This quiz works best with JavaScript enabled. Home > Economics > Managerial Economics > Managerial Economics – Quiz 14 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Managerial Economics Quiz 14 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Macroeconomics applies to environmental or external issues. A) True. B) False. Show Answer Correct Answer: A) True. 2. The 'Law of Demand' states that there is an inverse relationship between the quantity demanded of a commodity and its price, other factors being constant. A) True. B) False. Show Answer Correct Answer: A) True. 3. When the own price elasticity is greater than 1 the demand is said to be A) Elastic. B) Inelastic. C) Unitary. D) Perfectly Elastic. Show Answer Correct Answer: A) Elastic. 4. Which of the following statements hold for factors of production in perfectly competitive market structure A) There are barriers to move across firms. B) Factors of production do not respond to changes in factor payments. C) There is mobility across firms. D) Payments to factors do not influence market price. Show Answer Correct Answer: C) There is mobility across firms. 5. Unlike an accountant, an economist measures costs on a(n) ..... basis. A) Replacement. B) Explicit. C) Historical. D) Conservative. Show Answer Correct Answer: B) Explicit. 6. The study of the movement from one equilibrium to another. A) Comparative Static Analysis. B) Market Analysis. C) Equilibrium Analysis. D) Comparative Equilibrium Analysis. Show Answer Correct Answer: A) Comparative Static Analysis. 7. Opportunity cost is defined as ..... A) Human wants are always greater than the available resources. B) Second best alternative that has to forgo for another choice which gives more satisfaction. C) A study of how people use their limited resources to satisfy their unlimited needs and desires. D) An individual, firm and government make decisions to choose from many alternatives. Show Answer Correct Answer: B) Second best alternative that has to forgo for another choice which gives more satisfaction. 8. In case of downward sloping straight line curve, the coefficient of elasticity at the intercept of the demand curve on the X-axis is equal to: A) Zero. B) More than one. C) One. D) Infinity. Show Answer Correct Answer: A) Zero. 9. When more units of a factor are employed for producing a commodity, the average product first ..... then ..... A) Falls, rises. B) Rises, falls. Show Answer Correct Answer: B) Rises, falls. 10. Income elasticity of demand for inferior good is ..... A) Positive. B) Negative. C) Neutral. D) All the above. Show Answer Correct Answer: B) Negative. 11. A product or service with an Price Elasticity of Demand (PED) less than (-)1 is demand: A) Inelastic. B) Elastic. C) Unit Elastic. D) This is not possible. Show Answer Correct Answer: A) Inelastic. 12. Net Profit is the excess of ..... over ..... A) Total Cost, Total Revenue. B) Gross Profit, (Depreciation + Tax). C) Total Revenue, (Depreciation + Tax). D) Total Revenue, Total Cost. Show Answer Correct Answer: B) Gross Profit, (Depreciation + Tax). 13. Suppose the price of beans rises from $ 1.00 a pound to $ 2.00 a pound, quantity falls from 10 units to 6 units. In this example, the demand for beans is said to be A) Relatively elastic. B) Perfectly elastic. C) Perfectly inelastic. D) Relatively inelastic. Show Answer Correct Answer: D) Relatively inelastic. 14. Father of Capitalism A) Adam Smith. B) Henry Foyal. C) Alfred Marshal. D) None. Show Answer Correct Answer: A) Adam Smith. 15. When Total Utility is maximum and Marginal Utility becomes Zero, ..... A) Consumer starts consuming the product. B) Consumer stops consuming the product. C) Consumer demand a product. D) Demand is equal to supply. Show Answer Correct Answer: A) Consumer starts consuming the product. 16. According to Douglas, Managerial Economics seeks to establish rules and principles to facilitate the attainment of the desired economic goals of management. A) True. B) False. Show Answer Correct Answer: A) True. 17. Illustration 1:Marginal Benefit = P95 > Marginal Costs = P50 YOU SHOULD BUY!Illustration 2:Marginal Benefit = P65 > Marginal Costs = P50 YOU SHOULD BUY! A) Illustration 1 is TRUE. B) Illustration 2 is TRUE. C) Both Statements are TRUE. D) Both Statements are FALSE. Show Answer Correct Answer: C) Both Statements are TRUE. 18. Managerial Economics is ..... in character A) Micro. B) Macro. C) Physical. D) Social. Show Answer Correct Answer: A) Micro. 19. Which among the following is not the characteristics of managerial economics? A) Micro economics. B) Not prescriptive. C) Pragmatic. D) Multidisciplinary. Show Answer Correct Answer: B) Not prescriptive. 20. The portion of the profit which is the right of the shareholders is ..... A) Free cash flows. B) Net cash flows. C) Nopat. D) Cash inflows. Show Answer Correct Answer: B) Net cash flows. ← 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