Managerial Economics Set 2
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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