This quiz works best with JavaScript enabled. Home > Finance > Economics > Managerial Economics > Managerial Economics – Quiz 11 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Managerial Economics Quiz 11 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Under law of variable proportion, if labour is assumed as a variable factor, then when Marginal Product of labour (MPL) falls but still above the Average Product of labour (APL), Total product (TP) A) Increases at a decreasing rate. B) Reaches at its maximum level. C) Becomes negative. D) Increases at an increasing rate. Show Answer Correct Answer: D) Increases at an increasing rate. 2. Economic profit equals A) Business profit plus implicit costs. B) Normal profit plus opportunity costs. C) Normal profit minus opportunity costs. D) Business profit minus implicit costs. Show Answer Correct Answer: D) Business profit minus implicit costs. 3. Price in a relative manner:In relative demand, there is a change in demand as compared to price. A) Less. B) Double. C) More. D) Equal. Show Answer Correct Answer: C) More. 4. Other things remains the same with a rise in price demand ..... A) Expands. B) Contracts. C) Both. D) None. Show Answer Correct Answer: B) Contracts. 5. Who is a father of economics A) Adam Smith. B) Marshall. C) Rabions. D) None. Show Answer Correct Answer: A) Adam Smith. 6. Consumers are less concerned about price changes when the good feels cheap, making the demand inelastic. A) False. B) True. Show Answer Correct Answer: B) True. 7. Indifference curve are ..... from the origin. A) L Slope. B) Concave. C) Convex. D) Down Slope. Show Answer Correct Answer: C) Convex. 8. Price discrimination is defined as a business charging different consumers ..... prices for the ..... product, whereby the price difference is not due to the differences in the cost of supplying the customers. A) Different same. B) Different different. C) Same same. D) Same different. Show Answer Correct Answer: A) Different same. 9. Attempt to negotiate or locate low prices, while the other party attempt to negotiate high prices. A) Goverment and the Market. B) Producer-Producer. C) Consumer-Consumer. D) Consumer-Producer. Show Answer Correct Answer: D) Consumer-Producer. 10. If a rupee in hand is worth more than a rupee earned next year, this principle is A) Solvency. B) Discounting. C) Liquidity. D) Profitability. Show Answer Correct Answer: B) Discounting. 11. A ..... company needs to seek permission from SEBI A) Private. B) Public. Show Answer Correct Answer: B) Public. 12. Demand is determined by A) Price of the product. B) Relative prices of other goods. C) Tastes and habits. D) All of the above. Show Answer Correct Answer: D) All of the above. 13. A change in determinant will lead to a proportionately lesser change in demand or supply. A) Surplus. B) Unitary Elastic. C) Elastic. D) Inelastic. Show Answer Correct Answer: D) Inelastic. 14. Positive implicit costs imply that A) Economic costs will be less than accounting costs. B) Economic costs will be more than accounting costs. C) Economic profits will be more than accounting profits. D) Economic profits will be same than accounting profits. Show Answer Correct Answer: B) Economic costs will be more than accounting costs. 15. Statement 1:Capital management involves planning and controlling of expenses.Statement 2:Managerial economics is not merely important in capital management to identify the rate of return. 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. 16. Economics gives a ..... to any business organisation. A) Objective. B) Goals. C) Directions. D) None of above. Show Answer Correct Answer: C) Directions. 17. If marginal benefit is greater than the marginal cost, a rational choice involves A) No more of the activity. B) Less of the activity. C) Less or more depending on the benefits of other activities. D) More of the activity. Show Answer Correct Answer: D) More of the activity. 18. MC curve intersects AC curve at its ..... point and AVC curve at its ..... point. A) Minimum, Maximum. B) Maximum, maximum. C) Maximum, minimum. D) Minimum, minimum. Show Answer Correct Answer: D) Minimum, minimum. 19. When Akira went to the mall, she noticed that the Jumbo Hotdog price has increased which is out of her budget, so she decided to buy the other brand of product which is the Little Hotdog. A) Compliment Product. B) Inferior Product. C) Substitute Product. D) Complementary Product. Show Answer Correct Answer: C) Substitute Product. 20. ..... is the degree of responsiveness of supply to changes in the price of a good A) Elasticity of demand. B) Elasticity of supply. C) Both (a) & (b). D) None of them. Show Answer Correct Answer: B) Elasticity of supply. 21. If the income elasticity for calculator here in the Philippines is 0.6, a 60 percent increase in income will lead to a: A) 1 percent decrease in demand for calculator. B) 36 percent decrease in demand for calculator. C) 1 percent increase in demand for calculator. D) 36 percent increase in demand for calculator. Show Answer Correct Answer: D) 36 percent increase in demand for calculator. 22. Total Utility can be calculated by ..... A) MUs. B) TUn-TUn-1. C) Aggregate of all utilities derived from all the units of the commodity consumed. D) Options 1 &3. Show Answer Correct Answer: C) Aggregate of all utilities derived from all the units of the commodity consumed. 23. Marginal Utility for a product ..... as the consumer consumes additional units of the commodity. A) Maximizes. B) Remain Constant. C) Decreases. D) Increases. Show Answer Correct Answer: D) Increases. 24. A 20 percent increase in the quantity of pizza demanded results from a 10 percent decline in itsprice. The price elasticity of demand for pizza is A) 0.5. B) 2. C) 10. D) 20. Show Answer Correct Answer: B) 2. 25. The ..... problem refers to the possibility that owners and their managers may have different objectives. A) Problem of different objectives. B) Company-Manager problem. C) Firm-Employee problem. D) Principal-Agent Problem. Show Answer Correct Answer: D) Principal-Agent Problem. 26. Which of the following is perfect example of complimentary products? A) Pen and paper. B) Shampoo and conditioner. C) Petrol and battery. D) Toothbrush and toothpaste. Show Answer Correct Answer: D) Toothbrush and toothpaste. 27. Area under MC curve is equal to: A) TVC. B) AFC. C) AVC. D) AC. Show Answer Correct Answer: A) TVC. 28. In Economics Utility Refers to ..... A) Profit or loss. B) Supply and demand. C) Inflation or deflation. D) Satisfaction or usefulness. Show Answer Correct Answer: D) Satisfaction or usefulness. 29. Consider a production function of the form $Q\left(K, L\right)=K^2L^2$ What is the marginal rate of technical substitution of capital for labor at the point where K=10 and L=5? A) 1. B) 2. C) 5. D) 0.5. Show Answer Correct Answer: D) 0.5. 30. Managerial Economists should analyze the four environmental influences on a business, except ..... A) Technological. B) Political. C) Social. D) Economic. E) Psychological. Show Answer Correct Answer: E) Psychological. ← PreviousNext →Related QuizzesEconomics QuizzesFinance QuizzesManagerial Economics Quiz 1Managerial Economics Quiz 2Managerial Economics Quiz 3Managerial Economics Quiz 4Managerial Economics Quiz 5Managerial Economics Quiz 6Managerial Economics Quiz 7Managerial Economics Quiz 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books