Managerial Economics MCQ

Test your knowledge with important Managerial Economics MCQ and their applications. These MCQs are beneficial for competitive exams too. Explore 30 + more Managerial Economics MCQs at Bissoy

• Marginal revenue will be zero if the elasticity of demand is
  ক

  Equal to zero

  খ

  Greater than one

  গ

  Equal to one

  ঘ

  Less than one
• When AR is falling, MR will be
  ক

  More than AR

  খ

  Less than AR

  গ

  Equal to AR

  ঘ

  Either more or equal to AR
• The elasticity of technical substitution is measured by
  ক

  The ratio of factor inputs

  খ

  The change in the slope of the Iso-quant

  গ

  The slope of the Iso-quant

  ঘ

  None of the above
• Marginal utility has no place in a ordinal theory because it is
  ক

  Not observable

  খ

  Subjective

  গ

  Introspective

  ঘ

  Additive
• A falling MU curve illustrates
  ক

  The principle of diminishing marginal utility

  খ

  The principle of equi-marginal utility

  গ

  The principle of diminishing marginal rate of substitution

  ঘ

  None of these
• On an indifference map, higher indifference curves show
  ক

  Levels of satisfaction among which the consumer is indifferent

  খ

  The optimum level of satisfaction

  গ

  The higher level of utility

  ঘ

  The same lower level of satisfaction
• Each short-run average cost curve coincides with long run cost curve
  ক

  At middle point

  খ

  At lower point

  গ

  At upper point

  ঘ

  No permanent position
• Which one of the following formula will be used for computing the price elasticity of demand?
  ক

  $$\frac{{\% {\text{ Change in quantity demanded}}}}{{\% {\text{ Change in price}}}}$$

  খ

  $$\frac{{\% {\text{ Change in price}}}}{{{\text{Cost}}}} \times 100$$

  গ

  $$\frac{{{\text{Change in quantity demanded}}}}{{{\text{Supply}}}} \times 100$$

  ঘ

  $$\frac{{{\text{National income}}}}{{{\text{Cost}}}} \times 100$$
• An economy that allocates resources through interaction of household demand and supply of all the firms is called
  ক

  market economy

  খ

  social economy

  গ

  business economy

  ঘ

  open economy
• The optimal output decision
  ক

  minimizes the average cost of production

  খ

  minimizes the marginal cost of production

  গ

  minimizes production costs

  ঘ

  is most consistent with managerial objectives
• With the expansion of output, the short-run average cost curve, beyond a point, starts rising because
  ক

  More production yields lower per unit price

  খ

  Average fixed cost increases sharply

  গ

  The law of variable proportions applies to short-run production

  ঘ

  Sales expenses become much larger
• Value of the firm can be defined as
  ক

  The present value of the firm's expected future net cash flows

  খ

  The present value of capital

  গ

  The future value of the firm's assets

  ঘ

  The future value of the firm's capital and cash
• GNP = ?
  ক

  Wages

  খ

  GDP + interest

  গ

  GDP + Net Factor Income from abroad

  ঘ

  GDP + Net Depreciation
• For the purpose of measuring national income in India, CSO has divided the whole of Indian Economy into how many sectors?
  ক

  10

  খ

  14

  গ

  20

  ঘ

  28
• Given the cost conditions
  ক

  Monopoly output will be higher and prices lower than under pure competition

  খ

  Monopoly output will be lower and price higher than under pure competition

  গ

  Monopoly output and price will be higher than under pure competition

  ঘ

  Monopoly output and price will be lower than under pure competition
• "The elasticity of demand may be defined as the percentage change in quantity demanded which would result from 1% change in price", is given by
  ক

  Boulding

  খ

  Cairncross

  গ

  Joan Robinson

  ঘ

  Marshall
• Calculate price elasticity of demand if<br>Q₁ = 4000       P₁ = Rs. 20<br>Q₂ = 5000       P₂ = Rs. 19
  ক

  Rs. 5

  খ

  Rs. 9

  গ

  Rs. 6

  ঘ

  Rs. 3
• If the firms under perfect competition have different costs, abnormal profits will be earned in the long run only by
  ক

  Marginal firm

  খ

  All the firms

  গ

  Intramarginal firms

  ঘ

  None of the firms
• Total utility curve is
  ক

  Concave to x-axis

  খ

  Concave or convex depending on situations

  গ

  Convex to x-axis

  ঘ

  Concave to y-axis
• In which market structure, a firm has no control over price of it's product?
  ক

  Monopoly

  খ

  Perfect competition

  গ

  Oligopoly

  ঘ

  Monopolistic competition
• A monopoly producer has
  ক

  Control over production but not price

  খ

  Control over production, price and con sumers

  গ

  Control neither on production nor on price

  ঘ

  Control over production as well as price
• One way the government can induce a monopolist to expand his output is by imposing
  ক

  A price floor that makes the monopolist raise his price

  খ

  A price ceiling that makes the monopo list lower his price

  গ

  A specific tax on the monopolist's output

  ঘ

  A heavy tax on the monopolist's profits
• Emperical evidence has shown that due to technological changes and 'learning by doing' trends, the shape of LAC curve has changed from
  ক

  U shaped to L shaped

  খ

  L shaped to U shaped

  গ

  Never changed

  ঘ

  None of these
• GNP can be calculated as
  ক

  GDP - Depreciation

  খ

  GDP + Net factor income from abroad

  গ

  GDP - Depreciation + Subsidies

  ঘ

  Wages + Interest + Rent
• Goods X and Y are perfect substitutes. A consumer's indifference curve for these commodities is represented by a/an
  ক

  upward sloping curve which is convex from below

  খ

  upward sloping straight line

  গ

  downward sloping curve which is convex to origin

  ঘ

  downward sloping straight line
• Inflation brings most benefit to which one of the following?
  ক

  Savings bank account holders

  খ

  Government pensioners

  গ

  Debtors

  ঘ

  Creditors
• "Labour and capital of the country acting on it's natural resources produce annually a certain net aggregate of commodities including services of the kinds. This is the true net annual income of the country" is given by
  ক

  Alfred Marshall

  খ

  J. M. Keynes

  গ

  Karl Marx

  ঘ

  Boulding
• Which one of the following is not studied in macro economics?
  ক

  General theory of employment, interest and money

  খ

  Market structure and pricing decision's

  গ

  Foreign trade

  ঘ

  Theories of economic growth
• Among the causes of inflation can be listed<br>1. slow growth in agricultural output<br>2. increasing non development expenditure of Government<br>3. rapid population growth<br>4. rapid growth of costly imports
  ক

  Both 1 and 2

  খ

  Both 2 and 3

  গ

  Both 1 and 4

  ঘ

  All of the above
• A rightwards shift in supply curve indicates
  ক

  An increase in quality supplied

  খ

  A decrease in supply

  গ

  An increase in supply

  ঘ

  None of the above