Managerial Economics Set 1
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This set of Managerial Economics Multiple Choice Questions & Answers (MCQs) focuses on Managerial Economics Set 1
Q1 | Which of the following statements is NOT TRUE of indifference curves?
- they could intersect
- they are convex to origin
- they are
- they exhibit higher levels of utility d. as you move from the origin
Q2 | A consumer with a given income will maximise their utility when:
- the marginal utility derived from each commodity is equal.
- the marginal utility derived from each product consumed is zero.
- the total utility derived from each commodity consumed is equal.
- the marginal utilities derived from each commodity consumed are proportional
Q3 | The typical indifference curve ……..
- shows that as a consumer has more of a good he/she is less willing to exchange it for one unit of another good.
- shows all combinations of goods that give a consumer in same level of utility
- shifts out if income increases
- both b and c
Q4 | The rate at which a consumer is able to substitute one good for another is determined by the …….
- consumers income
- indifference map
- ratio of the prices of the goods
- marginal rate of substitution.
Q5 | 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.
Q6 | Which of the following is the measure to control inflation.
- granting credit on liberal terms
- raising bank rate
- demonetization
- none of these
Q7 | Which of the following is a measure to reduce inequality of income
- promotion of industries
- social securities
- granting of credit to poor on concessional rate
- none of these
Q8 | The most outstanding feature of capitalist economic system is …
- unemployment
- poverty
- inequality of income
- industrial backwardness
Q9 | Employment of people who take jobs below their capacity is known as
- underemployment
- disguised unemployment
- cyclical unemployment
- none of these
Q10 | Which of the following is a social consequences of unemployment in india
- burden on the government
- loss of income and respect
- wastages of resources
- none of these
Q11 | Unemployment caused by a decline in demand for production in a particular industry is
- seasonal unemployment
- frictional unemployment
- structural unemployment
- none of these
Q12 | Which of the following is not a development issue in india
- unemployment
- population pressure
- inflation
- decreasing trend of foreign capital
Q13 | Indian economy growth is primarily driven by
- industry
- agriculture
- service
- none of these
Q14 | Law of equi-marginal utility was suggested by
- marshal
- robins
- hh ghosen
- none of these
Q15 | The concept of consumer surplus was developed by
- marshal
- hh ghosen
- bhentham
- none of these
Q16 | Indifference curve analysis is based on the principles of
- consumer surplus
- diminishing marginal utility
- diminishing marginal rate of substitution
- none of these
Q17 | The author of the wealth of nation is
- marshal
- robins
- adam smith
- none of these
Q18 | Macro economic theory is also known as
- price theory
- income theory
- demand theory
- none of these
Q19 | The study of entire economic system is called
- macro economics
- micro economics
- economics
- none of these
Q20 | The author of “the wealth of nations” is
- marshal
- ricardo
- robins
- adam smith
Q21 | The study of international trade and national income is part of
- global economics
- macro economics
- positive economics
- micro economics
Q22 | If the income elasticity of demand is that one, the good is a
- necessity
- luxury
- substitute
- complement
Q23 | The income elasticity of demand is negative for a
- positive good
- normal good
- elastic good
- inferior good
Q24 | If the price of DVRs fell and as a result the demand for VHS recorders fell we could conclude that VHS recordersDVRs are
- normal goods
- substitutes
- elastic goods
- unrelated
Q25 | What effect is working when the price of a good falls and consumers tend to buy it instead of other goods
- income effect
- substitution effect
- price effect
- none of these