MCQ on Managerial Economics 5

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Objective Questions and Answers of MBA: MCQ on Managerial Economics 5

Subject: MCQ on Managerial Economics 5

Part 5: List for questions and answers of Managerial Economics

 

Q1. In a monopoly market, an upward shift in the market demand results in a new equilibrium with

a) A higher quantity and a lower price

b) A higher quantity and the same price

c) A higher quantity and higher price

d) All the above

 

Q2. Government regulation is important because government

a) uses scarce resources

b) Regulation reduces public-sector employment

c) Produces most of society’s services output

d) Produces most of society’s material output

 

Q3. Price control is one of the monopoly regulations which is most advantageous for

a) The government

b) The consumer

c) The producer

d) The seller

 

Q4. When the units of factor increases, marginal revenue productivity of a factor

a) Will fall or diminish

b) Will have no change

c) Will rise or increase

d) None of the above

 

Q5. In the case of an inferior good, the income effect

a) Partially offsets the substitution effect

b) Is equal to the substitution effect

c) Reinforces the substitution effect

d) More than offsets the substitution effect

 

Q6. Isoquant refers to

a) An equal quantity curve of a consumer

b) The production indifference curve

c) Another name of indifference curve

d) An equal cost curve of a producer 

 

Q7. Under the perfect competition, the transportation cost

a) Is considered to be negligible and thus, ignored

b) Is charged along with the price of the commodity

c) Is considered to be vital for the calculation of total cost

d) Excluded from the prime cost

 

Q8. If a demand curve exhibits unit elasticity for all prices, the MR curve

a) Is identical with it

b) Lies below the demand curve

c) Is identical with the X-axis

d) Is identical with the Y-axis

 

Q9. Which is the best definition of the marginal firm?

a) The firm with lowest costs

b) The firm with the large profit

c) The firm which makes only normal profit

d) The firm which equates its marginal costs with marginal revenue

 

Q10. The share of revenues paid to suppliers does not depend upon

a) Relative productivity

b) Resource scarcity

c) Input market competition

d) output market competition

 

Q11. Demand is determined by

a) Price of the product

b) Relative prices of other goods

c) Tastes and habits

d) All of the above

 

Q12. When a firm’s average revenue is equal to its average cost, it gets

a) Super profit

b) Normal profit

c) Sub normal profit

d) None of the above 

 

Q13. Managerial economics generally refers to the integration of economic theory with business

a) Ethics

b) Management

c) Practice

d) All of the above

 

Q14. Given the price, if the cost of production increases because of higher price of raw materials, the supply

a) Decreases

b) Increases

c) Remains same

d) Any of the above

 

Q15. The cost recorded in the books of accounts are considered as

a) Total cost

b) Marginal cost

c) Average cost

d) Explicit cost

 

Q16. A Joint Stock Company is managed by the Board of Directors elected by

a) Top management

b) Shareholders

c) Employees of company

d) None of the above

 

Q17. Under ______, price is determined by the interaction of total demand and total supply in the market

a) Perfect competition

b) Monopoly

c) Imperfect competition

d) All of the above

 

Q18. Under perfect competition, price is determined by the interaction of total demand and

a) Total supply

b) Total cost

c) Total utility

d) Total production 

 

Q19. The out of pocket costs are

a) Sunk costs

b) Marginal costs

c) Explicit costs

d) Social costs

 

Q20. The short run Average Cost curve is __ shaped

a) V

b) U

c) L

d) Any of the above

 

Part 5: List for questions and answers of Managerial Economics

 

Q1. Answer:d

Q2. Answer:a

Q3. Answer:b

Q4. Answer:a

Q5. Answer:a

Q6. Answer:b

Q7. Answer:a

Q8. Answer:c

Q9. Answer:c

Q10. Answer:d

Q11. Answer:d

Q12. Answer:b

Q13. Answer:c

Q14. Answer:a

Q15. Answer:d

Q16. Answer:b

Q17. Answer:a

Q18. Answer:a

Q19. Answer:b

Q20. Answer:b