Vous êtes sur la page 1sur 26

School of Distance Education

UNIVERSITYOFCALICUT SCHOOLOFDISTANCEEDUCATION
BCOM/BBA(2011Admn.Onwards) ISEMESTER COMPLEMENTARYCOURSE MANAGERIALECONOMICS QUESTIONBANK 1. ThefamousbookoneconomicsAnEnquiryintotheNatureandCauseofWealthofNationwas Writtenby a. AlfredMarshall b. AdamSmith c. JMKeynes d. ACPigou 2. Wealth(Classical)definitionofeconomicsisgivenby a. ACPigou b. LionelRobbins c. AdamSmith d. AlfredMarshall 3. .isknownasthefatherofeconomics a. ACPigou b. LionelRobbins c. AdamSmith d. AlfredMarshall 4. Welfare(neoclassical)definitionofeconomicsisgivenby a. JBSay b. LionelRobbins c. AdamSmith d. AlfredMarshall 5. Thescarcity(New)definitionissuggestedby a. ACPigou b. LionelRobbins c. AdamSmith d. AlfredMarshall 6. Microeconomicsstudiestheeconomicactionsandbehaviorof a. Individualunits b. Economicaggregates c. Totalemployment d. Generalpricelevel 7. Macroeconomicsisconcernedwith a. Thetheoryoffirm b. Householdexpenditure c. Generalpricelevel d. Individualconsumerbehavior 8. TheauthorofthebookTheGeneralTheoryofEmployment,InterestandMoney a. AlfredMarshall b. AdamSmith c. JMKeynes d. ACPigou
ManagerialEconomics Page1

School of Distance Education

9. ManagerialEconomicsis a. Dealingonlymicroaspects b. Onlyanormativescience c. Dealswithpracticalaspects d. Alloftheabove 10. Moderndefinitionisalsocalledas a. Growthdefinition b. Welfaredefinition c. scarcitydefinition d. Neoclassicaldefinition 11. Economicswasclassifiedintomicroandmacroby a. RagnarFrisch b. AdamSmith c. JMKeynes d. ACPigou 12. WhoisregardedasafatherofBusinessEconomics a. JoelDean b. AdamSmith c. JMKeynes d. RagnarFrisch 13. Decisionmakingandarethetwoimportantfunctionsofexecutiveofbusinessfirms a. Forwardplanning b. Directing c. Supervising d. Administration 14. Arupeetomorrowisworthlessthanarupeetodayrelatesto a. Opportunitycostprinciple b. Discountingprinciple c. Equimarginalprinciple d. Noneofthese 15. .ismicroeconomictheory a. Demandtheory b. Pricetheory c. Incometheory d. Noneofthese 16. Macroeconomictheoryisalsocalledas a. Demandtheory b. Pricetheory c. Incometheory d. Noneofthese 17. Allocationofavailableresourcesamongalternativesisbasedontheprinciple a. Opportunitycostprinciple b. Discountingprinciple c. Equimarginalprinciple d. Noneofthese 18. Thetechniquesofoptimizationinclude a. Marginalanalysis b. Calculus c. Linearprogramming d. Alloftheabove
ManagerialEconomics Page2

School of Distance Education

19. Whichoneisnotacharacteristicsofmanagerialeconomics a. Microeconomics b. Normativescience c. Positivescience d. Pragmatic 20. Whichisthecharacteristicsofmanagerialeconomics a. Dealswithbothmicroandmacroaspects b. Bothpositiveandnormativescience c. Dealswiththeoreticalaspects d. Dealswithpracticalaspects. 21. .is economic theory used in business whereas .is economics theory used in business and nonbusinessorganization a. Microeconomics,macroeconomics b. Businesseconomics,managerialeconomics c. Positiveeconomicsandnormativeeconomics d. Noneofthese 22. Managerialeconomicsisalsocalled a. Microeconomics b. Theoryofthefirm c. Economicsofthefirm d. Alloftheabove. 23. Whichofthefollowingisnotincludedinfunctionsofmanagerialeconomists a. Salesforecasting b. Industrialmarketresearch c. Adviceonforeignexchange d. Noneoftheabove 24. Whichofthefollowingisincludedinspecificfunctionsofmanagerialeconomists a. Economicanalysisofcompetingcompanies b. Adviceonpricingproblemsofindustry c. Environmentalforecasting d. Alloftheabove 25. Whichofthefollowingisnotafunctionofmanagerialeconomists a. Adviceontradeandpublicrelations b. Economicanalysisofagriculture c. Investmentanalysis d. Supervisionandcontrol 26. Whichofthefollowingisnotafunctionofmanagerialeconomist a. Analysisofunderdevelopedeconomies b. Capitalprojectappraisal c. Adviceonprimarycommodities d. Noneofthese 27. Basiceconomictoolsofmanagerialeconomicsinclude a. Opportunitycostprinciple b. Incrementalprinciple c. Discountingprinciple d. Alloftheabove 28. Basiceconomictoolsofmanagerialeconomicsdoesnotinclude a. Principleoftimeperspective b. Equimarginalprinciple c. Incrementalprinciple d. Noneofthese
ManagerialEconomics Page3

School of Distance Education

29. ..principleiscloselyrelatedtothemarginalcostsandmarginalrevenueofeconomictheory a. Principleoftimeperspective b. Equimarginalprinciple c. Incrementalprinciple d. Noneofthese 30. Analysisoflongrunandshortrunaffectsofdecisionsonrevenueaswellascostsisbasedon a. Principleoftimeperspective b. Equimarginalprinciple c. incrementalprinciple d. Noneofthese 31. ineconomicsmeansdemandbackedupbyenoughmoneytopayforthegoodsdemanded a. Utility b. Consumption c. Supply d. Demand 32. Wantsatisfyingpowerofcommodityiscalled a. Demand b. Utility c. Satisfaction d. Consumption 33. Ineconomics,desirebackedbypurchasingpowerisknownas a. Utility b. Demand c. Consumption d. Scarcity 34. ThedemandhasthreeessentialsDesire,Purchasingpowerand.. a. Quantity b. Cash c. Supply d. Willingnesstopurchase 35. means an attempt to determine the factors affecting the demand of a commodity or service andtomeasuresuchfactorsandtheirinfluences a. Demandplanning b. Demandforecasting c. Demandanalysis d. Demandestimation 36. isknownasthefirstlawinmarket a. Lawofsupply b. Lawofconsumption c. Lawofdemand d. Lawofproduction 37. Demand=Desires++willingnesstopay a. Supply b. utility c. Want d. Purchasingpower
ManagerialEconomics Page4

School of Distance Education

38. Lawofdemandshowsthefunctionalrelationshipbetween.andquantitydemanded a. Supply b. Cost c. Price d. Requirements 39. Therelationshipbetweenpriceandquantitydemandedis a. Direct b. Inverse c. Linear d. Nonlinear 40. .meansrelationshipbetweendemandanditsvariousdeterminantsexpressedmathematically a. Demandextension b. Demandcontraction c. Demandanalysis d. Demandfunction 41. D=f(P,Y,T,Ps,U),wheretheletterUstandsfor a. Utility b. Unitsofconsumption c. Usage d. Consumerexpectation&others 42. Intheabovefunction,thelettersPsstandsfor a. Preferenceofconsumers b. Priceofcommodity c. Priceofsubstitutes d. Productsupply 43. Intheabovefunction,theletterYstandsfor a. Yieldofproduction b. Incomeofconsumers c. Utility d. Supply 44. Intheabovefunction,theletterTstandsfor a. Targetprice b. Totalsupply c. Totalconsumption d. Tasteandpreferenceofconsumers 45. Basicassumptionsoflawofdemanddoesnotinclude a. Thereisnochangeinconsumerstasteandpreference b. Incomeshouldremainconstant. c. Pricesofothergoodsshouldchange. d. Thereshouldbenosubstituteforthecommodity 46. Basicassumptionsoflawofdemandinclude a. Pricesofothergoodsshouldchange. b. Thereshouldbesubstituteforthecommodity. c. Thecommodityshouldnotconferanydistinction. d. Thedemandforthecommodityshouldnotbecontinuous
ManagerialEconomics Page5

School of Distance Education

47. Generallydemandcurvehave a. Negativeslope b. Positiveslope c. Horizontalline d. Verticalline 48. The change in demand due to change in price only, where other factors remaining constant, it is called. a. Shiftindemand b. Extensionofdemand c. Contractionofdemand d. Bothextensionandcontraction 49. Whenthequantitydemandedofacommodityrisesduetoafallinprice,itiscalled a. Extension b. Upwardshift c. Downwardshift d. Contraction 50. Whenthequantitydemandedfallsduetoariseinprice,itiscalled a. Extension b. Upwardshift c. Downwardshift d. Contraction 51. Whenthedemandchangesduetochangesinotherfactors,liketasteandpreferences,income,price ofrelatedgoodsetc...,itiscalled a. Extensionofdemand b. Contractionofdemand c. Shiftindemand d. Noneofthese 52. InthecaseofConsumermaymovestohigherorlowerdemandcurve a. Extensionofdemand b. Contractionofdemand c. Shiftindemand d. Slopesindemand 53. TheGiffengoodsare.Goods a. Inferiorgoods b. Superiorgoods c. Relatedgoods d. Samegoods 54. Higherthepriceofcertainluxuriousarticles,higherwillbethedemand,thisconceptiscalled a. Giffeneffects b. Vebleneffects c. Demonstrationeffects d. Bothb&cabove 55. Demandformilk,sugar,teaformakingtea,isanexampleof a. Compositedemand b. Derivativedemand c. Jointdemand d. Directdemand 56. Demandforelectricityisanexampleof a. Compositedemand b. Derivativedemand c. Jointdemand d. Directdemand
ManagerialEconomics Page6

School of Distance Education

57. Demandfortyresdependsondemandofvehicles,thedemandfortyrescalledas a. Compositedemand b. Derivativedemand c. Jointdemand d. Directdemand 58. Determinantsofdemandincludes a. Priceofacommodity b. Natureofcommodity c. Incomeandwealthofconsumer d. Alltheabove 59. ExceptionalDemandCurve(Perversedemandcurve) a. Movingupwardfromlefttoright b. Movingupwardfromrighttoleft c. Movinghorizontally d. Movingvertically 60. Whichofthefollowingisnotanexceptiontothedownwardslopingofdemandcurve a. Giffenparadox b. Vebleneffects c. Necessaries d. Incomeeffect 61. TheconceptofElasticityofDemandwasintroducedby a. AlfredMarshall b. LionelRobbins c. Adamsmith d. JMKeynes 62. PriceElasticityofdemand= a. Proportionatechangeinquantitydemanded Proportionatechangeinprice b. ChangeinQuantitydemanded/Quantitydemanded ChangeinPrice/price c. (Q2Q1)/Q1 (P2P1)/P1 d. Alltheabove 63. Whenasmallchangeinpriceleadstoinfinitechangeinquantitydemanded,itiscalled a. Perfectlyelasticdemand b. Perfectlyinelasticdemand c. Relativeelasticdemand d. Relativeinelasticdemand 64. Quantityremainsthesamewhateverthechangeinprice,thisisthecaseof a. Perfectlyelasticdemand b. Perfectlyinelasticdemand c. Relativeelasticdemand d. Relativeinelasticdemand 65. Inthecaseofasmallchangeinpriceleadstoverybigchangeinquantitydemanded a. Perfectlyelasticdemand b. Perfectlyinelasticdemand c. Relativeelasticdemand d. Unitelasticdemand
ManagerialEconomics Page7

School of Distance Education

66. Incaseof..quantitydemandedchangeslessthanproportionatetochangesinprice a. Perfectlyelasticdemand b. Perfectlyinelasticdemand c. Relativeelasticdemand d. Relativeinelasticdemand 67. Whenthechangeindemandisexactlyequaltothechangeinprice,itiscalled a. Perfectlyelasticdemand b. Perfectlyinelasticdemand c. Relativeelasticdemand d. Unitaryelasticdemand 68. Ep=0inthecaseofelasticity a. Perfectlyelasticdemand b. Perfectlyinelasticdemand c. Relativeelasticdemand d. Unitaryelasticdemand 69. Perfectelasticityisknownas a. Finiteelastic b. Infiniteelastic c. Unitaryelastic d. Zeroelastic 70. Inthecaseofperfectelasticity,thedemandcurveis a. Vertical b. Horizontal c. Flat d. Steep 71. inthecaseofperfectinelasticity,thedemandcurveis a. Vertical b. Horizontal c. Flat d. Steep 72. EP=.inthecaseofrelativelyelasticdemand a. 1 b. >1 c. <1 d. 0 73. EP=incaseofrelativelyinelasticdemand a. 0 b. Infinite c. 1 d. <1 74. Inthecaseofunitaryelasticdemand,theshapeofdemandcurveis a. Verticalline b. Horizontalline c. Rectangularhyperbola d. Steep
ManagerialEconomics Page8

School of Distance Education

75. Unitaryelasticityofdemandmean a. EP=>1 b. EP=<1 c. EP=o d. EP=1 76. showsthechangeinquantitydemandedasaresultofachangeinconsumersincome a. Priceelasticity b. Crosselasticity c. Incomeelasticity d. Noneofthese 77. Forthecommoditieslikesalt,sugaretc.,theincomeelasticitywillbe a. Zero b. Negative c. Positive d. Unitary 78. whenincomeincreases,quantitydemandedfalls,itis a. Positiveincomeelasticity b. Zeroincomeelasticity c. Negativeincomeelasticity d. Unitaryincomeelasticity 79. Anincreaseinincomemayleadtoanincreaseinthequantitydemanded,itis a. Positiveincomeelasticity b. Zeroincomeelasticity c. Negativeincomeelasticity d. Unitaryincomeelasticity 80. Apositiveincomeelasticitymaybe a. Unitincomeelasticity b. Incomeelasticitygreaterthanunity c. Incomeelasticitylessthanunity d. Anyoftheabove 81. Theproportionatechangeinthequantitydemandedofacommodityinresponsetochangeintheprice ofanotherrelatedcommodityiscalled a. Priceelasticity b. Relatedelasticity c. Crosselasticity d. Incomeelasticity 82. Teaandcoffeeare a. Complimentarygoods b. Substitutegoods c. Supplementarygoods d. Reservegoods 83. Carandpetrolare a. Complimentarygoods b. Substitutegoods c. Supplementarygoods d. Reservegoods
ManagerialEconomics Page9

School of Distance Education

84. Ifthecommoditiesaresubstituteinnature,crosselasticitywillbe a. Negative b. Positive c. Zero d. Anyoftheabove 85. Ifthecommoditiesarecomplimentary,crosselasticitywillbe a. Negative b. Positive c. Zero d. Anyoftheabove 86. Theresponsivenessofdemandduetoachangeinpromotionalexpensesiscalled a. Expenditureelasticity b. Advertisementelasticity c. Promotionalelasticity d. Aboveborc 87. Whichoneisthemethodformeasurementofelasticity a. ProportionalorPercentageMethod b. OutlayMethod c. Geometricmethod d. Alltheabove 88. Outlaymethodofmeasurementofelasticityisalsocalledas a. Percentagemethod b. Expendituremethod c. Pointmethod d. Geometricmethod 89. .methodmeasureselasticitybetweentwopoints a. ProportionalorPercentageMethod b. OutlayMethod c. Geometricmethod d. ArcMethod 90. Demandfornecessarygoods(salt,rice,etc,)is.anddemandforcomfortandluxurygoodis a. Elastic,inelastic b. Inelastic,elastic c. Elastic,elastic d. Inelastic,inelastic 91. ..istheprocessoffindingcurrentvaluesofdemandforvariousvaluesofpricesandother determiningvariables. a. DemandEstimation b. Demandanalysis c. Demandfunction d. Demandforecasting 92. Toolsandtechniquesfordemandestimationincludes; a. Consumersurveys. b. consumerclinicsandfocusgroups c. MarketExperiment d. Allotheabove
ManagerialEconomics Page10

School of Distance Education

93. isanobjectiveassessmentofthefuturecourseofdemand a. DemandEstimation b. Demandanalysis c. Demandfunction d. Demandforecasting 94. .demandforecastingisrelatedtothebusinessconditionsprevailingintheeconomyasawhole a. Macrolevel b. Industrylevel c. Firmlevel d. Noneofthese 95. demandforecastingispreparedbydifferenttradeassociationinordertoestimatethe demandforparticularindustriesproducts a. Macrolevel b. Industrylevel c. Firmlevel d. Noneofthese 96. forecasting is more important from managerial view point as it helps the management in decisionmakingwithregardtothefirmsdemandandproduction. a. Macrolevel b. Industrylevel c. Firmlevel d. Noneofthese 97. PurposesofShorttermDemandforecastingincludes; a. Makingasuitableproductionpolicy. b. Toreducethecostofpurchasingrawmaterialsandtocontrolinventory. c. Decidingsuitablepricepolicy d. Alltheabove 98. PurposesofShorttermDemandforecastingdoesntincludes; a. Decidingsuitablepricepolicy b. Settingcorrectsalestargetonthebasisoffuturedemand c. Forecastingshorttermfinancialrequirements d. Noneofthese 99. PurposesofShorttermDemandforecastingdoesntincludes; a. Makingasuitableproductionpolicy. b. Toreducethecostofpurchasingrawmaterialsandtocontrolinventory. c. Decidingsuitablepricepolicy d. Planningofanewunitorexpansionofexistingunit 100. PurposesoflongtermDemandforecastingdoesntincludes; a. Planningofanewunitorexpansionofexistingunit. b. Planninglongtermfinancialrequirements. c. Planningofmanpowerrequirements. d. Decidingsuitablepricepolicy 101. PurposesoflongtermDemandforecastingincludes a. Makingasuitableproductionpolicy. b. Toreducethecostofpurchasingrawmaterialsandtocontrolinventory. c. Decidingsuitablepricepolicy d. Planningofanewunitorexpansionofexistingunit
ManagerialEconomics Page11

School of Distance Education

Surveymethodofdemandforecastingincludes a. Opinionsurvey b. Expertopinion c. Delphimethod d. Alltheabove 103. MethodisalsoknownasSalesForceCompositemethodorcollectiveopinionmethod a. Opinionsurvey b. Expertopinion c. Delphimethod d. Consumerinterviewmethod 104. Under..Method,apanelisselectedtogivesuggestionstosolvetheproblemsinhand a. Opinionsurvey b. Expertopinion c. Delphimethod d. Consumerinterview 105. ConsumerInterviewmethodofdemandforecastingmayundertakenby; a. Completeenumeration b. Samplesurvey c. Endusemethod d. Alltheabove In .. approach, the demand for new product is estimated on the basis demand of existing 106. product a. Growthcurveapproach b. Evolutionaryapproach. c. Opinionpollingapproach d. Vicariousapproach. 107. In.approach,Consumersreactionsonthenewproductsarefoundoutindirectlywiththehelp ofspecializeddealers a. Growthcurveapproach b. Evolutionaryapproach. c. Opinionpollingapproach d. Vicariousapproach. 108. Inapproach,onthebasisofthegrowthofanestablishedproduct,thedemandforthenew productisestimated a. Growthcurveapproach b. Evolutionaryapproach. c. Opinionpollingapproach d. vicariousapproach 109. Methodofdemandforecastingisalsocalledeconomicmodelbuilding a. Opinionsurvey b. Completeenumeration c. Correlationandregression d. Delphimethod 110. Criteriaforgooddemandforecastingincludes; a. Plausibility b. Simplicity c. Economy d. Alltheabove. 111. ..isthebaseofmarketingplanning a. DemandEstimation b. Demandanalysis c. Demandfunction d. Demandforecasting
ManagerialEconomics Page12

102.

School of Distance Education

Growthcurveapproachisusedforforecastingdemandof.products a. New b. Old c. Existing d. Botholdandexisting. 113. Whichofthefollowingisnotamethodofdemandforecastingofnewproducts a. Trendprojection b. Substituteapproach c. Evolutionaryapproach d. Salesexperienceapproach 114. ..=R2R1/Q2Q1 a. Averagerevenue b. Totalrevenue c. Marginalrevenue d. Incrementalrevenue 115. ..Measuresthedifferencesbetweenthenewtotalrevenueandexistingtotalrevenue .a.Averagerevenue b. Totalrevenue c. Marginalrevenue d. Incrementalrevenue 116. .meansthetotalreceiptsfromsalesdividedbythenumberofunitsold. a.Averagerevenue b. Totalrevenue c. Marginalrevenue d. Incrementalrevenue 117. SolongasAverageRevenueisfalling,MarginalRevenuewillbe.AverageRevenue a. Lessthan b. Morethan c. Equalto d. Noneofthese 118. WhereMarginalrevenueisnegative,TRwillbe.. a. Rising b. Falling c. Zero d. One 119. TotalRevenuewillbemaximumatthepointwhereMarginalRevenueis a. One b. Zero c. <1 d. >1 120. ..isthechangeintotalrevenueirrespectiveofchangesinpriceorduetotheeffectof managerialdecisiononrevenue a. Averagerevenue b. Totalrevenue c. Marginalrevenue d. Incrementalrevenue
ManagerialEconomics Page13

112.

School of Distance Education

121.

122.

123.

124.

125.

126.

127.

128.

129.

In..pricingfixedcostareexcluded. a. skimmingpricing b. goingratepricing c. administeredpricing d. marginalcostpricing Fixinghighpriceduringtheintroductioniscalled a. skimming b. penetrating c. fullcostpricing d. targetpricing Thefirmchargespriceintunewiththeindustryspriceiscalled a. competitivepricing b. goingratepricing c. tunepricing d. targetpricing Methodofcharginglowpriceinitiallycalled a. skimming b. penetrating c. fullcostpricing d. targetpricing Pricingisdoneonthebasisofmanagerialdecisions,notonthebasisofcost,demandetc a. Managerialpricing b. Administeredpricing c. Fullcostpricing d. Competitivepricing Whichofthefollowingmethodofpricingispopularinwholesaleandretailtrades a. skimming b. penetrating c. fullcostpricing d. targetpricing Whichoneofthefollowingisnotaninternalfactorinfluencingpricingpolicy a. cost b. objectives c. marketingmix d. demand Whichoneofthefollowingisaninternalfactorinfluencingpricing a. demand b. competition c. distributionchannel d. productlifecycle Costpluspricingisalsocalled a. marginpricing b. fullcostpricing c. markuppricing d. alltheabove
Page14

ManagerialEconomics

School of Distance Education

Averagecostpricingisalsocalledas a. costpluspricing b. marginalcostpricing c. marginpricing d. botha&c 131. Underwhichmethod,thecostisaddedwiththepredeterminedtargetrateofreturnoncapital invested a. Costpluspricing b. Targetpricing c. Markuppricing d. Noneofthese 132. Targetpricingisalsocalledas a. Costpluspricing b. Rateofreturnpricing c. Markuppricing d. Noneofthese 133. UndertheMarginalcostpricing,thepriceisdeterminedonthebasisof; a. Fixedcost b. Variablecost c. Totalcost d. Averagecost 134. CinemaTheater,telephonebillsetc..arefollowing a. Fullcostpricing b. Marginalcostpricing c. Differentialpricing d. Markuppricing 135. Pricediscriminationisalsocalledas a. Discriminatorypricing b. Differentialpricing c. Averagecostpricing d. a&babove 136. ThemethodofpricingwhichisalsoknownasParitypricingandAcceptancepricingis a. Differentialpricing b. Goingratepricing c. Discriminatorypricing d. Markuppricing 137. Thepricingofcupofteaorcoffee,isanexampleof a. Markuppricing b. Marginalcostpricing c. Conventionalpricing d. Costpluspricing 138. isthemethodofleadershippricing a. Goingratepricing b. Followuppricing c. Barometricpricing d. Paritypricing
ManagerialEconomics Page15

130.

School of Distance Education

139.

140.

141.

142.

143.

144.

145.

146.

147.

Generallyusedstrategyforpricingnewproductsis/are a. Skimmingpricestrategy b. Penetrationpricestrategy c. Botha&b d. Noneofthese provideguidelinestocarryout a. Pricingstrategies,pricingpolicies b. Pricingpolicies,pricingstrategies c. Pricingrules,pricingpolicies d. Pricingrules,pricingstrategies Psychologicalpricingisalsocalledas; a. Penetrationpricing b. Skimmingpricing c. Oddpricing d. Noneofthese PricesofBatashoeasRs.99.99,thispricingis a. Markuppricing b. Oddpricing c. Marginalcostpricing d. Followuppricing. Whichoneofthefollowingisnotareasonforadoptingskimmingpricestrategy a. Whenthedemandofnewproductisrelativelyinelastic. b. Whenthereisnoclosesubstitutes c. Elasticityofdemandisnotknown d. Producthashighpriceelasticityintheinitialstage Whichoneofthefollowingisnotareasonforadoptingpenetrationpricestrategy a. Producthashighpriceelasticityintheinitialstage. b. Theproductisacceptedbylargenumberofcustomers. c. Economiesoflargescaleproductionavailabletofirm d. Whenthebuyersarenotabletocomparethevalueandutility Customarypricingisalsoknownas a. Consumerpricing b. Conventionalpricing c. Costpluspricing d. Fullcostpricing Whichofthefollowingis/arethereasonforadoptingpenetrationpricestrategy a. Economiesoflargescaleproductionavailabletofirm. b. Potentialmarketfortheproductislarge. c. Costofproductionislow. d. Alltheabove Whichofthefollowingis/arethereasonforadoptingskimmingpricestrategy a. Whenthebuyersarenotabletocomparethevalueandutility. b. Toattractthehighincomecustomers. c. Whentheproducthasdistinctivequalities,luxuries d. Alltheabove


ManagerialEconomics Page16

School of Distance Education

148. In a perfectly competitive market, individual firm a) b) c) d) a) b) c) d) a) b) c) d) a) b) c) d) a) b) c) d) a) b) c) d) a) b) c) d) a) b) c) d) a) b) c) d) a) b) c) d) cannot influence the price of its product can influence the price of its product can fix the price of its product can influence the market force large number of buyers and sellers homogeneous product free entry and exit of firms all the above perfect competition monopolistic competition oligopoly monopoly monopoly monopolistic competition oligopoly none of these differentiated with close substitute perfect substitute differentiated without close substitute homogeneous large no. of firms a few firms a single firm an infinite no. of firms TR Malthus JM Keynes Mrs. Robinson Chamberlin Returns to scale law of variable proportion Production possibility frontier None of these market price quantity supplied advertisement cost all the above unit commodity sold total commodity sold marginal commodity sold none of these
Page17

149. Perfect competition is characterized by

150. The market with a single producer

151. Selling cost is the feature of the market form

152 The product under monopolistic competition are

153. In the oligopoly market there are

154. The concept of product differentiation was introduced by

155. The short run production function is called;

156. Under oligopoly a single seller cannot influence significantly

157. Average revenue is the revenue per

ManagerialEconomics

School of Distance Education

158. The distinction between variable cost and fixed cost is relevant only in a) b) c) d) a) b) c) d) a) b) c) d) a) b) c) d) a) b) c) d) a) b) c) d) a) b) c) d) a) b) c) d) a) b) c) d) a) b) c) d) long period short period medium term mixed period Price=MC=AC Price=TC MC=AVC MC=MR monopoly perfect competition monopolistic competition monophony Rosenstein Roden JR Hicks Karl Marx Chamberlin 1 2 many few agriculture industry services commerce the value of next best activity the value of material used the cost of input used none of these land labour Capital Entrepreneurship Land and labor capital & entrepreneurship both a&b only capital price maker price giver price taker all the above
Page18

159. The condition for the long run equilibrium of a perfectly competitive firm

160. Product differentiation is the important feature of

161. The architect of the theory of monopolistic competition

162. The no. of firms under oligopoly is

163. The law of diminishing returns applies more to

164. The opportunity cost of a given activity is

165. The function of combining the other factors of production is done by

166. The factors used in the production

167. In a perfect market both buyers and sellers are

ManagerialEconomics

School of Distance Education

168. Which is the determinant of the pricing policy of a firm? a) Channel of distribution b) Age of product c) Consumer association d) All of these 169. Information for pricing decisions involves: a) Product information b) Market information c) Information at the micro level d) All of these 170. Which is the reason of skimming price? a) Inelastic demand b) Diversion of market c) Safer price policy d) All of these 171. Which is the condition of for market penetration? a) High price elasticity of demand in the short run b) Savings in production costs c) Threat of potential competition d) All of these 172. Production may be defined as an act of: a) Creating utility b) Earning profit c) Destroying utility d) Providing services 173. The demand curve of a firm in the case of perfect competition is: a) Parallel to output axis b) Increasing with the output axis c) Decreasing with the output axis d) Complete 174. The implication of the kinked demand curve is reflected in a discontinuity in the: a) Marginal revenue curve b) Marginal cost curve c) Total revenue curve d) Total cost curve 175. The concept of monopsony was invented by: a) Marshall b) AP. Learner c) Chamberlin d) Mrs. J. Robinson 176. A firm that is the sole seller of a product without close substitutes called: a) Monopoly b) Oligopoly c) Competition d) Bureaucracy
ManagerialEconomics Page19

School of Distance Education

177. When all the productive services are increased in a given proportion, the product is increased in the same proportion. This situation is called: a) Law of increasing b) Situation of constant returns c) Fixed cost d) Variable cost 178. Which factors is/are influencing price policy? a) Cost of product b) Time factor c) Government policy d) All of these 179. Pricing methods are: a) Standard cost method b) Learning curve method c) Marginal cost method d) All of these 180. Which is the feature of perfect competition? a) Large number of buyers and sellers b) Freedom of entry and exit c) Normal profit in the long run d) All of these 181. Which is/are the salient features of monopolistic competition? a) Large number of sellers b) Normal profit c) Free entry and exit of firms in industry d) All of these 182. Which are the characteristics of monopoly? a) Single seller or producer b) No close substitutes c) Inelastic demand curve d) All of these 183. The causes of emergence of monopoly is/are: a) Concentration of ownership of raw materials b) State regulation c) Public utility services d) All of these 184. Which are not the features of oligopoly? a) Few sellers b) Advertising and sales promotion c) One firm d) Conflicting attitudes of firms 185. The monopoly can be controlled by: a) Social boycott b) Antimonopoly legislation c) Public ownership d) All of these
ManagerialEconomics Page20

School of Distance Education

186. The properties of indifference curves are: a) Indifference curve slops downwards from left to right b) Convex to the point of origin c) Two indifference curve never cut each other d) All of these 187. Price discrimination occurs when variation in prices for a product in different markets does not reflect variation? a) Costs b) Price c) Demand d) All of these 188. A cost that has already been committed and cannot be recovered known as: a) Sunk cost b) Total cost c) Full cost d) Variable cost 189. The competitive firms long run supply curve is the portion of its ..curve lies above average total cost. a) Marginal cost b) Revenue cost c) Fixed cost d) All of these 190. Whenever marginal cost is more than average total cost is falling: a) Average total revenue b) Average total cost c) Average profit d) All of these 191. Whenever ..is greater than average total cost, average total cost is rising. a) Marginal cost b) Variable cost c) Fixed cost d) Full cost 192. The claim that, other things equal, the quantity supplied of a goods rises when the price of goods raises known as: a) Law of economics b) Law of supply c) Law of demand d) All of these 193. The marginal revenue equation can be derived from the: a) Demand equation b) Supply equation c) Cost equation d) Price equation

ManagerialEconomics

Page21

School of Distance Education

194. Marginal revenue is .at the quantity that generate maximum total revenue and negative beyond that point. a) Zero b) One c) +1 d) -1 195. ------------is situation of severely falling prices and lowest level of economic activities a) Boom b) Recovery c) Recession d) Depression 196. ------------is situation with increased investment and increased price a) Recession b) Progress c) Boom d) Recovery 197. Which of the following is not a macroeconomic concept? a) Business cycle b) National income c) Government policy d) None of these 198. Where boom ends,.. starts a) Recovery b) Recession c) Progress d) Depression 199. Factors which change over a long period of time are called..factors a) Business b) Cyclic c) Secular d) All the above 200. In business cycle concept, the period of long wave is of; a) 25 years b) 50 years c) 100 years d) 200 years 201. In business cycle concept, the period (approximately) of Kit chin cycle is of: a) 5 years b) 10 months c) 2 years d) 4 months 202. The law of variable proportion is first explained by a) Edward west b) Marshall c) Veblen d) Keynes
ManagerialEconomics Page22

School of Distance Education

203. Functional relationship between input and output known as a) Conversion b) Production function c) Work in progress d) Output function 204. Iso-cost line indicate the price of a) Output b) Inputs c) Finished goods d) Raw material 205. ..product will never be zero or negative a) Marginal b) Total c) Average d) All the above 206. A graph indicating different combination of inputs with different level of output is called a) Iso-cost map b) BEP map c) Input-output map d) Iso-quant map 207. Which is not a property of ISOQUANT? a) Downward sloping b) Convex c) Negative slope d) Positive slope 208. Which of the following is not a variable input? a) Raw material b) Power c) Equipment d) None of these 209. Which of the following is a short run law? a) Law of constant return to scale b) Law of increasing return to scale c) Law of diminishing return d) None of these 210. is called produced means of production a) Land b) Labour c) Capital d) Raw material
211. In the long run all input become a) Fixed b) Variable c) Semi variable d) None of these
ManagerialEconomics Page23

School of Distance Education

212. The term Economies refers to a) Product advantage b) Cost advantage c) Sales advantage d) All of the above 213. Who classified economies of scale into internal and external? a) Robinson b) Marshall c) Edward west d) Pigue 214. Related to production function, MRTS stand for; a) Marginal revenue and total sales b) Minimum revenue from total sales c) Marginal rate of total supply d) Marginal rate of technical substitution 215. Which of the following is not coming under imperfect competition? a) Oligopoly b) Duopoly c) Monopoly d) Monopolistic 216. in economics ..means a state of rest or stability a) Depression b) Equilibrium c) Maturity d) growth 217. In perfect completion, a firm is a a) Price maker b) Price taker c) Both of the above d) None of these 218. Selling at a lower price in export market and at a higher price at home market is called a) Export subsidy b) Dumping c) Price cut d) All the above 219. Which of the following is not a feature of monopolistic completion? a) Large number of producers b) Free entry and exit c) More elastic demand d) Price competition


ManagerialEconomics Page24

School of Distance Education

Answerkey
QuestionNo 01 02 03 04 05 06 07 08 09 10 QuestionNo 31 32 33 34 35 36 37 38 39 40 QuestionNo 61 62 63 64 65 66 67 68 69 70

Answer b c c d b a c c d a Answer d b b d c c d c b d

QuestionNo 11 12 13 14 15 16 17 18 19 20

Answer a a a b b c c d c d Answer d c b d c c a d a d

QuestionNo Answer 21 b 22 d 23 d 24 d 25 d 26 d 27 d 28 d 29 c 30 a QuestionNo 51 52 53 54 55 56 57 58 59 60 Answer c c a b c a b d a d

QuestionNo 41 42 43 44 45 46 47 48 49 50

Answer a d a b c d d b b b Answer a d d a b c d d d d

QuestionNo 71 72 73 74 75 76 77 78 79 80 QuestionNo 101 102 103 104 105 106 107 108 109 110

Answer a b d c d c a c a d Answer d d a c d b d a c d

QuestionNo 81 82 83 84 85 86 87 88 89 90 QuestionNo 111 112 113 114 115 116 117 118 119 120

Answer c b a b a d d b d b Answer d a a c d a a b b d
Page25

QuestionNo 91 92 93 94 95 96 97 98 99 100
ManagerialEconomics

School of Distance Education

QuestionNo 121 122 123 124 125 126 127 128 129 QuestionNo 148 149 150 151 152 153 154 155 156

Answer d a b b b c d d d Answer a d d b a b d b d

QuestionNo 130 131 132 133 134 135 136 137 138 QuestionNo 157 158 159 160 161 162 163 164 165

Answer d b b b c d b c c Answer a b a c d d a a b

QuestionNo 139 140 141 142 143 144 145 146 147

Answer c b c b d d b d d

QuestionNo Answer 166 c 167 c 168 d 169 d 170 d 171 d 172 a 173 a 174 a

QuestionNo 175 176 177 178 179 180 181 182 183 QuestionNo 202 203 204 205 206 207

Answer d a b d d d d d d Answer a b b c d d

QuestionNo 184 185 186 187 188 189 190 191 192 QuestionNo 208 209 210 211 212 213

Answer c d d a a a b a b Answer c c c b b b

QuestionNo Answer 193 a 194 a 195 d 196 c 197 d 198 b 199 c 200 b 201 d QuestionNo Answer 214 d 215 c 216 b 217 b 218 b 219 d

Reserved

ManagerialEconomics

Page26