Q1. The change in demand due to change in price only, where other factors remaining constant, it is called ______________

a) Shift in demand

b) Extension of demand

c) Contraction of demand

d) Both extension and contraction

Q2. ______________ means relationship between demand and its various determinants expressed mathematically

a) Demand extension

b) Demand contraction

c) Demand analysis

d) Demand function

Q3. In the case of ______________ a small change in price leads to very big change in quantity demanded

a) Perfectly elastic demand

b) Perfectly inelastic demand

c) Relative elastic demand

d) Unit elastic demand

Q4. in the case of perfect inelasticity, the demand curve is

a) Vertical

b) Horizontal

c) Flat

d) Steep

Q5. Pricing is done on the basis of managerial decisions, not on the basis of cost, demand etc…

a) Managerial pricing

c) Full cost pricing

d) Competitive pricing

Q6. The products under monopolistic competition are

a) Differentiated with close substitute

b) Perfect substitute

c) Differentiated without close substitute

d) Homogeneous

Q7. 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 increasing

b) Situation of constant returns

c) Fixed cost

d) Variable cost

Q8. Whenever marginal cost is more than ______________ average total cost is falling:

a) Average total revenue

b) Average total cost

c) Average profit

d) All of these

Q9. The "law of variable proportion" is first explained by

a) Edward west

b) Marshall

c) Veblen

d) Keynes

Q10. Which of the following is a short run law?

c) Law of diminishing return

d) None of these

Q11. In perfect completion, a firm is a

a) Price maker

b) Price taker

c) Both of the above

d) None of these

Q12. The famous book on economics “An Enquiry into the Nature and Cause of Wealth of Nation” was Written by

a) Alfred Marshall

c) J M Keynes

d) ACPigou

Q13. The author of the book "The General Theory of Employment, Interest and Money"

a) Alfred Marshall

c) J M Keynes

d) ACPigou

Q14. Managerial economics is also called

a) Micro economics

b) Theory of the firm

c) Economics of the firm

d) All of the above

Q15. The demand has three essentials-Desire, Purchasing power and ______________

a) Quantity

b) Cash

c) Supply

d) Willingness to purchase

Q16. Perfect elasticity is known as

a) Finite elastic

b) Infinite elastic

c) Unitary elastic

d) Zero elastic

Q17. Tools and techniques for demand estimation includes;

a) Consumer surveys.

b) consumer clinics and focus groups

c) Market Experiment

d) All of the above

Q18. Under the Marginal cost pricing, the price is determined on the basis of;

a) Fixed cost

b) Variable cost

c) Total cost

d) Average cost

Q19. The implication of the kinked demand curve is reflected in a discontinuity in the:

a) Marginal revenue curve

b) Marginal cost curve

c) Total revenue curve

d) Total cost curve

Q20. Price discrimination occurs when variation in prices for a product in different markets does not reflect variation?

a) Costs

b) Price

c) Demand

d) All of these