This quiz works best with JavaScript enabled. Home > Finance > Economics > Managerial Economics > Managerial Economics – Quiz 5 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Managerial Economics Quiz 5 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. 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. 2. Macro theory of distribution is called as ..... A) Distributive wage. B) Distributive salary. C) Distributive shares. D) Distributive income. Show Answer Correct Answer: C) Distributive shares. 3. Is simply the present value (PV) of the income stream generated by the project minus the current cost of the project: A) Present value of a single future value. B) Net present value of a project. C) Present Value of Indefinitely Lived Assets. D) Present value of a stream in future values. Show Answer Correct Answer: B) Net present value of a project. 4. Market is a group of buyers and sellers of a particular good or service. A) False. B) True. Show Answer Correct Answer: B) True. 5. When quantity demanded and quantity supplied are in perfect balance at a given price. A) Surplus. B) Market Equilibrium. C) Change in quantity supplied. D) Shortage. Show Answer Correct Answer: B) Market Equilibrium. 6. 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. 7. 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. 8. 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. 9. The organization that has a combination of manpower, financial, and physical resources that helps the management in decision making A) Business Firm. B) Consumers. C) Government. D) Corporation. Show Answer Correct Answer: A) Business Firm. 10. 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. 11. Literally means "according to value" A) Exact Tax. B) Ad Valorem Tax. C) Ad Valak Tax. D) Excise Tax. Show Answer Correct Answer: B) Ad Valorem Tax. 12. 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. 13. The science of making decisions in the presence of scarce resources. A) Decision making. B) Economics. C) Decision. D) Managerial Economics. Show Answer Correct Answer: B) Economics. 14. Which of the following factors affect the supply? A) Price Expectations. B) Labour trouble. C) Cost of production. D) All the above. Show Answer Correct Answer: D) All the above. 15. Holding other factors constant. A) Ceteris Paribus. B) Citires Paribus. C) Cetires Parebus. D) Citeris Porebus. Show Answer Correct Answer: A) Ceteris Paribus. 16. ..... is the objective of every business firm A) Expansion of a firm. B) Earning Goodwill of a firm. C) Maximising the profit. D) None of above. Show Answer Correct Answer: C) Maximising the profit. 17. The quantity demanded of Pepsi has decreased. The best explanation for this is that: A) Pepsi consumers had an increase in income. B) The price of Coca Cola has increased. C) Pepsi's advertising is not as effective as in the past. D) The price of Pepsi increased. Show Answer Correct Answer: D) The price of Pepsi increased. 18. BEP is a no loss but profit point A) True. B) False. Show Answer Correct Answer: B) False. 19. It is the terms that refers to the behavior of customers as they interact with one another in competitive markets. A) Demand. B) Supply. C) Both A and B. D) None of the Above. Show Answer Correct Answer: C) Both A and B. 20. Anti Dumping Duty is a protectionist tariff that a country uses to protect A) Foreign industry. B) Domestic industry. C) Both the industry. D) None of the above. Show Answer Correct Answer: B) Domestic industry. 21. It helps in covering the gap between the problems of logic and the problems of policy A) Managerial Economics. B) Applied Economics. C) Business Economics. D) Decision Making. Show Answer Correct Answer: A) Managerial Economics. 22. Managerial Economics applies microeconomics theories and techniques in management decision. A) True. B) False. Show Answer Correct Answer: A) True. 23. The demand for labour slopes down and to the right because of: A) The law of diminishing marginal returns. B) The law of demand. C) The iron law of wages. D) Economies of scale. Show Answer Correct Answer: A) The law of diminishing marginal returns. 24. When a variable input (resources, capital) is added to a fixed input and output decreases A) Diminishing Marginal Returns. B) Marginal Output of Labor. C) Increasing Marginal Returns. D) Marginal Input of Labor. Show Answer Correct Answer: A) Diminishing Marginal Returns. 25. What do you mean by the supply of goods? A) The actual production of the goods. B) Quantity of the goods offered for sale at a particular price per unit of time. C) Total stock in the warehouse. D) Stock available for sale. Show Answer Correct Answer: B) Quantity of the goods offered for sale at a particular price per unit of time. 26. The Value of the firm is equal to A) The present value of tangible assets. B) The present value of all future revenues. C) The present value of all future cash flows. D) Current revenues less current costs. Show Answer Correct Answer: B) The present value of all future revenues. 27. When workers enjoy leisure, they also enjoy ..... A) Hours. B) Income. C) Demand. D) Money. Show Answer Correct Answer: B) Income. 28. A group of firms that gets together to make price and output decisions is called:(a) (b) Concentrated Industry (c) An Oligopoly (d) A Cartel A) Price Leadership. B) Concentrated Industry. C) An Oligopoly. D) A Cartel. Show Answer Correct Answer: D) A Cartel. 29. Buyers as a group determine the demand for the product. A) True. B) False. Show Answer Correct Answer: A) True. 30. The change in total costs arising from a change in the managerial control is called A) Fixed cost. B) Incremental cost. C) Marginal cost. D) Variable cost. Show Answer Correct Answer: C) Marginal cost. ← PreviousNext →Related QuizzesEconomics QuizzesFinance QuizzesManagerial Economics Quiz 1Managerial Economics Quiz 2Managerial Economics Quiz 3Managerial Economics Quiz 4Managerial Economics Quiz 6Managerial Economics Quiz 7Managerial Economics Quiz 8Managerial Economics Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books