Managerial Economics Questions

Managerial Economics Questions

1-___ is s group of firms dealing in the same line of business.

(A) An industry

(B) Cooperative society

(C) A company

(D) All of the above

 

2-Slope of supply curve is

(A) negative

(B) positive

(C) zero

(D) undefined

 

3- Managerial economics deals with

(A) Integration of economic theory with business practice

(B) Using logic of economics, mathematics & statistics

(C) The use of economic modes of thought to analyse business solution. 

(D) All of the above

 

4- The fiscal policy includes

(A) Formation of taxation policy

(B) It is an instrument for economic stabilization

(C) Monitoring of public expenditure

(D) All of the above

 

5- The most significant feature of ___ is the existence of an automatic price mechanism

(A) monopolistic competition

(B) perfect competition

(C) oligopoly

(D) None of the above

 

6- Important theory(ies) of profit(s) is (are):   

(A) Risk taking theory

(B) Uncertainty-Bearing Theory of profit

(C) Dynamic theory of Profit

(D) All of the above

 

7- In economics ___ means desire backed by adequate purchasing power.

(A) Demand

(B) Supply

(C) Commodity

(D) None of the above

 

8-Objective(s) of economic policy

(A) To increase the efficiency and international competitiveness of industrial production

(B) To improve the performance and rationalize the scope of the public sector

(C) To reform and modernize the financial sector

(D) All of the above

 

9- Public enterprises may incur some ____ costs which private enterprise may not bear.

(A) Social

(B) Fixed

(C) Variable

(D) All of the above

 

10- When is price discrimination possible  

(A) In Monopoly Market

(B) In case of Services sold

(C) In case of geographical barriers

(D) All of the above

 

11- Managerial economics is also understood to refer to

(A) Applied economics

(B) Micro economics

(C) Macro economics

(D) None of the above

 

12- Feature(s) of Perfect Competition  

(A) Large number of buyers and sellers

(B) Homogeneous products

(C) Free Entry and Free exit of firms

(D) All of the above

 

13- The main objective of a co- operative organization is

(A) Service

(B) Profit

(C) Co-operation

(D) All of the above

 

14- If a person is habituated to the consumption of a commodity and if he cannot easily give up its use, demand for it is generally

(A) Inelastic

(B) Elastic

(C) perfectly inelastic

(D) perfectly elastic

 

15-Demand for luxury goods is

(A) Inelastic

(B) Elastic

(C) Perfectly inelastic

(D) Perfectly elastic

 

16- Distinction between private sector and public sector is determined

(A) On the basis of economic system

(B) On the basis of motive

(C) On the basis of principle of pricing

(D) All of the above

 

17- In general, the demand for necessaries is relatively

(A) Elastic

(B) Inelastic

(C) Perfectly elastic

(D) Perfectly inelastic

 

18- If demand ___ and supply ____ the equilibrium price falls

(A) falls, is constant

(B) increases, decreases

(C) increases, increases

(D) None of the above

 

19- In short run period

(A) Supply of goods can be adjusted to the demand to some extent

(B) Some factors can be changed

(C) Supply and demand determine the price

(D) All of the above

 

20- Major type(s) of cost(s) is (are):   

(A) Accounting costs

(B) Economic Costs

(C) Opportunity Costs

(D) All of the above

 

ANSWERS:

1-(A), 2-(B), 3-(D), 4-(D), 5-(B), 6-(D), 7-(A), 8-(D), 9-(A), 10-(D), 11-(A), 12-(D), 13-(A), 14-(A), 15-(B), 16-(D), 17-(B), 18-(A), 19-(D), 20-(D)