Business Economics 12

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Objective Questions and Answers of MBA: Business Economics 12

Subject: Objective Questions and Answers of MBA: Business Economics 12

Part 12: Objective questions and answers of Business Economics

 

Q1. ______________ is called produced means of production

a) Land

b) Labour

c) Capital

d) Raw material

 

Q2. Demand for milk, sugar, tea for making tea, is an example of

a) Composite demand

b) Derivative demand

c) Joint demand

d) Direct demand

 

Q3. Demand =desires+ ______________ + willingness to pay

a) Supply

b) Utility

c) Want

d) Purchasing power

 

Q4. Basic economic tools of managerial economics include

a) Opportunity cost principle

b) Incremental principle

c) Discounting principle

d) All of the above

 

Q5. Economics was classified into micro and macro by

a) Ragnar frisch

b) Adam smith

c) J m keynes

d) Ac pigou

 

Q6. Who is regarded as a father of business economics

a) Joel dean

b) Adam smith

c) J m keynes

d) Ragnar frisch

 

Q7. In the long run all input become ______________

a) Fixed

b) Variable

c) Semi variable

d) None of these

 

Q8. Automatic fiscal stabilizers

a) Keep the federal budget balanced

b) Keep the federal high employment budget balanced

c) Help to reduce the severity of recessions and inflationary boom periods

d) Increases structural deficits over the business cycle

e) Both c & d

 

Q9. According to partisan party model,

a) The primary emphasis of the liberal party is on full employment and income distribution.

b) The liberal party stresses price stability as their most important goat.

c) Employment stability is most important to the conservative party.

d) Only two parties exit.

e) Both a and d

 

Q10. Which of the following statements is(are) correct?

a) Even the earliest political business cycle and partisan models assume that expectations were rational

b) The partisan model of fiscal policy cannot be modified to be consistent with rational expectations

c) The myopic, or short-sighted behaviour of voters is inconsistent with rational expectations

d) The earliest political business cycle models assumed that expectations were always rational, whereas the partisan model assumed that expectations were sometimes irrational.

 

Q11. Assuming a simultaneous deduction in income taxes and transfer payments of $50 billion, then aggregate disposable income will

a) Be higher than before

b) Be lower than before

c) Remain constant

d) None of the above

 

Q12. Physiocrats give utmost importance to

a) Services

b) Industry

c) Agriculture

d) None of these

 

Q13. A fall in the price of a commodity whose demand curve is a rectangular hyperbola causes total expenditure on the commodity to:

a) Increases

b) Decrease

c) Remains unchanged

d) Any of the above

 

Q14. A consumer demand curve can be obtained from:

a) Icc

b) Engel curve

c) Lorence curve

d) Pcc

 

Q15. A usual assumption in real business cycle models is that the economy is populated by a group of identical individuals and the behavior of the group can then be explained in terms of the behavior of one individual, called a _____________________

a) Maximizing agent

b) Representative agent

c) Republican agent

d) Informative agent

e) Democratic agent

 

Q16. New keynesian would agree with all of the following except

a) Stabilization policy can reduce the severity of business cycles

b) Wages and prices are sticky

c) Markets are perfectly competitive

d) Market equilibrium is often suboptimal

 

Q17. In the real business cycle theory during a period when output is falling

a) Workers are voluntary giving up their jobs

b) The quantity supplied of labor is falling

c) All of the above

d) None of the above

 

Q18. The first nobel prize winner for economics was

a) Hicks

b) Myrdal

c) Samuelson

d) Turbergen

 

Q19. The equity of reserve bank of India in national housing bank is:

a) 49%

b) 51%

c) 71%

d) 100%

 

Q20. Which of the following is a better measure of economic development?

a) National income

b) Rural consumption

c) Size of exports

d) Employment

 

Part 12: Objective questions and answers of Business Economics

 

Q1. Answer c

 

Q2. Answer c

 

Q3. Answer d

 

Q4. Answer d

 

Q5. Answer a

 

Q6. Answer a

 

Q7. Answer b

 

Q8. Answer c

 

Q9. Answer e

 

Q10. Answer c

 

Q11. Answer c

 

Q12. Answer c

 

Q13. Answer c

 

Q14. Answer d

 

Q15. Answer b

 

Q16. Answer c

 

Q17. Answer d

 

Q18. Answer d

 

Q19. Answer d

 

Q20. Answer a

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