Download managerial economics

ABBSOFT COMPUTERS
MANAGERIAL ECONOMICS
1-Mark
1. Giffin goods is –
a.
b.
c.
d.
Valuable goods
Cheaper goods
Luxury goods
Comfortable goods
Ans. (b)
2. Shift of supply means –
a.
b.
c.
d.
Shift to a new demand
Shift to a new equilibrium
Shift to a new supply
None of the above
Ans. (c)
3. Break-Even point means –
a.
b.
c.
d.
Stop losses and start profit
Stop profit and start losses
All of the above
None of the above
Ans. (d)
4. Expand TR
a.
b.
c.
d.
Total revenue
Total random
All of the above
None of the above
Ans. (a)
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5. Law of demand
a.
b.
c.
d.
D↓P↓
D↑P↑
D↓P↑
All of the above
Ans. (c)
6. Average cost means –
a.
b.
c.
d.
Cost
Value
Cost per unit
All of the above
Ans. (c)
7. The relation between the cost and output is technically described as the _______.
a.
b.
c.
d.
Profit function
Cost function
Production function
None of the above
Ans. (b)
8. When marginal product is zero , total product will be _________.
a.
b.
c.
d.
Highest
Lowest
Normal
All of the above
Ans. (a)
9. Marginal cost is associated with ________ cost.
a.
b.
c.
d.
Fixed
Total
Variable
None of the above
Ans. (c)
10. Substitute is –
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a.
b.
c.
d.
Tea or coffee
Nokia and LG mobile
Pure and vegetable oil
All of the above
Ans. (d)
11. K =
a.
b.
c.
d.
Output
Labor
Capital
None of the above
Ans. (c)
12. VAT means –
a.
b.
c.
d.
Value attended tax
Value added tax
All of the above
None of the above
Ans. (b)
13. Recession –
a.
b.
c.
d.
Fall in price regularly
Temporary fall in business
All of the above
None of the above
Ans. (b)
14. AP =
a.
b.
c.
d.
P/Q
TP/Q
All of the above
None of the above
Ans. (b)
15. Consumer’s Surplus –
a. Difference between customer pay and received
b. Difference between customer willing to pay and actual received
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c. Difference between customer willing to pay and actual pay
d. None of the above
Ans. (c)
16. Economic Rent –
a.
b.
c.
d.
Income of hours
Income on land
All of the above
None of the above
Ans. (b)
17. I mean –
a.
b.
c.
d.
Change in income
Change in investment
All of the above
None of the above
Ans. (b)
18. Hospital expenditure is –
a.
b.
c.
d.
Public work
Government work
Employee work
None of the above
Ans. (a)
19. Taxation is –
a.
b.
c.
d.
Expenses of government
Government receipt
Both a and b
None of the above
Ans. (b)
20. Objective of pricing policy is –
a.
b.
c.
d.
Price stability
Cost stability
All of the above
None of the above
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Ans. (a)
21. Single seller is in –
a.
b.
c.
d.
Oligopoly
Monopoly
Monopolistic competition
All of the above
Ans. (b)
22. Substitution gods is –
a.
b.
c.
d.
Tea or coffee
Nokia and LG mobile
Pure and vegetable oil
All of the above
Ans. (d)
23. Expand APL –
a.
b.
c.
d.
Average propensity to capital
Average product to consume
Average propensity to consume
None of the above
Ans. (c)
24. Consumption + Saving =
a.
b.
c.
d.
Income
Price
Capital
None of the above
Ans. (a)
25. K =
a.
b.
c.
d.
2/mps
1/mps
1/APS
2/APS
Ans. (b)
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26. _________ work as a shock absorber.
a.
b.
c.
d.
Slack payment
Short payment
Prompt payment
None of the above
Ans. (a)
27. Sales maximization model is on alternative for _______ model.
a.
b.
c.
d.
The static model
Profit maximization model
Growth maximization model
None of the above
Ans. (b)
28. J.M. Keynes invented the term _________.
a.
b.
c.
d.
Deflationary Gap
Differential Gap
Inflationary Gap
All of the above
Ans. (c)
29. Inflation is basically a ________ phenomenon.
a.
b.
c.
d.
Physical
Financial
Operational
Monetary
Ans. (d)
30. Basic objective of a firm today is ________.
a.
b.
c.
d.
Growth maximization
Sale maximization
Profit maximization
None of the above
Ans. (c)
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31. Law of demand is a ______ statement.
a.
b.
c.
d.
Qualitative
Quantitative
Perfect
None of the above
Ans. (a)
32. In a typical demand schedule quantity demand varies ______ with price.
a.
b.
c.
d.
Inversely
Directly
Positively
Positively
Ans. (a)
33. Collection opinion method is also _________.
a.
b.
c.
d.
Profit – force polling
Sales – force polling
All of the above
None o the above
Ans. (b)
34. The heart of the survey method is ________.
a.
b.
c.
d.
People
Method
Questionnaire
All of the above
Ans. (c)
35.
ES = 0
Demand
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a.
b.
c.
d.
Perfectly elastic
Perfectly inelastic
Unit elasticity
None of the above
Ans. (b)
36. The quantity bought and sold at the equilibrium is called ________.
a.
b.
c.
d.
Equilibrium price
Equilibrium point
Equilibrium quantity
None of the above
Ans. (c)
37. ________ is the total income realized from the sale of its output at a price.
a.
b.
c.
d.
Cost
Total cost
Total revenue
None of the above
Ans. (c)
38. Additional revenue earned by selling an additional unit of output is called
______.
a.
b.
c.
d.
Total revenue
Average revenue
Marginal revenue
None of the above
Ans. (c)
39. AR and MR curves slope downwards under condition of ______ competition.
a.
b.
c.
d.
Perfect
Imperfect
All of the above
None of the above
Ans. (b)
40. Cost plus pricing = Cost + ______
a. Revenue
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b. Fair profit
c. Loss
d. None of the above
Ans. (b)
2-Mark
1. Exceptions of demand is a.
b.
c.
d.
Giffin goods
Income
Speculation
Both a & b
Ans. ()
2. Ep = 0 means –
a.
b.
c.
d.
Perfectly elastic
Perfectly inelastic
Relatively inelastic
Non of the above
Ans. (b)
3. The equation for trend method –
a.
b.
c.
d.
y = a + bx
y = b + bx
y=a+b
None of the above
Ans. (a)
4. Supply curve is –
a.
b.
c.
d.
Positive
Negative
All of the above
None of the above
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ABBSOFT COMPUTERS
Ans. (d)
5. Price elasticity is –
a.
b.
c.
d.
(∆Q/∆P) X (P/Q)
(∆Q/∆P) X (∆P/Q)
(∆Q/∆P) X (P/∆Q)
None of the above
Ans. (a)
6. Market equilibrium is –
a.
b.
c.
d.
Where demand and price met
Where demand and supply met
Where price and supply met
None of the above
Ans. (b)
7. Marginal cost deals with changes in cost of _______ unit where as incremental
cost deal with changes in cost of _________.
a.
b.
c.
d.
Two, a group of units
Three, two units
One, a group of units
None of the above
Ans. (c)
8. _________ was originally developed at _________.
a.
b.
c.
d.
Collective method, brand corporation
Delphi method, rand corporation
Collective method, band corporation
None of the above
Ans. (b)
9. Managerial Economics is the integration of _______ with ________ for solving
business and managerial problems.
a.
b.
c.
d.
Micro economics, macro economics
Micro theory, business practice
All of the above
None of the above
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ABBSOFT COMPUTERS
Ans. (b)
10. If demand changes as a result price changes, then it is a case of ______ and
______.
a.
b.
c.
d.
Increase, decrease
Expansion, contraction
All of the above
None of the above
Ans. (b)
11. Tc =
a.
b.
c.
d.
MFC + mvc
TFC + TVC
AFC + AVC
None of the above
Ans. (b)
12. TFC means –
a.
b.
c.
d.
Total fixed costs
Total fixed capital
All of the above
None of the above
Ans. (a)
13. Q =
a. f (L, K)
b. f (W, K)
c. f (C, k)
d. None of the above
Ans. ()
14. A firm is a _______ which converts ________.
a.
b.
c.
d.
Market unit, products
Economic unit, Input into outputs
All of the above
None of the above
Ans. (b)
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15. The firms maximize _______ by equating marginal revenue with _______.
a.
b.
c.
d.
Profit, marginal cost
Loss, average cost
All of the above
None of the above
Ans. (a)
16. When firm sells 5 units @ 2 Rs. The TR =
a.
b.
c.
d.
7
3
10
2.5
Ans. (c)
17. MR =
a.
b.
c.
d.
∆TR/∆P
∆TR/∆Q
∆TR/Q
None of the above
Ans. (c)
S
18.
A
B
E
D
a.
b.
c.
d.
Customer surplus, producer surplus
Producer surplus, customer surplus
All of the above
None of the above
Ans. (b)
19. APC + APS =
a.
b.
c.
d.
2
1
3
4
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ABBSOFT COMPUTERS
Ans. (b)
20. Deficit financing was introduced in –
a.
b.
c.
d.
1950
1940
1930
1920
Ans. (c)
4-Marks
1.
D
A
C
B
Match the following –
Part-1
1. A
2. B
3. C
4. D
a. EP=0
b. EP=00
c. EP=1
d. Ep>1
A. 1-a, 2-b, 3-c, 4-d
B. 1-a, 2-b, 3-d, 4-c
C. 1-b, 2-a, 3-c, 4-d
D. 1-c, 2-b, 3-a, 4-d
Ans. (c)
2.
A
C
B
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Match the following –
Part-1
1. A
2. B
3. C
Part-2
a. Demand
b. Supply
c. Equilibrium
A. 1-c, 2-c, 3-a
B. 1-a, 2-b, 3-c
C. 1-b, 2-a, 3-c
D. None of the above
Ans. (B)
3. AFC =
a.
b.
c.
d.
TFC/Q
TVC/Q
AFC/Q
TC/Q
Ans. (a)
4.
TC
A
TR
Here ‘A’ means
a.
b.
c.
d.
Loss
Profits
No profit No loss
None of the above
Ans. (b)
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ABBSOFT COMPUTERS
5. Match the following –
Part-1
1. Cost plus pricing
2. Going rate pricing
3. Initiative pricing
Part-2
a. Priced is fixed by a lender
b. Price is fixed
c. Opposite to the cost plus pricing
A. 1-b, 2-c, 3-a
B. 1-a, 2-c, 3-b
C. 1-c, 2-b, 3-a
D. None of the above
Ans. (A)
6. Skimming price and low penetration pricing is a part of –
a.
b.
c.
d.
Pioneering price
Cost plus price
Going rate price
None of the above
Ans. (a)
7.
D
P
K
M
D
Above figure shows the curve is –
a.
b.
c.
d.
Demand curve
Kinked demand curve
Income demand curve
None of the above
Ans. (b)
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ABBSOFT COMPUTERS
8. Feature of perfect competition –
a.
b.
c.
d.
Homogeneous product
Firms are price taken
All of the above
None of the above
Ans. (c)
9. Features of monopoly –
a.
b.
c.
d.
Single seller
Close substitute
All of the above
None of the above
Ans. (a)
10.
The above diagram show –
a.
b.
c.
d.
Business cycle
Demand cycle
Supply cycle
All of the above
Ans. (a)
11.
PC
Unemployment
This is the curve of –
a. Karl’s
b. Philips
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ABBSOFT COMPUTERS
c. A.S. Karl’s
d. None of the above
Ans. (b)
12.
A
C
B
Match the following –
Part-1
1. A
2. B
3. C
Part-2
a. TVC
b. TC
c. TFC
A. 1-, 2-b, 3-a
B. 1-a, 2-b, 3-c
C. 1-b, 2-c, 3-a
Ans. (b)
13.
D
Price
a.
b.
c.
d.
Output
Equilibrium under duopoly
Equilibrium under monopoly
Equilibrium under monopolistic
Equilibrium under perfect competition
Ans. (d)
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14. If the D increase –
a.
b.
c.
d.
The D curve shifts to right
The D curve shifts to left
No change in D curve
None of the above
Ans. (a)
15. State whether the statements given are true or not –
i. Macro economics deals with the studies of aggregative or average behavior of the
entire economy
ii. Consumer surplus is actually the sum of what the consumer is prepared to pay
and what the actually pay
iii. Market value of a product depends upon demand and supply
iv. Under oligopoly, firms may realize the disadvantages of the competition rivalry
a.
b.
c.
d.
1-T, 2-F, 3-T, 4-T
1-T, 2-F, 3-T, 4-F
1-F, 2-T, 3-F, 4-T
None of the above
Ans. (a)
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