Question

Choose the correct option from the following If marginal revenue is equal to zero

Choose the correct option from the following If average cost is at a minimum

Identify the type of market for automobile

Choose the undelying economic principle for government providing water supply, Electricity, R

Identify the market structure If the market demand curve for a commodity has a negative slop
Choose which of the following is an assumption of linear breakeven analysis?

Select which out of the following is not included in estimation of NI

Select which one is not an indicator of barometric technique?

Choose from the following which concept traces relationship between cost and revenue at
every level of output
Choose about the number of firms In monopsony

Choose the economic term for the minimum expected return to keep an enterpreneur in his
present business
Sales taxes paid to the state by a retail firm are an example of an implicit cost.
Business profit is equal to total revenue minus all implicit costs.
A firm's total profit is generally at a maximum when total revenue is at a maximum.
A firm's total profit is generally at a maximum when total cost is at a minimum.
RBI decision to increase interest rate is a part of
Backed by purchasing power, desire to purchase
Tea and coffee are examples of

Which is not a measurement of elasticity of demand?

A period of time over which the inputs of all the factors of production can be varied.
Which of the following is not a law of return?

______________ to scale is caused by indivisible of fixed factors which are of minimum size. 

A ______________ function gives the idea of inputs and outputs relationship.

As per law of variable proportion, producers should produce at which stage?
The ____________ cost is related to scarcity concept.
These costs do not involve any cash payment and do not appear in the accounting system.

Long term AC curve is also called

Which is not a type of internal economies?

Which is not an exception to the law of supply?
A small increase in price leads to a larger increase in output, i.e. supply.
Here if the price falls supply will decrease much and if price raises supply will increase very much.

Which of the following is not a determinant of supply?

Supply comes out of ___________.

If Total Product is divided by the number of labours, we have
If a firm wants to introduce a new product, the initial price of the product is kept low to capture the
market. 
____________ means state of rest.
There are large number of buyers and sellers and no one can influence the price.

To study relations in order to maintain __________ and efficiency of labour by giving incentives and
motivate them.
The science of choice when faced with unlimited ends and scarce resources having alternative uses
is the definition of __________
Analysis of price of the product and try to push the product in the market as per the
market_________
Managerial economics and ________ always include Pricing strategy and earning profit
Managerial economics is used all the streams _________ and ___________

Managerial economics refers the application of principles of economics in ___________ of the

business
Managerial economics has to study the market, determine the demand based on___________ and
other circumstances
The scope of Economics is _______ than the scope of Managerial economics
Study of market structure is a __________ of managerial economics
Law of demand states

A flatter supply curve is

At the consumer’s optimum consumption bundle

Which of the following is not a property of indifference curve

Goods which are used along with some other goods is known as

In our economy resources are?

What do you mean by utility?

Giffen goods are also known as

Consumer’s tastes is determined in demand as

The elements of demand are

The law of diminishing marginal utility was formulated by

The law states that as a consumer increases the consumption of a product, the utility gained from
the successive units goes on
Under the following situations the law of demand is not applicable

When demand increases the curve shifts out and demand will be greater for
Direct demand of goods is demand of those goods and services which are directly consumed by the

Other thinks remianing the same the demand for goods increases as the price decreases and vice-
versa is the definition of
Inferior goods, consumed mostly by the poor people as essential commodities. The demand of
these goods increases with a rise in price
When more than one commodity is required to satisfy a demand is known as

Any commodity can be put to many uses, and the use of it depends upon its price - Is a perfect
definition of
The goods which can be used more than once over a period of time is known as

This demand refers to the demand of interrelated good

It means that demand is the function of price i.e
Diminishing marginal utility schedule total and _________ utility
The law of ___________________ is formulated by Prof. Marshall

The price of diamond is more in exchange but it has _______ value in use.
The law of _________ can be derived from the law of dimishing marginal utility

dd=f(p) means demand is the ___________ of price

__________ goods arenot essential goods and are consumed by the rich only
______________ goods aregenerally desired by the people and these are durable goods
_______ goods such as shares are traded in the share market which do not follow the law of
demand
Government spending excludes governemnt spending on _______________.

Continuity in consumption is prerequisite for

Cross elasticity means?

A forecasting methods in which the whole population or its sample are surveyed to determine the
trends
Which is a kind of expert opinion method for forecasting
The businessman has to arrange for Finance, Space, Manpower; material etc. This idea is known as
forecasting of demand of
When the demand of a commodity is responsive to price then it is known as

Price elasticity of demand can be shown as

When two good are used at the same time to fulfill the demand is known as

Under this the govt. in order to control the exploitation of the poor farmers announces the support
prices of most of the agriculture products
The market demand curve for a perfectly competitive industry is QD=12-2P. The market supply
curve is QS=3+P. The market will be in equilibrium if
Which of the following is a barrier to entry that typically results in monopoly?

A natural monopoly refers to monopoly that is defended from direct competition by

A single-plant, multi-product firm will introduce additional products

A firm will realize the highest level of profit if it is able to engage in

A movie theatre that charges a lower price for matinees than for evening showings is engaging on

When large number of able bodied pressures of working age, which are willing to work cannot get
the work
It is a mechanism to regulate the money supply in an economy by the central bank

Which of the following is a macroeconomic issue?

The percentage change in one’s real income can be approximated by

The price level has doubled in 35 years. The approximate annual percentage rate of increase in the
price level over this period has been:

The main measurement of inflation is:

Process of translating cash flow into equivalent dollars at common base period is considered as

The cost incurred by the government for the welfare of the people and which improves the life of the
people
Managerial economics is ___________ economics in nature
It is the study of aggregates, i.e. aggregate employment, aggregate income, aggregate saving and
investment, trade cycles, government policies, etc of a nation.
Which of the following is a nature of managerial economics?
Managerial economics is __________ economics and based on normative economics.
"As price increases, demand decreases".

It is want satisfying power of a commodity. 

The three elements of demand are: Desire, Backed by Purchasing power and __________.

These goods represent status symbols.

If E<1, it is a case of
When the demand of a commodity is responsive to income then it is known as 
Which of the following is true with reference to Opportunity Cost?

It is the market value of all the final goods and services made within the borders of a country in a
year.
Which is not a reason behind failure of market mechanism?

A form of Govt. intervenes in the economy in which Govt. agency uses its law making power to
regulate the prices. 
_________ is a method of price control.
MRTP is related to

Economic problem arise because of

Which of the following is not a factor of production?

Act of satisfying one’s wants is known as

The branch of economics which studies the aggregate behavior of the economic system

There is an inverse relationship between the quantity demanded of a commodity and its price.
If the demand for a firm's output is horizontal, then the firm is a perfect competitor.
Estimates of demand elasticities are used by firms to determine optimal operational policies
A scatter diagram is a graph of a linear function.
The Delphi method generates forecasts by surveying consumers to determine their opinions.
Time-series analysis generates forecasts by identifying cause and effect relationships between
______________ demand forecasting is related to the business conditions prevailing in the e
______________ is the change in total revenue irrespective of changes in price or due to the
Demand for necessary goods (salt, rice, etc,) is ______________ and demand for comfort a

______________ Method is also known as Sales‐Force –Composite method or collective opi

The Importance of micro ecnomics in the managerial economics does not inculde

Managerial economics and HR focuses on

Cross elasticity of demand is shown as

Total Outlay Method is given by

Total product/ number of units of output is a formula of
The change in output resulting from a unit change in one of the firms variable input is a definition of?
It is the cost which has been incurred in the past activity
Which cost is very important cost concept used in business decision
Which costs are known as supplementary costs and indirect cost
SS=f (Pn, Pr,F,T,G). In this formula Pr stands for?

SS=f (Pn, Pr,F,T,G). In this formula Pn stands for?

Under this concept the price is fixed on the higher side and demand increases.
The want satisfying quality of goods is a definition of

What does it include from the following as economic problems of world

Which one is a quadratic equation

 Option 1 Option 2 Option 3 Option 4 Answers
total revenue is at a average revenue is
total revenue is average revenue is
maximum or a at a maximum or a
zero. zero
minimum. minimum. 3
it is equal to total cost is also at profit is at a revenue is
marginal cost. a maximum minimum maximum 1
monopolistic differentiated
duopoly pure oligopoly.
competition. oligopoly. 3
monopolistic
Monopoly Duopoly Natural monopoly
competition. 4

The market
perfect imperfect structure cannot be
monopoly.
competition. competition. determined from the
information given.
4
Output price is Average variable Average fixed cost
All of the above 1
constant cost is constant is constant
Free medical Construction of a
Subsidized lunch Old age pension 2
facilities house
Coincidence
Lagging indicator Leading indicator Smoothing indicator 3
indicator
Consumption
Production analysis Break even analysis Cost anaysis 3
analysis
Many suppliers but
Most retail sale Single Very large 2
one buyer

Gross profit Net profit Normal profit Monopoly profit 3

1 0 2
1 0 2
1 0 2
1 0 2
Micro economics Macro economics Both a and b None of the above 2
Demand Price Consumption Utility 3
Complementary Substitute Goods Paired Goods Automobile Goods 2
Goods
Point Elasticity Time Series Method Arc Elasticity Percentage Method 2

Short Period No period Duration Long Period 4

Law of diminishing Law of Negative Law of Increasing Law of Constant 2
Return Return Return Return

Negative return Constant return Decreasing return Increasing return 4

Cost Supply Demand Production 1

Stage 1 Stage 3 Stage 2 Stage 4 3
Opportunity Economic Budgetted Actual 1
Explicit Cost Implicit Cost Actual Cost Accounting Cost 2

Supply Curve Average Revenue Total Curve Plant Curve 4

Curve
Disintegration Technical Financial Managerial 1
Rare Articles Inelastic Goods Specualtive Goods Agricultural Goods 3
Inelastic Supply Elastic Supply Negative Supply Positive Supply 2
Es = 0 Es = 1 Es < 1 Es > 1 4

Government Rules Price Technology Goals of producer 1

Production Business Godown Stock 4

Variable Product Average Product Marginal Product Investment 2
Penetration Pricing Skimming Pricing Cost Plus Pricing Marginal Pricing 1

Equilibrium Optimum Sleeping Leisure 1

Duopoly Perfect Competition Monopoly Monopolistic 2

Productivity Perfromance Profit Punctuality

1
Perfromance Economic Result Supply
2
Conditions Situation Functions Awareness
1
Finance Marketing Human Resource Social Sciences 1
Directly and Perfectly and Socially and None of the abve
Indirectly Imperfectly Economically 1
Operating Result Performance Decision making
4
Situation Performance Forecasting Result
3
Equal Wider Lower Different 2
Fucntion Type Scope Result 3
Positive relation Negative relation Symmetric relation None of the above
between price and between price and between price and 2
demand demand demand

Price elastic Unit price elastic None of these Price inelastic

answers 3
The slope of the The indifference The relative process All of the above
difference curve curve is tangent to of the two goods
equals the slope of the budget equals the marginal
the budget constraint rate of substitution 2
constraint
Indifference curves Indifference curves Indifference curves Higher indifference
are downward are bowed outward do not cross each curves are preferred
slopping other to lower ones
2

Complementary Demand Giffen goods Law of demand

goods 1
Not Available Unlimited Evreywhere Limited 4
It is the quantity of The want satisfying It is the quantity of It uses some of the
goods produced quality of goods goods supplied theories of macro 2
economics

Inferior goods Superior goods Supportive goods Consumption of

goods 2
PT CT DT Only T 4
Desire Backed by money Willingness to pay All of the above
and part with the 4
money

Prof. Marshall N H Borden Dr. alfred Marshall W. Anderson 1

Increasing Decreasing Constant None of the above
2
Giffen goods Goods in short Costly luxury items All of the above
supply 4
Each price level One price level No price level None of the above 1
Suppliers Retailers Ultimate consumer Distributors
3
Law of supply Law of demand Law of marginal Giffen goods
utility 2
Law of supply Law of demand Law of marginal Giffen goods
utility 4
Joint demand Composite demand Income demand Individual demand
1
Joint demand Composite demand Income demand Individual demand
2
Perishable goods Non perishable Durable goods Non durable goods
goods 3
Joint demand Cross demand Income demand Individual demand 2
dd=f (p) dd=f (v) dd=f (c) dd=f (f) 1
Total utlility Average utility Marginal utility None of the above 3
Demand Supply Dimishing marginal Production
utility 3
More Equal Less Constant 3
Demand Supply Dimishing marginal Production
utility 1
Function Proportion Equation None of the above 1
Giffen Outdated Costly luxury Speculative 3
Giffen Outdated Costly luxury Speculative 2
Giffen Outdated Costly luxury Speculative
4
Transfer payments Tax Goods and services Wages and material
1
Law of diminishing Revealed Indifference curve Marginal rate of
marginal utilities preferences analysis substitution 4

An increase or A small change in the High fall in price may When the price of a
decrease in the price of a product increase the demand product increases,
income of a person changes the demand slightly or not at all the demand for its
of a product more close substitute will 4
increase

Leading indicator Trend projection Opinion poll None of the above

3
Delphi method Consumer survey Opinion poll Trend projection 1
A product A commodity A sell A consumption
1
Income elasticity of Cross elasticity of Price elasticity of None of the above
demand demand demand 3
% change in quantity % change in quantity % change in quantity % change in quantity
demanded + % demanded - % demandedd /% demanded * %
change in price change in price change in price change in price 3

Goods demanded Normal goods Complementary Repetative goods

goods 3

Administration 1
Support pricing Cost cut pricing Governemnt pricing
pricing

P=6 & Q=9 P=5 & Q=2 P=4 & Q=4 P=3 & Q=6 4

Production of the
The firm controls the industry’s product is Production of the
The firm holds an
industry’s product 3
entire supply of a subject to economies of requires a large initial exclusive government
raw material scale over a broad franchise
capital investment
range of output
Economies of scale
A government Control over a vital 3
over a broad range of A patent or copyright
franchise input
output

In order of Until the marginal

Until 100% of In order of income
diminishing price revenue from the last
unused plant capacity price elasticity’s of 3
elasticity’s of product introduced is
is employed demand
demand equal to zero
 The answer cannot be
First-degree price Second-degree price Third-degree price determined without
1
discrimination discrimination discrimination additional
information

The answer cannot be

First-degree price Second-degree price Third-degree price determined without
1
discrimination discrimination discrimination additional
information

Monetary policy Open market Depression Fiscal policy 3

Bank rate Monetary policy Inflation Fiscal policy 2

The level of
The price of houses The wage rate for Your decision to
unemployment in the 4
in Oxford plumbers in London work or stay at home
UK

Dividing real income Dividing the price The % change in The % change in
by the price level, level, expressed as an price level minus the nominal income
4
expressed as an index number, by % change in nominal minus the % change
index number nominal income income in the price level

50 percentage 20 percentage 5 percentage 2 percentage 4

Part time Unemployment that

The unemployment is The unemployment
employment and is caused by a decline 3
subject to criticism rate
discouraged workers in total spending

Semiannual cash Compounded cash

Annual cash flow Discounted cash flow 4
flow flow

Marginal cost Average cost Social cost Total cost 3

Macro Micro Positive Negative 2
Positive Economics Micro Economics Macro Economics Normative Economics 3

Pragmatic Opportunistic Macro Normative 1

Positive Pragmatic Macro Applied 4
Law of Supply Law of Income Law of Demand Price Elasticity of 3
demand
Demand Utility Supply Purchasing power 2
Willingness to pay Objective Money Purpose 1

Associated Goods Speculative Goods Giffen Goods Veblen Goods 4

Elastic Demand Unitary Elastic Inelastic Demand Perfectly Elastic 3
Cross Elasticity Income Elasticity Price Elasticity of Inelasticity 2
demand
It is the value of the It is the value of a It is useful in decision It is useful for valuing
next best use for an sacrificed alternative making non marketed goods
economic good 1

GNP GDP Market Price Selling Price

2
Rise of Monopolies Economic Instability Sacrifice of Social Poverty
Welfare 4
Legal Control Red Tapism Price Control Politics
3
NPV Bank Rate ARR MBO 2
Monopolistice Maximum Retail Minimum Relative Measures for Retail
Restrictive Trade Price Trade Policy Trade Prices 1
Practices

Abundant resources Resources are Scarce Inefficiency of Inefficient use of 2

authority resources
Labour Land Profit Capital 3
Demand Aggregate demand Utility Consumption 4

Macro economics Micro economics Managerial None of the above 1

economics
1 0 1
1 0 1
1 0 1
1 0 2
1 0 2
1 0 1
Macro level Industry level Firm level Micro 1
Average revenue Total revenue Marginal revenue Incremental revenue 4
Elastic, inelastic Inelastic, elastic Elastic, elastic Inelastic, inelastic 2
Consumer
Opinion survey Expert opinion Delphi method
interview method 1
Theory of commodity Theory of consumer
Theory of factor pricing Economics of welfare 2
pricing surplus
Planning for product Required skill Pricing strategy and
Forecast the cash flow 2
demand availability earning and profit
Ce= % change in Ce= % change in Ce= % change in Ce= % change in
demand of X product- demand of X product + demand of X product / demand of X product *
3
% change in the price % change in the price % change in the price % change in the price of
of Y product of Y product of Y product Y product
Prof. Marshall N H Borden Dr. william Marshall W. Anderson 1
Total product Marginal product Inputs Average product 4
Total product Marginal product Inputs Average product 2
Margin of safety Total cost Breakeven point Historical cost 4
Actual cost Opportunity cost Implicit cost Explicit cost 2
Fixed cost Actual cost Opportunity cost Historical cost 1
 Price of related 2
Price Price of factors Performance review
goods
Price of related 1
Price Price of factors Performance review
goods
Marginal Cost Cost plus Pricing Pricing Leadership Pricing Skimming 4
Demand Aggregate demand Utility Consumption 3

Population explosion Demand analysis Supply analysis Profit analysis 1

Q = a+bL-cL2 Q = a+bL+cL2-dL3 Q = aLb None of the above 2