On This Page
This set of Managerial Economics 1 Multiple Choice Questions & Answers (MCQs) focuses on Managerial Economics 1 Set 6
Q1 | Which is the characteristics of managerial economics
- Deals with both micro and macro aspects
- Both positive and normative science
- Deals with theoretical aspects
- Deals with practical aspects.
Q2 | ………….is economic theory used in business whereas ……….is economics theory used in business andnon business organization
- Micro economics, macro economics
- Business economics, managerial economics
- Positive economics and normative economics
- None of these
Q3 | Which of the following is not included in functions of managerial economists
- Sales forecasting
- Industrial market research
- Advice on foreign exchange
- None of the above
Q4 | Which of the following is included in specific functions of managerial economists
- Economic analysis of competing companies
- Advice on pricing problems of industry
- Environmental forecasting
- All of the above
Q5 | Which of the following is not a function of managerial economists
- Advice on trade and public relations
- Economic analysis of agriculture
- Investment analysis
- Supervision and control
Q6 | Which of the following is not a function of managerial economist
- Analysis of under developed economies
- Capital project appraisal
- Advice on primary commodities
- None of these
Q7 | Basic economic tools of managerial economics include
- Opportunity cost principle
- Incremental principle
- Discounting principle
- All of the above
Q8 | ………..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
Q9 | 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
Q10 | “…………in economics means demand backed up by enough money to pay for the goods demanded”
- Utility
- Consumption
- Supply
- Demand
Q11 | The demand has three essentials‐ Desire, Purchasing power and ………..
- Quantity
- Cash
- Supply
- Willingness to purchase
Q12 | ………… means an attempt to determine the factors affecting the demand of a commodity or serviceand to measure such factors and their influences
- Demand planning
- Demand forecasting
- Demand analysis
- Demand estimation
Q13 | ………… is known as the ‘first law in market”
- Law of supply
- Law of consumption
- Law of demand
- Law of production
Q14 | Demand =Desires+ …………… +willingness to pay
- Supply
- utility
- Want
- Purchasing power
Q15 | Law of demand shows the functional relationship between ………….and quantity demanded
- Supply
- Cost
- Price
- Requirements
Q16 | The relationship between price and quantity demanded is
- Direct
- Inverse
- Linear
- Non‐linear
Q17 | …………….means relationship between demand and its various determinants expressed mathematically
- Demand extension
- Demand contraction
- Demand analysis
- Demand function
Q18 | D = f (P, Y, T, Ps, U),where the letter U stands for
- Utility
- Units of consumption
- Usage
- Consumer expectation & others
Q19 | In the above function, the letters Ps stands for
- Preference of consumers
- Price of commodity
- Price of substitutes
- Product supply
Q20 | In the above function, the letter Y stands for
- Yield of production
- Income of consumers
- Utility
- Supply
Q21 | In the above function, the letter T stands for
- Target price
- Total supply
- Total consumption
- Taste and preference of consumers
Q22 | Basic assumptions of law of demand does not include
- There is no change in consumers’ taste and preference
- Income should remain constant.
- Prices of other goods should change.
- There should be no substitute for the commodity
Q23 | The change in demand due to change in price only, where other factors remaining constant, it iscalled……….
- Shift in demand
- Extension of demand
- Contraction of demand
- Both extension and contraction
Q24 | When the quantity demanded of a commodity rises due to a fall in price, it is called
- Extension
- Upward shift
- Downward shift
- Contraction
Q25 | When the demand changes due to changes in other factors, like taste and preferences, income, priceof related goods etc... , it is called
- Extension of demand
- Contraction of demand
- Shift in demand
- None of these