This quiz works best with JavaScript enabled. Home > Finance > Economics > Managerial Economics > Managerial Economics – Quiz 13 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Managerial Economics Quiz 13 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Plays a key role in disciplining the market process. A) Goverment. B) Producers. C) Akira Panahon. D) Suppliers. Show Answer Correct Answer: A) Goverment. 2. If the price elasticity is between 0 and 1, demand is A) Inelastic. B) Perfectly elastic. C) Elastic. D) Unit elastic. Show Answer Correct Answer: A) Inelastic. 3. A critical element of entrepreneurship (as opposed to managerial skills) is A) Political skills. B) Risk taking. C) Leadership skills. D) Technology. Show Answer Correct Answer: B) Risk taking. 4. Car and petrol are complementary goods. What is the relation in case of such goods? A) Positive. B) Negative. C) Stable. D) None of these. Show Answer Correct Answer: B) Negative. 5. How do you calculate revenue? A) Cost + sales. B) Price x cost. C) Sales-total price. D) Sales x price. Show Answer Correct Answer: D) Sales x price. 6. A theory, principle and model are basically the same. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 7. For goods with many substitutes, demand is elastic. A) True. B) False. Show Answer Correct Answer: A) True. 8. Are a signal to resource holders where resources are most highly valued by society. A) Money. B) Profit. C) Economics. D) Natural Resources. Show Answer Correct Answer: B) Profit. 9. The 'Law of DEMAND states that as an individual consumes more and more units of a commodity, the utility derived from it goes on decreasing. A) True. B) False. Show Answer Correct Answer: B) False. 10. For which company, certificate of incorporation is sufficient to start a business? A) Private. B) Public. Show Answer Correct Answer: A) Private. 11. When the supply may be elastic? A) Small change in price causes less changes in supply. B) Small change in price causes more changes in supply. C) Large change in price causes more changes in supply. D) Small Change in price causes less changes in supply. Show Answer Correct Answer: B) Small change in price causes more changes in supply. 12. "A rupee tomorrow is worth less than a rupee today" relates to A) Opportunity cost principle. B) Discounting principle. C) Equi-marginal principle. D) None of these. Show Answer Correct Answer: B) Discounting principle. 13. In the short run, when the output of a firm is zero, ..... A) Variable cost will be zero. B) Total cost will be zero. C) None of the costs will be zero. D) All costs will be zero. Show Answer Correct Answer: A) Variable cost will be zero. 14. Economists use the term utility to mean: A) Any characteristic of a good or service which cannot be measured. B) The satisfaction a consumer obtains from a good or service. C) The value of a product before it has been advertised. D) The contribution a good or service makes to social welfare. Show Answer Correct Answer: B) The satisfaction a consumer obtains from a good or service. 15. It measures the responsiveness of the demand for a good to the change in the price of a substitute good or a complement. A) Nonprice Factors. B) Arc Elasticity. C) Point Elasticity. D) Cross Elasticity. Show Answer Correct Answer: D) Cross Elasticity. 16. Graphical representation of demand schedule is called? A) Demand schedule. B) Demand curve. C) Individual demand schedule. D) Demand graph. Show Answer Correct Answer: B) Demand curve. 17. A competition in which a company considers all companies making the same product or class of products as its competitors is known as an 'Industry Competition. A) True. B) False. Show Answer Correct Answer: A) True. 18. Which of the following is not an determinant of demand? A) Consumer preferences. B) Supply. C) Climatic conditions. D) Price of substitute goods. Show Answer Correct Answer: B) Supply. 19. If a price is below the equilibrium price it creates a ..... A) Surplus. B) Market price. C) Supply. D) Shortage. Show Answer Correct Answer: D) Shortage. 20. Wages, rent and cost of materials: A) Costo Kita. B) Implicit Cost. C) Current Cost. D) Explicit Cost. Show Answer Correct Answer: D) Explicit Cost. 21. In monopolistic competition, a firm has to ..... its products to retain the market A) Homogenise. B) Differentiate. Show Answer Correct Answer: B) Differentiate. 22. What is it called if there is no change in the price of the product yet there is a change in the demand? A) Aggregate price relative demand. B) Aggregate price neutral demand. C) Price relative demand in relative manner. D) Relative price neutral demand. Show Answer Correct Answer: A) Aggregate price relative demand. 23. The process of adding form, time, place and personnel utilities to the existing matter is known as ..... A) Distribution. B) Production. C) Utility Maximization. D) Supply. Show Answer Correct Answer: B) Production. 24. The following are the steps in decision making except. A) Define the problem. B) Determine the objective. C) Discover alternatives and make a choice. D) Forecast the weather. Show Answer Correct Answer: D) Forecast the weather. 25. The total cost of a firm is? A) Sum of explicit cost. B) Sum of implicit cost. C) Sum of explicit and implicit cost. D) Difference between explicit and implicit cost. Show Answer Correct Answer: C) Sum of explicit and implicit cost. 26. ..... is the change in total cost consequent upon a decision. A) Incremental cost. B) Average cost. C) Opportunity cost. D) Marginal cost. Show Answer Correct Answer: A) Incremental cost. 27. It is the stage model of change that narrows product lines to those offering the greatest revenue potential. A) COST PLUS. B) REVENUE MANAGEMENT. C) REVENUE PLUS. D) COST MANAGEMENT. Show Answer Correct Answer: B) REVENUE MANAGEMENT. 28. The Value of the firm decreases with a decrease in A) The cost of capital. B) The discount rate. C) Total cost. D) Total revenue. Show Answer Correct Answer: D) Total revenue. 29. In monopolistic competition, firms achieve some degree of market power A) Because of barrier to exit from the industry. B) By producing differentiated products. C) Because of barrier to entry into the industry. D) By virtue of size alone. Show Answer Correct Answer: B) By producing differentiated products. 30. A demand curve is said to be elastic when an increase in price reduces the quantity demanded a lot (and vice-versa). A) False. B) True. Show Answer Correct Answer: B) True. ← 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