managerial economics _ questionbank
TRANSCRIPT
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UNIVERSITYOFCALICUTSCHOOLOFDISTANCEEDUCATION
BCOM/BBA(2011Admn.Onwards)ISEMESTER
COMPLEMENTARYCOURSEMANAGERIALECONOMICS
QUESTIONBANK1. ThefamousbookoneconomicsAnEnquiryintotheNatureandCauseofWealthofNationwas
Writtenby
a. AlfredMarshallb. AdamSmithc. JMKeynesd. ACPigou
2. Wealth(Classical)definitionofeconomicsisgivenbya. ACPigoub. LionelRobbinsc. AdamSmithd. AlfredMarshall
3. .isknownasthefatherofeconomicsa. ACPigoub. LionelRobbinsc. AdamSmithd. AlfredMarshall
4. Welfare(neoclassical)definitionofeconomicsisgivenbya. JBSayb. LionelRobbinsc. AdamSmithd.
Alfred
Marshall
5. Thescarcity(New)definitionissuggestedbya. ACPigoub. LionelRobbinsc. AdamSmithd. AlfredMarshall
6. Microeconomicsstudiestheeconomicactionsandbehaviorofa. Individualunitsb. Economicaggregatesc. Totalemploymentd. Generalpricelevel
7. Macroeconomicsisconcernedwitha. Thetheoryoffirmb. Householdexpenditurec. Generalpriceleveld. Individualconsumerbehavior
8. TheauthorofthebookTheGeneralTheoryofEmployment,InterestandMoneya. AlfredMarshallb. AdamSmithc. JMKeynesd. ACPigou
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9. ManagerialEconomicsisa. Dealingonlymicroaspectsb. Onlyanormativesciencec. Dealswithpracticalaspectsd. Alloftheabove
10.Moderndefinitionisalso calledasa. Growthdefinitionb. Welfaredefinitionc. scarcitydefinitiond. Neoclassical definition
11.Economicswasclassifiedintomicroandmacrobya. RagnarFrischb. AdamSmithc. JMKeynesd. ACPigou
12.WhoisregardedasafatherofBusinessEconomicsa. JoelDeanb. AdamSmithc.
J
M
Keynes
d. RagnarFrisch13.Decisionmakingand arethetwoimportantfunctionsofexecutiveofbusinessfirms
a. Forwardplanningb. Directingc. Supervisingd. Administration
14.Arupeetomorrowisworthlessthanarupeetodayrelatestoa. Opportunitycostprincipleb. Discountingprinciplec. Equimarginalprincipled. Noneofthese
15..ismicroeconomictheorya. Demandtheoryb. Pricetheoryc. Incometheoryd. Noneofthese
16.Macroeconomictheoryisalsocalledasa. Demandtheoryb. Pricetheoryc. Incometheoryd. Noneofthese
17.Allocationofavailableresourcesamongalternativesisbasedontheprinciplea. Opportunitycostprincipleb. Discountingprinciplec. Equimarginalprincipled. Noneofthese
18.Thetechniquesofoptimizationincludea. Marginalanalysisb. Calculusc. Linearprogrammingd. Alloftheabove
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19.Whichoneisnotacharacteristicsofmanagerialeconomicsa. Microeconomicsb. Normativesciencec. Positivescienced. Pragmatic
20.Whichisthecharacteristicsofmanagerialeconomicsa. Dealswithbothmicroandmacroaspectsb. Bothpositiveandnormativesciencec. Dealswiththeoreticalaspectsd. Dealswithpracticalaspects.
21..is economic theory used in business whereas .is economics theory used in business andnonbusinessorganization
a. Microeconomics,macroeconomicsb. Businesseconomics,managerialeconomicsc. Positiveeconomicsandnormativeeconomicsd. Noneofthese
22.Managerialeconomicsisalsocalleda. Microeconomicsb.
Theory
of
the
firm
c. Economicsofthefirmd. Alloftheabove.
23.Whichofthefollowingisnotincludedin functionsofmanagerialeconomistsa. Salesforecastingb. Industrialmarketresearchc. Adviceonforeignexchanged. Noneoftheabove
24.Whichofthefollowingisincludedinspecificfunctionsofmanagerialeconomistsa. Economicanalysisofcompetingcompaniesb. Adviceonpricingproblemsofindustryc. Environmentalforecastingd. Alloftheabove
25.Whichofthefollowingisnotafunctionofmanagerialeconomistsa. Adviceontradeandpublicrelationsb. Economicanalysisofagriculturec. Investmentanalysisd. Supervisionandcontrol
26.Whichofthefollowingisnotafunctionofmanagerialeconomista. Analysisofunderdevelopedeconomiesb. Capitalprojectappraisalc. Adviceonprimarycommoditiesd. Noneofthese
27.Basiceconomictoolsofmanagerialeconomicsincludea. Opportunitycostprincipleb. Incrementalprinciplec. Discountingprincipled. Alloftheabove
28.Basiceconomictoolsofmanagerialeconomicsdoesnotincludea. Principleoftimeperspectiveb. Equimarginalprinciplec. Incrementalprincipled. Noneofthese
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29...principleiscloselyrelatedtothemarginalcostsandmarginalrevenueofeconomictheorya. Principleoftimeperspectiveb. Equimarginalprinciplec. Incrementalprincipled. Noneofthese
30.Analysisoflongrunandshortrunaffectsofdecisionsonrevenueaswellascostsisbasedona. Principleoftimeperspectiveb. Equimarginalprinciplec. incrementalprincipled. Noneofthese
31.ineconomicsmeansdemandbackedupbyenoughmoneytopayforthegoodsdemandeda. Utilityb. Consumptionc. Supplyd. Demand
32.Wantsatisfyingpowerofcommodityiscalleda. Demandb. Utilityc. Satisfactiond. Consumption
33.Ineconomics,desirebackedbypurchasingpowerisknownasa. Utilityb. Demandc. Consumptiond. Scarcity
34.Thedemandhasthreeessentials Desire,Purchasingpowerand..a. Quantityb. Cashc. Supplyd. Willingnesstopurchase
35. meansanattempt to determine the factors affecting the demand of a commodity or serviceandtomeasuresuchfactorsandtheirinfluences
a. Demandplanningb. Demandforecastingc. Demandanalysisd. Demandestimation
36.isknownasthefirstlawinmarketa. Lawofsupplyb. Lawofconsumptionc. Lawofdemandd. Lawofproduction
37.Demand=Desires++willingnesstopaya. Supplyb. utilityc. Wantd. Purchasingpower
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38.Lawofdemandshowsthefunctionalrelationshipbetween.andquantitydemandeda. Supplyb. Costc. Priced. Requirements
39.Therelationshipbetweenpriceandquantitydemandedisa. Directb. Inversec. Lineard. Nonlinear
40..meansrelationshipbetweendemandanditsvariousdeterminantsexpressedmathematicallya. Demandextensionb. Demandcontractionc. Demandanalysisd. Demandfunction
41.D=f(P,Y,T,Ps,U),where theletterUstandsfora. Utilityb. Unitsofconsumptionc. Usaged. Consumerexpectation&others
42.Intheabovefunction,thelettersPsstandsfora. Preferenceofconsumersb. Priceofcommodityc. Priceofsubstitutesd. Productsupply
43.Intheabovefunction,theletterYstandsfora. Yieldofproductionb. Incomeofconsumersc. Utilityd. Supply
44.Intheabovefunction,theletterTstandsfora. Targetpriceb. Totalsupplyc. Totalconsumptiond. Tasteandpreferenceofconsumers
45.Basicassumptionsoflawofdemanddoesnotincludea. Thereisnochangeinconsumerstasteandpreferenceb. Incomeshouldremainconstant.c. Pricesofothergoodsshouldchange.d. Thereshouldbenosubstituteforthecommodity
46.Basicassumptionsoflawofdemandincludea. Pricesofothergoodsshouldchange.b. Thereshouldbesubstituteforthecommodity.c. Thecommodityshouldnotconferanydistinction.d. Thedemandforthecommodityshouldnotbecontinuous
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47.Generallydemandcurvehavea. Negativeslopeb. Positiveslopec. Horizontallined. Verticalline
48.The change in demand due to change in price only, where other factors remaining constant, it iscalled.
a. Shiftindemandb. Extensionofdemandc. Contractionofdemandd. Bothextensionandcontraction
49.Whenthequantitydemandedofacommodityrisesduetoafallinprice,itiscalleda. Extensionb. Upwardshiftc. Downwardshiftd. Contraction
50. Whenthequantitydemandedfallsduetoariseinprice,itiscalleda. Extensionb. Upwardshiftc. Downwardshiftd. Contraction
51.Whenthedemandchangesduetochangesinotherfactors,liketasteandpreferences, income,priceofrelatedgoodsetc...,itiscalled
a. Extensionofdemandb. Contractionofdemandc. Shiftindemandd. Noneofthese
52.InthecaseofConsumermaymovestohigherorlowerdemandcurvea. Extensionofdemandb. Contractionofdemandc. Shiftindemandd. Slopesindemand
53.TheGiffengoodsare.Goodsa. Inferiorgoodsb. Superiorgoodsc. Relatedgoodsd. Samegoods
54.Higherthepriceofcertainluxuriousarticles,higherwillbethedemand,thisconceptiscalleda. Giffeneffectsb. Vebleneffectsc. Demonstrationeffectsd. Bothb&cabove
55.Demandformilk,sugar,teaformakingtea,isanexampleofa. Compositedemandb. Derivativedemandc. Jointdemandd. Directdemand
56.Demandforelectricityisanexampleofa. Compositedemandb. Derivativedemandc. Jointdemandd. Directdemand
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57.Demandfortyresdependsondemandofvehicles,thedemandfortyrescalledasa. Compositedemandb. Derivativedemandc. Jointdemandd. Directdemand
58. Determinantsofdemandincludesa. Priceofacommodityb. Natureofcommodityc. Incomeandwealthofconsumerd. Alltheabove
59. ExceptionalDemandCurve(Perversedemandcurve)a. Movingupwardfromlefttorightb. Movingupwardfromrighttoleftc. Movinghorizontallyd. Movingvertically
60. Whichofthefollowingisnotanexceptiontothedownwardslopingofdemandcurvea. Giffenparadoxb. Vebleneffectsc. Necessariesd. Incomeeffect
61.TheconceptofElasticityofDemandwasintroducedbya. AlfredMarshallb. LionelRobbinsc. Adamsmithd. JMKeynes
62. PriceElasticity ofdemand=a. Proportionatechangeinquantitydemanded
Proportionatechangeinprice
b. Changein Quantitydemanded/QuantitydemandedChangeinPrice/price
c. (Q2Q1)/Q1(P2P1)/P1
d. Alltheabove63.Whenasmallchangeinpriceleadstoinfinitechangeinquantitydemanded,itiscalled
a. Perfectlyelasticdemandb. Perfectlyinelasticdemandc. Relativeelasticdemandd. Relativeinelasticdemand
64.Quantityremainsthesamewhateverthechangeinprice,thisisthecaseofa. Perfectlyelasticdemandb. Perfectlyinelasticdemandc. Relativeelasticdemandd. Relativeinelasticdemand
65.Inthecaseofasmallchangeinpriceleadstoverybigchangeinquantitydemandeda. Perfectlyelasticdemandb. Perfectlyinelasticdemandc. Relativeelasticdemandd. Unitelasticdemand
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66.Incaseof..quantitydemandedchangeslessthanproportionatetochangesinpricea. Perfectlyelasticdemandb. Perfectlyinelasticdemandc. Relativeelasticdemandd. Relativeinelasticdemand
67.Whenthechangeindemandisexactlyequaltothechangeinprice,itiscalleda. Perfectlyelasticdemandb. Perfectlyinelasticdemandc. Relativeelasticdemandd. Unitaryelasticdemand
68.Ep=0inthecaseofelasticitya. Perfectlyelasticdemandb. Perfectlyinelasticdemandc. Relativeelasticdemandd. Unitaryelasticdemand
69.Perfectelasticityisknownasa. Finiteelasticb. Infiniteelasticc. Unitaryelasticd. Zeroelastic
70.Inthecaseofperfectelasticity,thedemandcurveisa. Verticalb. Horizontalc. Flatd. Steep
71.inthecaseofperfectinelasticity,thedemandcurveisa. Verticalb. Horizontalc. Flatd. Steep
72.EP=.inthecaseofrelativelyelasticdemanda. 1b. >1c.
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75.Unitaryelasticityofdemandmeana. EP=>1b. EP=
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84.Ifthecommoditiesaresubstituteinnature,crosselasticitywillbea. Negativeb. Positivec. Zerod. Anyoftheabove
85.Ifthecommoditiesarecomplimentary,crosselasticitywillbea. Negativeb. Positivec. Zerod. Anyoftheabove
86.Theresponsivenessofdemandduetoachangeinpromotionalexpensesiscalleda. Expenditureelasticityb. Advertisementelasticityc. Promotionalelasticityd. Aboveborc
87.Whichoneisthemethodformeasurementofelasticitya. ProportionalorPercentageMethodb. OutlayMethodc. Geometricmethodd. Alltheabove
88.Outlaymethodofmeasurementofelasticityisalsocalledasa. Percentagemethodb. Expendituremethodc. Pointmethodd. Geometricmethod
89..methodmeasureselasticitybetweentwopointsa. ProportionalorPercentageMethodb. OutlayMethodc. Geometricmethodd. ArcMethod
90.Demandfornecessarygoods(salt,rice,etc,)is.anddemandforcomfortandluxurygoodisa. Elastic,inelasticb. Inelastic,elasticc. Elastic,elasticd. Inelastic,inelastic
91...istheprocessoffindingcurrentvaluesofdemandforvariousvaluesofpricesandotherdeterminingvariables.
a. DemandEstimationb. Demandanalysisc. Demandfunctiond. Demandforecasting
92.Toolsandtechniquesfordemandestimationincludes;a. Consumersurveys.b. consumerclinicsandfocusgroupsc. MarketExperimentd. Allotheabove
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93. isanobjectiveassessmentofthefuturecourseofdemanda. DemandEstimationb. Demandanalysisc. Demandfunctiond. Demandforecasting
94..demandforecasting isrelatedtothebusinessconditionsprevailingintheeconomyasawholea. Macrolevelb. Industrylevelc. Firmleveld. Noneofthese
95.demandforecastingispreparedbydifferenttradeassociationinordertoestimatethedemandforparticularindustriesproducts
a. Macrolevelb. Industrylevelc. Firmleveld. Noneofthese
96. forecasting is more important from managerial view point as it helps the management indecisionmakingwithregardtothefirmsdemandandproduction.
a. Macrolevelb. Industrylevelc. Firmleveld. Noneofthese
97.PurposesofShorttermDemandforecastingincludes;a. Makingasuitableproductionpolicy.b. Toreducethecostofpurchasingrawmaterialsandtocontrolinventory.c. Decidingsuitablepricepolicyd. Alltheabove
98.PurposesofShorttermDemandforecasting doesntincludes;a. Decidingsuitablepricepolicyb. Settingcorrectsalestargetonthebasisoffuturedemandc. Forecastingshorttermfinancialrequirementsd. Noneofthese
99.PurposesofShorttermDemandforecasting doesntincludes;a. Makingasuitableproductionpolicy.b. Toreducethecostofpurchasingrawmaterialsandtocontrolinventory.c. Decidingsuitablepricepolicyd. Planningofanewunitorexpansionofexistingunit
100. PurposesoflongtermDemandforecasting doesntincludes;a. Planningofanewunitorexpansionofexistingunit.b. Planninglongtermfinancialrequirements.c. Planningofmanpowerrequirements.d. Decidingsuitablepricepolicy
101. PurposesoflongtermDemandforecasting includesa. Makingasuitableproductionpolicy.b. Toreducethecostofpurchasingrawmaterialsandtocontrolinventory.c. Decidingsuitablepricepolicyd. Planningofanewunitorexpansionofexistingunit
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102. Surveymethodofdemandforecastingincludesa. Opinionsurveyb. Expertopinionc. Delphimethodd. Alltheabove
103. MethodisalsoknownasSales ForceCompositemethodorcollectiveopinionmethoda. Opinionsurveyb. Expertopinionc. Delphimethodd. Consumerinterviewmethod
104. Under..Method,apanelisselectedtogivesuggestionstosolvetheproblemsinhanda. Opinionsurveyb. Expertopinionc. Delphimethodd. Consumerinterview
105. ConsumerInterviewmethodofdemandforecastingmayundertakenby;a. Completeenumerationb. Samplesurveyc. Endusemethodd. Alltheabove
106. In .. approach, the demand for new product is estimated on the basis demand of existingproduct
a. Growthcurveapproachb. Evolutionaryapproach.c. Opinionpollingapproachd. Vicariousapproach.
107. In.approach,Consumersreactionsonthenewproductsarefoundoutindirectlywiththehelpofspecializeddealers
a. Growthcurveapproachb. Evolutionaryapproach.c. Opinionpollingapproachd.
Vicarious
approach.
108. Inapproach,onthebasisofthegrowthofanestablishedproduct,thedemandforthenewproductisestimated
a. Growthcurveapproachb. Evolutionaryapproach.c. Opinionpollingapproachd. vicariousapproach
109. Methodofdemandforecasting isalsocalledeconomicmodelbuildinga. Opinionsurveyb. Completeenumerationc. Correlationandregressiond. Delphimethod
110. Criteriaforgooddemandforecastingincludes;a. Plausibilityb. Simplicityc. Economyd. Alltheabove.
111. ..isthebaseofmarketing planninga. DemandEstimationb. Demandanalysisc. Demandfunctiond. Demandforecasting
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112. Growthcurveapproachisusedforforecastingdemandof.productsa. Newb. Oldc. Existingd. Botholdandexisting.
113. Whichofthefollowingisnotamethodofdemandforecastingofnewproductsa. Trendprojectionb. Substituteapproachc. Evolutionaryapproachd. Salesexperienceapproach
114. ..=R2R1/Q2Q1a. Averagerevenueb. Totalrevenuec. Marginalrevenued. Incrementalrevenue
115. ..Measuresthedifferencesbetweenthenewtotalrevenueandexistingtotalrevenue.
a.
Averagerevenue
b. Totalrevenuec. Marginalrevenued. Incrementalrevenue
116. .meansthetotalreceiptsfromsalesdividedbythenumberofunitsold.a. Averagerevenue
b. Totalrevenuec. Marginalrevenued. Incrementalrevenue
117. SolongasAverageRevenueisfalling,MarginalRevenuewillbe.AverageRevenuea. Lessthanb. Morethanc. Equaltod. Noneofthese
118. WhereMarginalrevenueisnegative,TRwillbe..a. Risingb. Fallingc. Zerod. One
119. TotalRevenuewillbemaximumatthepointwhereMarginalRevenueisa. Oneb. Zeroc. 1
120. ..isthechangeintotalrevenueirrespectiveofchangesinpriceorduetotheeffectofmanagerialdecisiononrevenue
a. Averagerevenueb. Totalrevenuec. Marginalrevenued. Incrementalrevenue
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121. In..pricingfixedcostareexcluded.a. skimmingpricingb. goingratepricingc. administeredpricingd. marginalcostpricing
122. Fixinghighpriceduringtheintroductioniscalleda. skimmingb. penetratingc. fullcostpricingd. targetpricing
123. Thefirmchargespriceintunewiththeindustryspriceiscalleda. competitivepricingb. goingratepricingc. tunepricingd. targetpricing
124. Methodofcharginglowpriceinitiallycalleda. skimmingb. penetratingc. fullcostpricingd. targetpricing
125. Pricingisdoneonthebasisofmanagerialdecisions,notonthebasisofcost,demandetca. Managerialpricingb. Administeredpricingc. Fullcostpricingd. Competitivepricing
126. Whichofthefollowingmethodofpricingispopularinwholesaleandretailtradesa. skimmingb. penetratingc. fullcostpricingd. targetpricing
127. Whichoneofthefollowingisnotaninternalfactorinfluencingpricingpolicya. costb. objectivesc. marketingmixd. demand
128. Whichoneofthefollowingisaninternalfactorinfluencingpricinga. demandb. competitionc. distributionchanneld. productlifecycle
129. Costpluspricingisalsocalleda. marginpricingb. fullcostpricingc. markuppricingd. alltheabove
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130. Averagecostpricingisalsocalledasa. costpluspricingb. marginalcostpricingc. marginpricingd. botha&c
131. Underwhich method,thecostisaddedwiththepredeterminedtargetrateofreturnoncapitalinvested
a. Costpluspricingb. Targetpricingc. Markuppricingd. Noneofthese
132. Targetpricingisalsocalledasa. Costpluspricingb. Rateofreturnpricingc. Markuppricingd. Noneofthese
133. UndertheMarginalcostpricing,thepriceisdeterminedonthebasisof;a. Fixedcostb. Variablecostc. Totalcostd. Averagecost
134. CinemaTheater,telephonebillsetc..arefollowinga. Fullcostpricingb. Marginalcostpricingc. Differentialpricingd. Markuppricing
135. Pricediscriminationisalsocalledasa. Discriminatorypricingb. Differentialpricingc. Averagecostpricingd. a&babove
136. ThemethodofpricingwhichisalsoknownasParitypricingandAcceptancepricingisa. Differentialpricingb. Goingratepricingc. Discriminatorypricingd. Markuppricing
137. Thepricingofcupofteaorcoffee,isanexampleofa. Markuppricingb. Marginalcostpricingc. Conventionalpricingd. Costpluspricing
138. isthemethodofleadershippricinga. Goingratepricingb. Followuppricingc. Barometricpricingd. Paritypricing
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139. Generallyusedstrategyforpricingnewproductsis/area. Skimmingpricestrategyb. Penetrationpricestrategyc. Botha&bd. Noneofthese
140. provideguidelinestocarryouta. Pricingstrategies,pricingpoliciesb. Pricingpolicies,pricingstrategiesc. Pricingrules,pricingpoliciesd. Pricingrules,pricingstrategies
141. Psychologicalpricingisalsocalledas;a. Penetrationpricingb. Skimmingpricingc. Oddpricingd. Noneofthese
142. PricesofBatashoeasRs.99.99,thispricingisa. Markuppricingb. Oddpricingc. Marginalcostpricingd. Followuppricing.
143. Whichoneofthefollowingisnotareasonforadoptingskimmingpricestrategya. Whenthedemandofnewproductisrelativelyinelastic.b. Whenthereisnoclosesubstitutesc. Elasticityofdemandisnotknownd. Producthashighpriceelasticityintheinitialstage
144. Whichoneofthefollowingisnotareasonforadoptingpenetration pricestrategya. Producthashighpriceelasticityintheinitialstage.b. Theproductisacceptedbylargenumberofcustomers.c. Economiesoflargescaleproductionavailabletofirmd. Whenthebuyersarenotabletocomparethevalueandutility
145. Customarypricingisalsoknownasa. Consumerpricingb. Conventionalpricingc. Costpluspricingd. Fullcostpricing
146. Whichofthefollowingis/arethereasonforadoptingpenetrationpricestrategya. Economiesoflargescaleproductionavailabletofirm.b. Potentialmarketfortheproductislarge.c. Costofproductionislow.d. Alltheabove
147. Whichofthefollowingis/arethereasonforadoptingskimmingpricestrategya. Whenthebuyersarenotabletocomparethevalueandutility.b. Toattractthehighincomecustomers.c. Whentheproducthasdistinctivequalities,luxuriesd. Alltheabove
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148. In a perfectly competitive market, individual firm
a) cannot influence the price of its productb) can influence the price of its productc) can fix the price of its productd) can influence the market force
149. Perfect competition is characterized by
a) large number of buyers and sellersb) homogeneous productc) free entry and exit of firmsd) all the above
150. The market with a single producer
a) perfect competitionb) monopolistic competitionc) oligopolyd) monopoly
151. Selling cost is the feature of the market form
a) monopolyb) monopolistic competitionc) oligopolyd) none of these
152 The product under monopolistic competition are
a) differentiated with close substituteb) perfect substitutec) differentiated without close substituted) homogeneous
153. In the oligopoly market there are
a) large no. of firmsb) a few firmsc) a single firmd) an infinite no. of firms
154. The concept of product differentiation was introduced by
a) TR Malthusb) JM Keynesc) Mrs. Robinsond) Chamberlin
155. The short run production function is called;
a) Returns to scaleb) law of variable proportionc) Production possibility frontierd) None of these
156. Under oligopoly a single seller cannot influence significantlya) market priceb) quantity suppliedc) advertisement costd) all the above
157. Average revenue is the revenue per
a) unit commodity soldb) total commodity soldc) marginal commodity soldd) none of these
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158. The distinction between variable cost and fixed cost is relevant only in
a) long periodb) short periodc) medium termd) mixed period
159. The condition for the long run equilibrium of a perfectly competitive firm
a) Price=MC=ACb) Price=TCc) MC=AVCd) MC=MR
160. Product differentiation is the important feature of
a) monopolyb) perfect competitionc) monopolistic competitiond) monophony
161. The architect of the theory of monopolistic competition
a) Rosenstein Rodenb) JR Hicksc) Karl Marxd) Chamberlin
162. The no. of firms under oligopoly is
a) 1b) 2c) manyd) few
163. The law of diminishing returns applies more to
a) agricultureb) industryc) servicesd) commerce
164. The opportunity cost of a given activity is
a) the value of next best activityb) the value of material usedc) the cost of input usedd) none of these
165. The function of combining the other factors of production is done by
a) landb) labourc) Capitald) Entrepreneurship
166. The factors used in the productiona) Land and laborb) capital & entrepreneurshipc) both a&bd) only capital
167. In a perfect market both buyers and sellers are
a) price makerb) price giverc) price takerd) all the above
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168.Which is the determinant of the pricing policy of a firm?a) Channel of distribution
b) Age of productc) Consumer associationd) All of these
169. Information for pricing decisions involves:a) Product information
b) Market informationc) Information at the micro leveld) All of these
170. Which is the reason of skimming price?
a) Inelastic demandb) Diversion of marketc) Safer price policyd) All of these
171. Which is the condition of for market penetration?
a) High price elasticity of demand in the short runb) Savings in production costsc) Threat of potential competitiond) All of these
172. Production may be defined as an act of:
a) Creating utilityb) Earning profitc) Destroying utilityd) Providing services
173. The demand curve of a firm in the case of perfect competition is:
a) Parallel to output axisb) Increasing with the output axisc) Decreasing with the output axisd) Complete
174. The implication of the kinked demand curve is reflected in a discontinuity in the:
a) Marginal revenue curveb) Marginal cost curvec) Total revenue curved) Total cost curve
175. The concept of monopsony was invented by:
a) Marshallb) AP. Learnerc) Chamberlind) Mrs. J. Robinson
176. A firm that is the sole seller of a product without close substitutes called:
a) Monopolyb) Oligopolyc) Competitiond) Bureaucracy
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177. When all the productive services are increased in a given proportion, the product is
increased in the same proportion. This situation is called:
a) Law of increasingb) Situation of constant returnsc) Fixed costd) Variable cost
178. Which factors is/are influencing price policy?
a) Cost of productb) Time factorc) Government policyd) All of these
179. Pricing methods are:
a) Standard cost methodb) Learning curve methodc) Marginal cost methodd) All of these
180. Which is the feature of perfect competition?a) Large number of buyers and sellers
b) Freedom of entry and exitc) Normal profit in the long rund) All of these
181. Which is/are the salient features of monopolistic competition?
a) Large number of sellersb) Normal profitc) Free entry and exit of firms in industryd) All of these
182. Which are the characteristics of monopoly?
a) Single seller or producerb) No close substitutesc) Inelastic demand curved) All of these
183. The causes of emergence of monopoly is/are:
a) Concentration of ownership of raw materialsb) State regulationc) Public utility servicesd) All of these
184. Which are not the features of oligopoly?
a) Few sellersb) Advertising and sales promotionc) One firmd) Conflicting attitudes of firms
185. The monopoly can be controlled by:
a) Social boycottb) Antimonopoly legislationc) Public ownershipd) All of these
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186. The properties of indifference curves are:
a) Indifference curve slops downwards from left to rightb) Convex to the point of originc) Two indifference curve never cut each otherd) All of these
187. Price discrimination occurs when variation in prices for a product in different markets does notreflect variation?
a) Costsb) Pricec) Demandd) All of these
188. A cost that has already been committed and cannot be recovered known as:
a) Sunk costb) Total costc) Full costd) Variable cost
189. The competitive firms long run supply curve is the portion of its ..curve lies above
average total cost.
a) Marginal costb) Revenue costc) Fixed costd) All of these
190. Whenever marginal cost is more than average total cost is falling:
a) Average total revenueb) Average total costc) Average profitd) All of these
191. Whenever ..is greater than average total cost, average total cost is rising.
a) Marginal costb) Variable costc) Fixed costd) Full cost
192. The claim that, other things equal, the quantity supplied of a goods rises when the price of
goods raises known as:
a) Law of economicsb) Law of supplyc) Law of demandd) All of these
193. The marginal revenue equation can be derived from the:
a) Demand equationb) Supply equationc) Cost equationd) Price equation
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194. Marginal revenue is .at the quantity that generate maximum total revenue and
negative beyond that point.
a) Zerob) Onec) +1d) -1
195. ------------is situation of severely falling prices and lowest level of economic activities
a) Boomb) Recoveryc) Recessiond) Depression
196. ------------is situation with increased investment and increased price
a) Recessionb) Progressc) Boomd) Recovery
197. Which of the following is not a macroeconomic concept?a) Business cycle
b) National incomec) Government policyd) None of these
198. Where boom ends,.. starts
a) Recoveryb) Recessionc) Progressd) Depression
199. Factors which change over a long period of time are called..factors
a) Businessb) Cyclicc) Seculard) All the above
200. In business cycle concept, the period of long wave is of;
a) 25 yearsb) 50 yearsc) 100 yearsd) 200 years
201. In business cycle concept, the period (approximately) of Kit chin cycle is of:
a) 5 yearsb) 10 monthsc) 2 yearsd) 4 months
202. The law of variable proportion is first explained by
a) Edward westb) Marshallc) Veblend) Keynes
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203. Functional relationship between input and output known as
a) Conversionb) Production functionc) Work in progressd) Output function
204. Iso-cost line indicate the price ofa) Output
b) Inputsc) Finished goodsd) Raw material
205. ..product will never be zero or negative
a) Marginalb) Totalc) Averaged) All the above
206. A graph indicating different combination of inputs with different level of output is called
a) Iso-cost mapb) BEP mapc) Input-output mapd) Iso-quant map
207. Which is not a property of ISOQUANT?
a) Downward slopingb) Convexc) Negative sloped) Positive slope
208. Which of the following is not a variable input?
a) Raw materialb) Powerc) Equipmentd) None of these
209. Which of the following is a short run law?
a) Law of constant return to scaleb) Law of increasing return to scalec) Law of diminishing returnd) None of these
210. is called produced means of production
a) Landb) Labourc) Capitald) Raw material
211. In the long run all input become
a) Fixedb) Variablec) Semi variabled) None of these
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212. The term Economies refers to
a) Product advantageb) Cost advantagec) Sales advantaged) All of the above
213. Who classified economies of scale into internal and external?
a) Robinsonb) Marshallc) Edward westd) Pigue
214. Related to production function, MRTS stand for;
a) Marginal revenue and total salesb) Minimum revenue from total salesc) Marginal rate of total supplyd) Marginal rate of technical substitution
215. Which of the following is not coming under imperfect competition?
a) Oligopolyb) Duopolyc) Monopolyd) Monopolistic
216. in economics ..means a state of rest or stability
a) Depressionb) Equilibriumc) Maturityd) growth
217. In perfect completion, a firm is a
a) Price makerb) Price takerc) Both of the aboved) None of these
218. Selling at a lower price in export market and at a higher price at home market is called
a) Export subsidyb) Dumpingc) Price cutd) All the above
219. Which of the following is not a feature of monopolistic completion?
a) Large number of producersb) Free entry and exitc) More elastic demandd)
Price competition
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AnswerkeyQuestionNo Answer QuestionNo Answer QuestionNo Answer
01 b 11 a 21 b
02 c 12 a 22 d
03 c 13 a 23 d
04
d
14
b
24
d
05 b 15 b 25 d
06 a 16 c 26 d
07 c 17 c 27 d
08 c 18 d 28 d
09 d 19 c 29 c
10 a 20 d 30 a
QuestionNo Answer QuestionNo Answer QuestionNo Answer31 d 41 d 51 c
32 b 42 c 52 c
33 b 43 b 53 a
34 d 44 d 54 b
35 c 45 c 55 c
36 c 46 c 56 a
37 d 47 a 57 b
38 c 48 d 58 d
39 b 49 a 59 a
40 d 50 d 60 d
QuestionNo Answer QuestionNo Answer QuestionNo Answer61 a 71 a 81 c
62
d
72
b
82
b63 a 73 d 83 a
64 b 74 c 84 b
65 c 75 d 85 a
66 d 76 c 86 d
67 d 77 a 87 d
68 b 78 c 88 b
69 b 79 a 89 d
70 b 80 d 90 b
QuestionNo Answer QuestionNo Answer QuestionNo Answer91 a 101 d 111 d
92
d
102
d
112
a
93 d 103 a 113 a
94 a 104 c 114 c
95 b 105 d 115 d
96 c 106 b 116 a
97 d 107 d 117 a
98 d 108 a 118 b
99 d 109 c 119 b
100 d 110 d 120 d
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School of Distance EducationQuestionNo Answer QuestionNo Answer QuestionNo Answer
121 d 130 d 139 c
122 a 131 b 140 b
123 b 132 b 141 c
124 b 133 b 142 b
125 b 134 c 143 d
126
c
135
d
144
d
127 d 136 b 145 b
128 d 137 c 146 d
129 d 138 c 147 d
QuestionNo Answer QuestionNo Answer QuestionNo Answer148 a 157 a 166 c
149 d 158 b 167 c
150 d 159 a 168 d
151 b 160 c 169 d
152 a 161 d 170 d
153
b
162
d
171
d
154 d 163 a 172 a
155 b 164 a 173 a
156 d 165 b 174 a
QuestionNo Answer QuestionNo Answer QuestionNo Answer175 d 184 c 193 a
176 a 185 d 194 a
177 b 186 d 195 d
178 d 187 a 196 c
179 d 188 a 197 d
180 d 189 a 198 b
181 d 190 b 199 c
182 d 191 a 200 b
183 d 192 b 201 d
QuestionNo Answer QuestionNo Answer QuestionNo Answer202 a 208 c 214 d
203 b 209 c 215 c
204 b 210 c 216 b
205 c 211 b 217 b
206 d 212 b 218 b
207
d 213 b 219
d
Reserved