1. Nature of Managerial Economics is
(a) Objective
(b) Descriptive
(c) Subjective
(d) Normative
2. An Industrialist is trying to divide the total investment of Rs 10, 00,000/-into Fixed Capital and Working Capital. This decision is known as
(a) Working Capital Decision
(b) Investment Decision
(c) Fixed Capital Decision
(d) Capital Management Decision
3. Tomato is categorized as
(a) Durable Goods
(b) Temporary Goods
(c) Perishable Goods
(d) Perennial Goods
4. People with high incomes purchase luxurious goods even though the price of goods increases. Such goods are known as
(a) Producer Goods
(b) Temporary Goods
(c) Veblen Goods
(d) Giffen Goods
5. When the percentage change in the quantity demanded is equal to the percentage change in the price, the elasticity is known as
(a) Relatively Inelastic
(b) Relatively Elastic
(c) Unit Elasticity
(d) Infinite Elasticity
6. The quantity demanded of a commodity is 10,000 when the price of the commodity is Rs 1,000/ But when the price of the commodity falls to Rs 800/- the quantity demanded rises to 16000/-units What is the Price Elasticity of Demand
(a) -3
(b) -6
(c) 6
(d) 3
7. You are manufacturing a Product that is a close substitute for a branded product in the market If your product sales has to increase what should be the kind of Elasticity of Demand?
(a) Income Elasticity of Demand
(b) Cross Elasticity of Demand
(c) Advertisement Elasticity of Demand
(d) Price Elasticity of Demand
8. The Product range of Amul includes Ice creams, cheese, butter, packed milk, chocolates, gulabjamun etc. , If we try to find the demand for all the products it is known as
(a) General Demand
(b) Short-term Demand
(c) Firm Demand
(d) Long-term Demand
9. Where the Demand Forecasting is done by manipulating the major determinants of the demand to suit the tastes and preferences, such forecasting is known as
(a) Controlled Experiment Method
(b) Short-term Method
(c) Trend Line Method
(d) Judgmental Method
10. In the first stage of Production Function with One Variable Input,
(a) Average Production is greaterthan Total Production
(b) Marginal Production is greaterthan Total Production
(c) Average Production is Lessthan Marginal Production
(d) Average Production is greaterthan Marginal Production
11. Least cost combination of two factors of production is
(a) Where the Isocost line intersects Isoquant
(b) Where two Isocost lines overlap each other
(c) Where two Isoquant lines overlap each other
(d) Where the Isocost line is tangent to Isoquant
12. A company is located in a remote place and in around, it has no other company for a distance of 20Kms. What economy will the company lose?
(a) Economies of Concentration
(b) Managerial Economies
(c) Marketing Economies
(d) Commercial Economies
13. What is Average Total Cost?
(a) Total Cost/Output
(b) Total Fixed Cost/Quantity
(c) Marginal Cost/Output
(d) Total Variable Cost/Output
14. What is Contribution?
(a) Total Fixed Cost + Variable Cost
(b) Variable Cost - Selling Price
(c) Selling Price – Variable Cost
(d) Total Fixed Cost - Variable Cost
15. Market is a place
(a) Where both buyers and sellers exist
(b) Where only buyers exist
(c) Where only sellers exist
(d) Where neither the buyer nor the seller exist
16. The Average Revenue is
(a) Δ Total Revenue / Δ Quantity
(b) Total Revenue / Revenue
(c) Total Revenue / Quantity
(d) Price per Unit × quantity
17. The Principle of Equilibrium Point is
(a) Marginal Revenue must cut Marginal Cost from below
(b) Marginal Cost must cut Marginal Revenue from above
(c) Marginal Revenue must cut Marginal Cost from above
(d) Marginal Cost must cut Marginal Revenue from below
18. In a Monopoly, the Average Revenue Curve
(a) Slopes downwards from left to right
(b) Slopes upward from left to right
(c) Parallel to X-axis
(d) Parallel to Y-axis
19. The method of quoting the price through a Tender is known as
(a) Sealed Bid Pricing
(b) Marginal Cost Pricing
(c) Going Rate Pricing
(d) Cost plus Pricing
20. The method of quoting the price through the prevailing market price is known as
(a) Sealed Bid Pricing
(b) Going Rate Pricing
(c) Marginal Cost Pricing
(d) Cost plus Pricing
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1. Which of the following subjects does not fall under the category of Micro economics
(a) Gross Domestic Product (GDP)
(b) Supply Theory
(c) Cost Theory
(d) Demand Theory
2. Managerial Economics takes the help of following Discipline?
(a) Operations Research
(b) History
(c) Biotechnology
(d) Zoology
3. Demand Curve
(a) Sloped Upwards from Left to Right
(b) Horizontal Straight Line to Y-Axis
(c) Horizontal Straight Line to X-Axis
(d) Slopes Downwards from Left to Right
4. When the Consumer buys more of same goods when the price of the commodity decreases the demand Is known as
(a) Decrease of Demand
(b) Contraction of Demand
(c) Increase of Demand
(d) Extension of Demand
5. When the Price of Commodity X goes down, what will be the effect on the quantity of the complementary Commodity Y
(a) The quantity demanded of Commodity Y remains unchanged
(b) There won’t be any relationship between Commodity X and Y
(c) The quantity demanded of Commodity Y goes up
(d) The quantity demanded of Commodity Y goes down
6. Relatively Elastic is represented as
(a) 0
(b) <1
(c) =1
(d) >1
7. For rice, where it is a necessiy, the demand is said to be
(a) Unit elastic
(b) Infinitely elastic
(c) Inelastic
(d) Elastic
8. Demand forecast for the total sales of the company is
(a) Long-term Demand
(b) Short-term Demand
(c) General Forecast
(d) Firm Demand
9. When the Demand Forecasting is done with the help of Experts in selling the product, the Forecasting is known as
(a) Test Marketing
(b) Expert Opinion Method
(c) Sample Method
(d) Sales Force Method
10. Interest is a return on
(a) Capital
(b) Land
(c) Labour
(d)
11. Isoquant refers to the curve in which the
(a) Production is not same for different combinations of two factors
(b) Production is same for different combinations of two factors
(c) Production is same for different combinations of one factor
(d) Production is same for different combinations of one factor
12. Where the volume of purchases increase, it results in quantity discounts. Such Economies are known as
(a) Commercial Economies
(b) Marketing Economies
(c) Managerial Economies
(d) Financial Economies
13. What is Average Total Cost?
(a) Total Variable Cost / Output
(b) Marginal Cost / Output
(c) Total Cost / Output
(d) Total Fixed Cost / Quantity
14. The Selling Price is Rs 10/-, the Variable Cost is Rs 8/- and the Fixed Cost is Rs 50,000/- What is the Break-even Point in value?
(a) Rs 5, 00,000/-
(b) Rs 12,500/-
(c) Rs 2, 50,000/-
(d) Rs 25,000/-
15. Which of the following is a Perfect Competition?
(a) Monopolistic Competition
(b) Monopoly
(c) Pure Competition
(d) Oligopoly
16. Which of the following Organizations falls under the category of Monopoly?
(a) Petrol Industry
(b) Oil Industry
(c) Sugar Industry
(d) Railways
17. In a Perfect Competition when the Marginal Revenue curves is tangent to the Marginal Cost curve, which of the following statements will be true?
(a) There are abnormal profits for the firm
(b) There are losses for the firm
(c) There are no profits and no losses for the firm
(d) There are normal profits for the firm
18. The Price Discrimination is advantageous because
(a) It cannot lead to increased demand
(b) The challenges of the competitors can be met
(c) The challenges of the competitors cannot be met
(d) The surplus production cannot be disposed off
19 The method of quoting selling price by finding the average cost at normal output and adding the normal profit to it is known as
(a) Marginal Cost Pricing
(b) Going Rate Pricing
(c) Cost plus Pricing
(d) Sealed Bid Pricing
20 During seasonal period when demand is likely to be higher, a firm may enhance profits by pricing a product high during this period. This method of Pricing is known as
(a) Cross Subsidization
(b) Block Pricing
(c) Commodity Bundling
(d) Peak Load Pricing
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1. The statement ‘Government of India should open up economy’ is a
(a) Normative Statement
(b) Prescriptive Statement
(c) Objective Statement
(d) Descriptive Statement
2. Managerial Economics takes the help of following discipline?
(a) Botany
(b) Statistics
(c) Biotechnology
(d) Physics
3. Demand Curve
(a) Horizontal Straight Line to Y-Axis
(b) Horizontal Straight Line to X-Axis
(c) Sloped Upwards from Left to Right
(d) Slopes Downwards from Left to Right
4. Which of the following statements describes the exceptions to Law of Demand?
(a) When the Demand for the commodity decreases the Price for the commodity increases
(b) When the Price of the commodity decreases the Demand for the commodity increases
(c) When the Price of a commodity increases the Demand for the commodity increases
(d) When the Demand for the commodity increases the Price for the commodity decreases
5. When the price of commodity X goes down, what will be the effect on the quantity of the complementary Commodity Y
(a) There won’t be any relationship between Commodity X and Y
(b) The quantity demanded of Commodity Y goes down
(c) The quantity demanded of Commodity Y goes up
(d) The quantity demanded of Commodity Y remains unchanged
6. Where the Cross Elasticity of Demand for a Commodity X is Lessthan one, the commodity is known as
(a) Temporary Goods
(b) Complements
(c) Superior Goods
(d) Substitutes
7. Where the consumption of the product can postponed, the demand is said to be
(a) Unit
(b) Elastic
(c) Inelastic
(d) Infinite
8. The Product range of Amul includes Ice creams, cheese, butter, packed milk, chocolates, gulabjamun etc. , If we try to find the demand for all the products. It is known as
(a) Long-term Demand
(b) Firm Demand
(c) General Demand
(d) Short-term Demand
9. When the Demand Forecasting is done with the help of Experts in selling the product, the Forecasting is known as
(a) Test Marketing
(b) Sales Force Method
(c) Sample Method
(d) Expert Opinion Method
10 Rent is are turn on
(a) Capital
(b)
(c) Land
(d) Labour
11. Isocost is a curve
(a) Where different costs are plotted for two factor combination
(b) Where different costs are plotted for one factor combination
(c) Where same costs are plotted for one factor combination
(d) Where same costs are plotted for two factor combination
12. Functional specialization ensures minimum wastage and lowers the cost of production in the long-run. Such Economies are known as
(a) Managerial Economies
(b) Marketing Economies
(c) Commercial Economics
(d) Economies of Concentration
13. What is Average Total Cost?
(a) Total Fixed Cost / Quantity
(b) Total Cost / Output
(c) Total Variable Cost / Output
(d) Marginal Cost / Output
14. Break-even Point is
(a) Selling Price / Contribution
(b) Fixed Cost / Variable Cost
(c) Fixed Cost / Contribution
(d) Variable Cost / Contribution
15. Market is a place
(a) Where neither the buyer nor the seller exist
(b) Where only sellers exist
(c) Where there is a commodity
(d) Where only buyers exist
16. Which of the following is a feature of Perfect Competition?
(a) There are two sellers
(b) There is only one seller
(c) Large number of buyers and sellers
(d) No close substitutes
17. In a Perfect Competition when the Marginal Revenue curves is tangent to the Marginal Cost curve, which of the following statements will be true?
(a) There are no profits and no losses for the firm
(b) There are losses for the firm
(c) There are abnormal profits for the firm
(d) There are normal profits for the firm
18. In a Monopoly, what are the characteristics of Marginal Revenue Curve?
(a) Marginal Revenue Curve lies below Average Revenue Curve
(b) Marginal Revenue is a Horizontal Straight Line
(c) Marginal Revenue Curve lies above Average Revenue Curve
(d) Marginal Revenue Curve slopes upwards
19. The Pricing done with an intention to increase the volume and the margin of profit is known as
(a) Block Pricing
(b) Market penetration
(c) Market skimming
(d) Two part pricing
20. Pricing a product for selling certain number of units of a product as one package is known as
(a) Market skimming
(b) Market penetration
(c) Block Pricing
(d) Two part pricing
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1. Who defined Managerial Economics as seeking to understand and to analyze the problems of business decision making?
(a) Hague
(b) Spencer and Siegel man
(c) Salvatore
(d) Brigham and Pappas
2. Optimization techniques are studied in Managerial Economics with the help of following subject:
(a) Operations Research
(b) Statistics
(c) Economics
(d) Mathematics
3. Demand is defined as
(a) Desire backed by the Inability to Pay
(b) Desire backed by the Unwillingness to Pay
(c) Willingness to Pay for a commodity with out desire
(d) Desire backed by Purchasing Power
4. When the Consumer buys less of same goods when the price of the commodity increases the demand is known as
(a) Contraction of Demand
(b) Extension of Demand
(c) Increase of Demand
(d) Decrease of Demand
5. When the percentage change in the quantity demanded is zero when compared to the change in price, the price Elasticity of Demand is known as
(a) Unit Elasticity
(b) Relatively Elastic
(c) Relatively Inelastic
(d) Highly Inelastic
6. The quantity demanded of a commodity is 10,000 when the price of the commodity is Rs 1,000/- But when the price of the commodity falls to Rs 800/- the quantity demanded rises to 16000/-units. What is the Price Elasticity of Demand
(a) -6
(b) 6
(c) 3
(d) -3
7. Where the product is complementary, the demand is said to be
(a) Relatively Inelastic
(b) Elastic
(c) Infinite
(d) Unit
8. The Product range of Amul includes Ice creams, cheese, butter, packed milk, chocolates, gulabjamun etc. , If we try to find the demand for one of the products. It is known as
(a) Short-term Demand
(b) Specific Demand
(c) Long-term Demand
(d) Firm Demand
9. Census Method is also known as
(a) Total Enumeration Method
(b) Industry Demand
(c) Judgmental Method
(d) Short-term Method
10. In the first stage of Production Function with One Variable Input,
(a) Average Production is Lessthan Marginal Production
(b) Average Production is greaterthan Marginal Production
(c) Marginal Production is greaterthan Total Production
(d) Average Production is greaterthan Total Production
11. If the price of Factor X is 5 and the price of Factor Y is Rs8 and the budget isRs400 then which of the following combination of factors is taken to draw the isocost line
(a) X=40, Y=50Units
(b) X=100, Y=100Units
(c) X=80, Y=50Units
(d) X=100, Y=80Units
12. Functional specialization ensures minimum wastage and lowers the cost of production in the long-run. Such Economies are known as
(a) Economies of Concentration
(b) Commercial Economics
(c) Managerial Economies
(d) Marketing Economies
13. The production is increased from 1000units to 1500units The excess costs incurred for 500units is known as
(a) Out-of-pocket Costs
(b) Incremental Cost
(c) Replacement Cost
(d)
14. Break-even Point is
(a) Fixed Cost/Contribution
(b) Fixed Cost/Variable Cost
(c) Variable Cost/Contribution
(d) Selling Price/Contribution
15. Market is a place
(a) Where neither the buyer nor the seller exist
(b) Where only buyers exist
(c) Where there is a commodity
(d) Where only sellers exist
16. Which of the following is a feature of Perfect Competition?
(a) No close substitutes
(b) Large number of buyers and sellers
(c) There is only one seller
(d) There are two sellers
17. In a Perfect Competition
(a) ?Total Revenue=?Quantity
(b) AR=MR=Price
(c) Total Revenue=Marginal Revenue
(d) TR=AR
18. In a Monopoly, the Marginal Cost Curve
(a) Intersects the Marginal Revenue Curve from above
(b) Intersects the Marginal Revenue Curve from below
(c) Intersects the Average Cost Curve first and then intersects Marginal Revenue Curve later
(d) Does not intersect Marginal Revenue Curve
19. The method of quoting the price through a Tender is known as
(a) Going Rate Pricing
(b) Cost plus Pricing
(c) Marginal Cost Pricing
(d) Sealed Bid Pricing
20. The method of quoting the price through the prevailing market price is known as
(a) Cost Plus Pricing
(b) Sealed Bid Pricing
(c) Going Rate Pricing
(d) Marginal Cost Pricing
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1. Determination of Price in different markets such as Perfect Market and Imperfect Markets is known as
(a) Demand Decisions
(b) Input-output Decisions
(c) Price Decisions
(d) Market Decisions
2. Which of the following is covered by the scope of Managerial Economics?
(a) Investment Decisions
(b) Savings Decisions
(c) Welfare Decisions
(d) Political Decisions
3. Coffee, Milk and Sugar are known as
(a) Complementaries
(b) Substitutes
(c) Producer Goods
(d) Perishable Goods
4. Law of Demand states
(a) When the Price of the commodity increases the Demand for the commodity increases
(b) When the Demand for the commodity increases the Price for the commodity decreases
(c) When the Demand for the commodity decreases the Price for the commodity increases
(d) When the Price of a commodity decreases the Demand for the commodity increases
5. Advertisement Elasticity of Demand is
(a) Percentage change in the quantity demanded of Commodity X to the percentage change in price of Commodity Y
(b) Percentage change in the Quantity Demanded to Percentage change in Advertisement expenditure
(c) Percentage change in price to the percentage change in income
(d) Percentage change in income to the percentage change in price
6. The elasticity between two separate points of demand curve is called as
(a) Unit Elasticity
(b) Arc Elasticity
(c) Infinite Elasticity
(d) Zero Elasticity
7. Where the consumption of a product can be postponed, the demand is said to be
(a) Unit
(b) Infinite
(c) Elastic
(d) Inelastic
8. Finding the Demand for Cars in the entire country is
(a) Short-term Demand
(b) General Demand
(c) Long-term Demand
(d) Industry Demand
9. When the Demand Forecasting is done for only Scooters manufactured by Bajaj Scooters, the Demand Forecasting is known as
(a) Firm Demand
(b) Test Marketing
(c) Expert Opinion
(d) Industry Demand
10. Wages is a return for
(a) Labour
(b) Capital
(c)
(d) Land
11. If the price of Factor X is 4 and the price of Factor Y is Rs5 and the budget is Rs400 then which of the following combination of factors is taken to draw the isocost line
(a) X=80, Y=100Units
(b) X=40, Y=50Units
(c) X=100, Y=100Units
(d) X=100, Y=80Units
12. Companies which are situated in one place, will have the economies on account of facilities like canteen, Buses, Medical Facilities etc., This economy of operation is known as
(a) Financial Economies
(b) Economies of Concentration
(c) Economies of Welfare
(d) Economies of Research and Development
13. What is Replacement Cost?
(a) Cost of Replacing an Existing Asset
(b) Cost which is incurred but not recorded in the Books
(c) Cost of foregone opportunity
(d) The Cost that is not recorded in the Books of Accounts
14. Te Selling Price is Rs10/-, the Variable Cost is Rs8/- and the Fixed Cost is Rs 50,000/-. What is the Break-even Point in value?
(a) Rs 5, 00,000/-
(b) Rs 12,500/-
(c) Rs 2, 50,000/-
(d) Rs 25,000/-
15. The markets in which only bulk quantities are bought and sold, it is known as
(a) Competitive Market
(b) Retail Market
(c) Wholesale Market
(d) Geographic Market
16.A market where there are many firms and each one produces such goods and services that are close substitutes to each other, is known as
(a) Monopoly
(b) Monopolistic Competition
(c) Duopoly
(d) Oligopoly
17. When there are Super Normal Profits in a Perfect Competition, what will be the consequences that will follow?
(a) The number of the firms in the industry will remain constant
(b) Less number of firms will leave the market
(c) More number of firms leaves the market
(d) More number of firms enters the market
18. Monopoly is Socially undesirable because
(a) Of Exploitation of Customers
(b) Gap between the rich and poor is reduced
(c) Unlimited Output is generated
(d) Of Efficient Allocation of resource
19. The objective of Pricing is
(a) To reduce the Sales
(b) To reduce the Market Share
(c) To Maximize Profits
(d) To create more competitors
20. During seasonal period when demand is likely to be higher, a firm may enhance profits by pricing a product high during this period. This method of Pricing is known as
(a) Peak Load Pricing
(b) Cross Subsidization
(c) Block Pricing
(d) Commodity Bundling
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1. Determination of Price in different markets such as Perfect Market and Imperfect Markets is known as
(a) Input-output Decisions
(b) Market Decisions
(c) Demand Decisions
(d) Price Decisions
2. An industrialist wishes to take a share in profits of a software company with Rs 1, 00,000/-. This decision is known as
(a) Accounting Decision
(b) Expenditure Decision
(c) Demand Decision
(d) Investment Decision
3. Demand is a
(a) Discrete Variable
(b) Dependent Variable
(c) Independent Variable
(d) Continuous Variable
4. Law of Demand states
(a) When the Demand for the commodity decreases the Price for the commodity increases
(b) When the Demand for the commodity increases the Price for the commodity decreases
(c) When the Price of the commodity increases the Demand for the commodity increases
(d) When the Price of a commodity decreases the Demand for the commodity increases
5. Least squares method is
(a) Simultaneous equations method
(b) Barometric technique
(c) Correlational Method
(d) Trend projection Method
6. The quantity demanded changes from 100Kgs to 150Kgs when the Price Changes from Rs10 to Rs8. The Elasticity of Demand is
(a) 25
(b) -25
(c) 2
(d) -2
7. If the price of Electricity, where the number of alternative uses is more, rises, the demand is said to be
(a) Relatively Inelastic
(b) Relatively Elastic
(c) Highly Inelastic
(d) Highly Elastic
8. Finding the Demand for particular brand Cars of Maruti in the entire country is
(a) Short-term Demand
(b) General Demand
(c) Long-term Demand
(d) Firm Demand
9. When the Demand Forecasting is done by the management on its own experience, the Method of Demand Forecasting is known as
(a) Judgmental Approach
(b) Sales Force Method
(c) Expert Opinion Method
(d) Controlled Experiments
10. In the first stage of Production Function with One Variable Input, Total Production
(a) Constant
(b) Decreases
(c) Increases
(d) Negative
11. If the price of Factor X is 4 and the price of Factor Y is Rs5 and the budget is Rs400 then which of the following combination of factors is taken to draw the isocost line
(a) X=100, Y=100Units
(b) X=100, Y=80Units
(c) X=80, Y=100Units
(d) X=40, Y=50Units
12. A company like BHEL does business in crores of rupees. The purchases of this company like wise runs into crores of rupees and it has the advantage of bargaining and getting quantity discounts on a lilts purchases. This economy is known as
(a) Managerial Economies
(b) Financial Economies
(c) Marketing Economies
(d) Commercial Economies
13. What is Replacement Cost?
(a) Cost which is incurred but not recorded in the Books
(b) The Cost that is not recorded in the Books of Accounts
(c) Cost of Replacing an Existing Asset
(d) Cost of foregone opportunity
14. The Selling Price is Rs 10/-, the Variable Cost is Rs 8/- and the Fixed Cost is Rs 50,000/- The Actual Sales is Rs 4, 00,000/-. What is the Margin of Safety?
(a) Rs 1, 50,000/-
(b) Rs 2, 00,000/-
(c) Rs 3, 50,000/-
(d) Rs 2, 50,000/-
15. The markets in which only bulk quantities are bought and sold, it is known as
(a) Competitive Market
(b) Retail Market
(c) Wholesale Market
(d) Geographic Market
16. Which of the following is a feature of Monopolistic Competition?
(a) No close substitutes
(b) Homogenous Product
(c) No Barriers to free entry
(d) Only one seller
17. When there are Super Normal Losses in the Perfect Competition, what consequences will follow:
(a) More number of firms will leave the market
(b) The number of firms in the industry will remain constant
(c) Less number of firms will enter the market
(d) More number of firms will enter the market
18. In a Monopoly, the Average Revenue Curve
(a) Parallel to X-axis
(b) Parallel to Y-axis
(c) Slopes downwards from left to right
(d) Slopes upward from left to right
19. The pricing strategy where a firm charges a fixed fee for the right to purchase its goods, plus a per unit charge for each unit purchased
(a) Block Pricing
(b) Two-part pricing
(c) Market skimming
(d) Market penetration
20. The method of quoting the price through the prevailing market price is known as
(a) Cost plus Pricing
(b) Sealed Bid Pricing
(c) Going Rate Pricing
(d) Marginal Cost Pricing
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1. Which Of the following subjects does not fall under the category of Micro economics
(a) Demand Theory
(b) Gross Domestic Product (GDP)
(c) Cost Theory
(d) Supply Theory
2. An Industrialist is trying to divide the total investment of Rs 10, 00,000/-into Fixed Capital and Working Capital. This decision is known as
(a) Fixed Capital Decision
(b) Investment Decision
(c) Capital Management Decision
(d) Working Capital Decision
3. The demand for Bajaj Scooters is known as
(a) Industry Demand
(b) Derived Demand
(c) Total Market Demand
(d) Firm Demand
4. When the Consumer buys less of same goods at the same price the demand is known as
(a) Decrease of Demand
(b) Contraction of Demand
(c) Extension of Demand
(d) Increase of Demand
5. The Income Elasticity of Demand is
(a) Percentage change in the quantity demanded to the percentage change in price
(b) Percentage change in the Advertisement expenditure to the percentage change in price
(c) Percentage change in quantity demanded to the percentage change in income
(d) Percentage change in income to the percentage change in price
6. The quantity demanded changes from 100Kgs to 150Kgs, when the Price Changes from Rs10 to Rs5. The Elasticity of Demand is
(a) 25
(b) 1
(c) -1
(d) -25
7. For rice, where it is a necessiy, the demand is said to be
(a) Elastic
(b) Infinitely elastic
(c) Inelastic
(d) Unit elastic
8. Finding the Demand for Cars in the entire country is
(a) Industry Demand
(b) General Demand
(c) Short-term Demand
(d) Long-term Demand
9. If a survey is being conducted in a particular City for the entire population, the Forecasting Method is known
(a) Census Method
(b) Sales Force Method
(c) Expert Opinion Method
(d) Sample Method
10. Wages is are turn for
(a) Capital
(b) Labour
(c)
(d) Land
11 Isoquant refers to the curve in which the
(a) Production is same for different combinations of one factor
(b) Production is same for different combinations of two factors
(c) Production is same for different combinations of one factor
(d) Production is not same for different combinations of two factors
12. Companies which do the same kind of business and situated at one particular place will have the facility of setting up Research and Development Facilities. This Economy of operation is known as
(a) Economies of Research and Development
(b) Economies of Welfare
(c) Economies of Concentration
(d) Financial Economies
13. What is Average Total Cost?
(a) Total Fixed Cost / Quantity
(b) Marginal Cost / Output
(c) Total Cost / Output
(d) Total Variable Cost / Output
14. What is the formula for calculating P/V Ratio
(a) Selling Price / Contribution
(b) Variable Cost / Selling Price
(c) Fixed Cost / Selling Price
(d) Contribution / Selling Price
15. When the market is divided in to North, South, East and West, the division is known as
(a) Retail Market
(b) Competitive Market
(c) Geographic Market
(d) Wholesale Market
16. Which of the following Organizations falls under the category of Monopoly?
(a) Sugar Industry
(b) Petrol Industry
(c) Railways
(d) Oil Industry
17. The price-output relationship in the long run in a Perfect Competition. Which of the following statements will be true?
(a) Long run Marginal Revenue Curve is tangent to Long run Marginal Cost Curve
(b) Short-run Average Cost Curve cuts the Long-run Marginal Revenue Curve from below
(c) Long-run Marginal Revenue Curve is tangent to Long-run Average Cost Curve
(d) Short-run Marginal Cost Curve Cuts the Long-run Marginal Revenue Curve from below
18. Monopoly is socially undesirable because
(a) Unlimited Output is generated
(b) Of Exploitation of Customers
(c) Gap between the rich and poor is reduced
(d) Of Efficient Allocation of resource
19. The pricing strategy where a firm charges a fixed fee for the right to purchase its goods, plus a per unit charge for each unit purchased
(a) Market skimming
(b) Two part pricing
(c) Market penetration
(d) Block Pricing
20. During seasonal period when demand is likely to be higher, a firm may enhance profits by pricing a product high during this period. This method of Pricing is known as
(a) Block Pricing
(b) Peak Load Pricing
(c) Cross Subsidization
(d) Commodity Bundling
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