This quiz works best with JavaScript enabled. Home > Economics > Managerial Economics > Managerial Economics – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Managerial Economics Quiz 2 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following documents deals with the relation with outside world? A) Memorandum of association. B) Articles of association. C) Prospectus. D) None of above. Show Answer Correct Answer: A) Memorandum of association. 2. What effect does ad spending have on sales in general? A) Grows. B) Decreases. C) Remains constant. D) All. Show Answer Correct Answer: A) Grows. 3. It refers to the process of direct utilization of goods and services by the household sector, business sector and the rest of the world. A) Production. B) Distribution. C) Consumption. D) Exchange. Show Answer Correct Answer: C) Consumption. 4. POPULATION OF INDIA IN 2011 CENSUS A) 121.08. B) 130.87. C) 120.00. D) 130.87. Show Answer Correct Answer: A) 121.08. 5. In cobb doglas production function, a is A) Constant. B) Elasticity of production. C) Coefficient of determination. D) None of above. Show Answer Correct Answer: B) Elasticity of production. 6. Which of the following is NOT included as the major forms of elasticity? A) Price elasticity. B) Income elasticity. C) Cross-price elasticity. D) Expense elasticity. Show Answer Correct Answer: D) Expense elasticity. 7. Statement 1:Managerial Economics covers both micro and macro economics.Statement 2:All economic theories, tools and concepts are covered under the scope of managerial economics to analyze business environment. 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: C) Both statements are correct. 8. ..... states that an input should be allocated in such a way that the value added by the last unit is the same in all the units. A) Equi-marginal principle. B) Isoquants. C) Law of variable proportion. D) Utility analysis. Show Answer Correct Answer: A) Equi-marginal principle. 9. Managerial economics guides the managers in taking decisions relating to the firm's customers, competitors, and suppliers as well as relating to the internal functioning of a firm. A) True. B) False. Show Answer Correct Answer: A) True. 10. To an economist, maximizing profit is: A) Maximizing the value of the firm. B) Maximizing the current year's profits. C) Minimizing the permanent total costs. D) Minimizing the future risks. Show Answer Correct Answer: A) Maximizing the value of the firm. 11. If goods A and B are complements, A) The cross elasticity of demand between A and B is negative. B) The cross elasticity of demand between A and B is positive. C) Their income elasticities of demand are both less than 1. D) Their income elasticities of demand are both greater than 1. Show Answer Correct Answer: A) The cross elasticity of demand between A and B is negative. 12. Characteristics of Managerial Economics that concerned with what management should do under particular circumstances A) Normative economics. B) Positive Economics. C) Profit Management. D) Capital Management. Show Answer Correct Answer: A) Normative economics. 13. If the quantity demanded of a commodity is unresponsive to change in prices, then the demand of that commodity is ..... A) Volatile. B) Responsive. C) Elastic. D) Inelastic. Show Answer Correct Answer: D) Inelastic. 14. *Managerial Economics assists the managers of a firm in rational forecasting of demand and supply and solving obstacles faced in the firm's activities. A) True. B) False. Show Answer Correct Answer: A) True. 15. Demand means what? A) Desire to acquire the object. B) Purchasing power. C) Willing to pay the price. D) All. Show Answer Correct Answer: D) All. 16. Find the shortage when the price ceiling is $ 1.50. A) 2 + 5 =-7 units. B) 5-7 =-2 units. C) 7-5 = 2 units. D) 2 + 5 = 7 units. Show Answer Correct Answer: C) 7-5 = 2 units. 17. The formula for quantity demand is Qd = 10-1P A) True. B) False. Show Answer Correct Answer: B) False. 18. According to the law of demand, what is the relationship between price and demand when other variables are constant? A) Straight. B) Adverse. C) Steady. D) None of these. Show Answer Correct Answer: B) Adverse. 19. How many types of dumping are there? A) 2. B) 6. C) 5. D) 4. Show Answer Correct Answer: D) 4. 20. Which of the following markets comes closes to the model of perfect competition? A) Automobile industry. B) Agriculture. C) Aerospace industry. D) Information technology industry. Show Answer Correct Answer: B) Agriculture. ← PreviousNext →Related QuizzesEconomics QuizzesManagerial Economics Quiz 1Managerial Economics Quiz 3Managerial Economics Quiz 4Managerial Economics Quiz 5Managerial Economics Quiz 6Managerial Economics Quiz 7Managerial Economics Quiz 8Managerial Economics Quiz 9Managerial Economics Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books