This quiz works best with JavaScript enabled. Home > Finance > Economics > Managerial Economics > Managerial Economics – Quiz 9 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Managerial Economics Quiz 9 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Managerial Economics basically comprises of two main divisions namely Microeconomics and Macroeconomics A) False. B) True. Show Answer Correct Answer: A) False. 2. Economic theories are not applied in managerial economics A) True. B) False. Show Answer Correct Answer: B) False. 3. Sensitivity analysis help us determining the weakest features of the optimal choice of action. A) True. B) False. Show Answer Correct Answer: B) False. 4. Managers should determine the price and output with the acquaintance of market structures and approaches pertinent to determination of price and output in the given market setup. A) False. B) True. Show Answer Correct Answer: B) True. 5. Economics is the study A) Scarcity. B) Wants. C) Need. D) Demand. Show Answer Correct Answer: A) Scarcity. 6. Managerial economics is best defined as A) The study of economics by managers. B) The study of the aggregate economic activity. C) The study of how managers make decisions about the use of scarce resources. D) All of the above are good definitions. Show Answer Correct Answer: C) The study of how managers make decisions about the use of scarce resources. 7. Which of the following method(s) is(are) suitable for forecasting the demand of a product? A) Market research and judgmental method. B) Judgmental method. C) Delphi method and judgmental method. D) Delphi method. Show Answer Correct Answer: C) Delphi method and judgmental method. 8. Which among the following is not related with economics? A) Formulates law. B) Only normative science. C) Deals with theories of distribution. D) Micro and macro aspects. Show Answer Correct Answer: B) Only normative science. 9. Suppose the demand for good Z goes up when the price of good Y goes down. We can say that goods Z and Y are: A) Substitutes. B) Complements. C) Perfect Substitutes. D) Unrelated Goods. Show Answer Correct Answer: B) Complements. 10. Macroeconomics applies to environmental or external issues. A) False. B) True. Show Answer Correct Answer: B) True. 11. The 'Law of Demand' states that there is an inverse relationship between the quantity demanded of a commodity and its price, other factors being constant. A) False. B) True. Show Answer Correct Answer: B) True. 12. When the own price elasticity is greater than 1 the demand is said to be A) Perfectly Elastic. B) Inelastic. C) Unitary. D) Elastic. Show Answer Correct Answer: D) Elastic. 13. Which of the following statements hold for factors of production in perfectly competitive market structure A) Payments to factors do not influence market price. B) Factors of production do not respond to changes in factor payments. C) There are barriers to move across firms. D) There is mobility across firms. Show Answer Correct Answer: D) There is mobility across firms. 14. Unlike an accountant, an economist measures costs on a(n) ..... basis. A) Conservative. B) Replacement. C) Historical. D) Explicit. Show Answer Correct Answer: D) Explicit. 15. The study of the movement from one equilibrium to another. A) Market Analysis. B) Equilibrium Analysis. C) Comparative Static Analysis. D) Comparative Equilibrium Analysis. Show Answer Correct Answer: C) Comparative Static Analysis. 16. Opportunity cost is defined as ..... A) Human wants are always greater than the available resources. B) Second best alternative that has to forgo for another choice which gives more satisfaction. C) A study of how people use their limited resources to satisfy their unlimited needs and desires. D) An individual, firm and government make decisions to choose from many alternatives. Show Answer Correct Answer: B) Second best alternative that has to forgo for another choice which gives more satisfaction. 17. In case of downward sloping straight line curve, the coefficient of elasticity at the intercept of the demand curve on the X-axis is equal to: A) Infinity. B) More than one. C) One. D) Zero. Show Answer Correct Answer: D) Zero. 18. When more units of a factor are employed for producing a commodity, the average product first ..... then ..... A) Falls, rises. B) Rises, falls. Show Answer Correct Answer: B) Rises, falls. 19. Income elasticity of demand for inferior good is ..... A) Positive. B) Negative. C) Neutral. D) All the above. Show Answer Correct Answer: B) Negative. 20. A product or service with an Price Elasticity of Demand (PED) less than (-)1 is demand: A) Inelastic. B) This is not possible. C) Elastic. D) Unit Elastic. Show Answer Correct Answer: A) Inelastic. 21. Net Profit is the excess of ..... over ..... A) Gross Profit, (Depreciation + Tax). B) Total Revenue, (Depreciation + Tax). C) Total Revenue, Total Cost. D) Total Cost, Total Revenue. Show Answer Correct Answer: A) Gross Profit, (Depreciation + Tax). 22. Suppose the price of beans rises from $ 1.00 a pound to $ 2.00 a pound, quantity falls from 10 units to 6 units. In this example, the demand for beans is said to be A) Perfectly elastic. B) Perfectly inelastic. C) Relatively elastic. D) Relatively inelastic. Show Answer Correct Answer: D) Relatively inelastic. 23. Father of Capitalism A) Adam Smith. B) Henry Foyal. C) Alfred Marshal. D) None. Show Answer Correct Answer: A) Adam Smith. 24. When Total Utility is maximum and Marginal Utility becomes Zero, ..... A) Consumer starts consuming the product. B) Consumer stops consuming the product. C) Consumer demand a product. D) Demand is equal to supply. Show Answer Correct Answer: A) Consumer starts consuming the product. 25. According to Douglas, Managerial Economics seeks to establish rules and principles to facilitate the attainment of the desired economic goals of management. A) False. B) True. Show Answer Correct Answer: B) True. 26. Illustration 1:Marginal Benefit = P95 > Marginal Costs = P50 YOU SHOULD BUY!Illustration 2:Marginal Benefit = P65 > Marginal Costs = P50 YOU SHOULD BUY! A) Illustration 1 is TRUE. B) Illustration 2 is TRUE. C) Both Statements are TRUE. D) Both Statements are FALSE. Show Answer Correct Answer: C) Both Statements are TRUE. 27. Managerial Economics is ..... in character A) Macro. B) Micro. C) Physical. D) Social. Show Answer Correct Answer: B) Micro. 28. Which among the following is not the characteristics of managerial economics? A) Pragmatic. B) Micro economics. C) Multidisciplinary. D) Not prescriptive. Show Answer Correct Answer: D) Not prescriptive. 29. The portion of the profit which is the right of the shareholders is ..... A) Nopat. B) Free cash flows. C) Net cash flows. D) Cash inflows. Show Answer Correct Answer: C) Net cash flows. 30. Steps for Decision Making after group members determine their needs and decide what they want to accomplish, they should write a general goal (or goals) for their project. A) Discover Alternatives. B) Forecast the Consequences. C) Determine the Objective. D) Define the Problem. Show Answer Correct Answer: C) Determine the Objective. ← 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