This quiz works best with JavaScript enabled. Home > Finance > Economics > Managerial Economics > Managerial Economics – Quiz 4 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Managerial Economics Quiz 4 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Economics means..... A) Study of wealth of Nations. B) Study of commerce. C) Study of account. D) None of above. Show Answer Correct Answer: A) Study of wealth of Nations. 2. The producer sells the unsold stocks at a low price in the foreign market without reducing the domestic price is A) Sporadic dumping. B) Anti dumping. C) Predatory dumping. D) No dumping. Show Answer Correct Answer: A) Sporadic dumping. 3. Identify the phase in which TP increases at an increasing rate and MP also increases. A) Increasing returns to a factor. B) Decreasing returns to a factor. C) Negative returns to a factor. D) None of above. Show Answer Correct Answer: A) Increasing returns to a factor. 4. The field of economics that deals with the economic concepts and analysis of problems that are required to formulate rational managerial decisions A) Macro Economics. B) Managerial Economics. C) Normative Economics. D) Positive Economics. Show Answer Correct Answer: B) Managerial Economics. 5. ..... risk involves variation in returns due to the ups and downs of the economy, the industry and the firm. A) Structural. B) Financial. C) Fluctuational. D) Business. Show Answer Correct Answer: D) Business. 6. Which of the following products has high price elasticity of demand? A) Luxury goods, high-end electronics, and non-essential items. B) Necessities like food and water. C) Low-cost clothing. D) Generic household items. Show Answer Correct Answer: A) Luxury goods, high-end electronics, and non-essential items. 7. All of these are the top three most important factors in the economics of a business except: A) Political risk. B) Customers. C) Technology. D) Competition. Show Answer Correct Answer: A) Political risk. 8. Business profit is A) Economic profit. B) A normal rate of return. C) The return on stockholders' equity. D) The residual of sales revenue minus the explicit accounting costs of doing business. Show Answer Correct Answer: D) The residual of sales revenue minus the explicit accounting costs of doing business. 9. The world famous painting Mona Lisa by Leonardo da Vinci is an example of A) Inelastic supply. B) Perfectly elastic supply. C) Perfectly inelastic supply. D) Elastic supply. Show Answer Correct Answer: C) Perfectly inelastic supply. 10. Managerial Economics is a ..... A) Science. B) Science & Art. C) Art. D) None of above. Show Answer Correct Answer: B) Science & Art. 11. Market demand is the ..... summation of individuals' demands. A) Difference. B) Total. C) Horizontal. D) Vertical. Show Answer Correct Answer: C) Horizontal. 12. Factors of production are the A) Inputs for production. B) Output. Show Answer Correct Answer: A) Inputs for production. 13. Which of the following factors may explain diseconomies of scale? A) Managerial inefficiency. B) Increasing returns to scale of inputs. C) Specialization of labor. D) Indivisible inputs. Show Answer Correct Answer: A) Managerial inefficiency. 14. The long run is a period of time in which A) The firm is able to maximise total profit. B) The firm may want to build a bigger plant, but cannot do so. C) The quantities of all inputs can be varied. D) Economic efficiency is achieved. Show Answer Correct Answer: C) The quantities of all inputs can be varied. 15. The principle reasons behind economic problems A) Unlimited wants. B) Limited or Scarce of Means. C) Alternatives Uses of Means. D) All of the above. Show Answer Correct Answer: D) All of the above. 16. Goods in which the increase(decrease) in price will lead to an increase(decrease) in the demand of the other goods is called A) Superior goods. B) Substitute goods. C) Inferior goods. D) Normal goods. Show Answer Correct Answer: B) Substitute goods. 17. Quantity demanded and Price A) Inverse relationship. B) Positive relationship. C) No relation. D) None of above. Show Answer Correct Answer: A) Inverse relationship. 18. Considered as Economics applied to "Problem of Choice" . A) Decision Making. B) Applied Economics. C) Managerial Economics. D) Business Economics. Show Answer Correct Answer: C) Managerial Economics. 19. What is increase in total income called? A) Increase in expenses. B) Increase in income. C) Increase in profits. D) None of these. Show Answer Correct Answer: B) Increase in income. 20. The law of demand states that as the price increases then A) Quantity demanded increases. B) Quantity demanded decreases. C) Demand increases. D) Demand decreases. Show Answer Correct Answer: B) Quantity demanded decreases. 21. It is the second factor of production. A) Commercial Space. B) House and Lot. C) Land. D) None of the above. Show Answer Correct Answer: C) Land. 22. Change in demand because of determinant other than price is called as ..... A) Movement. B) Shift in demand. C) Elasticity of demand. D) Price inelasticity. Show Answer Correct Answer: B) Shift in demand. 23. When the price increases, demand ..... and supply ..... A) Decreases, increases. B) Increases, decreases. Show Answer Correct Answer: A) Decreases, increases. 24. Which among the following is concerned with maximization of profit and minimising cost? A) Economics. B) Managerial economics. C) Inventory management. D) None of these. Show Answer Correct Answer: B) Managerial economics. 25. The return to owner-provided inputs is an A) Total cost. B) Implicit cost. C) Economic rent. D) Explicit cost. Show Answer Correct Answer: B) Implicit cost. 26. 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. 27. Diseconomies of scale might arise because A) Workers are more likely to be productively efficient in larger firms. B) Firms spend money on new technology which leads to lower average costs. C) Larger firms can buy in bulk. D) Decision-making by management becomes more difficult in larger firms. Show Answer Correct Answer: D) Decision-making by management becomes more difficult in larger firms. 28. 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. 29. If there is no change in demand for commodity 'X', even after rise in its price, then its demand is: A) Highly elastic. B) Perfectly elastic. C) Perfectly inelastic. D) Less elastic. Show Answer Correct Answer: C) Perfectly inelastic. 30. Demand of a product ..... when price of its Substitute product increases A) Fluctuates. B) Remains the same. C) Decreases. D) Increases. Show Answer Correct Answer: D) Increases. ← PreviousNext →Related QuizzesEconomics QuizzesFinance QuizzesManagerial Economics Quiz 1Managerial Economics Quiz 2Managerial Economics Quiz 3Managerial Economics Quiz 5Managerial Economics Quiz 6Managerial Economics Quiz 7Managerial Economics Quiz 8Managerial Economics Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books