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This set of Managerial Economics Multiple Choice Questions & Answers (MCQs) focuses on Managerial Economics Set 2

Q1 | The quantity demanded of a product increases when
  • the consumers suddenly want more of the goods
  • the consumers level of income falls
  • the price of the product falls
  • more buyers of the goods enter the market
Q2 | Two goods that are used jointly to provide satisfaction are called
  • inferior goods
  • normal goods
  • complementary goods
  • substitute goods
Q3 | Demand curve slopes downwards because of
  • the law of diminishing marginal utility
  • the income effect
  • substitution effect
  • all of the above
Q4 | If the income and substitution effect of a price increase works in the same direction the good whose price haschanged is a
  • giffen goods
  • inferior goods
  • normal goods
  • superior
Q5 | Which of the following is not a survey method of demand forecasting
  • consumers interview method
  • expert opinion method
  • barometric method
  • collective opinion method
Q6 | Which of the following is not a method of demand forecasting
  • trend projection method
  • substitute approach
  • sales experience approach
  • evolutionary approach
Q7 | Which one is not a property of isoquant
  • downward sloping
  • convex
  • negative slope
  • positive slope
Q8 | In which production function, the degree of homogeneity is always one
  • cobb doubglas production fuction
  • homogeneous production function
  • linear homogeneous production function
  • none of these
Q9 | Which of the following is a short run law
  • law of diminishing returns
  • law of constant returns to scale
  • law increasing returns to scale
  • none of these
Q10 | Which of the following is not a variable input
  • raw material
  • power
  • equipment
  • none of these
Q11 | Which cost is more useful for decision making
  • opportunity cost
  • sunk cost
  • historical cost
  • none of these
Q12 | Which cost are recorded in books of accounts
  • opportunity cost
  • implicit cost
  • social cost
  • explicit cost
Q13 | Fixed cost per unit increases when
  • volume of production decreases
  • volume of production increases
  • variable cost per unit decreases
  • none of these
Q14 | Variable cost per unit
  • remains fixed
  • varies with the volume of production
  • varies with sales
  • none of these
Q15 | Firms in a oligopoly
  • are independent of each other’s action
  • can each influence the market price
  • charge a price equal to marginal revenue
  • all of these
Q16 | Duopoly is
  • another name for monopoly
  • special type of monopolistic competition
  • two firm oligopoly
  • none of these
Q17 | Product differentiation is an important feature of
  • perfect competition
  • monopolistic competiton
  • monopoly
  • none of these
Q18 | Globalisation has created new opportunities of
  • establishing rules of domestic trade
  • restricting trade practices
  • liberalizing international trade
  • none of these
Q19 | Removing barriers or restrictions set by the government is called
  • liberalization
  • investment
  • favourable trade
  • free trade
Q20 | WTO aims at
  • establishing rules for domestic trade
  • restricting trade practices
  • liberalizing international trade
  • none of these
Q21 | What are “hawala transaction”
  • foreign trade in goods that are banned by the government.
  • transfer of money without actually moving it
  • illegal drug trade at the international level
  • conversion of black money into white money
Q22 | Which of the following is a measure to control inflation.
  • granting of credit on liberal terms
  • raising bank rate
  • demonetization
  • none of these
Q23 | Which of the following is a measure to reduce inequality of income
  • promotion of industries
  • social securities
  • granting of credit to poor on concessional rates
  • none of these
Q24 | The most outstanding feature of the capitalist economic system is
  • unemployment
  • poverty
  • nequality of income
  • industrial backwardness
Q25 | Which of the following is a social consequence of unemployment in india
  • burden on the government
  • loss of income and respect
  • wastage of resources
  • none of these