S.no Question Subject : Managerial Economics 1 What are the important concepts of an economic system? OpationA Distribution of goods and services OptionB Production of goods and services OptionC Quantity of goods and services produced OptionD Production possibility frontier and opportunity cost 2 Which of the following is a type of economic system in which the trading and exchange of goods and services and information takes place in a free market? Market economy Command economy Product economy Demand economy 3 4 Which of the following is not scarce resource for individual? Which of the following is not a scarce resource for a country? Money Capital Capital Technology Time Labour force Skill Time 5 Which of the following are those goods whose demand decrease as the income of the consumer increases? The Engel Curve Price Effect Inferior goods Income Consumption Curve 6 Which of the following is the concept between our limited resource and unlimited want and it is different for both individual and for country? Which of the following types of economics describe economic behaviours without any value judgment? Scarcity Abundance Limitation Necessity 7 Normative economics Demand economy Market Economy Positive economics 8 Which of the following may be defined as the total change in the quantity consumed of a commodity due to a change in its price? Price-Effect The Engel Curve Inferior goods Income-Consumption Curve (ICC) Which of the following will lead to decrease in quantity demand and increase in price? Increase in demand Decrease in supply Demand remain same Decrease in demand 10 In which of the following demand does not change with change in time? Perfect Elastic Demand Perfect Inelastic Demand Inelastic Demand Elastic Demand 11 Which one of the following is the main goal of Price Floor? Government will be paid by supplier in terms of tax Consumer will be paid by Government Sufficient income to certain group of producers Supplier will be paid by consumer 12 Which of the following approaches to utility theory? Cardinal and ordinal approach Systematic and unsystematic approach Fundamental and sequential approach Constant and variable approach 13 Which of the following entities is a part of Marginal Utility? Change in satisfaction level Change in total utility Change in demand curve Quantity demand 14 Which of the following is the aggregate of some of the satisfaction or benefits that the individual gains by consuming given amount of goods and services in an economy? Budget constrain Average Production Marginal utility Total utility 15 Which of the following occurs if the total utility will be maximum? Marginal utility will increase Marginal utility will decrease Marginal utility will zero Average utility will increase 16 Which of the following is an abstract concept rather than a concrete, observable quantity? Marginal utility Law of Diminishing Marginal Utility Utility Law of Diminishing Marginal Return 17 Which of the following is the money value of the additional output generated by an extra unit of input? Marginal Demand Product Marginal Cost Product Marginal Revenue Product Marginal Supply Product 18 Which is not a key element for labor supply? Hours worked Immigration Family Labour force participation 19 Which of the following refers to the number of hours that the population desires to work in gainful activities? Demand activities Demand supply Labour activities Labour supply 20 Which factor leads to rise in marginal productivity of labor? Better work environment Better monetary gains Better work teams Better capital goods 21 What determines the wages and fringe benefits of unionised workers? Collected bargaining Collected gains Collected wages Unions 22 Which is one of the technique to determine extent of discrimination? Aggression analysis Discrimination analysis Gender bias Regression analysis 23 Which of the trade is the exchange of goods and services between countries? Barrier trade No-trade Multilateral trade International trade 24 Which of the following is not an argument for protectionism? The infant argument Distortion in the labor market Quota Optimum tariff argument 25 Which of the following are usually associated with protectionism, the economic policy of restraining trade between nations? Quotas Tariffs Goods Trade 26 What are the tools of government policy? Taxes, income, progress Taxes, expenditure, progress Expenditure, taxes, entrepreneurship Taxes, expenditure, regulation 27 Which of the following is not an objective of regulating business? 28 Which among the following is not amongst the functions of government to regulate the economy? Prevent the market structure from becoming monopolistic Conducting international economic policy Promote welfare of weaker sections of the society Reducing economic inequality Flourish small and new entrepreneurs Improving economic efficiency 29 Which of the following is levied by municipal or local authority? Service tax Income tax Hand economic powers to leading businesses Stabilising the economy through microeconomic policies Corporate income tax 30 Which is not the objective of classification of general expenditure? Public satisfaction Financial control Economic growth Estimation of revenues and expenditure 31 Economics, also called ________ , is an in-depth study of certain aspects of society. dismal science dismal economics economy physiological study 32 ___________ is concerned with total output of a nation and the way that nation allocates its limited resources of land, labour and capital in an efficient way stock of resources for future course action. Microeconomics Macroeconomics Market economy Opportunity cost 33 _________ is the value of what is given up in order to have something else. Economy cost Opportunity cost Market cost Product cost 34 An economy which is controlled by the government is called_________________. Product economy Demand economy Market economy Command economy 35 _______________ may be defined as the locus of points representing various equilibrium quantities of two commodities consumed by a at different levels of income. 36 consumer In economics, the relationship between price and quantity is called as ___________. The Engel Curve Income-Consumption Curve (ICC) Inferior goods Price-Effect Law of demand Law of supply Law of command Law of Economics 37 The rate of quantity demanded due to price change is called _____________. Price Elasticity Price Elasticity of Supply Price Elasticity of Demand Price Inelasticity 38 An expenditure that has already been made and cannot be recovered is called a __________. lost cost profit cost sunk cost real cost 39 _________ maximisation is always based on Marginal Decision Rule. Profit Demand Supply Human resource 40 _____________ shows the relationship between consumer’s income and his money expenditure on a particular good. Income-Consumption Curve (ICC) Inferior goods The Engel Curve Price-Effect 41 A ___________ is one which people consume more of as price rises. giffen good substitute good complement good normal good 42 A person consumes five units of commodity and derives U1, U2, U3, U4 and U5 utility from the successiveunits of goods, the total utility will be __________. 43 The additional satisfaction or amount of utility gained from each extra unit of consumption, is called _________. U1 + U2 – U3 + U4 + U5 U1- U3 + U2 – U4 + U5 U1 – U4 + U2 + U3 + U5 U1 + U2 + U3 + U4 + U5 marginal utility total utility average utility utility theory 44 The utility gained by spending an additional rupee on good x is _______. MUx / Px ΔQ / ΔP ΔU / ΔP Pa / Mua 45 _________states that, “if the price of one factor rises while other factor prices remain fixed, the firm will profit from substituting more of the other inputs for the more expensive factor.” 46 The________ studies how income is determined in an economy. Least-cost rule Substitution rule Marginal revenue product Income distribution theory theory of demand theory of production theory of income distribution theory of supply 47 MRP schedule for an input, we can determine the relationship between the __________ of the input and the quantity demanded of that 48 input. Marginal revenue product represents the additional ______ that a firm earns from using an additional unit of an input, with other inputs constant 49 held The money collected through tax is spent or given away by the government through ______ that are not made in return for current goods or services. 50 Wealth is a stock while income is a flow per unit of _________. quality price supply demand demand resource output revenue social service insurance transfer payments subsidies dollar time rupee capital 51 _________of a factor reveals the demand for that factor . Marginal revenue productivity Marginal revenue product Marginal revenue price Marginal revenue production 52 By the law of diminishing returns, each additional unit of labor input will add a _______________. smaller slab of output larger slab of outputs larger slab of returns smaller slab of output 53 The relative ______________________ of demand of both countries will determine gains from trade. production and efficiency strength and efficiency strength and elasticity production and elasticity 54 According to __________, labor is the only source of value of goods. David Raymond Haykins David Ricardo Simpson 55 A quota is a direct restriction on the total quantity of a good or service that may be _______ during a specified period. exported imported restricted traded 56 The imposition of trade barriers such as tariffs ______________ the equilibrium price and reduces the equilibrium quantity of the restricted maintains good. 57 Direct Tax incentives taxes do not include ________. maintains reduces raise Capital gains tax Customs duty Personal income tax 58 Securities transaction tax is a part of _____________. Direct taxes Tax levied by state government Tax levied by local body Indirect taxes 59 The decision whether the consumer or producer will pay the price of new tax is stated by ___________________. tax incidence tax benefit tax evasion public choice theory 60 As per Malthus, the problem of over population would be overcome by_____________. natural calamities and diseases technological innovations efficient use of resources ending population growth 61 Income of consumer refers to the subjective choice of a consumer. TRUE FALSE 62 TRUE FALSE 63 When PPF shifts outward, then we know that there is a decline in economy. TRUE FALSE 64 An economy producing on the PPF curve is more practical than theoretical. TRUE FALSE 65 Command economy is a free economy. TRUE 66 Demand is more when the price is more. TRUE FALSE FALSE 67 Microeconomics is more specific in its approach and is concerned with individuals and firms within the economy. TRUE FALSE 68 Human wants are unlimited but the means or resources to satisfy these wants are limited or scarce. TRUE FALSE 69 Law of Demand is applicable to Giffen goods. TRUE FALSE 70 Monopoly Firm takes the market price. TRUE FALSE 9 Two basic concepts of economics are Production Possibility Frontier and Opportunity Cost. Property tax
