Managerial Economics and Financial Analysis Mid - I, February - 2012

1.Integration of economic theory with business practice is called
  • Managerial economics
  • Economics
  • Macro economics
  • Micro economics
Answer: A
2.If the income elasticity is positive and greater than one, it is a
  • Necessity
  • Inferior good
  • Normal good
  • Superior good
Answer: D
3.The market demand for a given marketing effort is called
  • Estimated demand
  • Market potential
  • Market structure
  • Law of demand
Answer: A
4.The law of returns is also called as
  • Law of fixed proportions
  • Law of variable proportions
  • Law of constant returns
  • Law of increasing returns
Answer: B
5.The difference between the total revenue and total cost is called ____________
  • Cost of production
  • Cost of capital
  • Profit
  • Capital
Answer: C
6.Short run cost curves are called
  • Operating curves
  • Fixed curves
  • Variable curves
  • Planning curves
Answer: A
7.Which of the following level of production denotes break even point?
  • Minimum
  • Maximum
  • Constant
  • Diminishing
Answer: A
8.A monopolist can either control the price or ________________ but not both?
  • Cost
  • Output
  • Input
  • profit
Answer: B
9.Based on the number of buyers, imperfect markets can be classified as
  • Monopoly
  • Duopoly
  • Oligopsony
  • Monopolisitic competition
Answer: C
10.Price discrimination is also called as
  • Standard pricing
  • Preferential pricing
  • Differential pricing
  • None of the above
Answer: C
11.Managerial economics is concerned with _________________ behavior of firms
Answer: Economic
12.An extension is the _________________ movement along a demand curve
Answer: Downward
13.A group of firms carrying an similar activity is called ________________.
Answer: Industry
14.The elasticity between two separate points of demand curve is called ______________ elasticity.
Answer: Arc
15.When part data is arranged chronologically _________________ emerge.
Answer: Time series
16.Returns to scale are also called _______________________
Answer: Factor productivities
17.The economies that accrue to all the firms in an industrial estate are called ________________
Answer: External economics
18.Implicit or imputed costs are also called ___________________
Answer: Book costs
19.When variable cost decreases , the BEP____________________
Answer: Decreases
20.Tenders are based on ____________________ method of pricing.
Answer: Sealed bid