This quiz works best with JavaScript enabled. Home > Finance > Economics > Managerial Economics > Managerial Economics – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Managerial Economics Quiz 1 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is not considered as a factor of production? A) Money. B) Machinery and equipment. C) Land. D) Unskilled labor. Show Answer Correct Answer: A) Money. 2. If the average cost of a manufacturing plant is increasing with output then it must be true that marginal cost of production is less than the average cost of production at the current level. This statement is: A) False. B) True. C) Ambiguous. D) None of above. Show Answer Correct Answer: A) False. 3. MB = 200Q-5Q, MC = 10Q Find the optimal level of Q A) 40. B) 35. C) 5. D) 20. Show Answer Correct Answer: A) 40. 4. Dumping in the manufacture's home market by selling locally at a lower price is in ..... dumping. A) Reverse dumping. B) Forward dumping. C) Backward dumping. D) None of the above. Show Answer Correct Answer: A) Reverse dumping. 5. According to law of supply, when price rises, supply ..... A) Fluctuates. B) Increases. C) Decreases. D) Remains constant. Show Answer Correct Answer: B) Increases. 6. It is the additional utility gained from consuming an additional unit of some good. A) Utility. B) Production Utility. C) Marginal Utility. D) Total Utility. Show Answer Correct Answer: C) Marginal Utility. 7. Inflation is a monetary measure of the market value of all the final goods and services produced in a specific time period. A) True. B) False. Show Answer Correct Answer: B) False. 8. Dumping is considered as a form of A) Price discrimination. B) Value discrimination. C) Wealth discrimination. D) None of the above. Show Answer Correct Answer: A) Price discrimination. 9. Which of the following clauses has the objectives of the company? A) Name. B) Domicile. C) Objects. D) None of above. Show Answer Correct Answer: C) Objects. 10. Economics is necessary for ..... A) Human resources management. B) Any society. C) Management. D) None of above. Show Answer Correct Answer: C) Management. 11. The opportunity cost of receivingRs. 10, 000 in the future as opposed to getting that ten dollars today is: A) The foregone interest that could be earned if you had the money today. B) The taxes paid on any earnings. C) The value of Rs. 10, 000 relative to the total income of that person. D) None of above. Show Answer Correct Answer: A) The foregone interest that could be earned if you had the money today. 12. The law of variable proportion examines the production function A) Is a long run production function. B) With one fixed factor. C) Keeping all factors variable. D) With one factor variable, while keeping the other factors fixed. Show Answer Correct Answer: D) With one factor variable, while keeping the other factors fixed. 13. A necessary condition for price discrimination is difference in price elasticities. A) This statement is false. B) This statement is true. C) Validity of this statement depends on whether the commodity in question is price elastic or price inelastic. D) None of above. Show Answer Correct Answer: B) This statement is true. 14. It is an individual who purchase goods and services. A) Consumer. B) Supplier. C) Seller. D) Producer. Show Answer Correct Answer: A) Consumer. 15. Which of the following is example of substitute products? A) Milk and Sugar. B) Burger and Fries. C) Tea and biscuits. D) Coke and Pepsi. Show Answer Correct Answer: D) Coke and Pepsi. 16. The marginal product of the variable input A) Is always positive. B) Typically falls then rises. C) Is equal to the total product divided by the total amount of the variable input employed. D) None of the above. Show Answer Correct Answer: D) None of the above. 17. Supply curve for perishable commodity is ..... A) Perfectly inelastic. B) Perfectly elastic. C) Relatively inelastic. D) Relatively elastic. Show Answer Correct Answer: C) Relatively inelastic. 18. Illustrates the relationship between the total quantity and price per unit of a good all consumers are willing and able to purchase, holding other variables constant. A) Market Supply Line. B) Market Supply Curve. C) Market Supply Line. D) Market Demand Curve. Show Answer Correct Answer: D) Market Demand Curve. 19. 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. 20. 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. 21. 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) Consumption. C) Distribution. D) Exchange. Show Answer Correct Answer: B) Consumption. 22. 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. 23. 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. 24. Which of the following is NOT included as the major forms of elasticity? A) Income elasticity. B) Expense elasticity. C) Price elasticity. D) Cross-price elasticity. Show Answer Correct Answer: B) Expense elasticity. 25. 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. 26. ..... 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) Utility analysis. C) Law of variable proportion. D) Isoquants. Show Answer Correct Answer: A) Equi-marginal principle. 27. 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. 28. To an economist, maximizing profit is: A) Maximizing the value of the firm. B) Minimizing the permanent total costs. C) Maximizing the current year's profits. D) Minimizing the future risks. Show Answer Correct Answer: A) Maximizing the value of the firm. 29. 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. 30. Characteristics of Managerial Economics that concerned with what management should do under particular circumstances A) Positive Economics. B) Normative economics. C) Profit Management. D) Capital Management. Show Answer Correct Answer: B) Normative economics. Next →Related QuizzesEconomics QuizzesFinance QuizzesManagerial 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