This quiz works best with JavaScript enabled. Home > Economics > Managerial Economics > Managerial Economics – Quiz 12 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Managerial Economics Quiz 12 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Microeconomics applies to operational or internal issues. A) True. B) False. Show Answer Correct Answer: A) True. 2. Intermediaries A) Micro. B) Macro. Show Answer Correct Answer: A) Micro. 3. The purpose of the use of Managerial Economics principles in a firm is to answer the three basic economic problems. Except ..... A) What to produce?. B) How to produce?. C) For whom to produce. D) What are the needs and wants of the people?. Show Answer Correct Answer: D) What are the needs and wants of the people?. 4. The movement from one indifference curve to another that results from the change in real income caused by a price change. A) Income Effect. B) Substitution Effect. C) Total Effect. D) Inferior Effect. Show Answer Correct Answer: A) Income Effect. 5. When demand is inelastic: A) A price increase (decrease) leads to a decrease (increase) in total revenue. B) Total revenue is maximized. C) A price increase (decrease) leads to an increase (decrease) in total revenue. D) Total revenue is minimized. Show Answer Correct Answer: C) A price increase (decrease) leads to an increase (decrease) in total revenue. 6. In the equation, we have:est. sales = 15.15 + 2.50OC + etStandard error (3.99) (0.13) T-statistic (? ) (? ) R2 = 97.10% n = 10, 0.05What is the value of t statistic for the slope parameter? A) 19.24. B) 20.23. C) 20.24. D) 19.23. Show Answer Correct Answer: D) 19.23. 7. If the optimal level of Q is 5, Find the marginal benefit of the given below:200-40Q A) 20. B) -0. C) 0. D) 40. Show Answer Correct Answer: C) 0. 8. The cost curve, which is inversely S-shaped is: A) Average cost curve. B) Total fixed cost curve. C) Total variable cost curve. D) Marginal cost curve. Show Answer Correct Answer: C) Total variable cost curve. 9. The sustainability of industry profits also depends on the nature and intensity among firms competing in the industry A) Power of buyers. B) Industry Rivalry. C) Power of suppliers. D) Threat Substitutes and Complements. Show Answer Correct Answer: B) Industry Rivalry. 10. According to law of demand, when price reduces, demand ..... A) Increases. B) Fluctuates. C) Remains constant. D) Decreases. Show Answer Correct Answer: A) Increases. 11. Which of the following is the best example of "what goods and services should be produced?" A) The use of a capital intensive versus a labor intensive process of manufacturing textiles. B) The production of SUVs versus the production of sub-compact cars. C) The manufacturing of computer workstations in China or in India. D) The leasing versus the purchasing of new capital equipment. Show Answer Correct Answer: B) The production of SUVs versus the production of sub-compact cars. 12. An input should be so allocated that the value added by the last unit is the same in all cases. A) Opportunity cost principle. B) Equi-marginal principle. C) Incremental principle. D) Discounting principle. Show Answer Correct Answer: B) Equi-marginal principle. 13. A 5% fall in the price of X leads to a 10% rise in its demand. In case of Good Y, a 2% rice in price leads to a 6% fall in its demand. In the given case, ..... is more elastic. A) X. B) Y. C) Both X and Y are equally elastic. D) Both X and Y are inelastic. Show Answer Correct Answer: B) Y. 14. The demand curve will have a downward slope indicating: A) The expansion of demand with a fall in price and contraction of demand with a rise in price. B) The expansion of demand with a fall in price. C) Contraction of demand with a rise in price. D) Rise in price causes a rise in supply. Show Answer Correct Answer: A) The expansion of demand with a fall in price and contraction of demand with a rise in price. 15. In the text, the key question in the "economics of a business" is A) Whether the need to grow revenues is being met. B) Should the firm be in the business in which it is operating. C) Whether the firm faces rising labor costs. D) Can the firm affect its market share. Show Answer Correct Answer: B) Should the firm be in the business in which it is operating. 16. If demand for a product decreases as income increases, it is called ..... A) Positive income relative demand. B) Negative income relative demand. C) Zero income relative demand. D) All. Show Answer Correct Answer: B) Negative income relative demand. 17. Which is not covered under the subject of managerial economics economics? A) Accounting Theory. B) Production Analysis. C) Demand Analysis. D) Cost analysis. Show Answer Correct Answer: A) Accounting Theory. 18. Demand ..... when price of complimentry product increases A) Increases. B) Fluctuates. C) Decreases. D) Remains the same. Show Answer Correct Answer: C) Decreases. 19. Revenue is the total monetary value of the goods or services sold. A) True. B) False. Show Answer Correct Answer: A) True. 20. ..... is the primary function of economics. A) Financial study. B) Maintaining rules. C) Controlling on staff. D) None of above. Show Answer Correct Answer: A) Financial study. ← PreviousNext →Related QuizzesEconomics QuizzesManagerial Economics Quiz 1Managerial Economics Quiz 2Managerial Economics Quiz 3Managerial Economics Quiz 4Managerial Economics Quiz 5Managerial Economics Quiz 6Managerial Economics Quiz 7Managerial Economics Quiz 8Managerial Economics Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books