Multiple Choice Questions (MCQ) with answers on Managerial Economics
Multiple Choice Questions (MCQ) with answers on Managerial Economics
1-Demand is determined by
- Price of the product
- Relative prices of other goods
- Tastes and habits
- All of the above
(Ans: d)
2-When a firm’s average revenue is equal to its average cost, it gets ________.
- Super profit
- Normal profit
- Sub normal profit
- None of the above
(Ans: b)
3-Managerial economics generally refers to the integration of economic theory with business
- Ethics
- Management
- Practice
- All of the above
(Ans: c)
4-Given the price, if the cost of production increases because of higher price of raw materials, the supply
- Decreases
- Increases
- Remains same
- Any of the above
(Ans: a)
5-The cost recorded in the books of accounts are considered as
- Total cost
- Marginal cost
- Average cost
- Explicit cost
(Ans: d)
6-A Joint Stock Company is managed by the Board of Directors elected by _____ .
- Top management
- Shareholders
- Employees of company
- None of the above
(Ans: b)
7-Under ______, price is determined by the interaction of total demand and total supply in the market.
- Perfect competition
- Monopoly
- Imperfect competition
- All of the above
(Ans: a)
8-Under perfect competition, price is determined by the interaction of total demand and ________.
- Total supply
- Total cost
- Total utility
- Total production
(Ans: a)
9-The out of pocket costs are ________.
- Sunk costs
- Marginal costs
- Explicit costs
- Social costs
(Ans: b)
10-The short run Average Cost curve is __ shaped
- V
- U
- L
- Any of the above
(Ans: b)
11-Distinction between private sector and public sector is determined on the basis of
- Economic system
- Motive
- Principle of pricing
- All of the above
(Ans: d)
12-Goods produced on small scale have
- Relatively inelastic supply
- Highly elastic supply
- Perfectly elastic supply
- None of the above
(Ans: a)
13-Oligopoly is a type of ________ market. A ________ exists in the industry
- Perfect, few firms
- Imperfect, few firms
- Perfect, many firms
- Imperfect, many firms
(Ans: b)
14-The management of the _________ form of business organization is totalitarian in nature.
- Cooperative
- Partnership
- Individual proprietorship
- All of the above
(Ans: a)
15-The demand curve has a _____ slope.
- Undefined
- Zero c
- Negative
- Positive
(Ans:)