This quiz works best with JavaScript enabled. Home > Economics > Managerial Economics > Managerial Economics – Quiz 7 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Managerial Economics Quiz 7 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The return to owner-provided inputs is an A) Implicit cost. B) Economic rent. C) Explicit cost. D) Total cost. Show Answer Correct Answer: A) Implicit cost. 2. The main aim of a Business Concern is A) Profit Maximisation. B) Service maximisation. C) Increase the employee satisfaction. D) None of the above. Show Answer Correct Answer: A) Profit Maximisation. 3. Diseconomies of scale might arise because A) Firms spend money on new technology which leads to lower average costs. B) Decision-making by management becomes more difficult in larger firms. C) Workers are more likely to be productively efficient in larger firms. D) Larger firms can buy in bulk. Show Answer Correct Answer: B) Decision-making by management becomes more difficult in larger firms. 4. From the standpoint of a soft drink company the question of "What goods and services should be produced?" is best represented by which of the following decisions? A) Whether or not to hire additional workers. B) Whether or not to increase its advertising. C) Whether or not to shut down selected manufacturing facilities. D) None of the above are examples. Show Answer Correct Answer: D) None of the above are examples. 5. If there is no change in demand for commodity 'X', even after rise in its price, then its demand is: A) Perfectly elastic. B) Perfectly inelastic. C) Less elastic. D) Highly elastic. Show Answer Correct Answer: B) Perfectly inelastic. 6. Demand of a product ..... when price of its Substitute product increases A) Increases. B) Fluctuates. C) Remains the same. D) Decreases. Show Answer Correct Answer: A) Increases. 7. Marginal Revenue is A) The additional profit the firm earns when it sells an additional unit of output. B) The ratio of total revenue to quantity. C) The difference between total revenue and total costs. D) The added revenue that a firm takes in when it increases output by one additional unit. Show Answer Correct Answer: D) The added revenue that a firm takes in when it increases output by one additional unit. 8. Macro theory of distribution is called as ..... A) Distributive shares. B) Distributive income. C) Distributive wage. D) Distributive salary. Show Answer Correct Answer: A) Distributive shares. 9. Is simply the present value (PV) of the income stream generated by the project minus the current cost of the project: A) Net present value of a project. B) Present value of a stream in future values. C) Present Value of Indefinitely Lived Assets. D) Present value of a single future value. Show Answer Correct Answer: A) Net present value of a project. 10. Market is a group of buyers and sellers of a particular good or service. A) True. B) False. Show Answer Correct Answer: A) True. 11. When quantity demanded and quantity supplied are in perfect balance at a given price. A) Market Equilibrium. B) Surplus. C) Shortage. D) Change in quantity supplied. Show Answer Correct Answer: A) Market Equilibrium. 12. A monopoly requires A) Products that are high priced. B) Several close substitutes for the product. C) A unique product with no close substitutes. D) That the product cannot be produced by small firms. Show Answer Correct Answer: C) A unique product with no close substitutes. 13. Microeconomics is a branch of economics which deals with the individual decisions of units of the economy-firms and households, and how their choices determine relative prices of goods and factors of production. A) True. B) False. Show Answer Correct Answer: A) True. 14. Which of the following is illegal? A) Price rigidity. B) Price leadership. C) Aggressive pricing. D) Price signalling. Show Answer Correct Answer: C) Aggressive pricing. 15. The organization that has a combination of manpower, financial, and physical resources that helps the management in decision making A) Corporation. B) Government. C) Consumers. D) Business Firm. Show Answer Correct Answer: D) Business Firm. 16. Select the group that best represents the basic factors of production. A) Land, labor, capital, technology. B) Land, labor, money, management skills. C) Land, natural resources, labor, capital. D) Land, labor, capital, entrepreneurship. Show Answer Correct Answer: D) Land, labor, capital, entrepreneurship. 17. Literally means "according to value" A) Ad Valak Tax. B) Excise Tax. C) Ad Valorem Tax. D) Exact Tax. Show Answer Correct Answer: C) Ad Valorem Tax. 18. Which of the following is the best example of how the question of "what goods and services to produce?" is answered by the command process? A) Government subsidies for windmill energy production. B) Laws regarding equal opportunity in employment. C) Government allowance for the deduction of interest payments on private mortgages. D) Government regulations concerning the dumping of hazardous waste. Show Answer Correct Answer: A) Government subsidies for windmill energy production. 19. AOG stands for: A) All Of One. B) All Other Goods. C) All Of Goods. D) All Over Goods. Show Answer Correct Answer: B) All Other Goods. 20. The science of making decisions in the presence of scarce resources. A) Decision. B) Managerial Economics. C) Decision making. D) Economics. Show Answer Correct Answer: D) Economics. ← PreviousNext →Related QuizzesEconomics QuizzesManagerial Economics Quiz 1Managerial Economics Quiz 2Managerial Economics Quiz 3Managerial Economics Quiz 4Managerial Economics Quiz 5Managerial Economics Quiz 6Managerial Economics Quiz 8Managerial Economics Quiz 9Managerial Economics Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books