This quiz works best with JavaScript enabled. Home > Finance > Economics > Managerial Economics > Managerial Economics – Quiz 7 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Managerial Economics Quiz 7 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Functional relationship between demand and its determinants is called? A) Demand curve. B) Demand schedule. C) Demand function. D) All of these. Show Answer Correct Answer: C) Demand function. 2. Because of scarcity, an allocation decision must be made. The allocation decision of a society is comprised of three separate choices except: A) How should these goods and services be produced?. B) What and how many goods and services should be produced?. C) Why should these goods and services be produced?. D) For whom should these goods and services be produced?. Show Answer Correct Answer: C) Why should these goods and services be produced?. 3. In a competitive market, there are many buyers and sellers, each has a negligible impact on market price. A) True. B) False. Show Answer Correct Answer: A) True. 4. Other things equal, Law of Demand tells us that when price of a good rises, the quantity demanded of the good falls. A) True. B) False. Show Answer Correct Answer: A) True. 5. Marginal cost refers to addition to the total cost when one more unit of output is ..... A) Produced. B) Wasted. C) Employed. D) Sold. Show Answer Correct Answer: A) Produced. 6. The total satisfaction a person receives from consuming a particular quantity of good. A) Utility. B) Total Utility. C) Partial Utility. D) Marginal Utility. Show Answer Correct Answer: B) Total Utility. 7. It is social science that studies the implications of incentives and decisions. A) Macroeconomics. B) Economics. C) Equilibrium. D) Microeconomics. Show Answer Correct Answer: D) Microeconomics. 8. The short run Average Cost curve is ..... shaped A) V. B) U. C) L. D) All the above. Show Answer Correct Answer: B) U. 9. For necessities, consumers do not change quantity demanded much when the price changes, making demand inelastic. A) False. B) True. Show Answer Correct Answer: B) True. 10. A monopolist maximizes profit by producing the quantity at which A) Marginal revenue equals price. B) Marginal revenue equals marginal cost. C) Marginal cost equals price. D) Marginal cost equals demand. Show Answer Correct Answer: B) Marginal revenue equals marginal cost. 11. Growth Maximization theory was given by ..... A) Keynes. B) Marx. C) Marris. D) Friedman. Show Answer Correct Answer: C) Marris. 12. The amount that a consumer is willing to pay for an additional good decreases as more of a good is produced. A) Supply Surplus. B) Consumer Surplus. C) Curve Surplus. D) Demand Surplus. Show Answer Correct Answer: B) Consumer Surplus. 13. In long run, any market structure can at most have normal profits A) True. B) False. Show Answer Correct Answer: A) True. 14. Implicit demand is also known as ..... demand A) Explicit. B) Inelastic. C) Derived. D) Elastic. Show Answer Correct Answer: C) Derived. 15. If OPEC increases its price of oil, and still the demand for oil decreases by a very small amount, we can conclude that the demand for oil is A) Relatively elastic. B) Relatively inelastic. C) Perfectly inelastic. D) Perfectly elastic. Show Answer Correct Answer: B) Relatively inelastic. 16. Who is the author of " Theory of Managerial Capitalism" ? A) Baumol. B) Williamson. C) Bains. D) Marris. Show Answer Correct Answer: D) Marris. 17. Generally the relationship between price and demand is ..... A) Equal. B) Positive. C) Inverse. D) Direct. Show Answer Correct Answer: C) Inverse. 18. Statement 1:When total costs rise more than total benefits, then the action is logical.Statement 2:When total benefits rise more than total costs, then the action is illogical. A) Statement 1 is TRUE. B) Statement 2 is TRUE. C) Both Statements are TRUE. D) Both Statements are FALSE. Show Answer Correct Answer: D) Both Statements are FALSE. 19. In case two commodities are good substitutes, cross elasticity will be A) Unitary. B) Positive. C) Negative. D) Infinite. Show Answer Correct Answer: B) Positive. 20. Under ....., price is determined by the interaction of total demand and total supply in the market. A) Perfect competition. B) Monopoly. C) Imperfect competition. D) All of the above. Show Answer Correct Answer: A) Perfect competition. 21. The demand for good X has been estimated by Qxd = 10-2Px + 6Py. Suppose that good X sells at P4 per unit and good Y sells for P3 per unit. Calculate the own price elasticity. A) -0.3. B) -0.5. C) -0.4. D) -0.2. Show Answer Correct Answer: C) -0.4. 22. Sellers as a group determine the supply of the product. A) False. B) True. Show Answer Correct Answer: B) True. 23. Management depends on ..... A) Economics. B) Demand. C) Business policies. D) None of above. Show Answer Correct Answer: A) Economics. 24. Demand for medicine is highly ..... A) Inelastic. B) Elastic. C) Risk. D) None. Show Answer Correct Answer: A) Inelastic. 25. The opportunity cost of an action is the A) Monetary payment the action required. B) Value of the most highly valued alternative action given up. C) Cost of all alternative actions that could have been taken. D) None of these. Show Answer Correct Answer: B) Value of the most highly valued alternative action given up. 26. Economics is very useful in any business organisation. A) True. B) False. Show Answer Correct Answer: A) True. 27. Are anything used to produce a good or service, or achieve a goal A) Raw Materials. B) Economics. C) Resources. D) Decisions. Show Answer Correct Answer: C) Resources. 28. Below are determinants of supply or supply shifters except: A) Input prices. B) Number of firms. C) Technology and government regulations. D) Consumer expectation. Show Answer Correct Answer: D) Consumer expectation. 29. Which of the following is not a cause of internal diseconomies of scale? A) Poor communication between different departments. B) Lack of staff morale and motivation. C) Less control, direction and coordination of human resources. D) Late deliveries due to congestion in busy locations. Show Answer Correct Answer: D) Late deliveries due to congestion in busy locations. 30. Kinked demand curve for oligopoly is due to A) Price signalling. B) Price rigidity. C) Price leadership. D) None of above. Show Answer Correct Answer: B) Price rigidity. ← 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 8Managerial Economics Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books