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This set of Managerial Economics 1 Multiple Choice Questions & Answers (MCQs) focuses on Managerial Economics 1 Set 8
Q1 | An increase in income may lead to an increase in the quantity demanded, it is
- Positive income elasticity
- Zero income elasticity
- Negative income elasticity
- Unitary income elasticity
Q2 | A positive income elasticity may be
- Unit income elasticity
- Income elasticity greater than unity
- Income elasticity less than unity
- Any of the above
Q3 | The proportionate change in the quantity demanded of a commodity in response to change in the priceof another related commodity is called
- Price elasticity
- Related elasticity
- Cross elasticity
- Income elasticity
Q4 | Tea and coffee are
- Complimentary goods
- Substitute goods
- Supplementary goods
- Reserve goods
Q5 | Car and petrol are
- Complimentary goods
- Substitute goods
- Supplementary goods
- Reserve goods
Q6 | If the commodities are substitute in nature, cross elasticity will be
- Negative
- Positive
- Zero
- Any of the above
Q7 | If the commodities are complimentary, cross elasticity will be
- Negative
- Positive
- Zero
- Any of the above
Q8 | The responsiveness of demand due to a change in promotional expenses is called
- Expenditure elasticity
- Advertisement elasticity
- Promotional elasticity
- Above b or c
Q9 | Which one is the method for measurement of elasticity
- Proportional or Percentage Method
- Outlay Method
- Geometric method
- All the above
Q10 | Outlay method of measurement of elasticity is also called as
- Percentage method
- Expenditure method
- Point method
- Geometric method
Q11 | …….method measures elasticity between two points
- Proportional or Percentage Method
- Outlay Method
- Geometric method
- Arc Method
Q12 | Demand for necessary goods (salt, rice, etc,) is……….and demand for comfort and luxury good is
- Elastic, inelastic
- Inelastic, elastic
- Elastic, elastic
- Inelastic, inelastic
Q13 | ……………..is the process of finding current values of demand for various values of prices and otherdetermining variables.
- Demand Estimation
- Demand analysis
- Demand function
- Demand forecasting
Q14 | Tools and techniques for demand estimation includes;
- Consumer surveys.
- consumer clinics and focus groups
- Market Experiment
- All o the above
Q15 | ………… is an “objective assessment of the future course of demand”
- Demand Estimation
- Demand analysis
- Demand function
- Demand forecasting
Q16 | ………….demand forecasting is related to the business conditions prevailing in the economy as a whole
- Macro level
- Industry level
- Firm level
- None of these
Q17 | ……………… demand forecasting is prepared by different trade association in order to estimate thedemand for particular industries products
- Macro level
- Industry level
- Firm level
- None of these
Q18 | ……………forecasting is more important from managerial view point as it helps the management indecision making with regard to the firms demand and production.
- Macro level
- Industry level
- Firm level
- None of these
Q19 | Purposes of Short term Demand forecasting includes;
- Making a suitable production policy.
- To reduce the cost of purchasing raw materials and to control inventory.
- Deciding suitable price policy
- All the above
Q20 | Purposes of Short term Demand forecasting doesn’t includes;
- Deciding suitable price policy
- Setting correct sales target on the basis of future demand
- Forecasting short term financial requirements
- None of these
Q21 | Purposes of Short term Demand forecasting doesn’t includes;
- Making a suitable production policy.
- To reduce the cost of purchasing raw materials and to control inventory.
- Deciding suitable price policy
- Planning of a new unit or expansion of existing unit
Q22 | Purposes of long term Demand forecasting doesn’t includes;
- Planning of a new unit or expansion of existing unit.
- Planning long term financial requirements.
- Planning of manpower requirements.
- Deciding suitable price policy
Q23 | Purposes of long term Demand forecasting includes
- Making a suitable production policy.
- To reduce the cost of purchasing raw materials and to control inventory.
- Deciding suitable price policy
- Planning of a new unit or expansion of existing unit
Q24 | Survey method of demand forecasting includes
- Opinion survey
- Expert opinion
- Delphi method
- All the above
Q25 | …………Method is also known as Sales‐ Force –Composite method or collective opinion method
- Opinion survey
- Expert opinion
- Delphi method
- Consumer interview method