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Continuous Internal Assessment -2 (A)

October 2017
School of Management Studies 2017-18
Programme Name : BBA-FS
Course Code / Name : XBS 103 Managerial Economics Duration : 1\2 Hr.
Year/ Sem : 1st Max Marks: 10

Instructions:
1) All questions are Compulsory
2) Use of Non- programmable Electronic Scientific calculator is allowed

Multiple Choice Questions(MCQ)

1 When demand for the product increases in the same proportion in which income increases, Income
elasticity of demand will be equal to
a) > one b) < one c) unity d) zero
2 The degree to which demand for a good or service varies with its price is called as
a) elasticity of demand b) elasticity of supply c) cross elasticity d) none of the above
3 infinity when even a negligible fall in the price of the commodity leads to an infinite extension in the
demand is known as
a) perfectly inelastic b) perfectly null c) very elastic d) perfectly elastic
4 ………….. is a measure used in economics to show the responsiveness?
a. a) very elastic demand b) price elasticity of demand c) income elasticity d) none of the above
5 From the following which one is not the methods of measuring price elasticity of demand ?
a) Percentage method b) Total outlay method c) Distribution method d) Point method
a.
6 Change in the demand for one good in response to change in the price of another good represent
a) price elasticity b) income elasticity c) inelasticity d) cross elasticity
7 ……….are those which are jointly demanded
a. a) substitute goods b) complementary goods c) same goods d) inferior goods
8 …..refers to the prediction of probable demand for a product or a service on the basis of the past events
a) measuring b) forecasting c) demanding d) supplying
9 Which one of the following is not the level of demand forecasting
a) micro level b) macro level c) industrial level d) managerial level
10 …………. is one of the best method to determine trend
a) chi square b) least square c) graphical method d) point method
11 Demand is determined by
a. a) Price of the product b) Relative prices c) Tastes and habits d) All of the above
b.
12 When a firm’s average revenue is equal to its average cost, it gets ________.
a. a) Super profit b) Normal profit c) Sub normal profit d) None of the above

13 Managerial economics generally refers to the integration of economic theory with business

a. a) Ethics b) Management c) Practice d) All of the above

14 Given the price, if the cost of production increases because of higher price of raw materials, the supply
a) Decreases b) Increases c) Remains same d) Any of the above
b.
15 The cost recorded in the books of accounts are considered as
b. a) Total cost b) Marginal cost c) Average cost d) Explicit cost
16 The short run Average Cost curve is __ shaped
a) V b) U c) L d) C
17 Goods produced on small scale have
b. a) Relatively inelastic supply b) Highly elastic supply c) Perfectly elastic supply
c. d) None of the above
18 Demand for a commodity depends on the relative price of its
a) substitute b) demand c) decision d) packing
19 When the price of one commodity decreases, the demand for its complementary product will tend to
a) decrease b) increase c) constant d) none of the above
20 Increase in consumer’s income leads in the demand for inferior goods to
a) can’t say b) increase c) constant d) decrease