Managerial Economics and Financial Analysis Mid - I, September - 2014

1.When economists speak of the utility of a certain good, they are referring to
  • The demand for the good.
  • The usefulness of the good in consumption.
  • The satisfaction gained from consuming the good.
  • The rate at which consumers are willing to exchange one good for another.
Answer: C
2.Which of the following is an example of substitutes?
  • Tea and sugar
  • Tea and coffee
  • pen and ink
  • Car and petrol.
Answer: B
3.Responsiveness or Sensitiveness of demand to the change in any one of the determinants of demand is __________.
  • Elasticity of demand
  • Price elasticity
  • Income elasticity
  • Cross elasticity
Answer: A
4._________ goods hold negative income elasticity of demand.
  • Inferior goods
  • Luxury goods
  • Superior goods
  • Necessities.
Answer: A
5.Which of the following is not a demand forecasting method?
  • Time series
  • Moving Averages method
  • Simultaneous equation method
  • Static approach
Answer: D
6.In Cobb-Douglas production function “L” refers to
  • Capital
  • Labour
  • Land
  • Organisation
Answer: B
7.When fixed cost is Rs.15,000 and P/V ratio is 50%, the break-even point will be
  • Rs.30,000
  • Rs.60,000
  • Rs.40,000
  • Rs.50,000
Answer: A
8._________ is the earnings foregone for not selecting the next best alternative.
  • Opportunity cost
  • Absolute cost
  • Sunk cost
  • Incremental cost
Answer: A
9.If there are two buyers existing in the market it is called
  • Monopoly
  • Duopoly
  • Oligopoly
  • Duopsony
Answer: D
10.Variable cost per unit
  • Remains fixed
  • Fluctuates with the volume of production
  • Varies with the volume of sales
  • None
Answer: B
11.The statements that state how one should behave in a given context are called ________statements.
Answer: Normative
12.Every want supported by willingness and ability to pay constitutes _____________for a particular product or service.
Answer: Demand
13.A Product with no substitute enjoys ____________ demand.
Answer: Inelastic
14.The locus of different combinations of inputs, which yield same output, is _____________
Answer: Isoquant
15.The angle formed at BEP is called _____________________
Answer: Angle of incidence
16.A market where large number of buyers and sellers dealing in homogenous product with perfect knowledge is called ___________________
Answer: Perfect competition
17._______________refers to the practice of selling the same product at different price to different buyers.
Answer: Price discrimination
18.Margin of safety = __________________________
Answer: Total sales – Break even sales
19.The seller/firm is a ___________________ in Monopoly.
Answer: Price Maker
20.Imputed costs are also called as ___________________
Answer: Implicit or impocket costs