This quiz works best with JavaScript enabled. Home > Economics > Managerial Economics > Managerial Economics – Quiz 22 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Managerial Economics Quiz 22 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Managerial economics is concerned with finding the solutions for different managerial problems of a particular firm. A) True. B) False. Show Answer Correct Answer: A) True. 2. Economic problem generally arises due to which of the following elements? A) Limited wants, means and alternative uses of those means. B) Unlimited wants, means and alternative uses of those means. C) Unlimited wants, Limited means and alternative uses of these scarce means. D) Unlimited wants, Limited means and only one use for these means. Show Answer Correct Answer: C) Unlimited wants, Limited means and alternative uses of these scarce means. 3. A market structure in which a single firm serves an entire market for a good that has no close substitutes is called A) Monopoly. B) Oligopoly. C) Duopoly. D) Monopsony. Show Answer Correct Answer: A) Monopoly. 4. Microeconomics and managerial economics both encourage the use of quantitative methods to analyze economic data A) True. B) False. Show Answer Correct Answer: A) True. 5. When the budget line is tangential to any of the indifference curves, it leads to A) Consumer surplus. B) Consumer equilibrium. C) Indifference curves. D) Elasticity. Show Answer Correct Answer: B) Consumer equilibrium. 6. If a manager wants to increase the price of the product due to increase in cost of production, he should analyze the price elasticity of demand for that product so that price rise is not followed by substantial fall in the demand of the product. A) True. B) False. Show Answer Correct Answer: A) True. 7. Managerial Economics' can help Managers as it is an 'amalgamation of economic theory with business practices to ease decision-making and future planning by management. A) True. B) False. Show Answer Correct Answer: A) True. 8. If the income elasticity of a particular good is negative 0.2, it would be considered A) An inferior good. B) A superior good. C) A normal good. D) An elastic good. Show Answer Correct Answer: A) An inferior good. 9. Customers should not re-sell the goods from the cheaper market to A) The dearer one. B) The nearer one. C) The neighbouring one. D) Noneof the above. Show Answer Correct Answer: A) The dearer one. 10. The movement along a given indifference curve that results from a change in the relative prices of goods, holding real income constant. A) Income Effect. B) Substitution Effect. C) Total Effect. D) Inferior Effect. Show Answer Correct Answer: B) Substitution Effect. 11. According to the theory of Distribution, factors of production namely Land, Labor, Capital and Organization get their respective rewards in the form of ..... A) Interest, Wages, Rent. B) Rent, Wages, Profit. C) Rent, Wages, Interest, Profit. D) Wealth, Rent, Wages, Interest. Show Answer Correct Answer: C) Rent, Wages, Interest, Profit. 12. What is Elasticity of supply? A) Responsiveness of supply to changes in price. B) Rate of change in price. C) Rate of change in quantity demanded. D) None of the above. Show Answer Correct Answer: A) Responsiveness of supply to changes in price. 13. The use of Managerial Economics is not limited to profit-making firms and organizations. But it can also be used to help in the decision-making process of non-profit organizations such as hospitals, educational institutions, etc. A) True. B) False. Show Answer Correct Answer: A) True. 14. Price determination and cost control both are different things. A) True. B) False. Show Answer Correct Answer: A) True. 15. A person who directs resources to achieve a stated goal: A) Accountant. B) Felix Tan. C) Manager. D) Stockholders. Show Answer Correct Answer: C) Manager. 16. As price increases, quantity demanded decreases, but as price decreases, quantity demanded decreases. A) Law of Demand. B) Law of Supply. C) Ceteris Paribus. D) Demand Curve. Show Answer Correct Answer: A) Law of Demand. 17. When a firm's average revenue is equal to its average cost, it gets ..... A) Super profit. B) Normal profit. C) Sub normal profit. D) None of the above. Show Answer Correct Answer: B) Normal profit. 18. Managerial Economics is a science dealing with the effective use of scarce resources. A) True. B) False. Show Answer Correct Answer: A) True. 19. Statement 1:Demand and forecasting involves huge amount of decision making.Statement 2:In Managerial economics, demand analysis and forecasting holds a very least important. 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. 20. Responsiveness of demand to the change in price of related goods is called as ..... A) Elasticity of demand. B) Cross elasticity of demand. C) Price elasticity of demand. D) Income elasticity of demand. Show Answer Correct Answer: B) Cross elasticity of demand. ← 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