Managerial Economics Assignmment - 3

Managerial Economics Assignmment - 3
ATTEMPTED PAPER - QUESTIONS AND ANSWERS


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 war. This is known as :-
Correct Answer
Chance Profits
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 , Selling same good at higher price in home market and at lower price in international market , It is encouraged with 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, households and government is seen in total, disregarding details at particular level.
Correct Answer
True
Your Answer
True

True/False
Question
Changes in the value of money because of inflation, make inventory valuation of finished products difficult.
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 the company was used first is :-
Correct Answer
LIFO
Your Answer
LIFO

Multiple Choice Single Answer
Question
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
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 preference :-
Correct Answer
The speculative motive , The transactions motive , The precautionary motive
Your Answer
The transactions motive , The precautionary motive , The speculative motive

Multiple Choice Single Answer
Question
If the substitutes are relatively costly then the demand for the commodity in question 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 Constant Returns to Scale , Law of Decreasing 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 , Marginal product increasing and it is maximum , Average product is increasing but it is below MP
Your Answer
Total product increases at an increasing rate , Marginal product increasing and it is maximum , Average product is increasing but it is below MP

Multiple Choice Single Answer
Question
An individual consumer or particular market for a given commodity are the subject matter of :-
Correct Answer
Micro Economics
Your Answer
Micro Economics

True/False
Question
The prosperity phase is characterized by rise in the level of employment.
Correct Answer
True
Your Answer
True

Select The Blank
Question
Baumol has suggested as an alternative objective for profit maximization, the maximization of ________.
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
Perfectly mobile
Your Answer
Perfectly mobile

Select The Blank
Question
Keynes, on the basis of a fundamental psychological law, observed that as income ________, consumption Increases.
Correct Answer
Increases
Your Answer
Increases

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

True/False
Question
Pure private goods are completely divisible and to them the principle of exclusion applies in full measure.
Correct Answer
True
Your Answer
False

Select The Blank
Question
The taxation & public expenditure policies are called as ________ ..
Correct Answer
Budgetary Policy
Your Answer
Budgetary Policy

Multiple Choice Multiple Answer
Question
The disinvestments of industries is needed for :-
Correct Answer
Phased privatization , Reducing deficit , Capital support to plans
Your Answer
Phased privatization , Reducing deficit , 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
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 recommendation of the Agricultural Prices Commission (APC).
Correct Answer
True
Your Answer
True

Multiple Choice Multiple Answer
Question
According to Lionel Robbins definition of economics, "Economics is a science which :-
Correct Answer
Studies human behaviour , Relationship between ends and scares resources , Scarce means have alternate uses
Your Answer
Studies human behaviour , Relationship between ends and scares resources , Scarce means have alternate uses

Select The Blank
Question
Under perfect competition, price is determined by the interaction of total demand 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 , Product differentiation , Selling costs are existed
Your Answer
Fairly large number of firms , Product differentiation , Selling costs are existed

Multiple Choice Multiple Answer
Question
Steps in cost benefit analysis are :-
Correct Answer
Identification of a project , Formulation of the project , Appraisal and selection of the project
Your Answer
Identification of a project , Formulation of the project , Appraisal and selection of the project

True/False
Question
There is no separation of ownership and management in case of a Joint Stock Company.
Correct Answer
False
Your Answer
False

Multiple Choice Single Answer
Question
During a period of rising prices (inflation), 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
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
Quantitative credit control
Your Answer
Quantitative credit control

Select The Blank
Question
Managerial ________ lies on the borderline of management and Economics.
Correct Answer
Economics
Your Answer
Economics

True/False
Question
The demand for life saving drugs is elastic.
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
Waste of resources
Involuntary unemployment
Involuntary unemployment

Multiple Choice Single Answer
Question
According J.B.Clark, 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 , Ownership by a single person , Easy to form
Your Answer
Ownership by a single person , Easy to form

Select The Blank
Question
The rate of interest, according to Keynes depends upon two factors: the liquidity preference function and ________.
Correct Answer
The quantity of money.
Your Answer
The quantity of money.

Match The Following
Question
Correct Answer
Your Answer
Human wants
unlimited
unlimited
General Theory of Employment, Interest and Money
J. M. Keynes
J. M. 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 services that would be required to satisfy all its citizen’s wants are
Correct Answer
insufficient
Your Answer
insufficient


Multiple Choice Single Answer
Question
In economics the question related to the selection of methods with which commodities 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 and 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) capacity 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 known 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 and 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.
Correct Answer
False
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 whom 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 others.
Correct Answer
indivisible
Your Answer
public

Select The Blank
Question
The externality which causes an economic gain or an economic loss to other economic 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
Human 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 maximization 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 demand 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

True/False
Question
Demand curve slopes downwards from left to right.
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 Multiple Answer
Question
Different types of Elasticity of Demand are
Correct Answer
Price elasticity of demand , Income elasticity of demand , Cross elasticity of demand
Your Answer
Price elasticity of demand , Income elasticity of demand , Cross elasticity of demand

Multiple Choice Single Answer
Question
If the increase in all factors leads to a less than proportionate increase in output, 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.
Correct Answer
False
Your Answer
True

Multiple Choice Multiple Answer
Question
Major types of costs are
Correct Answer
Accounting costs , Economic costs , Opportunity costs
Your Answer
Accounting costs , Economic costs , Opportunity costs

Select The Blank
Question
Output rises in a lesser proportion to that of the increase in input, under the case of ________.
Correct Answer
decreasing returns to scale
Your Answer
decreasing returns to scale

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 ________.
Correct Answer
increasing returns to scale.
Your Answer
increasing returns to scale.

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
False

True/False
Question
Long period supply is relatively inelastic.
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 sole proprietorship , It is a partnership or joint stock company
Your Answer
It is a business unit organized under one ownership , It is a sole proprietorship , It is a partnership or joint stock company

Multiple Choice Multiple Answer
Question
Equilibrium is the stage of
Correct Answer
maximum satisfaction , balance , stationary
Your Answer
maximum satisfaction , balance , stationary

True/False
Question
The Keynesian theory emphasizes effective supply as a crucial factor in determining the level of income and employment.
Correct Answer
False
Your Answer
True

Multiple Choice Single Answer
Question
According to the Government, the buildup of inflationary pressure during the Nineties 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 recommendation of the Agricultural Prices Commission (APC).
Correct Answer
True
Your Answer
True

True/False
Question
There is considerable slush money with politicians & Government servants.
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 , Factors of production are optimally allocated between the various industries , All will get sufficient income to meet their basic needs
Your Answer
To provide employment to all who willing to work at prevailing wage rate , Factors of production are optimally allocated between the various industries , All will get sufficient income to meet their basic needs

Multiple Choice Multiple Answer
Question
Defects of market system:
Correct Answer
Inequalities of income and wealth , Emergence of monopolies , Failure to provide full employment
Your Answer
Inequalities of income and wealth , Emergence of monopolies , Failure to provide full employment