This quiz works best with JavaScript enabled. Home > Finance > Economics > Managerial Economics > Managerial Economics – Quiz 8 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Managerial Economics Quiz 8 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Law of equi-marginal utility explains the behaviour of the ..... A) Supplier. B) Producer. C) Consumer. D) Government. Show Answer Correct Answer: C) Consumer. 2. Microeconomics applies to operational or internal issues. A) False. B) True. Show Answer Correct Answer: B) True. 3. The purpose of the use of Managerial Economics principles in a firm is to answer the three basic economic problems. Except ..... A) What to produce?. B) How to produce?. C) For whom to produce. D) What are the needs and wants of the people?. Show Answer Correct Answer: D) What are the needs and wants of the people?. 4. The movement from one indifference curve to another that results from the change in real income caused by a price change. A) Total Effect. B) Substitution Effect. C) Income Effect. D) Inferior Effect. Show Answer Correct Answer: C) Income Effect. 5. When demand is inelastic: A) A price increase (decrease) leads to a decrease (increase) in total revenue. B) Total revenue is minimized. C) Total revenue is maximized. D) A price increase (decrease) leads to an increase (decrease) in total revenue. Show Answer Correct Answer: D) A price increase (decrease) leads to an increase (decrease) in total revenue. 6. In the equation, we have:est. sales = 15.15 + 2.50OC + etStandard error (3.99) (0.13) T-statistic (? ) (? ) R2 = 97.10% n = 10, 0.05What is the value of t statistic for the slope parameter? A) 20.24. B) 19.24. C) 19.23. D) 20.23. Show Answer Correct Answer: C) 19.23. 7. If the optimal level of Q is 5, Find the marginal benefit of the given below:200-40Q A) 0. B) -0. C) 20. D) 40. Show Answer Correct Answer: A) 0. 8. The cost curve, which is inversely S-shaped is: A) Total fixed cost curve. B) Total variable cost curve. C) Marginal cost curve. D) Average cost curve. Show Answer Correct Answer: B) Total variable cost curve. 9. The sustainability of industry profits also depends on the nature and intensity among firms competing in the industry A) Power of buyers. B) Industry Rivalry. C) Power of suppliers. D) Threat Substitutes and Complements. Show Answer Correct Answer: B) Industry Rivalry. 10. According to law of demand, when price reduces, demand ..... A) Decreases. B) Increases. C) Fluctuates. D) Remains constant. Show Answer Correct Answer: B) Increases. 11. Which of the following is the best example of "what goods and services should be produced?" A) The leasing versus the purchasing of new capital equipment. B) The production of SUVs versus the production of sub-compact cars. C) The use of a capital intensive versus a labor intensive process of manufacturing textiles. D) The manufacturing of computer workstations in China or in India. Show Answer Correct Answer: B) The production of SUVs versus the production of sub-compact cars. 12. An input should be so allocated that the value added by the last unit is the same in all cases. A) Incremental principle. B) Discounting principle. C) Opportunity cost principle. D) Equi-marginal principle. Show Answer Correct Answer: D) Equi-marginal principle. 13. A 5% fall in the price of X leads to a 10% rise in its demand. In case of Good Y, a 2% rice in price leads to a 6% fall in its demand. In the given case, ..... is more elastic. A) X. B) Y. C) Both X and Y are equally elastic. D) Both X and Y are inelastic. Show Answer Correct Answer: B) Y. 14. The demand curve will have a downward slope indicating: A) The expansion of demand with a fall in price and contraction of demand with a rise in price. B) The expansion of demand with a fall in price. C) Contraction of demand with a rise in price. D) Rise in price causes a rise in supply. Show Answer Correct Answer: A) The expansion of demand with a fall in price and contraction of demand with a rise in price. 15. In the text, the key question in the "economics of a business" is A) Should the firm be in the business in which it is operating. B) Whether the firm faces rising labor costs. C) Can the firm affect its market share. D) Whether the need to grow revenues is being met. Show Answer Correct Answer: A) Should the firm be in the business in which it is operating. 16. If demand for a product decreases as income increases, it is called ..... A) Positive income relative demand. B) Negative income relative demand. C) Zero income relative demand. D) All. Show Answer Correct Answer: B) Negative income relative demand. 17. Which is not covered under the subject of managerial economics economics? A) Accounting Theory. B) Production Analysis. C) Demand Analysis. D) Cost analysis. Show Answer Correct Answer: A) Accounting Theory. 18. Demand ..... when price of complimentry product increases A) Increases. B) Decreases. C) Fluctuates. D) Remains the same. Show Answer Correct Answer: B) Decreases. 19. Revenue is the total monetary value of the goods or services sold. A) False. B) True. Show Answer Correct Answer: B) True. 20. ..... is the primary function of economics. A) Financial study. B) Maintaining rules. C) Controlling on staff. D) None of above. Show Answer Correct Answer: A) Financial study. 21. According to Spencer, Managerial economics is the integration of economic theory with business practice for the purpose of facilitating decision making and forward planning by management. A) False. B) True. Show Answer Correct Answer: B) True. 22. A minimum limit beyond which the price of a commodity is not allowed to fall. A) Price Floor. B) Price Ceiling. C) Surplus. D) Demand. Show Answer Correct Answer: A) Price Floor. 23. In which type of market structures you will see a kinked demand curve? A) Monopolistic. B) Monopoly. C) Oligopoly. D) Perfect competition. Show Answer Correct Answer: C) Oligopoly. 24. It is an economic concepts that measures the responsiveness of one variable to changes in another variable. A) Quantity Demanded. B) Marginal Revenue. C) Elasticity Concept. D) None of the Above. Show Answer Correct Answer: C) Elasticity Concept. 25. The use of Managerial Economics enables optimum utilization of scarce resources in such organizations as well as helps in achieving the goals most efficiently. A) True. B) False. Show Answer Correct Answer: A) True. 26. ..... is economic theory used in business whereas ..... is economics theory used in business and non-business organization A) Micro economics, macro economics. B) Business economics, managerial economics. C) Positive economics and normative economics. D) None of these. Show Answer Correct Answer: B) Business economics, managerial economics. 27. If demand does not change but price changes, then what type of price relativity is it called? A) Aggregate price relative demand. B) Total value unexpected demand. C) Price relative demand in relative manner. D) Price relative demand. Show Answer Correct Answer: B) Total value unexpected demand. 28. Managerial Economists should carry out a thorough analysis of the environment of a business. A) True. B) False. Show Answer Correct Answer: A) True. 29. Identify the two cost curves which start from the same point on the Y-axis. A) TVC and TFC. B) TFC and TVC. C) TFC and TC. D) TFC and AFC. Show Answer Correct Answer: C) TFC and TC. 30. Occurs when consumer has spent all income and the marginal utilities per dollar spent on each good purchased are equal. A) Consumer Satisfaction. B) Consumer Goods. C) Consumer Equilibrium. D) Consumer Demand. Show Answer Correct Answer: C) Consumer Equilibrium. ← 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 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books