This quiz works best with JavaScript enabled. Home > Economics > Managerial Economics > Managerial Economics – Quiz 17 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Managerial Economics Quiz 17 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. If a rupee in hand is worth more than a rupee earned next year, this principle is A) Profitability. B) Discounting. C) Liquidity. D) Solvency. Show Answer Correct Answer: B) Discounting. 2. A ..... company needs to seek permission from SEBI A) Public. B) Private. Show Answer Correct Answer: A) Public. 3. Demand is determined by A) Price of the product. B) Relative prices of other goods. C) Tastes and habits. D) All of the above. Show Answer Correct Answer: D) All of the above. 4. A change in determinant will lead to a proportionately lesser change in demand or supply. A) Inelastic. B) Elastic. C) Unitary Elastic. D) Surplus. Show Answer Correct Answer: A) Inelastic. 5. Positive implicit costs imply that A) Economic costs will be more than accounting costs. B) Economic costs will be less than accounting costs. C) Economic profits will be same than accounting profits. D) Economic profits will be more than accounting profits. Show Answer Correct Answer: A) Economic costs will be more than accounting costs. 6. Statement 1:Capital management involves planning and controlling of expenses.Statement 2:Managerial economics is not merely important in capital management to identify the rate of return. A) Only statement 1 is correct. B) Only statement 2 is correct. C) Both statements are correct. D) Both statements are incorrect. Show Answer Correct Answer: A) Only statement 1 is correct. 7. Economics gives a ..... to any business organisation. A) Objective. B) Goals. C) Directions. D) None of above. Show Answer Correct Answer: C) Directions. 8. If marginal benefit is greater than the marginal cost, a rational choice involves A) Less of the activity. B) More of the activity. C) No more of the activity. D) Less or more depending on the benefits of other activities. Show Answer Correct Answer: B) More of the activity. 9. MC curve intersects AC curve at its ..... point and AVC curve at its ..... point. A) Maximum, minimum. B) Minimum, minimum. C) Minimum, Maximum. D) Maximum, maximum. Show Answer Correct Answer: B) Minimum, minimum. 10. When Akira went to the mall, she noticed that the Jumbo Hotdog price has increased which is out of her budget, so she decided to buy the other brand of product which is the Little Hotdog. A) Substitute Product. B) Compliment Product. C) Complementary Product. D) Inferior Product. Show Answer Correct Answer: A) Substitute Product. 11. ..... is the degree of responsiveness of supply to changes in the price of a good A) Elasticity of demand. B) Elasticity of supply. C) Both (a) & (b). D) None of them. Show Answer Correct Answer: B) Elasticity of supply. 12. If the income elasticity for calculator here in the Philippines is 0.6, a 60 percent increase in income will lead to a: A) 1 percent decrease in demand for calculator. B) 36 percent decrease in demand for calculator. C) 1 percent increase in demand for calculator. D) 36 percent increase in demand for calculator. Show Answer Correct Answer: D) 36 percent increase in demand for calculator. 13. In perfect competition A) AR B) AR=MR. C) AR>MR. D) None of above. Show Answer Correct Answer: B) AR=MR. 14. Total Utility can be calculated by ..... A) MUs. B) TUn-TUn-1. C) Aggregate of all utilities derived from all the units of the commodity consumed. D) Options 1 &3. Show Answer Correct Answer: C) Aggregate of all utilities derived from all the units of the commodity consumed. 15. Marginal Utility for a product ..... as the consumer consumes additional units of the commodity. A) Increases. B) Decreases. C) Maximizes. D) Remain Constant. Show Answer Correct Answer: A) Increases. 16. A 20 percent increase in the quantity of pizza demanded results from a 10 percent decline in itsprice. The price elasticity of demand for pizza is A) 2. B) 10. C) 0.5. D) 20. Show Answer Correct Answer: A) 2. 17. The ..... problem refers to the possibility that owners and their managers may have different objectives. A) Company-Manager problem. B) Principal-Agent Problem. C) Firm-Employee problem. D) Problem of different objectives. Show Answer Correct Answer: B) Principal-Agent Problem. 18. Which of the following is perfect example of complimentary products? A) Pen and paper. B) Shampoo and conditioner. C) Petrol and battery. D) Toothbrush and toothpaste. Show Answer Correct Answer: D) Toothbrush and toothpaste. 19. Area under MC curve is equal to: A) TVC. B) AFC. C) AVC. D) AC. Show Answer Correct Answer: A) TVC. 20. In Economics Utility Refers to ..... A) Profit or loss. B) Supply and demand. C) Inflation or deflation. D) Satisfaction or usefulness. Show Answer Correct Answer: D) Satisfaction or usefulness. ← 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