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This set of Managerial Economics 1 Multiple Choice Questions & Answers (MCQs) focuses on Managerial Economics 1 Set 5
Q1 | When a firm doubles its inputs and finds that its output has more than doubled, this isknown as:
- economies of scale.
- constant returns to scale.
- diseconomies of scale.
- a violation of the law of diminishing returns.
Q2 | The larger the diameter of a natural gas pipeline, the lower is the average total cost oftransmitting 1,000 cubic feet of gas 1,000 miles. This is an example of:
- economies of scale.
- normative economies.
- diminishing marginal returns.
- an increasing marginal product of labour.
Q3 | If all resources used in the production of a product are increased by 20 percent andoutput increases by 20 percent, then there must be:
- economies of scale.
- diseconomies of scale.
- constant returns to scale.
- increasing average total costs.
Q4 | Surplus is a condition of:
- excess supply
- a deficiency in supply
- market equilibrium
- excess demand
Q5 | The effect on sales of an increase in price is a decrease in:
- the quantity demanded
- demand
- supply
- the quantity supplied
Q6 | The quantity of product X supplied can be expected to rise with a fall in:
- prices of competing products
- price of x
- energy savings technical charge
- input prices
Q7 | Firms under perfectly competitive markets generally are
- price makers
- price givers
- price taker
- none of these
Q8 | The concept of product differentiation was introduced by
- tr malthus
- jm keynes
- mrs. robinson
- chamberlin
Q9 | The architect of the theory of monopolistic competition
- rosenstein roden
- jr hicks
- karl marx
- chamberlin
Q10 | The concept of monopsony was invented by:
- marshall
- ap. learner
- chamberlin
- mrs. j. robinson
Q11 | A cost that has already been committed and cannot be recovered known as:
- sunk cost
- total cost
- full cost
- variable cost
Q12 | ------------ is situation of severely falling prices and lowest level of economic activities
- boom
- recovery
- recession
- depression
Q13 | ------------ is situation with increased investment and increased price
- recession
- progress
- boom
- recovery
Q14 | A graph indicating different combination of inputs with different level of output iscalled
- iso-cost map
- bep map
- input-output map
- iso-quant map
Q15 | Iso-cost line indicate the price of
- output
- inputs
- finished goods
- raw material
Q16 | Modern definition is also called as
- Growth definition
- Welfare definition
- scarcity definition
- Neoclassical definition
Q17 | Economics was classified into micro and macro by
- Ragnar Frisch
- Adam Smith
- J M Keynes
- A C Pigou
Q18 | Who is regarded as a father of Business Economics
- Joel Dean
- Adam Smith
- J M Keynes
- Ragnar Frisch
Q19 | Decision making and ‐‐‐‐‐‐‐‐are the two important functions of executive of business firms
- Forward planning
- Directing
- Supervising
- Administration
Q20 | “ A rupee tomorrow is worth less than a rupee today” relates to
- Opportunity cost principle
- Discounting principle
- Equi‐marginal principle
- None of these
Q21 | ………….is micro economic theory
- Demand theory
- Price theory
- Income theory
- None of these
Q22 | Macro economic theory is also called as
- Demand theory
- Price theory
- Income theory
- None of these
Q23 | Allocation of available resources among alternatives is based on the principle
- Opportunity cost principle
- Discounting principle
- Equi‐marginal principle
- None of these
Q24 | The techniques of optimization include
- Marginal analysis
- Calculus
- Linear programming
- All of the above
Q25 | Which one is not a characteristics of managerial economics
- Micro economics
- Normative science
- Positive science
- Pragmatic