This quiz works best with JavaScript enabled. Home > Economics > Managerial Economics > Managerial Economics – Quiz 23 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Managerial Economics Quiz 23 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. In foreign market, marginal revenue is equal to A) Divisible revenue. B) Indivisible revenue. C) Average revenue. D) Marginal cost. Show Answer Correct Answer: C) Average revenue. 2. In which market competitive pricing is applied A) Home country. B) Foreign country. C) Both (a) and (b). D) None of the above. Show Answer Correct Answer: B) Foreign country. 3. Demographic A) Micro. B) Macro. Show Answer Correct Answer: B) Macro. 4. Suppose demand is given by Q xd = 100-50Px + 5Py + Ax, where Px = P3, Py = P2, and Ax = P60. What is the quantity demanded of good x? A) 20. B) 30. C) 40. D) 50. Show Answer Correct Answer: A) 20. 5. Which of the following are exogenous factors? A) Motives of financial prudence and improvement. B) Change in rate of interest. C) Windfalls. D) Both 2 and 3. Show Answer Correct Answer: D) Both 2 and 3. 6. Statement 1:Business firms are combination of manpower, financial and physical resources which help in managerial decisions.Statement 2:Societies can be classified into 2 categories which are production and consumption. 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. 7. The best definition of economics is A) How choices are made under conditions of scarcity. B) How money is used. C) How goods and services are produced. D) How businesses maximize profits. Show Answer Correct Answer: A) How choices are made under conditions of scarcity. 8. In making decisions, companies use relative prices. What is meant by relative price is ..... A) Prices are going on in the market. B) Price expectations that will occur after adjusting for inflation. C) Price adjustments with bank interest rates. D) Comparison of the price of an item with another. Show Answer Correct Answer: A) Prices are going on in the market. 9. Elements of Economic Theory A) Variables. B) Conclusion. C) Predictions. D) Hypothesis. E) All of the above. Show Answer Correct Answer: E) All of the above. 10. Which is/are determinants of Supply ..... A) Price of the commodity. B) State of technology. C) Cost of production. D) All the above. Show Answer Correct Answer: C) Cost of production. 11. The ability of a company to meet its financial obligations is A) Liquidity. B) Solvency. C) Discounting. D) Profitability. Show Answer Correct Answer: A) Liquidity. 12. What is th A) One. B) Two. C) Three. D) None of above. Show Answer Correct Answer: A) One. 13. Industry profits tend to be lower when ..... have the power to negotiate favorable terms for their inputs. A) Customers. B) Investors. C) Buyers. D) Suppliers. Show Answer Correct Answer: D) Suppliers. 14. Suppose that capital and labor are perfect complements in a one-to-one ratio in a firm's production function. The firm is currently at an efficient production level, employing an equal number of machines and workers. Suppose the cost of labor were to double and the cost of capital were to fall by half. If the firm wanted to produce the previous level of output, the firm would hire A) More labor and less capital. B) Less labor and more capital. C) The same amounts of labor and capital. D) Cannot be determined from the given information. Show Answer Correct Answer: C) The same amounts of labor and capital. 15. The value of the company can be increased by ..... A) Increase employee wages. B) Increase the profit of the current period. C) Increase the comfort of the working atmosphere. D) Reduce the number of employees. Show Answer Correct Answer: B) Increase the profit of the current period. 16. The maximum legal price that can be charged in a market. A) Price Floors. B) Price Market. C) Price Surplus. D) Price Ceiling. Show Answer Correct Answer: D) Price Ceiling. 17. Inventory should be kept at what level? A) Excess level. B) Low level of inventory. C) Optimum level. D) None of these. Show Answer Correct Answer: C) Optimum level. 18. A 'Demand Curve' is a diagrammatic representation of a Demand Schedule.It is a graphical representation of the price-quantity relationship. A) True. B) False. Show Answer Correct Answer: A) True. 19. To maximize net benefits, the manager should increase the managerial control variable up to the point where marginal benefits equal marginal costs. A) Net benefits. B) Marginal Benefits. C) Marginal Principle. D) Marginal Cost. Show Answer Correct Answer: C) Marginal Principle. 20. Problem of ..... occurs when goods and services are limited compared to man's unlimited want and desires. A) Surplus. B) Scarcity. C) Choices. D) Opportunity cost. Show Answer Correct Answer: B) Scarcity. ← 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