Answer horizontal Your Answer upward sloping Select The Blank Question In the 3rd stage of operation of the law of variable proportions. The rate of output .False Your Answer False True/False Question The demand for life saving drugs is elastic. The rate of output . The size of the plant . The cost of technology Select The Blank Question The law of constant returns to scale is depicted by the marginal output curve wh ich is . The size of the plant Your Answer The prices of such inputs as labour and capital material .

Price leadership Your Answer Few sellers .M. Restriction to entry of new firms . Cannot be anticipated Your Answer Sustained rise in prices . Interest and money J. the income of farmers as a class decreases. Correct Answer True Your Answer False True/False Question To solve the unemployment problem . No Advertisement cost Multiple Choice Single Answer Question Saving is a Correct Answer private virtue Your Answer social virtue True/False Question During periods of inflation. Cannot be anticipated . Correct Answer False Your Answer False Match The Following Question Correct Answer Your Answer Prosperity Expansion of credit Contraction of credit The general theory of employment. Sustained rise in prices . the level of effective demand must decrease. Keynes J. Correct Answer True .Few sellers .M. Restriction to entry of new firms . It is limited to some geograp hical areas True/False Question Market system or market economy suffers from time to time from economic depressi ons. Keynes Trade cycle Wave like movement Wave like movement Statutory reserve ratio Quantitative credit control measure Quantitative credit control measure Multiple Choice Multiple Answer Question The characteristics of Inflation are Correct Answer Excess of demand .

To remove restrictions on direct foreign inve stment as also to free the domestic entrepreneur from the restriction of M R T Pac t Posted by MindGrill at 5:16 A M 0 comments Links to this post Labels: Managerial Economics (Set II) Managerial Economics . To introduce liberalization with a view to integrate the india n economy with the world economy .4 LIST O F A T T E M P T E QD U E S T IO N SA N D A N S W E R S Multiple Choice Single Answer Question Economists call all human resources as Correct Answer labor Your Answer labor True/False Question Economic problem arises only in case of an overpopulated country. Correct Answer False Your Answer False Multiple Choice Single Answer Question All the buyers and sellers operating under perfect competition have knowledge Correct Answer perfect Your Answer perfect True/False Question The meaning of the word economic is most closely associated with the word unlimite d Correct Answer True Your Answer True Multiple Choice Single Answer Question The conditions of equilibrium of a firm are applicable to all markets Correct Answer .Your Answer True Multiple Choice Multiple Answer Question Main aims of the N ew Industrial Policy (1991) are Correct Answer To unshackle the indian industrial economy from the cobwebs of unnecessary burea ucratic control . To remove restrictions on direct foreign inve stment as also to free the domestic entrepreneur from the restriction of M R T Pac t Your Answer To unshackle the indian industrial economy from the cobwebs of unnecessary burea ucratic control . To introduce liberalization with a view to integrate the india n economy with the world economy .

a system of subsidized pricing is followed Correct Answer True Your Answer True Multiple Choice Single Answer Question The price of a good and the exclusion princople together is Correct Answer divisibility Your Answer indivisibility Multiple Choice Single Answer Question The liability of a sole proprietary firm is Correct Answer unlimited Your Answer unlimited True/False Question Institution of private property is not an essential feature of Capitalism Correct Answer False Your Answer False True/False Question There never was in any country at any time pure capitalism or pure communism Correct Answer True Your Answer True True/False Question The railways using a lot of coal in firing the steam locomotives put the residen tial and other areas near the loco shades to a lot of sufferings on account of s moke nuisance. . is an example of pr Correct Answer False Your Answer True True/False Question A Joint stock company has perpetual succession.None Your Answer particular True/False Question In case of the co-operative societies supplying cheap inputs or supplying consum er products at fair prices.

Correct Answer False Your Answer True Multiple Choice Single Answer Question In Trade cycles the economic activity are Correct Answer ups and downs Your Answer ups and downs True/False Question In macro economic analysis the behavior of economic agents such as firms. househ olds and government is seen in total.Correct Answer True Your Answer True True/False Question The management of the cooperative form of business organization is totalitarian in nature. disregarding details at particular level Correct Answer True Your Answer True Multiple Choice Single Answer Question Market economy or private enterprise economy is a economy which is Correct Answer planless Your Answer planned Multiple Choice Single Answer Question N ew commodities due to technotogical progress may result in demand for tradition al type of goods Correct Answer decrease Your Answer decrease Multiple Choice Single Answer Question If a person is habituated to the consumption of a commodity and if he cannot eas ily give up its use. demand for it is generally Correct Answer inelastic Your Answer inelastic .

the weaker sections of the community are supplied these goods through fai r price shops whi Correct Answer fair Your Answer neo rich Multiple Choice Single Answer Question The Government attempts to increase supplies of food grains and other essential goods in times of internal shortage through larger Correct Answer imports Your Answer borrowings True/False . Infinity. Multiple Choice Single Answer Question The law of diminishing returns is applicable to agriculture provided the state o f technology is given and Correct Answer constant Your Answer resources Multiple Choice Single Answer Question Under the system of dual prices in case of essential goods. which takes the form of a horizontal line parallelto the quantit y axis illustrates elasticity Infinity. adopted by the gover nment.Match The Following Question Correct Answer Your Answer Normal demand curve Downwards to right Downwards to right Income consumption curve Upwards to the right Upwards to the right Inelastic demand curve Vertical straight line Vertical straight line Cross elasticity of demand between two perfect substitute will be Infinity Infinity A demand curve.

Explains the level of out put v aries with the level of employment Your Answer Refers to show the varying level of supply at different prices Multiple Choice Multiple Answer Question Characteristics of Depression Correct Answer Decrease in economic activities . The level o .Question External economies are the advantages of large scale production enjoyed exclusiv ely an individual firm alone. Correct Answer False Your Answer False Multiple Choice Multiple Answer Question Equilibrium is Correct Answer The stage of maximum satisfaction . The stage of stationa ry Your Answer The stage of balance Multiple Choice Multiple Answer Question Conditions of equilibrium Correct Answer Marginal Revenue should be equal to Marginal Cost . Refers to show t he varying level of supply at different prices . The Marginal cost curve shou ld cut the marginal revenue curve from below at the equilibrium point . The stage of balance . The Marginal cost curve shou ld cut the marginal revenue curve from below at the equilibrium point . The growth rate becomes negative . Average cost curve should cut the Average Revenue curve Select The Blank Question Cost-benefit analysis refers to the analysis undertaken to judge any projects whether government or private and find out its and facilities it s comparison with other available oppor Correct Answer investments Your Answer investments Correct Answer worth Your Answer profit Multiple Choice Multiple Answer Question Aggregate supply function Correct Answer Refers to that price at which the seller is willing to supply . Marginal cost curve should be increasing at equilibrium point Your Answer Marginal Revenue should be equal to Marginal Cost .

Inventories piling up i n stocks Your Answer The demand is halted .f national income declines rapidly Your Answer Decrease in economic activities . Increase in private expenditure . To . Increase in taxati on Select The Blank Question In the terminology. which the entrepreneurial community actually does ex pect to be received from the sale of Correct Answer Keynesian Your Answer Keynesian Correct Answer aggregate Your Answer total Select The Blank Question The rate of interest. Increase in foreign demand . The level o f national income declines rapidly Multiple Choice Multiple Answer Question Recession includes Correct Answer The demand is halted . Increase in production of goods . Increase in f oreign demand Your Answer Increase in public expenditure . according to . depends upon two factors: (i) and (ii) the quantity of money Correct Answer Keynes Your Answer Keynes Correct Answer the liquidity preference function Your Answer speculative Multiple Choice Multiple Answer Question Reasons for need of public distribution system Correct Answer To maintain stable price conditions . The growth rate becomes negative . Inventories piling up in stocks . The growth of discrepan cy between supply and demand is very fast Multiple Choice Multiple Answer Question The causes of inflation Correct Answer Increase in public expenditure . An efficient management of the supply . the demand function refers to the schedule of maximum sales proceeds.

. To reform and modernize the financial sector Your Answer To increase the efficiency and international competitiveness of industrial produ ction . To improve the performance and rationalize the scope of the public secto r . Protest against price discrimination Multiple Choice Multiple Answer Question Objectives of economic policy Correct Answer To increase the efficiency and international competitiveness of industrial produ ction . No change in fashion Your Answer No change in consumer s income . To supply the necessary goods to people at reasonable price Multiple Choice Multiple Answer Question The consumer protection Act includes Correct Answer Protection from hazardous commodities . No change in consumer s preferences . supply the necessary goods to people at reasonable price Your Answer To maintain stable price conditions . N o Change in government policy. Unit income elasticity Your Answer Negative income elasticity . Zero income elasticity . Multiple Choice Multiple Answer Question Types of income elasticity of demand Correct Answer Negative income elasticity . price system. No change in fashion . Right to information regarding protectio n . Unit income elasticity . Right to a competitive price . To improve the performance and rationalize the scope of the public secto r . price system. Production function & cost analysis. Multiple Choice Multiple Answer Question Assumptions of the Law of Demand are: Correct Answer No change in consumer s income . Zero income elasticity . Invent ory management adverting. . To reform and modernize the financial sector Multiple Choice Multiple Answer Question Scope of Managerial Economics deals with: Correct Answer Demand analysis and forecasting. Production function & cost analysis. . No change in consumer s preferences . . An efficient management of the supply . Your Answer Demand analysis and forecasting. Right to information regarding protection Your Answer Protection from hazardous commodities . Invent ory management adverting.

Correct Answer firm Your Answer firm Correct Answer life-cycle theory Your Answer . Correct Answer economic Your Answer economic Correct Answer business Your Answer business Select The Blank Question The problem of unlimited wants and limited with uses has been forever confronting mankind. the .Select The Blank Question Managerial s generally refers to the integration of economic theory with practice. _ is a ass ociation of individuals with limited income on the basis of equal rights and res ponsibilities for achieving certa Correct Answer Co-operation Your Answer Co-operation Correct Answer voluntary Your Answer voluntary Select The Blank Question Like all organism. Correct Answer means Your Answer means Correct Answer alternative Your Answer alternative Select The Blank Question As per the International Labour Organisation (ILO). according to the theory. too is an organism.

homeostatic theory Select The Blank Question The -taking theory was developed by the . other demand determinants remaining constant. According to him. is termed as the of de mand. Correct Answer price Your Answer price Correct Answer price elasticity Your Answer price elasticity Select The Blank Question Indices constructed for one should not be for other purposes w here they not be fully appropriate and given erroneous conclusions. as the proportion of one factor in a combination of factors is after a point. Correct Answer purpose Your Answer purpose Correct Answer used Your Answer used Select The Blank Question The law of diminishing returns states that. pro fit arises because considerable amount of risk is involved in business. Correct Answer American economist Hawley Your Answer risk Correct Answer risk Your Answer American economist Hawley Select The Blank Question The extent of the change of demand for a commodity to a given change in . first the and then th e average product of that factor w Correct Answer increased Your Answer increased Correct Answer marginal Your Answer marginal Match The Following .

Keynes M axim umsale proceeds expected by entrepreneurs Posted by MindGrill at 5:14 A M 0 comments Links to this post Labels: Managerial Economics (Set II) Managerial Economics . Correct Answer False Your Answer False Multiple Choice Single Answer Question All the buyers and sellers operating under perfect competition have knowledge Correct Answer perfect Your Answer perfect True/False Question The meaning of the word economic is most closely associated with the word unlimite d Correct Answer True Your Answer True Multiple Choice Single Answer Question The conditions of equilibrium of a firm are applicable to all markets Correct Answer . M.Question Correct Answer Your Answer Statutory Reserve Ratio Quantitative credit Control Measure Quantitative credit Control Measure Trade cycle Wave like movement Wave like movement Keynesian theory Short Period Analysis J. M.4 LIST O F A T T E M P T E QD U E S T IO N SA N D A N S W E R S Multiple Choice Single Answer Question Economists call all human resources as Correct Answer labor Your Answer labor True/False Question Economic problem arises only in case of an overpopulated country. Keynes Aggregate Demand Function M axim umsale proceeds expected by entrepreneurs Short Period Analysis Effective Demand J.

. a system of subsidized pricing is followed Correct Answer True Your Answer True Multiple Choice Single Answer Question The price of a good and the exclusion princople together is Correct Answer divisibility Your Answer indivisibility Multiple Choice Single Answer Question The liability of a sole proprietary firm is Correct Answer unlimited Your Answer unlimited True/False Question Institution of private property is not an essential feature of Capitalism Correct Answer False Your Answer False True/False Question There never was in any country at any time pure capitalism or pure communism Correct Answer True Your Answer True True/False Question The railways using a lot of coal in firing the steam locomotives put the residen tial and other areas near the loco shades to a lot of sufferings on account of s moke nuisance.None Your Answer particular True/False Question In case of the co-operative societies supplying cheap inputs or supplying consum er products at fair prices. is an example of pr Correct Answer False Your Answer True True/False Question A Joint stock company has perpetual succession.

Correct Answer True Your Answer True True/False Question The management of the cooperative form of business organization is totalitarian in nature. Correct Answer False Your Answer True Multiple Choice Single Answer Question In Trade cycles the economic activity are Correct Answer ups and downs Your Answer ups and downs True/False Question In macro economic analysis the behavior of economic agents such as firms. househ olds and government is seen in total. demand for it is generally Correct Answer inelastic Your Answer inelastic . disregarding details at particular level Correct Answer True Your Answer True Multiple Choice Single Answer Question Market economy or private enterprise economy is a economy which is Correct Answer planless Your Answer planned Multiple Choice Single Answer Question N ew commodities due to technotogical progress may result in demand for tradition al type of goods Correct Answer decrease Your Answer decrease Multiple Choice Single Answer Question If a person is habituated to the consumption of a commodity and if he cannot eas ily give up its use.

adopted by the gover nment. which takes the form of a horizontal line parallelto the quantit y axis illustrates elasticity Infinity. Infinity. Multiple Choice Single Answer Question The law of diminishing returns is applicable to agriculture provided the state o f technology is given and Correct Answer constant Your Answer resources Multiple Choice Single Answer Question Under the system of dual prices in case of essential goods. the weaker sections of the community are supplied these goods through fai r price shops whi Correct Answer fair Your Answer neo rich Multiple Choice Single Answer Question The Government attempts to increase supplies of food grains and other essential goods in times of internal shortage through larger Correct Answer imports Your Answer borrowings True/False .Match The Following Question Correct Answer Your Answer Normal demand curve Downwards to right Downwards to right Income consumption curve Upwards to the right Upwards to the right Inelastic demand curve Vertical straight line Vertical straight line Cross elasticity of demand between two perfect substitute will be Infinity Infinity A demand curve.

Refers to show t he varying level of supply at different prices . Average cost curve should cut the Average Revenue curve Select The Blank Question Cost-benefit analysis refers to the analysis undertaken to judge any projects whether government or private and find out its and facilities it s comparison with other available oppor Correct Answer investments Your Answer investments Correct Answer worth Your Answer profit Multiple Choice Multiple Answer Question Aggregate supply function Correct Answer Refers to that price at which the seller is willing to supply . The Marginal cost curve shou ld cut the marginal revenue curve from below at the equilibrium point . The stage of stationa ry Your Answer The stage of balance Multiple Choice Multiple Answer Question Conditions of equilibrium Correct Answer Marginal Revenue should be equal to Marginal Cost . The stage of balance . Explains the level of out put v aries with the level of employment Your Answer Refers to show the varying level of supply at different prices Multiple Choice Multiple Answer Question Characteristics of Depression Correct Answer Decrease in economic activities . The level o . The Marginal cost curve shou ld cut the marginal revenue curve from below at the equilibrium point . Marginal cost curve should be increasing at equilibrium point Your Answer Marginal Revenue should be equal to Marginal Cost . The growth rate becomes negative . Correct Answer False Your Answer False Multiple Choice Multiple Answer Question Equilibrium is Correct Answer The stage of maximum satisfaction .Question External economies are the advantages of large scale production enjoyed exclusiv ely an individual firm alone.

Increase in f oreign demand Your Answer Increase in public expenditure . The level o f national income declines rapidly Multiple Choice Multiple Answer Question Recession includes Correct Answer The demand is halted . Inventories piling up i n stocks Your Answer The demand is halted . Inventories piling up in stocks . Increase in production of goods . according to . The growth rate becomes negative . the demand function refers to the schedule of maximum sales proceeds. An efficient management of the supply .f national income declines rapidly Your Answer Decrease in economic activities . Increase in foreign demand . which the entrepreneurial community actually does ex pect to be received from the sale of Correct Answer Keynesian Your Answer Keynesian Correct Answer aggregate Your Answer total Select The Blank Question The rate of interest. To . depends upon two factors: (i) and (ii) the quantity of money Correct Answer Keynes Your Answer Keynes Correct Answer the liquidity preference function Your Answer speculative Multiple Choice Multiple Answer Question Reasons for need of public distribution system Correct Answer To maintain stable price conditions . The growth of discrepan cy between supply and demand is very fast Multiple Choice Multiple Answer Question The causes of inflation Correct Answer Increase in public expenditure . Increase in private expenditure . Increase in taxati on Select The Blank Question In the terminology.

Protest against price discrimination Multiple Choice Multiple Answer Question Objectives of economic policy Correct Answer To increase the efficiency and international competitiveness of industrial produ ction . Multiple Choice Multiple Answer Question Types of income elasticity of demand Correct Answer Negative income elasticity . N o Change in government policy. Production function & cost analysis. . Zero income elasticity . Your Answer Demand analysis and forecasting. Right to information regarding protectio n . Right to a competitive price . Zero income elasticity . An efficient management of the supply . No change in fashion . . No change in consumer s preferences . price system. Invent ory management adverting. Unit income elasticity Your Answer Negative income elasticity . . To reform and modernize the financial sector Multiple Choice Multiple Answer Question Scope of Managerial Economics deals with: Correct Answer Demand analysis and forecasting. No change in fashion Your Answer No change in consumer s income . To improve the performance and rationalize the scope of the public secto r . supply the necessary goods to people at reasonable price Your Answer To maintain stable price conditions . price system. Right to information regarding protection Your Answer Protection from hazardous commodities . Multiple Choice Multiple Answer Question Assumptions of the Law of Demand are: Correct Answer No change in consumer s income . To supply the necessary goods to people at reasonable price Multiple Choice Multiple Answer Question The consumer protection Act includes Correct Answer Protection from hazardous commodities . Unit income elasticity . . Production function & cost analysis. To reform and modernize the financial sector Your Answer To increase the efficiency and international competitiveness of industrial produ ction . To improve the performance and rationalize the scope of the public secto r . Invent ory management adverting. No change in consumer s preferences .

Correct Answer firm Your Answer firm Correct Answer life-cycle theory Your Answer . according to the theory. too is an organism. the . Correct Answer means Your Answer means Correct Answer alternative Your Answer alternative Select The Blank Question As per the International Labour Organisation (ILO).Select The Blank Question Managerial s generally refers to the integration of economic theory with practice. Correct Answer economic Your Answer economic Correct Answer business Your Answer business Select The Blank Question The problem of unlimited wants and limited with uses has been forever confronting mankind. _ is a ass ociation of individuals with limited income on the basis of equal rights and res ponsibilities for achieving certa Correct Answer Co-operation Your Answer Co-operation Correct Answer voluntary Your Answer voluntary Select The Blank Question Like all organism.

pro fit arises because considerable amount of risk is involved in business. Correct Answer purpose Your Answer purpose Correct Answer used Your Answer used Select The Blank Question The law of diminishing returns states that. first the and then th e average product of that factor w Correct Answer increased Your Answer increased Correct Answer marginal Your Answer marginal Match The Following . other demand determinants remaining constant. Correct Answer price Your Answer price Correct Answer price elasticity Your Answer price elasticity Select The Blank Question Indices constructed for one should not be for other purposes w here they not be fully appropriate and given erroneous conclusions. is termed as the of de mand. According to him. Correct Answer American economist Hawley Your Answer risk Correct Answer risk Your Answer American economist Hawley Select The Blank Question The extent of the change of demand for a commodity to a given change in .homeostatic theory Select The Blank Question The -taking theory was developed by the . as the proportion of one factor in a combination of factors is after a point.

Correct Answer True Your Answer False Multiple Choice Single Answer Question .Question Correct Answer Your Answer Statutory Reserve Ratio Quantitative credit Control Measure Quantitative credit Control Measure Trade cycle Wave like movement Wave like movement Keynesian theory Short Period Analysis J.13 LIST O F A T T E M P T E QD U E S T IO N SA N D A N S W E R S 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 ser vices that would be required to satisfy all its citizen s wants are Correct Answer insufficient Your Answer sufficient Multiple Choice Single Answer Question All the buyers and sellers operating under perfect competition have knowledge Correct Answer perfect Your Answer perfect True/False Question Inflation reduces the purchasing power of money and savings. Keynes Aggregate Demand Function M axim umsale proceeds expected by entrepreneurs Short Period Analysis Effective Demand J. September 29. Keynes M axim umsale proceeds expected by entrepreneurs Monday. M. M. 2008 Managerial Economics .

M. how and for who m to produce Correct Answer True Your Answer True Match The Following Question Correct Answer Your Answer Managerial economics Decision making and forward planning Decision making and forward planning Resources scarce goods and services Commodities goods and services scarce Hum an wants unlimited unlimited General Theory of Employment. Interest and Money J. Keynes J. M.The supply curve during market period is perfectly Correct Answer inelastic Your Answer inelastic True/False Question Micro-economics is primarily concerned with the problem of what. Keynes True/False Question The price policy under monopolistic competition is dependent on the prices charg ed by other rival firms Correct Answer True Your Answer False Multiple Choice Single Answer Question All firms producing the same or similar product together make Correct Answer an industry Your Answer an industry Multiple Choice Single Answer Question Joint Stock Company succession is Correct Answer perpetual Your Answer perpetual .

True/False Question Private profit motive is an essential feature of Capitalism Correct Answer True Your Answer True True/False Question Free riders is a term associated with the people who would like to have benefit of a good without sharing the cost of its supply Correct Answer True Your Answer False Multiple Choice Single Answer Question Macro economics provides an exploration to the functioning of an economy in Correct Answer general Your Answer general True/False Question Inflation is a great opportunity for merchants to benefit more. the differences in the concept of profit arise out of the differences in cost concepts Correct Answer True Your Answer False Multiple Choice Single Answer Question In economics demand means desire backed by adequate Correct Answer purchasing power Your Answer ability to pay Multiple Choice Single Answer . Correct Answer True Your Answer True True/False Question The various phases of business cycles are shown by the line of cycle which moves up and down the steady growth line Correct Answer True Your Answer True True/False Question In the measurement of profit.

the R. I relies heavily on selective credit controls on bank loans against food grains. oilsee ds.Question The law of diminishing returns is applicable to agriculture provided the state o f technology is given and Correct Answer constant Your Answer constant Multiple Choice Single Answer Question Under the monetary measures to control inflation. cotton etc so as to discourage Correct Answer Speculative hoarding Your Answer Speculative hoarding Multiple Choice Single Answer Question Slope of supply curve is Correct Answer positive Your Answer positive Multiple Choice Single Answer Question Costs which increase because of the expansion of a firm are called costs Correct Answer incremental Your Answer incremental True/False Question The opportunity cost of a product is the opportunity gained of being able to pro duce some other product. B. All firms dealing in the same line of business . The owner ship and management of each firm is different Your Answer Is a group of firms . sugar. The owner ship and management of each firm is different . All firms dealing in the same line of business . Correct Answer False Your Answer False True/False Question The supply curve in case of unitary elastic supply is rectangular hyperbola. oils. Correct Answer False Your Answer False Multiple Choice Multiple Answer Question An Industry Correct Answer Is a group of firms .

there are sellers but buyer Correct Answer many Your Answer many Correct Answer only one Your Answer only one Match The Following Question Correct Answer Your Answer Marginal utility Addition to total utility Addition to total utility Total utility increases marginal Posative and declining Marginal utility is zero At the saturation point for a commodity x the M u x is Zero Demand curve of a commodity Marginal utilities are Demand curve of a commodity Posative and declining Total utility is Marginal utility is zero Zero Select The Blank Question By using cost-benefit analysis we can show the necessary for attaining maximum and optimal policy aiming at this goal Correct Answer measures Your Answer Gross Domestic Product Correct Answer net wealth Your Answer gross wealth Multiple Choice Multiple Answer .Select The Blank Question Under monopoly. there is seller who controls the entire in the market Correct Answer only one Your Answer only one Correct Answer supply Your Answer supply Select The Blank Question Under monopsony.

Monitoring of public expenditure Multiple Choice Multiple Answer Question The meaning of monetary policy Correct Answer . Monitoring of public expenditure Your Answer Formation of taxation policy . which must be expected to be received by the entrepreneu r class from the sale of output result Correct Answer schedule Your Answer demand Correct Answer revenues Your Answer revenues Select The Blank Question In the terminology.Question Average propensity to consume Correct Answer It is defined as the ratio of consumption expenditure to any particular level of income . I t includes an excess of demand Your Answer It is a phenomenon of rising prices Select The Blank Question Aggregate supply function refers to a of the various minimum amounts of proceeds or . It is expr essed as the percentage of income consumed Your Answer It is derived by dividing income by consumption expenditure Multiple Choice Multiple Answer Question Inflation means Correct Answer It is a phenomenon of rising prices . It is an instrument for economic stabilization . the demand function refers to the schedule of maximum sales proceeds. It is an instrument for economic stabilization . It is a general and dynamic phenomenon . which the entrepreneurial community actually does ex pect to be received from the sale of Correct Answer Keynesian Your Answer Keynesian Correct Answer aggregate Your Answer aggregate Multiple Choice Multiple Answer Question The fiscal policy includes Correct Answer Formation of taxation policy . It is found by dividing consumption expenditure by income .

The use of economic modes of thought to analyze bu siness solution. mathematics & statistics. Total outlay expenditure method . mathematics & statistics. Your Answer Man has unlimited wants or ends . . . Multiple Choice Multiple Answer Question Methods of measurement of elasticity Correct Answer Percentage Method . Your Answer Owned by a single person. Deficit financing and increase in money supply . These resources are not specific but have alternative uses. Point elasticity Method .It is programme of the central bank . Easy to form. . Correct Answer Private sector. . Multiple Choice Multiple Answer Question The sources of economic problems are: Correct Answer Man has unlimited wants or ends . Th e basic objective is to achieve economic stability Your Answer It is programme of the central bank . . Public sector. Total outlay expenditure method Your Answer Percentage Method . . Deficit financing and increase in money supply . The means or resources to satisfy them are lim ited. It controls the total supply of money . An organization of single person. . Joint sector. Role of black money Multiple Choice Multiple Answer Question Managerial economics deals with Correct Answer Integration of economic theory with business practice . Using logic of economics . Your Answer Integration of economic theory with business practice . Multiple Choice Multiple Answer Question Different types of business organizations are. The means or resources to satisfy them are lim ited. Th e basic objective is to achieve economic stability Multiple Choice Multiple Answer Question Causes for rise in prices in India Correct Answer Mounting government expenditure . Using logic of economics . Point elasticity Method . Role of black money Your Answer Mounting government expenditure . It controls the total supply of money . Multiple Choice Multiple Answer Question Proprietary firm is Correct Answer Owned by a single person. Your Answer Joint sector. These resources are not specific but have alternative uses.

Besides economic theory. Correct Answer money Your Answer opportunity . or single en trepreneurship is the most common. the simplest and the oldest form of business organisation. Expansion of firms Select The Blank Question Economic theory provides the basis for the _ making process. Correct Answer land and minerals Your Answer land and minerals Correct Answer human capacity Your Answer human capacity Select The Blank Question Individual or sole .Multiple Choice Multiple Answer Question Demand forecasts are necessary for: Correct Answer Fulfillment of objective of the plans . Expansion of f irms Your Answer Preparation of a budget . mat Correct Answer decision making Your Answer optimal Correct Answer statistics Your Answer Select The Blank Question The resources of a society consist not only of the free gifts of nature such as but also of and of all sorts of man made aids to further produ ction. . Preparation of a budget . Correct Answer proprietorship Your Answer proprietorship Correct Answer trader ship Your Answer trader ship Select The Blank Question Nominal cost is the cost of production. there is s ome difference between the generalization based on abstraction and actual practi ces. which is also called sole. The real cost is the cost of production. it is also called expenses of p roduction.

including insurance ch Correct Answer Production costs Your Answer Production costs Correct Answer Selling costs Your Answer Selling costs Select The Blank Question The costs of self owned resources. Posted by MindGrill at 6:31 A M 0 comments Links to this post Labels: Managerial Economics (Set IV) Managerial Economics . which are employed by the . Correct Answer True Your Answer True Multiple Choice Single Answer Question The city of Faridabad has specialized in the manufacture of Correct Answer bangles Your Answer bangles Multiple Choice Multiple Answer Question Demand is determined by Correct Answer Price of the product .12 LIST O F A T T E M P T E QD U E S T IO N SA N D A N S W E R S True/False Question A monopolist in a price maker. Tastes and habits Your Answer . Correct Answer firm Your Answer firm Correct Answer implicit costs . Your Answer implicit costs . are non- expenditure or .Correct Answer opportunity Your Answer gross Select The Blank Question Costs may be classified as : (a) . Relative prices of other goods . wage cost and interest cost (b) . including costs of advertising and (c) other co sts. including material costs.

Correct Answer False Your Answer True True/False Question A shift in the demand curve to the left shows increase in demand. total expenditure spent on the commodity i s less than before. Economic theory contributes in building anlyatical model to rocognize manager ial problems .S Voluntary social work Voluntary social work Sole proprietorship Unlimited liability Unlimited liability .Price of the product . They are Correct Answer Economic theory offers clarity to various concepts used in the business anlayses .'a set of analytical methods' whi ch enhance the analytical capabilities of business analyasis Your Answer Economic theory offers clarity to various concepts used in the business anlayses .'a set of analytical methods' whi ch enhance the analytical capabilities of business analyasis True/False Question In case of indivisible goods. Economic theory contributes to . then elasticity of demand for the commodity is Correct Answer < 1 Your Answer < 1 Match The Following Question Correct Answer Your Answer N. Economic theory contributes in building anlyatical model to rocognize manager ial problems . Tastes and habits Multiple Choice Multiple Answer Question Baumol has pointed out three main contributions of economic theory. Economic theory contributes to .O. 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 With decline in price of a commodity. which are not priced. Relative prices of other goods .G. the decisions regarding thei r demand preferences are taken through price mechanism.

Free entry and free exit of firms Your Answer Large number of buyers and sellers . Correct Answer False Your Answer True Multiple Choice Single Answer Question Market mechanism is characterized by Correct Answer instability Your Answer stability Multiple Choice Multiple Answer Question Features of Pure Competition are Correct Answer Large number of buyers and sellers . Homogeneous products . Homogeneous products . Correct Answer True Your Answer True Multiple Choice Single Answer Question The act of using goods and services to satisfy wants is called Correct Answer consumption Your Answer consumption True/False Question External economies are the advantages of large scale production enjoyed exclusiv ely an individual firm alone.Preference shares Fixed rate of dividend Fixed rate of dividend Public enterprises State control State control True/False Question Pure private goods are completely divisible and to them the principle of exclusi on applies in full measure. Free entry and free exit of firms Multiple Choice Single Answer Question The things that are produced by factors of production are called Correct Answer commodities Your Answer free goods True/False .

Correct Answer 2 Your Answer 2 Select The Blank Question In a market economy is the best judge of personal interest. feasibility means the availability of supervisors for implementing and running the project smoothl y and professionally. his demand for overall commoditi es tends to be relatively elastic. Factors of production and final production .Question Generally. Correct Answer management Your Answer management Select The Blank Question The minimum number of directors which private limited should have is . Correct Answer Pecuniary Your Answer Social 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 formulating an investment project. Demand for production Select The Blank Question The externality which causes an economic gain or an economic loss to other econo mic units is also referred to as externality. Correct Answer False Your Answer False Multiple Choice Multiple Answer Question The production function studies Correct Answer Input and out put relation . the larger the income of a consumer. Techno logy used in production Your Answer Input and out put relation . Factors of production and final production . Correct Answer individual Your Answer .

Facto rs of production are optimally allocated between the various industries . sales revenue maximization . sales revenue maximization Your Answer maximization of profit . etc Multiple Choice Single Answer Question The firm is a center. reasonable profit target . to cover risk and uncertai nty Multiple Choice Multiple Answer Question Government intervention is needed in free market mechanism to Correct Answer To provide employment to all who willing to work at prevailing wage rate . Correct Answer True Your Answer True Multiple Choice Single Answer Question The type economic problem is Correct Answer universal Your Answer universal Multiple Choice Single Answer Question Under monopoly entry of new firms is Correct Answer prohibited Your Answer prohibited Multiple Choice Multiple Answer Question Specific organizational goals of Firms are Correct Answer maximization of profit .individual Multiple Choice Single Answer Question The concept of just distribution of national product is a Correct Answer normative Your Answer neutral True/False Question Supply management is related to the volume ofsupply & its distribution system. commissions. where all the decisions are taken about Correct Answer production . Contro l the market mechanism by charging license fees. Facto rs of production are optimally allocated between the various industries . All wi ll get sufficient income to meet their basic needs Your Answer To provide employment to all who willing to work at prevailing wage rate .

Ownership by a single person . Correct Answer True Your Answer True Multiple Choice Multiple Answer Question The characteristics of a sole proprietorship firm is Correct Answer Unlimited Capital .Your Answer production Multiple Choice Single Answer Question Under the imperfect market. Easy to form Select The Blank Question Sole Proprietorship which is also called sole Correct Answer tradership Your Answer tradership Multiple Choice Single Answer Question The method of inventory valuation in which . Easy to form Your Answer Ownership by a single person . the market in which few firms exists is called as Correct Answer Oligopoly Your Answer Oligopoly True/False Question There are no real exceptions to the law of demand Correct Answer False Your Answer False Multiple Choice Single Answer Question Every nation s resources which are used to produce the quantities of goods and ser vices that would be required to satisfy all its citizen s wants are Correct Answer insufficient Your Answer insufficient True/False Question The prosperity phase is characterized by rise in the level of employment. the cost of production is calculate d on the assumption that the material which was last to enter the inventory of t he company was used first is Correct Answer LIFO Your Answer .

) of a firm under perfect competition is Correct Answer perfectly elastic Your Answer inelastic . advertisement.R. Multiple Choice Single Answer Question The demand curve (A. high price on account of prestige considerations. state government. public sector undertaking. Administered prices public sector undertaking. demand means desire backed by adequate Correct Answer purchasing power Your Answer purchasing power 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 A group of firms dealing in the same line of business are called as Correct Answer Industry Your Answer Industry Multiple Choice Single Answer Question Managerial economics is also understood to refer to Correct Answer applied economics Your Answer applied economics Match The Following Question Correct Answer Your Answer Non-price competition advertisement. Pricing in cooperative societies state government.LIFO Multiple Choice Single Answer Question In economics. Prestige price high price on account of prestige considerations.

11 LIST O F A T T E M P T E QD U E S T IO N SA N D A N S W E R S True/False Question A supply schedule is a graphical presentation of supply patterns. Correct Answer net wealth Your Answer net domestic product Multiple Choice Multiple Answer Question The causes of inflation are Correct Answer Increase in public expenditure . Applicable only in partial equilibrium framework. Supply and demand determine the price . Maximization of difference between total benefi ts & total costs . Some factors can be changed Posted by MindGrill at 6:30 A M 0 comments Links to this post Labels: Managerial Economics (Set IV) Managerial Economics .Multiple Choice Multiple Answer Question The advantage of cost-benefit analysis are Correct Answer Maximization of social welfare . Some factors can be changed Your Answer Supply of goods can be adjusted to the demand to some extent . Increase in taxati on Select The Blank Question The partnership between private sector & government is called Correct Answer Joint sector enterprise Your Answer Joint sector enterprise 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 . Maximi zation of difference between total benefits & total costs Your Answer Maximization of social welfare . Increase in private expenditure . Increase in f oreign demand Your Answer Increase in public expenditure . Increase in foreign demand . Objective measurement of the trade-off . Supply and demand determine the price . Select The Blank Question By using cost-benefit analysis we can show the measures necessary for attaining maximum and optimal policy aiming at this goal. Correct Answer False Your Answer True .

capable of producing a given quantity of a product per day is Correct Answer plant . tobacoo. sigaratte is a matter of Correct Answer habit Your Answer habit Multiple Choice Single Answer Question If the substitutes are relatively cheaper then the demand for the commodity in q uestion will be Correct Answer less Your Answer less Multiple Choice Single Answer Question An assembly of several machines. Correct Answer False Your Answer False Select The Blank Question W hen demand for the product increases in the same proportion in which income inc reases. Income elasticity of demand will be equal to Correct Answer unity Your Answer unity Multiple Choice Multiple Answer Question Features of stage of expansion in business cycle are Correct Answer Rise in national output . Bank advanc es grow rapidly Your Answer Rise in national output . Rise in consumer and capital expenditure . These are firms accounting expenses .True/False Question The subject matter of macro economics includes the theory of income and employme nt at an individual level. Rise in consumer and capital expenditure . Expenditure costs Multiple Choice Single Answer Question Demand for products like tea. Expenditure costs Your Answer Out of pocket costs . linked together either physically or by process es. betel. These are firms accounting expenses . Bank advanc es grow rapidly Multiple Choice Multiple Answer Question Explicit costs are Correct Answer Out of pocket costs .

Increase in private expenditure . It is a sole proprietorshi p . Increase in f . who was an Correct Answer American Economist Your Answer American Economist Select The Blank Question The cost which enter the accounts book of the firm are referred as . It is a partnership or joint stock company Your Answer It is a business unit organized under one ownership . It is a partnership or joint stock company Multiple Choice Multiple Answer Question The causes of inflation are Correct Answer Increase in public expenditure .Your Answer plant Multiple Choice Single Answer Question The Risk Taking Theory was developed by Hawley. Correct Answer Partners Your Answer Partners Select The Blank Question Perfectly elastic demand curve is Correct Answer horizontal Your Answer horizontal Select The Blank Question While discussing the product divisibility of public and private goods. It is a sole proprietorshi p . the princ iple of may be applied in case of only those people who do not agree to pay or who cannot pay the market price Correct Answer exclusion Your Answer exclusion Multiple Choice Multiple Answer Question Features of the firm are Correct Answer It is a business unit organized under one ownership . Correct Answer Accounting cost Your Answer Accounting cost Select The Blank Question The persons who own the hip concern are called Partners.

Increase in f oreign demand True/False Question Inflation is a great opportunity for merchants to earn more profit. Correct Answer True Your Answer True Match The Following Question Correct Answer Your Answer Hum an wants unlimited unlimited General Theory of Employment. M. Maximi zation of difference between total benefits & total costs Select The Blank Question Sole Proprietorship which is also called sole Correct Answer tradership Your Answer tradership True/False Question A plant is an economic unit which takes various decisions related to production and distribution.oreign demand Your Answer Increase in public expenditure . Interest and Money J. Increase in private expenditure . Keynes J. 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 The advantage of cost-benefit analysis are Correct Answer Maximization of social welfare . Correct Answer False Your Answer False . M. Objective measurement of the trade-off . Objective measurement of the trade-off . Maximi zation of difference between total benefits & total costs Your Answer Maximization of social welfare .

Multiple Choice Multiple Answer
Question
Features of an Industry are
Correct Answer
All firms dealing in the same line of business , The ownership and management of
each firm is different , Is a group of firms
Your Answer
All firms dealing in the same line of business , The ownership and management of
each firm is different , Is a group of firms

Multiple Choice Single Answer
Question
Managerial economics generally refers to the integration of economic theory with
business
Correct Answer
Practice
Your Answer
Practice

True/False
Question
During recession, on account of decline in investment by producers, there is dec
line in income and consumption.
Correct Answer
True
Your Answer
True

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

Multiple Choice Single Answer
Question
Forecasts made either through experience or through methodigistic are
Correct Answer
statistical
Your Answer
statistical

Multiple Choice Single Answer
Question
Managerial economics is also understood to refer to
Correct Answer
applied economics
Your Answer
applied economics

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

Your Answer
Social

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 Single Answer
Question
The principle of full employment equilibrium was stated by
Correct Answer
Say's Law of Market
Your Answer
Law of Demand

Multiple Choice Multiple Answer
Question
Phases of business cycle
Correct Answer
Expansion , Peak , Recession
Your Answer
Expansion , Peak , Recession , Trough

True/False
Question
In case of a Joint Stock Company the liability of the share holders is unlimited
.
Correct Answer
False
Your Answer
False

Multiple Choice Single Answer
Question
Goods which are completely divisible and to them the principle of exclusion appl
ies in full measure, are called
Correct Answer
Pure public goods
Your Answer
Private goods

Multiple Choice Multiple Answer
Question
Assumptions underlying the law of Supply are
Correct Answer
The cost of production is unchanged , No change in technique of production , Gov
ernment policies are unchanged
Your Answer
The cost of production is unchanged , No change in technique of production , Gov
ernment policies are unchanged

Multiple Choice Multiple Answer
Question
The payments made out of the Gross Profit are
Correct Answer
Remuneration to factors of production , Depreciation , Maintenance Charges

Your Answer
Remuneration to factors of production , Depreciation , Maintenance Charges

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

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

Multiple Choice Single Answer
Question
Gross profit is the excess of total revenue of a firm over total
Correct Answer
expenditure
Your Answer
expenditure

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

Multiple Choice Multiple Answer
Question
Co-operative organizations is
Correct Answer
voluntary organization , managed by democratic principle , organization, which p
erforms its business within the members
Your Answer
voluntary organization , managed by democratic principle , organization, which p
erforms its business within the members , non profit motive organization

Multiple Choice Single Answer
Question
Macro economics is the study of the
Correct Answer
aggregate behavior of economy
Your Answer
aggregate behavior of economy

True/False
Question
To solve the unemployment problem, the level of effective demand must decrease.
Correct Answer
False

be cause of the Correct Answer economies of scale Your Answer economies of scale Multiple Choice Single Answer Question In the cost . Correct Answer False Your Answer False Select The Blank Question In a market economy is the best judge of personal interest. August 25. after formulating various alternative p roject capacity.Your Answer False Multiple Choice Single Answer Question The public sector is owned & controlled by Correct Answer state enterprises Your Answer state enterprises Select The Blank Question Demand for safety pins is Correct Answer inelastic Your Answer relatively inelastic Multiple Choice Single Answer Question Under perfect competition. Correct Answer individual Your Answer firm Monday. generally demand and supply act and react upon each o ther and determine the price Correct Answer equilibrium Your Answer equilibrium True/False Question During the period of recession there is increase in incomes of wage and interest earners.10 LIST O F A T T E M P T E QD U E S T IO N SA N D A N S W E R S Multiple Choice Single Answer Question Pure public goods are subject to the law of decreasing average cost. each of them has to be examined in terms of its Correct Answer feasibility . 2008 Managerial Economics .benefit analysis.

Maximization of difference between total benefits & total costs Multiple Choice Multiple Answer Question The term externalities may also be referred as: Correct Answer Spill-over effects . Correct Answer externalities Your Answer disadvantages Select The Blank Question Economists like A. Neighborhood effects .C. Third party effects Select The Blank Question Modern economists treat social cost and benefits as of private investment and production decisions. Neighborhood effects . Third party effects Your Answer Spill-over effects .Your Answer feasibility True/False Question Bargaining is one of the remedies of corrective action. Sam Nelson calls risks from unsafe factories or nuclear power pla nts as economies. Correct Answer False Your Answer True Match The Following Question Correct Answer Your Answer Defence service Indivisible Indivisible Economic effects of public goods are Spill over effect Spill over effect Selection or implementation Step of cost benefit analysis Step of cost benefit a nalysis Production possibility frontier Maximization of output Maximization of output Multiple Choice Multiple Answer Question The advantage of cost-benefit analysis are Correct Answer Maximization of social welfare .Harberger have shown that the cost benefit analysis can be applied to analysis. Objective measurement of the tra de-off . "Economics is a science which studies Correct Answer human behavior . Correct Answer management Your Answer management Select The Blank Question Prof. feasibili ty means the availability of supervisors for implementing and running the projec t smoothly and professionally. Objective measurement of the trade- off . Correct Answer general equilibrium Your Answer general equilibrium Select The Blank Question In the context of formulating an investment project. Correct Answer negative Your Answer hazardous Multiple Choice Single Answer Question According to Lionel Robbins. Maximization of difference between total benefits & total costs Your Answer Maximization of social welfare .

Correct Answer False Your Answer False Multiple Choice Single Answer Question Complementary goods are demanded Correct Answer jointly Your Answer jointly Multiple Choice Single Answer Question If the substitutes are relatively costly then the demand for the commod ity in question will be Correct Answer more Your Answer same True/False Question There are no real exceptions to the law of demand Correct Answer False Your Answer False . The use of economic modes of thought to analyze business solution Multiple Choice Single Answer Question The public sector is owned & controlled by Correct Answer state enterprises Your Answer state enterprises Select The Blank Question Reasonable profit target as an alternative to the objective of profit m aximization was suggested by . Using log ic of economics. Kenneth Boulding Select The Blank Question The form of organization which is best for self employment is .Your Answer social behavior Multiple Choice Single Answer Question Question related to the efficient production and allocation belong to t he branch of economic theory called Correct Answer Welfare Economics Your Answer Business Economics Multiple Choice Multiple Answer Question Managerial economics deals with Correct Answer Integration of economic theory with business practice . Correct Answer Prof. mathematics & statistics . mathematics & statistics . The use of economic modes of thought to analyze business solution Your Answer Integration of economic theory with business practice . Using logic of economics. Kenneth Boulding Your Answer Prof. Correct Answer Joel Dean Your Answer Joel Dean Select The Blank Question Homeostatic Approach as an alternative objective of firms was suggested b y . Correct Answer Sole trader Your Answer Sole trader True/False Question Accounting profit takes in to account opportunity cost.

A rightwards shift in supply schedule indicates an increase in supply. Expen diture costs Your Answer Out of pocket costs . These are firms accounting expenses . perfectly inelastic. u nder the case of . an increa se in supply. These are firms accounting expenses . Correct Answer decreasing returns to scale Your Answer decreasing returns to scale Select The Blank Question The cost which enter the accounts book of the firm are referred as . Expendit ure costs Select The Blank Question Output rises in a lesser proportion to that of the increase in input. perfectly elastic The market period supply curve for perishable commodities is perfectly inelastic . Your Answer Giffen goods. downward from right to l eft Any straight line supply curve which cuts y axis will have zero elasticity of su pply. . Correct Answer Accounting cost Your Answer Accounting cost Multiple Choice Single Answer Question Jevons' . Match The Following Question Correct Answer Your Answer Normally the isoquant slopes upward from right to left. the economists who defined the term 'market' different from t hat of the traditional sense is an Correct Answer English economists Your Answer English economists Multiple Choice Single Answer Question Economists have pointed out that the real world is full of Correct Answer Imperfect competition Your Answer Imperfect competition . Multiple Choice Multiple Answer Question Explicit costs are Correct Answer Out of pocket costs . Correct Answer True Your Answer True Select The Blank Question A n upward sloping demand curve is called Correct Answer exceptional demand curve Your Answer exceptional demand curve Select The Blank Question Goods which are paradoxical to the law of demand are Correct Answer Giffen goods.True/False Question Demand curve slopes downwards from left to right. .

Aggregate supply function refers to Correct Answer the minimum price of revenue which the entrepreneurs must get . Homogeneous products . Correct Answer False Your Answer False True/False Question Saving is a private virtue Correct Answer True Your Answer True Multiple Choice Multiple Answer Question According to Keynes.True/False Question A firm under perfect competition is a price maker. Correct Answer False Your Answer False True/False Question Under perfect competition single seller can influence the price. Free ent ry and free exit of firms Multiple Choice Multiple Answer Question Equilibrium is the stage of Correct Answer maximum satisfaction . the pensioners whose income is permanently fixed. Explains that the level of out p ut varies with the level of employment Your Answer the minimum price of revenue which the entrepreneurs must get . balance . are substantially benefited. Correct Answer False Your Answer False Multiple Choice Multiple Answer Question Types of imperfect competition are Correct Answer Monopoly . Asso ciated with different levels of employment . Oligopoly Multiple Choice Multiple Answer Question Features of Pure Competition are Correct Answer Large number of buyers and sellers . Duopoly . Free entry and free exit of firms Your Answer Large number of buyers and sellers . balance Multiple Choice Single Answer Question Inflation is a phenomena in which prices Correct Answer rise Your Answer rise Multiple Choice Single Answer Question True inflation starts only after reaching the level of full Correct Answer Employment Your Answer Employment True/False Question During inflation. Homogeneous products . Explains that the level of out put varies with the level of employment Multiple Choice Multiple Answer Question Marginal Propensity to consume is characterized as follows . A ssociated with different levels of employment . stationary Your Answer maximum satisfaction . Oligopoly Your Answer Monopoly . Duopoly .

To remove restrictions on dire ct foreign investment as also to free the domestic entrepreneur from the restric tion of M R T Pact Your Answer To unshackle the indian industrial economy from the cobwebs of unnec essary bureaucratic control . To remove restrictions on direct foreign investment as also to free the domestic entrepreneur from the restrictio n of M R T Pact Multiple Choice Multiple Answer Question Objectives of economic policy are Correct Answer To increase the efficiency and international competitiveness of i ndustrial production . It controls the total supply of money . The basic objective is to achieve economic stability Multiple Choice Multiple Answer Question Main aims of the N ew Industrial Policy (1991) are Correct Answer To unshackle the indian industrial economy from the cobwebs of un necessary bureaucratic control . To introduce liberalization with a view to inte grate the indian economy with the world economy . To reform and modernize the financial sector Your Answer To increase the efficiency and international competitiveness of indu strial production . It is rate of change in the average propensity to consume as in come changes . To introduce liberalization with a view to integra te the indian economy with the world economy . The basic objective is to achieve economic stability Your Answer It is programmed of the central bank .Correct Answer It is defined as the ratio of the change in consumption to the ch ange in income . It is derived by the formula mpc= change in c/change in y Your Answer It is rate of change in the average propensity to consume as income changes . To reform and modernize the financial sector Posted by MindGrill at 3:29 A M 0 comments Links to this post Labels: Managerial Economics (Set III) Managerial Economics . Correct Answer False Your Answer False True/False Question Public enterprises have shown a very high rate of return of the capital invested Correct Answer False Your Answer False Multiple Choice Multiple Answer Question The meaning of monetary policy is Correct Answer It is programmed of the central bank . It controls the total supp ly of money . To improve the performance and rationalize the scope of the public sector . It is deri ved by dividing the change in income by change in the consumption expenditure Multiple Choice Single Answer Question During the period of depression various factors of production are Correct Answer exhausted Your Answer unutilized True/False Question In general SBI uses its monetary policy to achieve a judicious balance between the growth of production and control of the general price level. It is derived by the formula mpc= change in c/change in y . To improve the performance and rationalize the scope of t he public sector .9 Multiple Choice Single Answer Question The study of the working and allocation of resources in the free market economie s is the topic in the Correct Answer .

it is assumed that every individual proprieto r exhibits rational economic Correct Answer behavior Your Answer behavior Match The Following Question Correct Answer Your Answer Managerial Economics Prescriptive in nature The theory of distribution Resources Alternative uses Alternative uses Division of society s output of goods and services The theory of distribution Prescriptive in nature Motor cars Tangible goods Tangible goods Wants Insatiable Insatiable True/False Question Market price fluctuates very often Correct Answer True Your Answer False Multiple Choice Single Answer Question The firm is the unit that makes the decisions regarding employment of and the ou . does not face the basic economic problem.S.A.theory of price Your Answer theory of production Multiple Choice Single Answer Question Managerial economics aims at providing help in the firms is Correct Answer decision making Your Answer decision making True/False Question The federal government of U. Correct Answer False Your Answer False Multiple Choice Single Answer Question In equilibrium analysis of a firm.

whose benefits can be priced. are called pure public goods Correct Answer False Your Answer True True/False Question In case of a proprietary firm the liability of the proprietor is limited Correct Answer False Your Answer False True/False Question During the phase of depression. the liability of share holders is Correct Answer limited Your Answer limited True/False Question The divisible goods. the level of national income and expenditure ris es rapidly Correct Answer .tput of commodities are Correct Answer factors of production Your Answer factors of production Multiple Choice Single Answer Question The principle of exclusion cannot be applied to the goods which are Correct Answer indivisible Your Answer invisible Multiple Choice Single Answer Question In the cost benefit analysis. the firm step involved is that the investor has to choose a few project alternatives promising a rate of return which is Correct Answer high Your Answer high Multiple Choice Single Answer Question Market system of economy is characterized by consumer s Correct Answer sovereignty Your Answer demand Multiple Choice Single Answer Question In case of a joint stock company.

profit is the reward paid for Correct Answer dynamism Your Answer risk bearing Multiple Choice Single Answer Question Gross profit is the excess of total revenue of a firm over total Correct Answer expenditure Your Answer expenditure Multiple Choice Single Answer Question In general. which conn otes the expansion of public sector undertakings. can be left to some private co .B. Correct Answer True Your Answer False Match The Following Question Correct Answer Your Answer Excess supply can be defined as Quantity supplied minus quantity demanded Quantity supplied minus quantity demanded If demand remain unchanged on increase in supply will result in A rise in equilibrium quantity The supply is perfectly elastic Market Price is a situation which The supply is perfectly elastic A rise in equilibrium quantity The responsiveness of demand to change in price is measured Elasticity of demand In the same proportion Unit income elasticity implies that asincome rises demand for a commodity rises In the same proportion Elasticity of demand Select The Blank Question Greater scope for the sector may mean incremental .Clark. the demand for necessaries is relatively Correct Answer inelastic Your Answer elastic True/False Question Demand for food grains is inelastic but the demand for wheat is elastic.False Your Answer False Multiple Choice Single Answer Question According J.

Correct Answer True Your Answer True True/False Question The laws of returns to scale explain the behavior of output in response to chang es in scale. Selling costs are exist . the marginal product goes on i ncreasing Correct Answer True Your Answer False Multiple Choice Multiple Answer Question Features of monopolistic Competition Correct Answer Fairly Large number of firms .mpanies Correct Answer private Your Answer investment Correct Answer disinvestments Your Answer growth Multiple Choice Single Answer Question Goods produced on small scale of supply is Correct Answer inelastic Your Answer zero elastic True/False Question The sum of total fixed costs and total variable costs is the total cost. Product differentiation . Correct Answer True Your Answer True True/False Question In the stage I of the law of diminishing returns. Selling costs are exist ed Your Answer Fairly Large number of firms . Correct Answer True Your Answer True True/False Question Contraction of supply is traced by the downward movement on the supply curve. Product differentiation .

It inc ludes new plant and equipment Multiple Choice Multiple Answer Question Features of stage of expansion in business cycle are Correct Answer Rise in national output . Rise in consumer and capital expenditure . It leads to increase in level of income . it is called Dumping Correct Answer monopolist Your Answer a firm Correct Answer higher price Your Answer higher price Select The Blank Question The number of sellers operating under this type of competition is under oligopoly. It inc ludes new plant and equipment Your Answer It adds to capital equipments . It is derived by the formula mpc= change in C/change in Y Your Answer It is defined as the ratio of the change in consumption to the change in income . but less than under Correct Answer larger than Your Answer complementary Correct Answer perfect ompetition Your Answer perfect ompetition Multiple Choice Multiple Answer Question Marginal Propensity to consume Correct Answer It is defined as the ratio of the change in consumption to the change in income . It is derived by d ividing the change in income by change in the consumption expenditure Multiple Choice Multiple Answer Question Investment Correct Answer It adds to capital equipments . It is derived by the formula mpc= change in C/change in Y . Bank advanc es grow rapidly . Bank advanc es grow rapidly Your Answer Rise in national output . Rise in consumer and capital expenditure .ed Select The Blank Question Where is charging a in the home market and a lower price in th e international market. It is rate of change in the average propensity to consume as income changes . It leads to increase in level of income .

Inventories piling up in stocks Multiple Choice Multiple Answer Question The causes of inflation Correct Answer Increase in public expenditure . depends upon two factors: (i) and (ii) the quantity of money Correct Answer Keynes Your Answer Keynes Correct Answer the liquidity preference function Your Answer the liquidity preference function Select The Blank Question In the words of . Increase in foreign demand . The growth rate becomes negative Multiple Choice Multiple Answer Question Recession includes Correct Answer The demand is halted . Correct Answer Prof. Increase in taxati on Select The Blank Question The rate of interest. Increase in production of goods . according to . Increase in private expenditure . Departmental management . Inventories piling up i n stocks Your Answer The demand is halted .Multiple Choice Multiple Answer Question Characteristics of Depression Correct Answer Decrease in economic activities . The growth rate becomes negative . Samuelson Correct Answer general level Your Answer general level Multiple Choice Multiple Answer Question Forms of Public Enterprises Correct Answer Public Corporations . inflation occurs when the of prices and cost is rising . Increase in f oreign demand Your Answer Increase in public expenditure . The level o f national income declines rapidly Your Answer Decrease in economic activities . Company Management or management by boards . Samuelson Your Answer Prof.

It shows the quantities of a commodity purchased Your Answer Is in tabular form . Correct Answer a single Your Answer . Optimum combinations of inputs Multiple Choice Multiple Answer Question Implicit costs are: Correct Answer Cost on self owned resources . Laws of returns to scale . Correct Answer economic Your Answer economic Correct Answer business Your Answer business Select The Blank Question In a competitive industry. Reasonable Profit Target . Laws of returns to scale . there is a large number of firms so that the action o f firm has on the price and output of the whole industry. Public Corporations Multiple Choice Multiple Answer Question Specific organizational goals of Firms are: Correct Answer Maximisation of profit .Your Answer Departmental management . Reasonable Profit Target . Sales revenue Maximization Multiple Choice Multiple Answer Question Individual Demand Schedule: Correct Answer Is in tabular form . It shows the prices of goods . Sales revenue Maximization Your Answer Maximisation of profit . It shows the prices of goods . Interest on t he entrepreneur's own investment Your Answer Cost on self owned resources . Interest on the entrepreneur's own investment Select The Blank Question Managerial s generally refers to the integration of economic theory with practice. It shows the quantities of a commodity purchased Multiple Choice Multiple Answer Question The production function can be explained by: Correct Answer Law of variable proportions . Costs of salary of the proprietor . Optimum combinations of inputs Your Answer Law of variable proportions .

. demand curve s lopes ward from left to right. _ is a ass ociation of individuals with limited income on the basis of equal rights and res ponsibilities for achieving certa Correct Answer Co-operation Your Answer Co-operation Correct Answer voluntary Your Answer voluntary Select The Blank Question The word has different meanings to businessmen. workers and economists and it is often used in a loose sense that buries its real significance Correct Answer Profit Your Answer Profit Correct Answer accountants Your Answer accountants Select The Blank Question The demand curve is representation of a demand schedule. Correct Answer sacrificed Your Answer commodity Correct Answer commodity Your Answer sacrificed Posted by MindGrill at 3:29 A M 0 comments Links to this post Labels: Managerial Economics (Set III) .a single Correct Answer no effect Your Answer no effect Select The Blank Question As per the International Labour Organisation (ILO). Correct Answer graphical Your Answer graphical Correct Answer down Your Answer down Select The Blank Question The that is is the opportunity cost of the commodity produced. tax collecto rs.

Correct Answer True Your Answer False Multiple Choice Single Answer Question The supply curve during market period is perfectly Correct Answer inelastic Your Answer inelastic True/False Question Micro-economics is primarily concerned with the problem of what. how and for who m to produce Correct Answer True Your Answer True Match The Following Question Correct Answer Your Answer Managerial economics Decision making and forward planning .8 LIST O F A T T E M P T E QD U E S T IO N SA N D A N S W E R S 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 ser vices that would be required to satisfy all its citizen s wants are Correct Answer insufficient Your Answer sufficient Multiple Choice Single Answer Question All the buyers and sellers operating under perfect competition have knowledge Correct Answer perfect Your Answer perfect True/False Question Inflation reduces the purchasing power of money and savings.Managerial Economics .

M.Decision making and forward planning Resources scarce goods and services Commodities goods and services scarce Hum an wants unlimited unlimited General Theory of Employment. Keynes True/False Question The price policy under monopolistic competition is dependent on the prices charg ed by other rival firms Correct Answer True Your Answer False Multiple Choice Single Answer Question All firms producing the same or similar product together make Correct Answer an industry Your Answer an industry Multiple Choice Single Answer Question Joint Stock Company succession is Correct Answer perpetual Your Answer perpetual True/False Question Private profit motive is an essential feature of Capitalism Correct Answer True Your Answer True True/False Question Free riders is a term associated with the people who would like to have benefit of a good without sharing the cost of its supply Correct Answer True Your Answer False Multiple Choice Single Answer Question Macro economics provides an exploration to the functioning of an economy in Correct Answer . Interest and Money J. M. Keynes J.

oilsee ds. oils. I relies heavily on selective credit controls on bank loans against food grains. B. the R. cotton etc so as to discourage Correct Answer Speculative hoarding Your Answer Speculative hoarding Multiple Choice Single Answer Question Slope of supply curve is . the differences in the concept of profit arise out of the differences in cost concepts Correct Answer True Your Answer False Multiple Choice Single Answer Question In economics demand means desire backed by adequate Correct Answer purchasing power Your Answer ability to pay Multiple Choice Single Answer Question The law of diminishing returns is applicable to agriculture provided the state o f technology is given and Correct Answer constant Your Answer constant Multiple Choice Single Answer Question Under the monetary measures to control inflation. Correct Answer True Your Answer True True/False Question The various phases of business cycles are shown by the line of cycle which moves up and down the steady growth line Correct Answer True Your Answer True True/False Question In the measurement of profit.general Your Answer general True/False Question Inflation is a great opportunity for merchants to benefit more. sugar.

All firms dealing in the same line of business . there is seller who controls the entire in the market Correct Answer only one Your Answer only one Correct Answer supply Your Answer supply Select The Blank Question Under monopsony. All firms dealing in the same line of business .Correct Answer positive Your Answer positive Multiple Choice Single Answer Question Costs which increase because of the expansion of a firm are called costs Correct Answer incremental Your Answer incremental True/False Question The opportunity cost of a product is the opportunity gained of being able to pro duce some other product. Correct Answer False Your Answer False Multiple Choice Multiple Answer Question An Industry Correct Answer Is a group of firms . there are sellers but buyer Correct Answer many Your Answer many . The owner ship and management of each firm is different Your Answer Is a group of firms . The owner ship and management of each firm is different Select The Blank Question Under monopoly. Correct Answer False Your Answer False True/False Question The supply curve in case of unitary elastic supply is rectangular hyperbola.

It is found by dividing consumption expenditure by income . I t includes an excess of demand Your Answer It is a phenomenon of rising prices Select The Blank Question Aggregate supply function refers to a of the various minimum amounts of .Correct Answer only one Your Answer only one Match The Following Question Correct Answer Your Answer Marginal utility Addition to total utility Addition to total utility Total utility increases marginal Posative and declining Marginal utility is zero At the saturation point for a commodity x the M u x is Zero Demand curve of a commodity Marginal utilities are Demand curve of a commodity Posative and declining Total utility is Marginal utility is zero Zero Select The Blank Question By using cost-benefit analysis we can show the necessary for attaining maximum and optimal policy aiming at this goal Correct Answer measures Your Answer Gross Domestic Product Correct Answer net wealth Your Answer gross wealth Multiple Choice Multiple Answer Question Average propensity to consume Correct Answer It is defined as the ratio of consumption expenditure to any particular level of income . It is a general and dynamic phenomenon . It is expr essed as the percentage of income consumed Your Answer It is derived by dividing income by consumption expenditure Multiple Choice Multiple Answer Question Inflation means Correct Answer It is a phenomenon of rising prices .

Role of black money Multiple Choice Multiple Answer Question Managerial economics deals with Correct Answer Integration of economic theory with business practice . Role of black money Your Answer Mounting government expenditure . Monitoring of public expenditure Your Answer Formation of taxation policy . It is an instrument for economic stabilization . proceeds or . Monitoring of public expenditure Multiple Choice Multiple Answer Question The meaning of monetary policy Correct Answer It is programme of the central bank . It controls the total supply of money . the demand function refers to the schedule of maximum sales proceeds. Using logic of economics . It controls the total supply of money . which the entrepreneurial community actually does ex pect to be received from the sale of Correct Answer Keynesian Your Answer Keynesian Correct Answer aggregate Your Answer aggregate Multiple Choice Multiple Answer Question The fiscal policy includes Correct Answer Formation of taxation policy . Th e basic objective is to achieve economic stability Your Answer It is programme of the central bank . It is an instrument for economic stabilization . Deficit financing and increase in money supply . Deficit financing and increase in money supply . Th e basic objective is to achieve economic stability Multiple Choice Multiple Answer Question Causes for rise in prices in India Correct Answer Mounting government expenditure . which must be expected to be received by the entrepreneu r class from the sale of output result Correct Answer schedule Your Answer demand Correct Answer revenues Your Answer revenues Select The Blank Question In the terminology.

Multiple Choice Multiple Answer Question Different types of business organizations are. An organization of single person. These resources are not specific but have alternative uses. mat Correct Answer decision making Your Answer optimal Correct Answer statistics . mathematics & statistics. Multiple Choice Multiple Answer Question The sources of economic problems are: Correct Answer Man has unlimited wants or ends . The means or resources to satisfy them are lim ited. Joint sector. Total outlay expenditure method Multiple Choice Multiple Answer Question Demand forecasts are necessary for: Correct Answer Fulfillment of objective of the plans . Point elasticity Method . . Point elasticity Method . Public sector. Easy to form. Expansion of f irms Your Answer Preparation of a budget . Using logic of economics .. . there is s ome difference between the generalization based on abstraction and actual practi ces. mathematics & statistics. Your Answer Joint sector. The means or resources to satisfy them are lim ited. Your Answer Integration of economic theory with business practice . . Multiple Choice Multiple Answer Question Methods of measurement of elasticity Correct Answer Percentage Method . These resources are not specific but have alternative uses. Besides economic theory. Expansion of firms Select The Blank Question Economic theory provides the basis for the _ making process. Preparation of a budget . . Multiple Choice Multiple Answer Question Proprietary firm is Correct Answer Owned by a single person. Your Answer Owned by a single person. The use of economic modes of thought to analyze bu siness solution. Your Answer Man has unlimited wants or ends . . . Correct Answer Private sector. . Total outlay expenditure method Your Answer Percentage Method .

which is also called sole. Correct Answer proprietorship Your Answer proprietorship Correct Answer trader ship Your Answer trader ship Select The Blank Question Nominal cost is the cost of production. wage cost and interest cost (b) . The real cost is the cost of production. including costs of advertising and (c) other co sts.Your Answer Select The Blank Question The resources of a society consist not only of the free gifts of nature such as but also of and of all sorts of man made aids to further produ ction. it is also called expenses of p roduction. or single en trepreneurship is the most common. Correct Answer land and minerals Your Answer land and minerals Correct Answer human capacity Your Answer human capacity Select The Blank Question Individual or sole . Correct Answer money Your Answer opportunity Correct Answer opportunity Your Answer gross Select The Blank Question Costs may be classified as : (a) . . the simplest and the oldest form of business organisation. including material costs. including insurance ch Correct Answer Production costs Your Answer Production costs Correct Answer Selling costs Your Answer Selling costs Select The Blank Question .

25 LIST O F A T T E M P T E QD U E S T IO N SA N D A N S W E R S True/False Question During inflation. Low cost of production . the pensioners whose income is permanently fixed.The costs of self owned resources. Knight. Ava . are substantially benefited. which are known as. I t avails benefits of cheaper finance Your Answer Low cost of production . inherited and ac quired as Correct Answer Labour Your Answer Labour Multiple Choice Single Answer Question According to Prof. "externalities" Correct Answer firm's Your Answer firm's Multiple Choice Single Answer Question Economists call all human resources mental. are non- expenditure or . F. Wednesday. physical .H. 2009 Managerial Economics . Correct Answer False Your Answer False Select The Blank Question "Homeostatic Approach" as an alternative objective of firms was suggest ed by . April 22. which are employed by the . Your Answer implicit costs . 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. It avails benefits of cheaper finance . 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 . the equili brium price changes. Kenneth Boulding Your Answer Joel Dean Select The Blank Question The social costs and benefits are the external economies and diseconomi es resulting from the activities. Correct Answer firm Your Answer firm Correct Answer implicit costs . Correct Answer Prof.

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 . 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 .ilability 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 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 ot her economic units is also referred to as externality. Average product is increasing but it is below M P Your Answer Total product increases at an increasing rate . Correct Answer Pecuniary Your Answer Economic True/False Question Micro-economics is primarily concerned with the problem of what. Correct Answer limited Your Answer unlimited True/False Question When a change in income has no effect upon the quantity demanded of a p roduct. Marginal product increasing and it is maximum . on the ba sis of infrastructure Select The Blank Question The liability of a Karta in a Joint Hindu Family Business is . how an d for w hom to produce? Correct Answer False Your Answer True True/False Question During period of depression various factors of production lie unutilize d. on the basis of motive . on the basis of motive . on the basis of principle of pricing Your Answer on the basis of economic system . Average product is increasing but it is above M P . Marginal product inc reasing and it is maximum . the economist means total revenue minus .

geographical barriers Your Answer monopolistic market . Change in fash ion and customs Your Answer Change income of consumer .M. personnel services sold . personnel services sold True/False Question The short run Average Cost (A. 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. Change in fashion and customs Select The Blank Question The form of organization which is best for self employment is .Keynes. the equilibrium is established at the level Correct Answer less than full employment . Correct Answer True Your Answer True Multiple Choice Single Answer Question According to J. the goods and services ar e Correct Answer scarce Your Answer scarce Select The Blank Question The financing of goods is done through public expenditure. 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 . 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 .) curve is U shaped.C.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).

C. usually taken as a year is called as Correct Answer Gross National Product . Trade Cycle Recession Recession Rise in costs due to an increase in factor prices a cause of inflation from supp ly side. which performs its business within the members Your Answer voluntary organization . the speculat ive motive Your Answer the transactions motive .S. Correct Answer pure public Your Answer pure public . organi zation.D. a cause of inflation from supply side.E. namely i) the consumpti on. the precautionary motive . namely i) the M.S. National Product . the speculative motive Multiple Choice Multiple Answer Question The total output of all the commodities in one country over some period . managed by democratic principle . = A. A. managed by democratic principle . = A. and ii) the rate of interest. National Income Your Answer Gross National Product . 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 in stitutions 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 liquid ity preference Correct Answer the transactions motive . National Product Multiple Choice Multiple Answer Question Co-operative organizations is Correct Answer voluntary organization . non profi t motive organization Select The Blank Question The indivisible goods to which the principle exclusion does not apply a re called goods.Your Answer equal to full employment Match The Following Question Correct Answer Your Answer The point of effective demand is the point when A. According to J. M. Keynes. the precautionary motive . there are two factors determining the investment func tion.D.

consumption also increases. producers are guided by moti ve. no cost to the railways. .M. Market m u st be imperfect True/False Question Pure (Net) profit contains an element of monopoly profit. on the basis of a fundamental psychological law of consump tion. Correct Answer profit Your Answer profit Multiple Choice Single Answer Question Economic problem does not recognize the boundaries of caste. rent . This ac t causes Correct Answer a lot of sufferings to the people near the railway. . . Your Answer a lot of sufferings to the people near the railway. interest Multiple Choice Single Answer Question Depreciation is the value caused by the continuous use of a capital ass et. interest Your Answer wages . rent . Oligopoly .Select The Blank Question In a market system of an economy. affects the ra ilways Multiple Choice Single Answer Question J. The elasticity of demand in different markets should be different . but proport ionately 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 . Correct Answer False Your Answer True Multiple Choice Multiple Answer Question Accounting profit includes Correct Answer wages . Keynes. cost to the society. observed that as income increases. Duopoly .creed. 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. The elasticity of demand in different markets should be different .cultu re 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 separ ate . Market must be imperfect Your Answer The two markets in which the product is sold should be kept separate .

Sellers at least recover minimum price for their goods Your Answer It is durable goods market . Life cycle theory Your Answer Risk taking theory . Prospectus Your Answer Memorandum of Association . Duopoly . Articles of Association Select The Blank . Articles of Association . Supply can be increased or reduced acco rding to the demand . be cause of the Correct Answer economies of scale Your Answer economies of scale Multiple Choice Multiple Answer Question Features of Long run market are Correct Answer It is durable goods market . the decisions regar ding their demand preferences are taken through price mechanism. January 30. Supply can be increased or reduced a ccording to the demand . 2009 Managerial Economics . Correct Answer True Your Answer True Multiple Choice Multiple Answer Question Important theories of profits are Correct Answer Uncertainty-bearing theory of profit . Oligopoly Multiple Choice Single Answer Question In the Long run perfect competition and monopolistic competition the fi rm make profits which are Correct Answer normal Your Answer normal ----------------------------------------------------------------- Friday. Uncertainty-bearing theory of profit .23 LIST O F A T T E M P T E QD U E S T IO N SA N D A N S W E R S Multiple Choice Single Answer Question Pure public goods are subject to the law of decreasing average cost.Your Answer Monopoly . Correct Answer False Your Answer True Multiple Choice Single Answer Question A responsible factor for inflation is Correct Answer hike in prices Your Answer hike in prices True/False Question A monopolist s product is a unique product. Dynamic theory of profit Multiple Choice Multiple Answer Question The promoters of a company can get incorporated by filing with the regi strarof companies various documents such as Correct Answer Memorandum of Association . Sellers at least recover minimum price for their goods True/False Question In case of indivisible goods. which are not priced. Dynamic theory of profit .

Correct Answer Accounting cost Your Answer Accounting cost Multiple Choice Single Answer Question The indivisible goods whose benefits cannot be priced are called Correct Answer Pure public goods Your Answer Pure private goods Select The Blank Question The partnership between private sector & government is called Correct Answer Joint sector enterprise Your Answer Joint sector enterprise Multiple Choice Single Answer Question The main objective of a co. Expansion and contraction in trade cycle are cumulative in effect Match The Following Question Correct Answer Your Answer Pollution control certificate Government action Government action Air pollution Negative externality Measure to reduce externality Radio or T V signal Positive externality Private Action Negotiation Private Action Perfect Competition in the market Multiple Choice Single Answer Question The profits which must be deducted from the gross profits to arrive at net profits are Correct Answer Monopoly Profits Your Answer Accounting Profit True/False Question The products sold by different sellers under pure competition are heter ogeneous. These fluctuations are recurrent in nat ure . These fluctuations are recurrent in nature . Expansion and contraction in trade cycle are cumulative in effect Your Answer It is a wave like movement .Question The cost which enter the accounts book of the firm are referred as . Correct Answer False Your Answer True Match The Following Question Correct Answer Your Answer Public Sector Life Insurance Corporation Life Insurance Corporation Competitive Industry Homogenous Product Non capitalist in nature Monopoly Firm One Firm One Firm .operative organization is Correct Answer service Your Answer service Multiple Choice Multiple Answer Question The features of business or trade cycle are Correct Answer It is a wave like movement .

Applicable only in partial equilibrium fr amework. Your Answer increasing returns to scale. profit is the reward paid for Correct Answer dynamism Your Answer risk bearing Select The Blank Question The goods become only when each individual has an access to th e entire amount of it and its use by the individual does not reduce its availabi lity to others. Correct Answer indivisible Your Answer divisible Multiple Choice Multiple Answer Question The advantage of cost-benefit analysis are Correct Answer Maximization of social welfare . limited liability . limited liability .Plant Technical Unit Technical Unit Multiple Choice Single Answer Question Cournot' . Availability of factors of production Your Answer Availability of factors of production . Tastes and preferences of pr oducer Multiple Choice Multiple Answer Question The features of a Joint Stock-Company are Correct Answer perpetual succession . free transferability of s hares Select The Blank Question If the output rises in the greater proportion than that of the increase in factor inputs. Correct Answer increasing returns to scale. True/False Question Supply management is related to the volume ofsupply & its distribution system.B.Clark. Select The Blank Question A fall in price tends the demand for goods to Correct Answer expand Your Answer increase . the economists who defined the term 'market' different from that of the traditional sense is an Correct Answer French economists Your Answer German economists Multiple Choice Single Answer Question According J. it is referred to as . Maximization of difference between total benefits & total costs Your Answer Objective measurement of the trade-off . free transferability o f shares Your Answer perpetual succession . Correct Answer True Your Answer True Multiple Choice Multiple Answer Question The important determinants of supply are Correct Answer Always referred to in relation to price & time . Government polic y . Maximization of difference between total benefits & total costs . Objective measurement of the tra de-off .

the differences in the concept of profit arise due to differences in cost concepts.Multiple Choice Multiple Answer Question Average propensity to consume is characterized as follows Correct Answer the ratio of consumption expenditure to any particular level of i ncome . It shows the prices of goods . Correct Answer social Your Answer social True/False Question There are no real exceptions to the law of demand Correct Answer False Your Answer False True/False Question The divisible goods. Total outlay expend iture method Your Answer Percentage method . Correct Answer True Your Answer True Multiple Choice Multiple Answer Question Demand forecasts are necessary for Correct Answer Fulfillment of objective of the plans . a system of subsidized pricing is followed. . Point elasticity method . whose benefits can be priced. Preparation of a budget . It shows the prices of goods . It is expressed as the percentage of income consumed True/False Question In case of the co-operative societies supplying cheap inputs or supplyi ng consumer products at fair prices. It is found by dividing consumption expenditure by income . It shows the quantities of a commodity purchased Your Answer Is in tabular form . It is found by dividing consumption expenditure by income . It is expres sed as the percentage of income consumed Your Answer the ratio of consumption expenditure to any particular level of inco me . driving the smoke-emitting buses and t rucks in the cities is an example of cost. Unitary elastic demand method Select The Blank Question In the context of externalities. are called pure publ ic goods. Point elasticity method . It shows the qua ntities of a commodity purchased Select The Blank Question Perfectly elastic demand curve is Correct Answer horizontal Your Answer horizontal Multiple Choice Multiple Answer Question Methods of measurement of elasticity are Correct Answer Percentage method . Correct Answer True Your Answer True Multiple Choice Multiple Answer Question Individual Demand Schedule Correct Answer Is in tabular form . Correct Answer False Your Answer True True/False Question In the measurement of profit.

2 or more goods are needed in c ombination. Preparation of a budget . Ex pansion of firms Select The Blank Question Economists like A. Correct Answer stock Your Answer demand Select The Blank Question The social costs and benefits are the external economies and diseconomi es resulting from the activities. Correct Answer general equilibrium Your Answer general equilibrium Multiple Choice Single Answer Question The economists who defined the term 'market' different from that of the traditional sense is Correct Answer Jevons & Cournot Your Answer Marshall Multiple Choice Single Answer Question The act of manufacturing goods and services is called Correct Answer production Your Answer production True/False Question Price discrimination is possible in perfect competition Correct Answer False Your Answer False Select The Blank Question Supply is predominantly determined by .Harberger have shown that the cost benefit analysis can be applied to analysis. which are known as. "externalities" Correct Answer firm's Your Answer government True/False Question Free riders' is a term associated with the people who would like to hav e benefit of a good without sharing the cost of its supply. Expansion of firms Your Answer Fulfillment of objective of the plans . Correct Answer True Your Answer True Multiple Choice Single Answer Question Change in income of a person may result in demand for goods to Correct Answer change Your Answer change Multiple Choice Single Answer Question Managerial economics aims at providing guidance to the firms for Correct Answer decision making Your Answer decision making Multiple Choice Single Answer Question When in order to satisfy a given want . these goods are called Correct Answer complimentary goods Your Answer complimentary goods Multiple Choice Multiple Answer .C.

demand for it is generally :- Correct Answer Inelastic Your Answer Inelastic Select The Blank Question Propensity to consume is defined as the relationship between consumption and . Correct Answer False Your Answer False Multiple Choice Single Answer Question If a person is habituated to the consumption of a commodity and if he cannot eas ily give up its use. October 17. An industry .23 LIST O F A T T E M P T E QD U E S T IO N SA N D A N S W E R S Select The Blank Question W hen there is in foreign demand for the goods manufactured in a country . Correct Answer Economics Your Answer Economics True/False Question Demand curve slopes upwards from left to right. exports increase and prices of commodities in the country Increase.Question Forecasts can be made at the level of Correct Answer A firm . Correct Answer Income Your Answer Income True/False . The nation Your Answer A firm . 2008 Managerial Economics . An industry Select The Blank Question Cost-benefit analysis refers to the analysis undertaken to judge any pr ojects whether government or private and find out its worth. Correct Answer Increase Your Answer Increase Select The Blank Question Managerial lies on the borderline of management and Economics. Correct Answer investments Your Answer investments Posted by MindGrill at 5:25 A M 0 comments Links to this post Labels: Managerial Economics (Set VIII) Friday.

Question In case of a proprietary firm the liability of the proprietor is limited. 20. realizing a total amount of .320 crores Select The Blank Question In a market system of an economy. 19. producers are guided by motive. time and place. Correct Answer True Your Answer False Match The Following Question Correct Answer Your Answer Pollution control certificate Government action Government action Air pollution Negative externality Measure to reduce externality Radio or T V signal Positive externality Positive externality Negotiation Private Action Perfect Competition in the market Select The Blank Question Cost-benefit analysis refers to the analysis undertaken to judge any project's _ whether government or private and find out its worth. Correct Answer Profit Your Answer Profit True/False Question Demand is related to price.320 crores Your Answer Rs. Correct Answer False Your Answer False Select The Blank Question Government has carried out various rounds of disinvestments of equity shareholdi ng. Correct Answer Investments Your Answer Investments Multiple Choice Multiple Answer Question . Correct Answer Rs.

supply being constant. if demand increases.The entrepreneur gets Pure Profit for :- Correct Answer Undertaking risk & uncertainty . the price would :- Correct Answer Rise Your Answer Rise True/False Question A firm is a technical unit of a given capacity of output. Correct Answer Externalities Your Answer Externalities Multiple Choice Single Answer Question W hen a firm s A.C. (average cost). For co-ordination & organizing production . then elasticity of demand for the commodity is :- Correct Answer Less than one Your Answer Less than one Select The Blank Question Modern economists treat social cost and benefits as of private investme nt and production decisions. (average revenue) is greater than A. For innovation Your Answer Undertaking risk & uncertainty . total expenditure spent on the commodity i s less than before. For innovation . For generating employment Multiple Choice Single Answer Question The demand for a commodity depends on the prices of its substitutes which are :- Correct Answer Relative Your Answer Relative Multiple Choice Single Answer Question Under perfect competition. it gets a profit which is :- Correct Answer Super normal Your Answer Positive Multiple Choice Multiple Answer . Correct Answer False Your Answer False Multiple Choice Single Answer Question With decline in price of a commodity.R.

Selling same good at higher pric e in home market and at lower price in international market . Selling same good at higher pric e in home market and at lower price in international market . Correct Answer False Your Answer True Multiple Choice Multiple Answer Question The phase of recovery denotes :- Correct Answer More employment opportunities . chocolate.M. bhel-puri depends on :- Correct Answer Individual tastes Your Answer Individual tastes True/False Question In the traditional concept of equilibrium. It is encouraged w ith a view to promote the exports Your Answer It is possible in the case of monopoly market . Correct Answer False Your Answer . there is inducement to invest. Inventories decrease True/False Question There is no separation of ownership and management in case of a Joint Stock Comp any.C. Keynes.). the root cause of economic problem is :- Correct Answer Scarcity Your Answer Scarcity Multiple Choice Single Answer Question Demand for several products like ice-cream. It is encouraged w ith a view to promote the exports Multiple Choice Single Answer Question According to J. a firm attains the equilibrium when t he firm s Total Revenue (T.R. Increase in profitability .) =Total Cost (T. Wage rate increase Your Answer Increase in profitability . when the marginal effic iency of capital is greater than :- Correct Answer Rate of interest Your Answer Rate of interest Multiple Choice Single Answer Question According to many economists.Question Features of Dumping are :- Correct Answer It is possible in the case of monopoly market .

Correct Answer Pecuniary Your Answer Pecuniary .C. Slopes downward .False True/False Question Pure public goods must be in the hands of public sector only. Explain the relation between pri ce and demand Your Answer Is a graphical presentation . Explain the relation between pri ce and demand True/False Question The short run Average Cost (A. Slopes downward .) curve is U shaped. Correct Answer True Your Answer True Select The Blank Question The salary of the proprietor or rent on own land are the . Correct Answer True Your Answer True Select The Blank Question Sole Proprietorship is also called sole . Correct Answer Tradership Your Answer Tradership Select The Blank Question Perfectly elastic demand curve is . Correct Answer Horizontal Your Answer Horizontal Select The Blank Question The externality which causes an economic gain or an economic loss to other econo mic units is also referred to as externality. Correct Answer Implicit cost Your Answer Implicit cost Multiple Choice Multiple Answer Question Demand Curve :- Correct Answer Is a graphical presentation .

Principle of pricing Your Answer Economic system . while formulating a profit policy. Tastes and habits Match The Following Question Correct Answer Your Answer Hum an wants Unlimited Unlimited Managerial economics Decision making and forward planning Decision making and forward planning Resources Scarce Limited . Get sufficient income to meet their basic needs by all Your Answer Provide employment to all who willing to work at prevailing wage rate . Tata Eng & Locomotive Company Ltd is a :- Correct Answer Firm Your Answer Firm True/False Question In any business. Principle of pricing Multiple Choice Single Answer Question For an economist. Motive . Factors of production which are optimally allocated between the various industries . Tastes and habits Your Answer Price of the product . Factors of production which are optimally allocated between the various industries . the possibility of emergence of rival firms must be taken into account.Multiple Choice Multiple Answer Question Distinction between private sector and public sector is determined on the basis of :- Correct Answer Economic system . Motive . Relative prices of other goods . Get sufficient income to meet their basic needs by all Multiple Choice Multiple Answer Question Demand is determined by :- Correct Answer Price of the product . Correct Answer True Your Answer True Multiple Choice Multiple Answer Question Government intervention is needed in free market mechanism to :- Correct Answer Provide employment to all who willing to work at prevailing wage rate .

all the sections of the society are equally protect ed and benefited. Depreciation . Cannot be priced in the market . Unit income elasticity Your Answer Negative income elasticity . Unit income elasticity . Maintenance Charges Your Answer Remuneration to factors of production . Depreciation . Zero income elasticity . The defense services in other words is :- Correct Answer Indivisible in character . Test marketing . Evolutionary approach . Neutral income elasticity Multiple Choice Single Answer Question In general. A public good Your Answer Indivisible in character . Increase in private expenditure . A public good Multiple Choice Multiple Answer Question Methods of forecasting demand for new products are :- Correct Answer Product life cycle analysis . Increase in private expenditure . Cannot be priced in the market . Correct Answer False Your Answer False Multiple Choice Multiple Answer Question In case of defense services.Commodities Goods and services Goods and services Multiple Choice Multiple Answer Question The payments made out of the Gross Profit are :- Correct Answer Remuneration to factors of production . Increase in f oreign demand True/False Question Institution of private property is not an essential feature of Capitalism. the demand for necessaries is relatively :- Correct Answer Inelastic Your Answer Inelastic Multiple Choice Multiple Answer Question The causes of inflation are :- Correct Answer Increase in public expenditure . Maintenance Charges Multiple Choice Multiple Answer Question Types of income elasticity of demand :- Correct Answer Negative income elasticity . Increase in f oreign demand Your Answer Increase in public expenditure .

Your Answer Product life cycle analysis . groundnut oil & til oil. the total outlay falls. Test marketing . the total outlay rises. or with a fall in price. tea & coffee are examples of :- Correct Answer Substitute goods Your Answer Substitute goods Multiple Choice Single Answer Question W hen with a rise in price. Evolutionary approach Multiple Choice Single Answer Question Peas & beans. elasticity of demand is :- Correct Answer Greater than one Your Answer Infinite .