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problems
d. Acts totally independent of other subjects
3.Managerial Economics is
4.Managerial economics is
a. A positive science
b. Mainly a positive and a normative science
a. Global economy
b. An industry
c. An economy
d. An individual firm
a. Demand series
b. Demand schedule
c. Demand pattern
d. Statistical demand table
a. Utility of product
b. Desires of consumers
c. Price of the product
d. Consumers requirements.
6.If we observe the price of a good or service rising then this could have been caused by
a. An increase in demand
b. A temporary surplus
c. A small increase in demand followed by a huge increase in supply
d. An increase in supply
b. shifts backward
c. Slopes negatively
d. Will be a vertical straight line
8.In case of expansion and contraction in demand, the consumer would be moving either
in the upward or downward direction
a. On a higher demand curve
b. On two demand curves
c. On a lower demand curve
c. Shifts forward
d. Shifts backwards
11.The Law of Demand assuming other things to remain constant, establishes the
relationship between
a. Income of the consumer and the quantity of a good demanded by him
a. Inverse
b. positive
c. Direct
d. Proportionate
d. Upwards
14.Which of the assumptions on which the demand is based are
a. Technology
15.Which of the following is not a factor which will shift the demand curve for some
product
a. Coercive
b. Flexible
c. Rigid
d. complex
3.Demand forecasting is generally associated with
d. For both the existing products & for the new products.
c. Specific quantities.
d. Actual amount.
d. future demand.
8.Internal factors like money spent on advertising, pricing policy, product improvement,
sales efforts etc., help in
a. Forecasting sales
b. Fixing price of the product
c. Determining the size of the market
d. Manipulating demand
9.Some of the external factors which influence sales forecasts of a firm are
a. Pricing policy.
a. Consumer panel.
b. Direct interview
c. Opinion of the sales representatives
d. Questionnaire
a. Supply schedule
b. Supply series.
c. Supply table.
d. Supply pattern..
2.For perishable commodities like fish and fruits
production etc.,
d. Availability of substitutes, development of new products.
5.The supply curve
a. Is a vertical straight line.
b. Is negatively sloping.
period of time.
d. Total quantity of the product produced during a given period of time.
7.The total volume of a commodity which can be brought into the market for sale at a
short notice is called
a. Supply.
b. Available supply.
c. Volume of production.
d. Potential supply.
8.The two concepts which link the market behaviour of consumers, producers & sellers
with that of price are
a. both a and b
b. AP is negative
c. MP is decreasing
d. MP is negative
c. There is a limit for intensive and effective utilisation of fixed factor inputs
d. Intensive and effective utilisation of fixed factor inputs
b. The distinction between fixed and variable inputs remains the same
c. Adequate time is availablity for entry or exit of firms
d. Plant capacity can be changed
7.If the marginal product of labor is below the AP of labor it must be true that
a. The Qty of both fixed and variable inputs are kept constant
b. The Qty of both fixed and variable inputs are changed in the same proportions
9.Incase of short run production function Qty of fixed input remains constant and
10.Increasing return operate in the 1st phase of the law of variable proportions when
greater quantity of variable input is employed except in one of the case Identify the
correct answer.
a. Equilibrium point
b. Focul point
c. Inflection point
d. Turning point
13.Negative return operate in the 3rd phase of the law of variable proportion when
greater quantity of variable input is employed except due to one of the following reasons
Identify the incorrect answer.
16.Out of the four which one of the following is not a practical use of production function
a. It is used to work out least cost input combination for a given output or maximum
output-input combination for a given cost.
b. It is used to workout an optimum combination of inputs for getting a certain level
of output
c. It is used to take long run decisions regarding when output is to be increased,
decreased and kept constant
d. It is used to work out least output in put combination for a given cost or
17.Out of the four which one of the following statement is incorrect to describe the law of
variable proportions according to Benham
a. First the total product and then the average product of that factor will diminish
b. As the proportion of one factor in a combination of factors is increased, after a
point first the marginal, then the average product of that factor will dimimish
c. As the proportion of one factor in a combination of factors is increased, after a
point first the average and then the marginal product of that factor will diminish
d. The first marginal and then the total product of that factor will diminish
a. The relationship between Qty of inputs employed and the corresponding total
production cost
b. The relationship between market price charged and quantity supplied
c. The relationship between qty of inputs used and the corresponding output
obtained
d. The relationship between the firms total revenue and total production cost
22.The identify the wrong answer. The term production in economics implies
d. Creation of utilities
23.The marginal product of a variable input is best describe as
a. The addition output resulting from a one unit increase in both the variable and
fixed inputs
b. Total product divided by the number of units of variable input
c. The ratio of the amount of the variable input that is being used to the amount of
the fixed input that is being used
d. The addition output resulting from a one unit increase in the variable input
a. The Qty of which remains neutral with variations in the level of output
b. The Qty of which remains constant with variation in the level of output
c. The Qty of which does not vary with the level of output
a. An economic unit
b. A producing unit
c. A Profit-Maximising unit
d. A Welfare-Maximising unit
c. Uni-dimensional in nature
d. Multi-dimensional in nature
4.Identify the one which is incorrect, A classical firm basically engages ifself in
a. Profit optimisation
b. Profit maximisation
c. Wealth creation
d. Surplus creation
5.Out of the following four nature of objectives, identity the incorrect one:
b. MR
c. MC>MR and MC curve cuts MR curve from below
d. MR
e. MC and MC curve cuts MRC from below
f. MC and MC curve cuts MRC from above
a. TC
b. TC> TR
c. TR<>
d. TR>TC
e. TR
a. He can enter into contract with any group of people who supply inputs
b. He has the legal permission to run the enterprise
2.AR curve of the firm is the same thing as that of the demand curve of the consumer
because
a. /_\ TR / /_\ / Q
b. TR / P.
c. TR / TC.
d. TR. / Q
4.Average revenue curve of the firm is the same as the demand curve of the consumer
except in the context of
a. Perfect competition.
b. Discriminatory monopoly.
c. Monopoly.
d. Monopolistic competition.
5.MR is the additional revenue earned by selling an additional unit of a commodity which
means
a. Market price.
b. Reputation of the firm.
c. Hold it has on the market.
d. Size of the firm.
7.TR is the highest when
a. MR is increasing.
b. MR is zero.
c. MR is negative.
d. MR is positive.
8.Under imperfect competition both MR and AR are downward sloping and MR curve
lies below the AR curve which means
a. AR
b. MR
c. AR>MR
d. MR>AR
<>
e. MR<AR
<>
f. P.
g. P
10.What is MR?
a. TR/AC.
b. MR
c. TRn-TRn-1.
d. MR
e. MR
f. MR
g. TR/TQ.
h. TR/TC.
a. Oligopoly.
b. Duopoly.
c. Pure competition.
d. Monopolistic competition.
3.In the long run the firms can earn only normal profit under
a. Monopolistic competition.
b. Perfect competition.
c. Oligopsony.
d. Monopsony.
4.Incase of food grains like rice, wheat, jowar, etc., we find
a. Impure competition.
b. Oligopoly.
c. Pure competition.
d. Imperfect competition.
6.Perfect competition is
a. An imaginary market.
b. A desired market situation.
c. The actual market condition that exists.
8.Pure competition is a
a. Common phenomenon.
b. Rare phenomenon.
c. Very popular.
d. Unrealistic.
9.The price at which demand and supply are equal is known as
a. Equilibrium price.
b. Actual price.
c. Normal price.
d. Market price.
10.The price of the product should not exceed the value of its benefit to
a. The buyer.
b. The seller.
c. The organization.
d. The society.
11.There is no scope for the firms to join together and form cartels or some other form of
organization to restrict competition under
a. Imperfect competition.
b. Monopolistic competition.
c. Oligopoly
d. Perfect competition.
a. The government.
b. The seller.
c. The demand
d. The cost
14.When there are a large number of buyers and sellers, commodity dealt with is
homogeneous, free entry and exit of firms and absence of any kind of monopoly element
, market is said to be
a. Imperfect.
b. Pure
c. Monopolistic.
d. Perfect.
a. Ricardo.
b. Marshall.
c. Keynes.
d. Samuel son.
a. Difference between what a consumer is actually paying for a product and what he
is planning to pay for a product
b. Difference between market price and actual price
c. Difference between what a consumer is willing to pay for a product and what he
3.Consumers' surplus is
a. Surplus amount of money paid over and above the total utility of a product
b. Surplus satisfaction enjoyed by a consumer over and above the price paid for a
product
c. Surplus price paid by a consumer over and above the satisfaction derived from a
product.
d. Surplus amount of satisfaction derived from the consumption of a product the
price he has paid for it.
4.Consumers` surplus is a
a. Relative concept
b. Quantitative concept
c. Qualitatitve concept
d. Objective concept
a. Comforts
b. Necessaries of life
c. Luxuries
d. Conventional necessaries
a. A point of time
b. At different periods of time
c. At different points of time
d. A period of time
a. Constant quantity
b. Quantity which takes different values
c. Changing quanity
d. None of the above
3.Endogenous variables are those
6.Identify the wrong answer. The scope of macro economics includes the study of
7.Interface of macro economics with business and industry does not deals with
d. Price of Ice-cream
10.Out of the four, which is not a micro variable?
a. Demand
b. supply
c. Cost
d. Inflation
a. Price function.
b. Income function.
c. Effective demand.
d. Consumption function.
2.Increase in consumption expenditure is less than proportionate to the
a. Increase in employment.
b. Increase in income.
c. Increase in investment expenditure.
d. Increase in output.
a. Less.
b. Lesser.
c. The same.
d. Greater.
d. Prof. Hansen.
8.The ratio of change in aggregate consumption to the change in the level of aggregate
income is called
a. Increases proportionately.
b. Increase disproportionately.
c. Increases.
d. Declines