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

1.Managerial Economics as a subject gained popularity first in ___.
  • U.S.A
  • Germany
  • India
  • England
Answer: A
2.Which areas are covered by the subject “Managerial Economics”.
  • Operational & Environmental issues
  • Environmental issues
  • Operational issues
  • None
Answer: A
3.Demand Curve always ___________ sloping.
  • Positive
  • Straight line
  • Vertical
  • Negative
Answer: D
4.The other name of inferior goods is ___________ .
  • Veblean goods
  • Necessaries
  • Giffen goods
  • Diamonds
Answer: C
5.Congregation of body of persons assembling together to work at a certain time and place is called as______
  • Firm
  • Plant
  • Industry
  • Size
Answer: B
6.When proportionate increase in all inputs results in an equal Proportionate increase in output, then we call __________.
  • Increasing Returns to Scale
  • Constant Returns to Scale
  • Decreasing Returns to Scale
  • None
Answer: B
7.A market where large number of buyers and sellers dealing in Homogeneous product with perfect knowledge is called
  • Imperfect competition
  • Monopoly
  • Perfect competition
  • Monopolistic competition
Answer: C
8.If monopoly arises on account of legal support or as a matter of legal Privilege, it is called as
  • Private monopoly
  • Government monopoly
  • Single price monopoly
  • Legal monopoly
Answer: D
9.What is the formula for Break-Even Point in Units?
  • Contribution / Selling Price per unit
  • Variable cost / Contribution per unit
  • Fixed cost / Contribution per unit
  • Variable cost / Selling Price per unit
Answer: C
10.__________ is a position where the firm has no incentive either to expand or contrast its output.
  • Maximum output
  • Equilibrium
  • Minimum output
  • None
Answer: B
11._____________________________ is an exception to the law of demand.
Answer: The Giffen Good Or Inferior Good
12.Government policy affects the demands for commodities through _____________
Answer: Taxation
13.When PE = (Price Elasticity of Demand is infinite), we call it ______________ .
Answer: Perfectly Elastic
14.What is the formula for Price Elasticity of Demand?
Answer: (% Of Change In The Demand) / (% Of Change In The Price)
15.When producer secures maximum output with the least cost combination Of factors of production, it is known as ___________
Answer: Producer’s Equilibrium
16.Conversion of inputs in to output is called as ____________________.
Answer: Production
17.The Price determined in the very short period is known as ____________.
Answer: Market Price
18.___________ is a place in which goods and services are bought and sold.
Answer: Market
19.________ costs are the costs, which varies with the level of output.
Answer: Variable
20.The total supply of a good is produced by a single private person or Firm is called as __________.
Answer: Private Monopoly