Managerial Economics 1 MCQs [set-5]

101. When a firm doubles its inputs and finds that its output has more than
doubled, this is known as:

A. economies of scale.

B. constant returns to scale.

C. diseconomies of scale.
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D. a violation of the law of diminishing returns.
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Answer: A
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102. The larger the diameter of a natural gas pipeline, the lower is the
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average total cost of transmitting 1,000 cubic feet of gas 1,000 miles. This
is an example of: M
A. economies of scale.

B. normative economies.

C. diminishing marginal returns.

D. an increasing marginal product of labour.

Answer: A

103. If all resources used in the production of a product are increased by

20 percent and output increases by 20 percent, then there must be:

A. economies of scale.

B. diseconomies of scale.

C. constant returns to scale.

D. increasing average total costs.

Answer: C

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104. Surplus is a condition of:

A. excess supply

B. a deficiency in supply

C. market equilibrium

D. excess demand

Answer: A

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105. The effect on sales of an increase in price is a decrease in:
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A. the quantity demanded
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B. demand

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C. supply
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D. the quantity supplied
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Answer: B

106. The quantity of product X supplied can be expected to rise with a fall
in:

A. prices of competing products

B. price of x

C. energy savings technical charge

D. input prices

Answer: B

107. Firms under perfectly competitive markets generally are

A. price makers

B. price givers

C. price taker

D. none of these

Answer: A

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108. The concept of product differentiation was introduced by

A. tr malthus

B. jm keynes

C. mrs. robinson

D. chamberlin

Answer: D

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o competition
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109. The architect of the theory of monopolistic
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A. rosenstein roden
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B. jr hicks
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C. karl marx
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D. chamberlin M
Answer: D

110. The concept of monopsony was invented by:

A. marshall

B. ap. learner

C. chamberlin

D. mrs. j. robinson

Answer: D

111. A cost that has already been committed and cannot be recovered
known as:

A. sunk cost

B. total cost

C. full cost

D. variable cost

Answer: A

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112. ------------ is situation of severely falling prices and lowest level of
economic activities

A. boom

B. recovery

C. recession

D. depression

Answer: D

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113. ------------ is situation with increased investment and increased price
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a
A. recession

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B. progress
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C. boom

D. recovery
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Answer: C

114. A graph indicating different combination of inputs with different level

of output is called

A. iso-cost map

B. bep map

C. input-output map

D. iso-quant map

Answer: D

115. Iso-cost line indicate the price of

A. output

B. inputs

C. finished goods

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 D. raw material

Answer: B

116. Modern definition is also called as

A. Growth definition

B. Welfare definition

C. scarcity definition

D. Neoclassical definition
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Answer: A
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a and macro by
117. Economics was classified into micro

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A. Ragnar Frisch
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B. Adam Smith M
C. J M Keynes

D. A C Pigou

Answer: A

118. Who is regarded as a father of Business Economics

A. Joel Dean

B. Adam Smith

C. J M Keynes

D. Ragnar Frisch

Answer: A

119. Decision making and ????????are the two important functions of

executive of business firms

A. Forward planning

B. Directing

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 C. Supervising

D. Administration

Answer: A

120. “ A rupee tomorrow is worth less than a rupee today” relates to

A. Opportunity cost principle

B. Discounting principle

C. Equi?marginal principle
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D. None of these
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Answer: B
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121. ………….is micro economic theory q M
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A. Demand theory M
B. Price theory

C. Income theory

D. None of these

Answer: B

122. Macro economic theory is also called as

A. Demand theory

B. Price theory

C. Income theory

D. None of these

Answer: C

123. Allocation of available resources among alternatives is based on the

principle

A. Opportunity cost principle

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 B. Discounting principle

C. Equi?marginal principle

D. None of these

Answer: C

124. The techniques of optimization include

A. Marginal analysis

B. Calculus
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C. Linear programming
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D. All of the above
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Answer: D
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125. Which one is not a characteristics of managerial economics

A. Micro economics

B. Normative science

C. Positive science

D. Pragmatic

Answer: C

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