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This set of Managerial Economics 1 Multiple Choice Questions & Answers (MCQs) focuses on Managerial Economics 1 Set 3
Q1 | Generally demand curve have …………
- negative slope
- positive slope
- horizontal line
- vertical line
Q2 | The change in demand due to change in price only, where other factors remainingconstant, it is called……….
- shift in demand
- extension of demand
- contraction of demand
- both extension and contraction
Q3 | When the quantity demanded of a commodity rises due to a fall in price, it is called
- extension
- upward shift
- downward shift
- contraction
Q4 | When the quantity demanded falls due to a rise in price, it is called
- extension
- upward shift
- downward shift
- contraction
Q5 | The Giffen goods are ………. Goods
- inferior goods
- superior goods
- related goods
- same goods
Q6 | Higher the price of certain luxurious articles, higher will be the demand, this concept iscalled
- giffen effects
- veblen effects
- demonstration effects
- both b & c above
Q7 | Demand for milk, sugar, tea for making tea, is an example of
- composite demand
- derivative demand
- joint demand
- direct demand
Q8 | Perfect elasticity is known as
- finite elastic
- infinite elastic
- unitary elastic
- zero elastic
Q9 | In the case of perfect elasticity, the demand curve is
- vertical
- horizontal
- flat
- steep
Q10 | In a perfectly competitive market, individual firm
- 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
Q11 | Perfect competition is characterized by
- large number of buyers and sellers
- homogeneous product
- free entry and exit of firms
- all the above
Q12 | The market with a single producer
- perfect competition
- monopolistic competition
- oligopoly
- monopoly
Q13 | Selling cost is the feature of the market form
- monopoly
- monopolistic competition
- oligopoly
- none of these
Q14 | The product under monopolistic competition are
- differentiated with close substitute
- perfect substitute
- differentiated without close substitute
- homogeneous
Q15 | In business cycle concept, the period of “long wave” is of;
- 25 years
- 50 years
- 100 years
- 200 years
Q16 | In economics …….. means ‘a state of rest ‘or ‘stability’
- depression
- equilibrium
- maturity
- growth
Q17 | Selling at a lower price in export market and at a higher price at home market is called
- export subsidy
- dumping
- price cut
- all the above
Q18 | A fall in the price of a commodity leads to
- a shift in demand
- a fall in demand
- a rise in the consumer’s real income
- a fall in the consumer’s real income
Q19 | An exceptional demand curve is one that slopes
- upward to the left
- downward to the right
- horizontally
- upward to the right
Q20 | Which one is not an exception to the Law of Demand?
- normal good
- articles of distinction
- ignorance
- inferior good
Q21 | Demand for a commodity is elastic when it has:
- only one use
- uses which cannot be postponed
- many uses
- uses very essential for the consumer
Q22 | When the demand curve is a rectangular hyperbola, it represents:
- perfectly elastic demand
- unitary elastic demand
- perfectly inelastic demand
- relatively elastic demand
Q23 | The horizontal demand curve for a commodity shows that its demand is:
- perfectly elastic
- highly elastic
- perfectly inelastic
- moderately elastic
Q24 | When an individual’s income falls (while everything else remains the same), his demandfor an inferior good:
- increases
- decrease
- remains unchanged
- we cannot say without additional information
Q25 | A fall in the price of a commodity whose demand curve is a rectangular hyperbola causestotal expenditure on the commodity to:
- increases
- decrease
- remains unchanged
- any of the above