Managerial Economics Set 2 MCQs

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