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This set of Managerial Economics 1 Multiple Choice Questions & Answers (MCQs) focuses on Managerial Economics 1 Set 1
Q1 | A utility function shows the relation between …..
- the amount of goods consumed and a consumer utility.
- income and a consumer utility.
- prices and consumers utility.
- maximum utility and the price and income facing a consumer.
Q2 | _______ is known as father of economics
- marshal
- robins
- adam smith
- a c pigou
Q3 | The famous book on economics “An Enquiry into the Nature and Cause of Wealth ofNation” was written by
- marshal
- ricardo
- robins
- adam smith
Q4 | Welfare (neo classical) definition of economics is given by
- j b say
- lionel robbins
- adam smith
- alfred marshall
Q5 | If the income elasticity of demand is that one, the good is a
- necessity
- luxury
- substitute
- complement
Q6 | The income elasticity of demand is negative for a
- positive good
- normal good
- elastic good
- inferior good
Q7 | What effect is working when the price of a good falls and consumers tend to buy itinsteadof other goods
- income effect
- substitution effect
- price effect
- none of these
Q8 | “A rupee tomorrow is worth less than a rupee today” relates to
- opportunity cost principle
- discounting principle
- equi‐marginal principle
- none of these
Q9 | Basic economic tools of managerial economics does not include
- principle of time perspective
- equi‐marginal principle
- incremental principle
- none of these
Q10 | ……..principle is closely related to the marginal costs and marginal revenue of economic theory
- principle of time perspective
- equi‐marginal principle
- incremental principle
- none of these
Q11 | Analysis of long run and short run affects of decisions on revenue as well as costs is based on
- principle of time perspective
- equi‐marginal principle
- incremental principle
- none of these
Q12 | Two goods that are used jointly to provide satisfaction are called
- inferior goods
- normal goods
- complementary goods
- substitute goods
Q13 | Demand curve slopes downwards because of
- the law of diminishing marginal utility
- the income effect
- substitution effect
- all of the above
Q14 | If the income and substitution effect of a price increase works in the same direction thegood whose price has changed is a
- giffen goods
- inferior goods
- normal goods
- superior
Q15 | Which of the following is not a survey method of demand forecasting
- consumers interview method
- expert opinion method
- barometric method
- collective opinion method
Q16 | Which of the following is not a method of demand forecasting
- trend projection method
- substitute approach
- sales experience approach
- evolutionary approach
Q17 | Which one is not a property of isoquant
- downward sloping
- convex
- negative slope
- positive slope
Q18 | In which production function, the degree of homogeneity is always one
- cobb doubglas production fuction
- homogeneous production function
- linear homogeneous production function
- none of these
Q19 | Which of the following is a short run law
- law of diminishing returns
- law of constant returns to scale
- law increasing returns to scale
- none of these
Q20 | Which of the following is not a variable input
- raw material
- power
- equipment
- none of these
Q21 | Which cost is more useful for decision making
- opportunity cost
- sunk cost
- historical cost
- none of these
Q22 | Which cost are recorded in books of accounts
- opportunity cost
- implicit cost
- social cost
- explicit cost
Q23 | Fixed cost per unit increases when
- volume of production decreases
- volume of production increases
- variable cost per unit decreases
- none of these
Q24 | Variable cost per unit
- remains fixed
- varies with the volume of production
- varies with sales
- none of these
Q25 | Firms in an oligopoly
- are independent of each other’s action
- can each influence the market price
- charge a price equal to marginal revenue
- all of these