Managerial Economics _ QuestionBank

7/28/2019 Managerial Economics _ QuestionBank

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School of Distance Education

ManagerialEconomics Page1

UNIVERSITYOFCALICUTSCHOOLOFDISTANCEEDUCATION

BCOM/BBA(2011Admn.Onwards)ISEMESTER

COMPLEMENTARYCOURSEMANAGERIALECONOMICS

QUESTIONBANK1. ThefamousbookoneconomicsAnEnquiryintotheNatureandCauseofWealthofNationwas

Writtenby

a. AlfredMarshallb. AdamSmithc. JMKeynesd. ACPigou

2. Wealth(Classical)definitionofeconomicsisgivenbya. ACPigoub. LionelRobbinsc. AdamSmithd. AlfredMarshall

3. .isknownasthefatherofeconomicsa. ACPigoub. LionelRobbinsc. AdamSmithd. AlfredMarshall

4. Welfare(neoclassical)definitionofeconomicsisgivenbya. JBSayb. LionelRobbinsc. AdamSmithd.

Alfred

Marshall

5. Thescarcity(New)definitionissuggestedbya. ACPigoub. LionelRobbinsc. AdamSmithd. AlfredMarshall

6. Microeconomicsstudiestheeconomicactionsandbehaviorofa. Individualunitsb. Economicaggregatesc. Totalemploymentd. Generalpricelevel

7. Macroeconomicsisconcernedwitha. Thetheoryoffirmb. Householdexpenditurec. Generalpriceleveld. Individualconsumerbehavior

8. TheauthorofthebookTheGeneralTheoryofEmployment,InterestandMoneya. AlfredMarshallb. AdamSmithc. JMKeynesd. ACPigou


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9. ManagerialEconomicsisa. Dealingonlymicroaspectsb. Onlyanormativesciencec. Dealswithpracticalaspectsd. Alloftheabove

10.Moderndefinitionisalso calledasa. Growthdefinitionb. Welfaredefinitionc. scarcitydefinitiond. Neoclassical definition

11.Economicswasclassifiedintomicroandmacrobya. RagnarFrischb. AdamSmithc. JMKeynesd. ACPigou

12.WhoisregardedasafatherofBusinessEconomicsa. JoelDeanb. AdamSmithc.

J

M

Keynes

d. RagnarFrisch13.Decisionmakingand arethetwoimportantfunctionsofexecutiveofbusinessfirms

a. Forwardplanningb. Directingc. Supervisingd. Administration

14.Arupeetomorrowisworthlessthanarupeetodayrelatestoa. Opportunitycostprincipleb. Discountingprinciplec. Equimarginalprincipled. Noneofthese

15..ismicroeconomictheorya. Demandtheoryb. Pricetheoryc. Incometheoryd. Noneofthese

16.Macroeconomictheoryisalsocalledasa. Demandtheoryb. Pricetheoryc. Incometheoryd. Noneofthese

17.Allocationofavailableresourcesamongalternativesisbasedontheprinciplea. Opportunitycostprincipleb. Discountingprinciplec. Equimarginalprincipled. Noneofthese

18.Thetechniquesofoptimizationincludea. Marginalanalysisb. Calculusc. Linearprogrammingd. Alloftheabove


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19.Whichoneisnotacharacteristicsofmanagerialeconomicsa. Microeconomicsb. Normativesciencec. Positivescienced. Pragmatic

20.Whichisthecharacteristicsofmanagerialeconomicsa. Dealswithbothmicroandmacroaspectsb. Bothpositiveandnormativesciencec. Dealswiththeoreticalaspectsd. Dealswithpracticalaspects.

21..is economic theory used in business whereas .is economics theory used in business andnonbusinessorganization

a. Microeconomics,macroeconomicsb. Businesseconomics,managerialeconomicsc. Positiveeconomicsandnormativeeconomicsd. Noneofthese

22.Managerialeconomicsisalsocalleda. Microeconomicsb.

Theory

of

the

firm

c. Economicsofthefirmd. Alloftheabove.

23.Whichofthefollowingisnotincludedin functionsofmanagerialeconomistsa. Salesforecastingb. Industrialmarketresearchc. Adviceonforeignexchanged. Noneoftheabove

24.Whichofthefollowingisincludedinspecificfunctionsofmanagerialeconomistsa. Economicanalysisofcompetingcompaniesb. Adviceonpricingproblemsofindustryc. Environmentalforecastingd. Alloftheabove

25.Whichofthefollowingisnotafunctionofmanagerialeconomistsa. Adviceontradeandpublicrelationsb. Economicanalysisofagriculturec. Investmentanalysisd. Supervisionandcontrol

26.Whichofthefollowingisnotafunctionofmanagerialeconomista. Analysisofunderdevelopedeconomiesb. Capitalprojectappraisalc. Adviceonprimarycommoditiesd. Noneofthese

27.Basiceconomictoolsofmanagerialeconomicsincludea. Opportunitycostprincipleb. Incrementalprinciplec. Discountingprincipled. Alloftheabove

28.Basiceconomictoolsofmanagerialeconomicsdoesnotincludea. Principleoftimeperspectiveb. Equimarginalprinciplec. Incrementalprincipled. Noneofthese


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29...principleiscloselyrelatedtothemarginalcostsandmarginalrevenueofeconomictheorya. Principleoftimeperspectiveb. Equimarginalprinciplec. Incrementalprincipled. Noneofthese

30.Analysisoflongrunandshortrunaffectsofdecisionsonrevenueaswellascostsisbasedona. Principleoftimeperspectiveb. Equimarginalprinciplec. incrementalprincipled. Noneofthese

31.ineconomicsmeansdemandbackedupbyenoughmoneytopayforthegoodsdemandeda. Utilityb. Consumptionc. Supplyd. Demand

32.Wantsatisfyingpowerofcommodityiscalleda. Demandb. Utilityc. Satisfactiond. Consumption

33.Ineconomics,desirebackedbypurchasingpowerisknownasa. Utilityb. Demandc. Consumptiond. Scarcity

34.Thedemandhasthreeessentials Desire,Purchasingpowerand..a. Quantityb. Cashc. Supplyd. Willingnesstopurchase

35. meansanattempt to determine the factors affecting the demand of a commodity or serviceandtomeasuresuchfactorsandtheirinfluences

a. Demandplanningb. Demandforecastingc. Demandanalysisd. Demandestimation

36.isknownasthefirstlawinmarketa. Lawofsupplyb. Lawofconsumptionc. Lawofdemandd. Lawofproduction

37.Demand=Desires++willingnesstopaya. Supplyb. utilityc. Wantd. Purchasingpower


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38.Lawofdemandshowsthefunctionalrelationshipbetween.andquantitydemandeda. Supplyb. Costc. Priced. Requirements

39.Therelationshipbetweenpriceandquantitydemandedisa. Directb. Inversec. Lineard. Nonlinear

40..meansrelationshipbetweendemandanditsvariousdeterminantsexpressedmathematicallya. Demandextensionb. Demandcontractionc. Demandanalysisd. Demandfunction

41.D=f(P,Y,T,Ps,U),where theletterUstandsfora. Utilityb. Unitsofconsumptionc. Usaged. Consumerexpectation&others

42.Intheabovefunction,thelettersPsstandsfora. Preferenceofconsumersb. Priceofcommodityc. Priceofsubstitutesd. Productsupply

43.Intheabovefunction,theletterYstandsfora. Yieldofproductionb. Incomeofconsumersc. Utilityd. Supply

44.Intheabovefunction,theletterTstandsfora. Targetpriceb. Totalsupplyc. Totalconsumptiond. Tasteandpreferenceofconsumers

45.Basicassumptionsoflawofdemanddoesnotincludea. Thereisnochangeinconsumerstasteandpreferenceb. Incomeshouldremainconstant.c. Pricesofothergoodsshouldchange.d. Thereshouldbenosubstituteforthecommodity

46.Basicassumptionsoflawofdemandincludea. Pricesofothergoodsshouldchange.b. Thereshouldbesubstituteforthecommodity.c. Thecommodityshouldnotconferanydistinction.d. Thedemandforthecommodityshouldnotbecontinuous


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47.Generallydemandcurvehavea. Negativeslopeb. Positiveslopec. Horizontallined. Verticalline

48.The change in demand due to change in price only, where other factors remaining constant, it iscalled.

a. Shiftindemandb. Extensionofdemandc. Contractionofdemandd. Bothextensionandcontraction

49.Whenthequantitydemandedofacommodityrisesduetoafallinprice,itiscalleda. Extensionb. Upwardshiftc. Downwardshiftd. Contraction

50. Whenthequantitydemandedfallsduetoariseinprice,itiscalleda. Extensionb. Upwardshiftc. Downwardshiftd. Contraction

51.Whenthedemandchangesduetochangesinotherfactors,liketasteandpreferences, income,priceofrelatedgoodsetc...,itiscalled

a. Extensionofdemandb. Contractionofdemandc. Shiftindemandd. Noneofthese

52.InthecaseofConsumermaymovestohigherorlowerdemandcurvea. Extensionofdemandb. Contractionofdemandc. Shiftindemandd. Slopesindemand

53.TheGiffengoodsare.Goodsa. Inferiorgoodsb. Superiorgoodsc. Relatedgoodsd. Samegoods

54.Higherthepriceofcertainluxuriousarticles,higherwillbethedemand,thisconceptiscalleda. Giffeneffectsb. Vebleneffectsc. Demonstrationeffectsd. Bothb&cabove

55.Demandformilk,sugar,teaformakingtea,isanexampleofa. Compositedemandb. Derivativedemandc. Jointdemandd. Directdemand

56.Demandforelectricityisanexampleofa. Compositedemandb. Derivativedemandc. Jointdemandd. Directdemand


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57.Demandfortyresdependsondemandofvehicles,thedemandfortyrescalledasa. Compositedemandb. Derivativedemandc. Jointdemandd. Directdemand

58. Determinantsofdemandincludesa. Priceofacommodityb. Natureofcommodityc. Incomeandwealthofconsumerd. Alltheabove

59. ExceptionalDemandCurve(Perversedemandcurve)a. Movingupwardfromlefttorightb. Movingupwardfromrighttoleftc. Movinghorizontallyd. Movingvertically

60. Whichofthefollowingisnotanexceptiontothedownwardslopingofdemandcurvea. Giffenparadoxb. Vebleneffectsc. Necessariesd. Incomeeffect

61.TheconceptofElasticityofDemandwasintroducedbya. AlfredMarshallb. LionelRobbinsc. Adamsmithd. JMKeynes

62. PriceElasticity ofdemand=a. Proportionatechangeinquantitydemanded

Proportionatechangeinprice

b. Changein Quantitydemanded/QuantitydemandedChangeinPrice/price

c. (Q2Q1)/Q1(P2P1)/P1

d. Alltheabove63.Whenasmallchangeinpriceleadstoinfinitechangeinquantitydemanded,itiscalled

a. Perfectlyelasticdemandb. Perfectlyinelasticdemandc. Relativeelasticdemandd. Relativeinelasticdemand

64.Quantityremainsthesamewhateverthechangeinprice,thisisthecaseofa. Perfectlyelasticdemandb. Perfectlyinelasticdemandc. Relativeelasticdemandd. Relativeinelasticdemand

65.Inthecaseofasmallchangeinpriceleadstoverybigchangeinquantitydemandeda. Perfectlyelasticdemandb. Perfectlyinelasticdemandc. Relativeelasticdemandd. Unitelasticdemand


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66.Incaseof..quantitydemandedchangeslessthanproportionatetochangesinpricea. Perfectlyelasticdemandb. Perfectlyinelasticdemandc. Relativeelasticdemandd. Relativeinelasticdemand

67.Whenthechangeindemandisexactlyequaltothechangeinprice,itiscalleda. Perfectlyelasticdemandb. Perfectlyinelasticdemandc. Relativeelasticdemandd. Unitaryelasticdemand

68.Ep=0inthecaseofelasticitya. Perfectlyelasticdemandb. Perfectlyinelasticdemandc. Relativeelasticdemandd. Unitaryelasticdemand

69.Perfectelasticityisknownasa. Finiteelasticb. Infiniteelasticc. Unitaryelasticd. Zeroelastic

70.Inthecaseofperfectelasticity,thedemandcurveisa. Verticalb. Horizontalc. Flatd. Steep

71.inthecaseofperfectinelasticity,thedemandcurveisa. Verticalb. Horizontalc. Flatd. Steep

72.EP=.inthecaseofrelativelyelasticdemanda. 1b. >1c.


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75.Unitaryelasticityofdemandmeana. EP=>1b. EP=


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84.Ifthecommoditiesaresubstituteinnature,crosselasticitywillbea. Negativeb. Positivec. Zerod. Anyoftheabove

85.Ifthecommoditiesarecomplimentary,crosselasticitywillbea. Negativeb. Positivec. Zerod. Anyoftheabove

86.Theresponsivenessofdemandduetoachangeinpromotionalexpensesiscalleda. Expenditureelasticityb. Advertisementelasticityc. Promotionalelasticityd. Aboveborc

87.Whichoneisthemethodformeasurementofelasticitya. ProportionalorPercentageMethodb. OutlayMethodc. Geometricmethodd. Alltheabove

88.Outlaymethodofmeasurementofelasticityisalsocalledasa. Percentagemethodb. Expendituremethodc. Pointmethodd. Geometricmethod

89..methodmeasureselasticitybetweentwopointsa. ProportionalorPercentageMethodb. OutlayMethodc. Geometricmethodd. ArcMethod

90.Demandfornecessarygoods(salt,rice,etc,)is.anddemandforcomfortandluxurygoodisa. Elastic,inelasticb. Inelastic,elasticc. Elastic,elasticd. Inelastic,inelastic

91...istheprocessoffindingcurrentvaluesofdemandforvariousvaluesofpricesandotherdeterminingvariables.

a. DemandEstimationb. Demandanalysisc. Demandfunctiond. Demandforecasting

92.Toolsandtechniquesfordemandestimationincludes;a. Consumersurveys.b. consumerclinicsandfocusgroupsc. MarketExperimentd. Allotheabove


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93. isanobjectiveassessmentofthefuturecourseofdemanda. DemandEstimationb. Demandanalysisc. Demandfunctiond. Demandforecasting

94..demandforecasting isrelatedtothebusinessconditionsprevailingintheeconomyasawholea. Macrolevelb. Industrylevelc. Firmleveld. Noneofthese

95.demandforecastingispreparedbydifferenttradeassociationinordertoestimatethedemandforparticularindustriesproducts

a. Macrolevelb. Industrylevelc. Firmleveld. Noneofthese

96. forecasting is more important from managerial view point as it helps the management indecisionmakingwithregardtothefirmsdemandandproduction.

a. Macrolevelb. Industrylevelc. Firmleveld. Noneofthese

97.PurposesofShorttermDemandforecastingincludes;a. Makingasuitableproductionpolicy.b. Toreducethecostofpurchasingrawmaterialsandtocontrolinventory.c. Decidingsuitablepricepolicyd. Alltheabove

98.PurposesofShorttermDemandforecasting doesntincludes;a. Decidingsuitablepricepolicyb. Settingcorrectsalestargetonthebasisoffuturedemandc. Forecastingshorttermfinancialrequirementsd. Noneofthese

99.PurposesofShorttermDemandforecasting doesntincludes;a. Makingasuitableproductionpolicy.b. Toreducethecostofpurchasingrawmaterialsandtocontrolinventory.c. Decidingsuitablepricepolicyd. Planningofanewunitorexpansionofexistingunit

100. PurposesoflongtermDemandforecasting doesntincludes;a. Planningofanewunitorexpansionofexistingunit.b. Planninglongtermfinancialrequirements.c. Planningofmanpowerrequirements.d. Decidingsuitablepricepolicy

101. PurposesoflongtermDemandforecasting includesa. Makingasuitableproductionpolicy.b. Toreducethecostofpurchasingrawmaterialsandtocontrolinventory.c. Decidingsuitablepricepolicyd. Planningofanewunitorexpansionofexistingunit


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102. Surveymethodofdemandforecastingincludesa. Opinionsurveyb. Expertopinionc. Delphimethodd. Alltheabove

103. MethodisalsoknownasSales ForceCompositemethodorcollectiveopinionmethoda. Opinionsurveyb. Expertopinionc. Delphimethodd. Consumerinterviewmethod

104. Under..Method,apanelisselectedtogivesuggestionstosolvetheproblemsinhanda. Opinionsurveyb. Expertopinionc. Delphimethodd. Consumerinterview

105. ConsumerInterviewmethodofdemandforecastingmayundertakenby;a. Completeenumerationb. Samplesurveyc. Endusemethodd. Alltheabove

106. In .. approach, the demand for new product is estimated on the basis demand of existingproduct

a. Growthcurveapproachb. Evolutionaryapproach.c. Opinionpollingapproachd. Vicariousapproach.

107. In.approach,Consumersreactionsonthenewproductsarefoundoutindirectlywiththehelpofspecializeddealers

a. Growthcurveapproachb. Evolutionaryapproach.c. Opinionpollingapproachd.

Vicarious

approach.

108. Inapproach,onthebasisofthegrowthofanestablishedproduct,thedemandforthenewproductisestimated

a. Growthcurveapproachb. Evolutionaryapproach.c. Opinionpollingapproachd. vicariousapproach

109. Methodofdemandforecasting isalsocalledeconomicmodelbuildinga. Opinionsurveyb. Completeenumerationc. Correlationandregressiond. Delphimethod

110. Criteriaforgooddemandforecastingincludes;a. Plausibilityb. Simplicityc. Economyd. Alltheabove.

111. ..isthebaseofmarketing planninga. DemandEstimationb. Demandanalysisc. Demandfunctiond. Demandforecasting


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112. Growthcurveapproachisusedforforecastingdemandof.productsa. Newb. Oldc. Existingd. Botholdandexisting.

113. Whichofthefollowingisnotamethodofdemandforecastingofnewproductsa. Trendprojectionb. Substituteapproachc. Evolutionaryapproachd. Salesexperienceapproach

114. ..=R2R1/Q2Q1a. Averagerevenueb. Totalrevenuec. Marginalrevenued. Incrementalrevenue

115. ..Measuresthedifferencesbetweenthenewtotalrevenueandexistingtotalrevenue.

a.

Averagerevenue

b. Totalrevenuec. Marginalrevenued. Incrementalrevenue

116. .meansthetotalreceiptsfromsalesdividedbythenumberofunitsold.a. Averagerevenue

b. Totalrevenuec. Marginalrevenued. Incrementalrevenue

117. SolongasAverageRevenueisfalling,MarginalRevenuewillbe.AverageRevenuea. Lessthanb. Morethanc. Equaltod. Noneofthese

118. WhereMarginalrevenueisnegative,TRwillbe..a. Risingb. Fallingc. Zerod. One

119. TotalRevenuewillbemaximumatthepointwhereMarginalRevenueisa. Oneb. Zeroc. 1

120. ..isthechangeintotalrevenueirrespectiveofchangesinpriceorduetotheeffectofmanagerialdecisiononrevenue

a. Averagerevenueb. Totalrevenuec. Marginalrevenued. Incrementalrevenue


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121. In..pricingfixedcostareexcluded.a. skimmingpricingb. goingratepricingc. administeredpricingd. marginalcostpricing

122. Fixinghighpriceduringtheintroductioniscalleda. skimmingb. penetratingc. fullcostpricingd. targetpricing

123. Thefirmchargespriceintunewiththeindustryspriceiscalleda. competitivepricingb. goingratepricingc. tunepricingd. targetpricing

124. Methodofcharginglowpriceinitiallycalleda. skimmingb. penetratingc. fullcostpricingd. targetpricing

125. Pricingisdoneonthebasisofmanagerialdecisions,notonthebasisofcost,demandetca. Managerialpricingb. Administeredpricingc. Fullcostpricingd. Competitivepricing

126. Whichofthefollowingmethodofpricingispopularinwholesaleandretailtradesa. skimmingb. penetratingc. fullcostpricingd. targetpricing

127. Whichoneofthefollowingisnotaninternalfactorinfluencingpricingpolicya. costb. objectivesc. marketingmixd. demand

128. Whichoneofthefollowingisaninternalfactorinfluencingpricinga. demandb. competitionc. distributionchanneld. productlifecycle

129. Costpluspricingisalsocalleda. marginpricingb. fullcostpricingc. markuppricingd. alltheabove


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130. Averagecostpricingisalsocalledasa. costpluspricingb. marginalcostpricingc. marginpricingd. botha&c

131. Underwhich method,thecostisaddedwiththepredeterminedtargetrateofreturnoncapitalinvested

a. Costpluspricingb. Targetpricingc. Markuppricingd. Noneofthese

132. Targetpricingisalsocalledasa. Costpluspricingb. Rateofreturnpricingc. Markuppricingd. Noneofthese

133. UndertheMarginalcostpricing,thepriceisdeterminedonthebasisof;a. Fixedcostb. Variablecostc. Totalcostd. Averagecost

134. CinemaTheater,telephonebillsetc..arefollowinga. Fullcostpricingb. Marginalcostpricingc. Differentialpricingd. Markuppricing

135. Pricediscriminationisalsocalledasa. Discriminatorypricingb. Differentialpricingc. Averagecostpricingd. a&babove

136. ThemethodofpricingwhichisalsoknownasParitypricingandAcceptancepricingisa. Differentialpricingb. Goingratepricingc. Discriminatorypricingd. Markuppricing

137. Thepricingofcupofteaorcoffee,isanexampleofa. Markuppricingb. Marginalcostpricingc. Conventionalpricingd. Costpluspricing

138. isthemethodofleadershippricinga. Goingratepricingb. Followuppricingc. Barometricpricingd. Paritypricing


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139. Generallyusedstrategyforpricingnewproductsis/area. Skimmingpricestrategyb. Penetrationpricestrategyc. Botha&bd. Noneofthese

140. provideguidelinestocarryouta. Pricingstrategies,pricingpoliciesb. Pricingpolicies,pricingstrategiesc. Pricingrules,pricingpoliciesd. Pricingrules,pricingstrategies

141. Psychologicalpricingisalsocalledas;a. Penetrationpricingb. Skimmingpricingc. Oddpricingd. Noneofthese

142. PricesofBatashoeasRs.99.99,thispricingisa. Markuppricingb. Oddpricingc. Marginalcostpricingd. Followuppricing.

143. Whichoneofthefollowingisnotareasonforadoptingskimmingpricestrategya. Whenthedemandofnewproductisrelativelyinelastic.b. Whenthereisnoclosesubstitutesc. Elasticityofdemandisnotknownd. Producthashighpriceelasticityintheinitialstage

144. Whichoneofthefollowingisnotareasonforadoptingpenetration pricestrategya. Producthashighpriceelasticityintheinitialstage.b. Theproductisacceptedbylargenumberofcustomers.c. Economiesoflargescaleproductionavailabletofirmd. Whenthebuyersarenotabletocomparethevalueandutility

145. Customarypricingisalsoknownasa. Consumerpricingb. Conventionalpricingc. Costpluspricingd. Fullcostpricing

146. Whichofthefollowingis/arethereasonforadoptingpenetrationpricestrategya. Economiesoflargescaleproductionavailabletofirm.b. Potentialmarketfortheproductislarge.c. Costofproductionislow.d. Alltheabove

147. Whichofthefollowingis/arethereasonforadoptingskimmingpricestrategya. Whenthebuyersarenotabletocomparethevalueandutility.b. Toattractthehighincomecustomers.c. Whentheproducthasdistinctivequalities,luxuriesd. Alltheabove


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148. In a perfectly competitive market, individual firm

a) cannot influence the price of its productb) can influence the price of its productc) can fix the price of its productd) can influence the market force

149. Perfect competition is characterized by

a) large number of buyers and sellersb) homogeneous productc) free entry and exit of firmsd) all the above

150. The market with a single producer

a) perfect competitionb) monopolistic competitionc) oligopolyd) monopoly

151. Selling cost is the feature of the market form

a) monopolyb) monopolistic competitionc) oligopolyd) none of these

152 The product under monopolistic competition are

a) differentiated with close substituteb) perfect substitutec) differentiated without close substituted) homogeneous

153. In the oligopoly market there are

a) large no. of firmsb) a few firmsc) a single firmd) an infinite no. of firms

154. The concept of product differentiation was introduced by

a) TR Malthusb) JM Keynesc) Mrs. Robinsond) Chamberlin

155. The short run production function is called;

a) Returns to scaleb) law of variable proportionc) Production possibility frontierd) None of these

156. Under oligopoly a single seller cannot influence significantlya) market priceb) quantity suppliedc) advertisement costd) all the above

157. Average revenue is the revenue per

a) unit commodity soldb) total commodity soldc) marginal commodity soldd) none of these


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158. The distinction between variable cost and fixed cost is relevant only in

a) long periodb) short periodc) medium termd) mixed period

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

a) Price=MC=ACb) Price=TCc) MC=AVCd) MC=MR

160. Product differentiation is the important feature of

a) monopolyb) perfect competitionc) monopolistic competitiond) monophony

161. The architect of the theory of monopolistic competition

a) Rosenstein Rodenb) JR Hicksc) Karl Marxd) Chamberlin

162. The no. of firms under oligopoly is

a) 1b) 2c) manyd) few

163. The law of diminishing returns applies more to

a) agricultureb) industryc) servicesd) commerce

164. The opportunity cost of a given activity is

a) the value of next best activityb) the value of material usedc) the cost of input usedd) none of these

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

a) landb) labourc) Capitald) Entrepreneurship

166. The factors used in the productiona) Land and laborb) capital & entrepreneurshipc) both a&bd) only capital

167. In a perfect market both buyers and sellers are

a) price makerb) price giverc) price takerd) all the above


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168.Which is the determinant of the pricing policy of a firm?a) Channel of distribution

b) Age of productc) Consumer associationd) All of these

169. Information for pricing decisions involves:a) Product information

b) Market informationc) Information at the micro leveld) All of these

170. Which is the reason of skimming price?

a) Inelastic demandb) Diversion of marketc) Safer price policyd) All of these

171. Which is the condition of for market penetration?

a) High price elasticity of demand in the short runb) Savings in production costsc) Threat of potential competitiond) All of these

172. Production may be defined as an act of:

a) Creating utilityb) Earning profitc) Destroying utilityd) Providing services

173. The demand curve of a firm in the case of perfect competition is:

a) Parallel to output axisb) Increasing with the output axisc) Decreasing with the output axisd) Complete

174. The implication of the kinked demand curve is reflected in a discontinuity in the:

a) Marginal revenue curveb) Marginal cost curvec) Total revenue curved) Total cost curve

175. The concept of monopsony was invented by:

a) Marshallb) AP. Learnerc) Chamberlind) Mrs. J. Robinson

176. A firm that is the sole seller of a product without close substitutes called:

a) Monopolyb) Oligopolyc) Competitiond) Bureaucracy


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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 increasingb) Situation of constant returnsc) Fixed costd) Variable cost

178. Which factors is/are influencing price policy?

a) Cost of productb) Time factorc) Government policyd) All of these

179. Pricing methods are:

a) Standard cost methodb) Learning curve methodc) Marginal cost methodd) All of these

180. Which is the feature of perfect competition?a) Large number of buyers and sellers

b) Freedom of entry and exitc) Normal profit in the long rund) All of these

181. Which is/are the salient features of monopolistic competition?

a) Large number of sellersb) Normal profitc) Free entry and exit of firms in industryd) All of these

182. Which are the characteristics of monopoly?

a) Single seller or producerb) No close substitutesc) Inelastic demand curved) All of these

183. The causes of emergence of monopoly is/are:

a) Concentration of ownership of raw materialsb) State regulationc) Public utility servicesd) All of these

184. Which are not the features of oligopoly?

a) Few sellersb) Advertising and sales promotionc) One firmd) Conflicting attitudes of firms

185. The monopoly can be controlled by:

a) Social boycottb) Antimonopoly legislationc) Public ownershipd) All of these


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186. The properties of indifference curves are:

a) Indifference curve slops downwards from left to rightb) Convex to the point of originc) Two indifference curve never cut each otherd) All of these

187. Price discrimination occurs when variation in prices for a product in different markets does notreflect variation?

a) Costsb) Pricec) Demandd) All of these

188. A cost that has already been committed and cannot be recovered known as:

a) Sunk costb) Total costc) Full costd) Variable cost

189. The competitive firms long run supply curve is the portion of its ..curve lies above

average total cost.

a) Marginal costb) Revenue costc) Fixed costd) All of these

190. Whenever marginal cost is more than average total cost is falling:

a) Average total revenueb) Average total costc) Average profitd) All of these

191. Whenever ..is greater than average total cost, average total cost is rising.

a) Marginal costb) Variable costc) Fixed costd) 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 economicsb) Law of supplyc) Law of demandd) All of these

193. The marginal revenue equation can be derived from the:

a) Demand equationb) Supply equationc) Cost equationd) Price equation


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194. Marginal revenue is .at the quantity that generate maximum total revenue and

negative beyond that point.

a) Zerob) Onec) +1d) -1

195. ------------is situation of severely falling prices and lowest level of economic activities

a) Boomb) Recoveryc) Recessiond) Depression

196. ------------is situation with increased investment and increased price

a) Recessionb) Progressc) Boomd) Recovery

197. Which of the following is not a macroeconomic concept?a) Business cycle

b) National incomec) Government policyd) None of these

198. Where boom ends,.. starts

a) Recoveryb) Recessionc) Progressd) Depression

199. Factors which change over a long period of time are called..factors

a) Businessb) Cyclicc) Seculard) All the above

200. In business cycle concept, the period of long wave is of;

a) 25 yearsb) 50 yearsc) 100 yearsd) 200 years

201. In business cycle concept, the period (approximately) of Kit chin cycle is of:

a) 5 yearsb) 10 monthsc) 2 yearsd) 4 months

202. The law of variable proportion is first explained by

a) Edward westb) Marshallc) Veblend) Keynes


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203. Functional relationship between input and output known as

a) Conversionb) Production functionc) Work in progressd) Output function

204. Iso-cost line indicate the price ofa) Output

b) Inputsc) Finished goodsd) Raw material

205. ..product will never be zero or negative

a) Marginalb) Totalc) Averaged) All the above

206. A graph indicating different combination of inputs with different level of output is called

a) Iso-cost mapb) BEP mapc) Input-output mapd) Iso-quant map

207. Which is not a property of ISOQUANT?

a) Downward slopingb) Convexc) Negative sloped) Positive slope

208. Which of the following is not a variable input?

a) Raw materialb) Powerc) Equipmentd) None of these

209. Which of the following is a short run law?

a) Law of constant return to scaleb) Law of increasing return to scalec) Law of diminishing returnd) None of these

210. is called produced means of production

a) Landb) Labourc) Capitald) Raw material

211. In the long run all input become

a) Fixedb) Variablec) Semi variabled) None of these


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212. The term Economies refers to

a) Product advantageb) Cost advantagec) Sales advantaged) All of the above

213. Who classified economies of scale into internal and external?

a) Robinsonb) Marshallc) Edward westd) Pigue

214. Related to production function, MRTS stand for;

a) Marginal revenue and total salesb) Minimum revenue from total salesc) Marginal rate of total supplyd) Marginal rate of technical substitution

215. Which of the following is not coming under imperfect competition?

a) Oligopolyb) Duopolyc) Monopolyd) Monopolistic

216. in economics ..means a state of rest or stability

a) Depressionb) Equilibriumc) Maturityd) growth

217. In perfect completion, a firm is a

a) Price makerb) Price takerc) Both of the aboved) None of these

218. Selling at a lower price in export market and at a higher price at home market is called

a) Export subsidyb) Dumpingc) Price cutd) All the above

219. Which of the following is not a feature of monopolistic completion?

a) Large number of producersb) Free entry and exitc) More elastic demandd)

Price competition


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AnswerkeyQuestionNo Answer QuestionNo Answer QuestionNo Answer

01 b 11 a 21 b

02 c 12 a 22 d

03 c 13 a 23 d

04

d

14

b

24

d

05 b 15 b 25 d

06 a 16 c 26 d

07 c 17 c 27 d

08 c 18 d 28 d

09 d 19 c 29 c

10 a 20 d 30 a

QuestionNo Answer QuestionNo Answer QuestionNo Answer31 d 41 d 51 c

32 b 42 c 52 c

33 b 43 b 53 a

34 d 44 d 54 b

35 c 45 c 55 c

36 c 46 c 56 a

37 d 47 a 57 b

38 c 48 d 58 d

39 b 49 a 59 a

40 d 50 d 60 d

QuestionNo Answer QuestionNo Answer QuestionNo Answer61 a 71 a 81 c

62

d

72

b

82

b63 a 73 d 83 a

64 b 74 c 84 b

65 c 75 d 85 a

66 d 76 c 86 d

67 d 77 a 87 d

68 b 78 c 88 b

69 b 79 a 89 d

70 b 80 d 90 b

QuestionNo Answer QuestionNo Answer QuestionNo Answer91 a 101 d 111 d

92

d

102

d

112

a

93 d 103 a 113 a

94 a 104 c 114 c

95 b 105 d 115 d

96 c 106 b 116 a

97 d 107 d 117 a

98 d 108 a 118 b

99 d 109 c 119 b

100 d 110 d 120 d


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School of Distance EducationQuestionNo Answer QuestionNo Answer QuestionNo Answer

121 d 130 d 139 c

122 a 131 b 140 b

123 b 132 b 141 c

124 b 133 b 142 b

125 b 134 c 143 d

126

c

135

d

144

d

127 d 136 b 145 b

128 d 137 c 146 d

129 d 138 c 147 d

QuestionNo Answer QuestionNo Answer QuestionNo Answer148 a 157 a 166 c

149 d 158 b 167 c

150 d 159 a 168 d

151 b 160 c 169 d

152 a 161 d 170 d

153

b

162

d

171

d

154 d 163 a 172 a

155 b 164 a 173 a

156 d 165 b 174 a

QuestionNo Answer QuestionNo Answer QuestionNo Answer175 d 184 c 193 a

176 a 185 d 194 a

177 b 186 d 195 d

178 d 187 a 196 c

179 d 188 a 197 d

180 d 189 a 198 b

181 d 190 b 199 c

182 d 191 a 200 b

183 d 192 b 201 d

QuestionNo Answer QuestionNo Answer QuestionNo Answer202 a 208 c 214 d

203 b 209 c 215 c

204 b 210 c 216 b

205 c 211 b 217 b

206 d 212 b 218 b

207

d 213 b 219

d

Reserved

Managerial Economics _ QuestionBank

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