MIT sample paper for MBA

8/12/2019 MIT sample paper for MBA

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1 out of 1 points

Each individual and nation will have same set of values and due to same level of scarceresources; their decision on utilisation of those resources is also same.Selected Answer: False

Question 11

0 out of 1 points"Producers decide which goods are to be produced in what quantity, depending on _______demand."Selected Answer: greater

Question 120 out of 1 points

A _____ good is one which people consume more as price rises.Selected Answer: quality


"In price ceiling, the consumers can afford some essential goods or services that they couldnot afford at the ___________ price."Selected Answer: high


"In Perfectly Inelastic Demand ,the entire tax portion is absorbed by the _____________."Selected Answer: suppliers


"If the price of a product is unfairly high, the government can set a price floor."Selected Answer: True


The change in demand is less in comparison to change in price in inelastic demand.Selected Answer: False


Equilibrium is a price where there is no surplus and deficit of goods.Selected Answer: True


In Perfectly Elastic Demand who will be responsible to pay tax?Selected Answer: Buyer


Which concept is applicable for higher price?

Selected Answer: Price demand


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What is the rate of quantity demanded due to price change called?

Selected Answer: Price elasticity of demand Question 21

1 out of 1 points

Which of the following two approaches are used in utility theory?

Selected Answer: Cardinal and Ordinal approach Question 22

1 out of 1 points

Match the following.

Question Selected Match

Average Product curve rises with the rise in D.Marginal Product curve

The amount by which output rises with addition of one extra unitof a variable factor

B.Marginal Product ofLabour

The relationship between production factor and output A.Production Function

Ratio of output to the number of units of labour C.Average Product ofLabour


"What will be the total utility , if a person consumes five units of commodity and derives U1,U2, U3, U4 and U5 utility from the successive units of goods?"

Selected Answer: U1 + U2 + U3 + U4 + U5 Question 24

1 out of 1 points

What is the additional satisfaction or amount of utility gained from each extra unit ofconsumption called?

Selected Answer: Marginal Utility Question 25

0 out of 1 pointsThe _______ product curve rises with the rise in Marginal Product curve.Selected Answer: marginal


PPF stands for Production Possibility Frontier.Selected Answer: True


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The slope of total ______ curve for labour is equal to change in output (?Q) divided bychange in units of labour (?L).Selected Answer: product


The marginal utility comes to ______ when the total utility is maximum.Selected Answer: fall


"Which of the following is an abstract concept rather than a concrete, observable quantity?"

Selected Answer: Utility Theory Question 30

0 out of 1 points

"Consumption of more amounts of goods and services up to certain extent is acceptable, beyond which a saturation point will be reached, which may reduce the total _________."

Selected Answer: product


Firms use ______________ factor to produce products.Selected Answer: production


Period of time where at least one factor of production or variable is fixed is called _______

run.Selected Answer: long


The relationship between production factor and output is called _______________function.Selected Answer: production


"_______ is an abstract concept rather than a concrete, observable quantity."Selected Answer: utility

Question 35 0 out of 1 points

Which is the ratio of output to the number of units of labour?

Selected Answer: Marginal Product of Labour Question 36

1 out of 1 points

Marginal product curve declines and reaches zero when the total product curve achieves


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________value.Selected Answer: maximum


"When marginal product is ________ average product, then the average product is rising."Selected Answer: less than


When the total product curve moves downward the marginal product curve becomes __________.

Selected Answer: steeper


Total product _____ shows the quantity of outputs can be obtained from different amount ofvariable factor of production.

Selected Answer: curve


The cost associated with the use of variable factors is called __________ cost.Selected Answer: variable


"Cost including material, manpower, semi finished goods and so on is called ___________cost."Selected Answer: fixed


Salary of top management is a type of ____________ cost.Selected Answer: fixed


"Which of the following is incurred by company irrespective of the level of production, as it isfixed in nature?"

Selected Answer: Fixed cost Question 5

0 out of 1 points

Production Process of any firm is associated with _______.Selected Answer: total cost

Question 6


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1 out of 1 points

What is the Total Cost (TC) of any firm a summation of?

Selected Answer: Total Fixed and Total Variable cost Question 7

1 out of 1 points

Which of the following shows the additional cost of each addition unit of output a firm produces?

Selected Answer: Marginal cost Question 8

0 out of 1 points

Which of the following plays an important role for evaluation of occurrence of cost in thefirm?

Selected Answer: Average total cost Question 9

0 out of 1 points

What is the Average Total Cost (ATC) a summation of?

Selected Answer: Fixed Cost and Variable Cost Question 10

0 out of 1 points

A firm experiences economies of scale when long-run average cost declines as the firmexpands _______.Selected Answer: short run average cost curves


Which of the following is very commonly used in a perfect competition market?

Selected Answer: Price taker Question 12

1 out of 1 points

__________ firm is entirely opposite to the perfect competition firm and has no rivals as it isthe only firm in its industry.Selected Answer: monopoly


"In short run, a perfectly competitive firm will continue its quantity of output, till the point ofits marginal revenue equals marginal cost."Selected Answer: True


"Distribution of natural gas, water and electricity are examples of which of the following?"

Selected Answer: Natural monopoly


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Under which condition does a monopoly market attain maximum profit ?

Selected Answer: Slope of the marginal revenue is identical to slope of marginal cost curve Question 16

1 out of 1 points

When is the marginal revenue curve same as the demand curve?

Selected Answer: Price is equal to marginal revenue Question 17

0 out of 1 points

When will a firm stop producing or increasing its product?

Selected Answer: Average cost is equal to total cost Question 18

0 out of 1 points

Economic profits and losses play a crucial role in the model of perfect competition.Selected Answer: False


Which firm is entirely opposite to the perfect competition firm?

Selected Answer: Monopoly Question 20

0 out of 1 points

"Economic profits in a system of perfectly competitive markets will, in the long run, be drivento ______________ in all industries."Selected Answer: monopoly


Which of the following firm has no rivals in its industry?

Selected Answer: Monopoly firm Question 22

0 out of 1 points

A firm sets and puts the price as per the output it generates which is called ___________Setter.

Selected Answer: trend Question 23

1 out of 1 points

A firm that confronts economies of scale over the entire range of outputs demanded in itsindustry is a natural ________.Selected Answer: monopoly



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An expenditure that has already been made and that cannot be recovered is called ________cost.Selected Answer: sunk


Profit maximisation is always based on ___________ Decision Rule.Selected Answer: marginal


"As per the Marginal Decision Rule, additional unit of goods should be produced as marginalrevenue of additional unit exceeds the ____ cost."Selected Answer: marginal


Which of the following is not a factor which affects the monopoly firm?

Selected Answer: Location Question 28

1 out of 1 points

Profit maximisation is always based on what?

Selected Answer: Marginal decision rule Question 29

1 out of 1 points

Which of the following is the only way to measure the degree to which output in an industry isconcentrated among a few firms?

Selected Answer: Concentration ratio Question 30

0 out of 1 points

The degree to which output in an industry is concentrated among a few firms is to use a ratiocalled _________ Ratio.Selected Answer: concentration ratio


Which is the equation for concentration ratio?

Selected Answer: CRm=s1+s2+s3+ -------+sm (Where s = Market share of firm) Question 32

0 out of 1 points

A choice based on the recognition that the actions of others will affect the outcome of thechoice and that takes these possible actions into account is called _________ choice.Selected Answer: rational



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Which of the following is an analytical approach through which strategic choices can beassessed?

Selected Answer: Game theory Question 34

0 out of 1 points

Once the firm implements a strategic decision there will be an output called as _____.Selected Answer: True


Which of the following application is used to explain the game theory?

Selected Answer: Prisoners dilemma Question 36

0 out of 1 points

_______ and input markets are frequently classified according to the number of sellers and

buyers.Selected Answer: [None Given]


One of the important concepts of _________ market is the Concentration Ratio which is the percentage of market share owned by the largest firms in an industry.

Selected Answer: Oligopoly Question 38

1 out of 1 points

The ________ Total Cost (ATC) at an output of Qm units is ATCm.Selected Answer: average

MIT sample paper for MBA

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