This quiz works best with JavaScript enabled. Home > Economics > Managerial Economics > Managerial Economics – Quiz 4 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Managerial Economics Quiz 4 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. In a perfect competition market structure A) Firm is the price giver and Industry is the price taker. B) Firm is the price taker and the Industry is the price giver. C) Firm and Industry are the price takers. D) None of these. Show Answer Correct Answer: B) Firm is the price taker and the Industry is the price giver. 2. The price elasticity of demand is the: A) Ratio of the percentage change in price to the percentage change in quantity demanded. B) Ratio of the change in quantity demanded to the change in price. C) Ratio of the change in price to the change in quantity demanded. D) Ratio of the percentage change in quantity demanded to the percentage change in price. Show Answer Correct Answer: D) Ratio of the percentage change in quantity demanded to the percentage change in price. 3. Which among the following are exempted from law of demand? A) Prestige goods. B) Giffen goods. C) Necessary goods. D) All of these. Show Answer Correct Answer: D) All of these. 4. He does not like government intervention in our economy. A) Adam Smith. B) Earl Uy. C) Abraham Marshmallow. D) Adam Sandler. Show Answer Correct Answer: A) Adam Smith. 5. Heightens competition and reduces the margins of existing firms in a wide variety of industry settings. A) Entry. B) Enter. C) Entry Cost. D) Sunk Cost. Show Answer Correct Answer: A) Entry. 6. Managerial economics deals with A) Macro economics. B) Micro economics. Show Answer Correct Answer: B) Micro economics. 7. Suppose a $ 3 price ceiling is imposed on the market. Find Qs A) 0. B) 6. C) 7. D) 8. Show Answer Correct Answer: D) 8. 8. Tea and coffee are? A) Substitute goods. B) Complementary goods. C) Normal goods. D) Giffen goods. Show Answer Correct Answer: A) Substitute goods. 9. What do you call the level of satisfaction that is measured in units? A) Equilibrium. B) UTILS. C) Consumer satisfaction. D) Negative Utility. Show Answer Correct Answer: B) UTILS. 10. Oligopoly is a type of ..... market. A ..... exists in the industry A) Perfect, few firms. B) Imperfect, few firms. C) Perfect, many firms. D) Imperfect, many firms. Show Answer Correct Answer: B) Imperfect, few firms. 11. Identify the truthfulness of the following statements.I. When marginal cost is rising, average total cost is rising. II. When marginal cost is below average total cost, average total cost is falling. A) Both I and II are true. B) Both I and II are false. C) I is true; II is false. D) I is false; II is true. Show Answer Correct Answer: D) I is false; II is true. 12. In a certain textile firm, labor is the only short term variable input. The manager notices that the marginal product of labor is the same for each unit of labor, which implies that A) The average product of labor is always greater than the marginal product of labor. B) The average product of labor is always less than the marginal product of labor. C) The average product of labor is always equal to the marginal product of labor. D) As more labor is used, the average product of labor falls. Show Answer Correct Answer: C) The average product of labor is always equal to the marginal product of labor. 13. Which of the following expenses is not an explicit expense? A) Salary. B) Interest. C) Raw material. D) None of these. Show Answer Correct Answer: D) None of these. 14. ..... is known as father of economics A) Marshal. B) Robins. C) Adam smith. D) A C Pigou. Show Answer Correct Answer: C) Adam smith. 15. If we continuously consume a particular commodity the satisfaction that we derive from consuming will keep on declining. This concept is related to? A) DMU. B) Demand decline. C) Demand shortening. D) None of these. Show Answer Correct Answer: A) DMU. 16. An excess of supply over the demand for a good. A) Price Ceiling. B) Surplus. C) Price Floor. D) Equilibrium. Show Answer Correct Answer: B) Surplus. 17. Iso quants touch the axes A) True. B) False. Show Answer Correct Answer: B) False. 18. Marginal cost curve always cut the average cost curve A) From below on the rising portion of the AC curve. B) From below on the falling portion of the AC curve. C) From below at the minimum point of the AC curve. D) From below at any point of the AC curve. Show Answer Correct Answer: C) From below at the minimum point of the AC curve. 19. Average fixed costs: A) Remain same at all levels of output. B) Increase as output increases. C) Decreases as output increases. D) Initially increases and then decreases. Show Answer Correct Answer: C) Decreases as output increases. 20. MC can be directly derived from: A) TFC. B) TVC. C) AC. D) AFC. Show Answer Correct Answer: B) TVC. ← PreviousNext →Related QuizzesEconomics QuizzesManagerial Economics Quiz 1Managerial Economics Quiz 2Managerial Economics Quiz 3Managerial 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