 Question 1

2 out of 2 points
National Income is studied under Macroeconomics
Selected True
Answer:
Answers: True
False
 Question 2
0 out of 2 points
When supply changes due to its own price, it is called shift of supply curve
Selected True
Answer:
Answers: True
False
 Question 3
2 out of 2 points
Which type of goods have an inelastic demand?
Selected Answer: Necessities

Answers: Necessities
luxuries
comforts
 Question 4
2 out of 2 points
Demand Curve usually slopes upwards from the left to the right
Selected False
Answer:
Answers: True
False
 Question 5
2 out of 2 points
The law of demand states that
Selected Answer: when the price rises the demand falls

Answers: when the price rises the demand falls

when the price rises, the demand also rises
 Question 6
2 out of 2 points
State the two types of studies that are utilized to construct and estimate decision models
Selected Mathematical Economics and Econometrics
Answer:
Answers: Mathematical Economics and Econometrics
Macro Economics and micro economics
mathematical economics and micro economics
macroeconomics and econometrics
 Question 7
2 out of 2 points
Butter and bread are substitutes.
 Selected False
Answer:
Answers: True
False
 Question 8
2 out of 2 points
Demand forecasting is the pre-requisite for production planning
Selected True
Answer:
Answers: True
False
 Question 9
2 out of 2 points
What describes a relationship between two or more economic variables?
Selected Answer: a function

Answers: a function
identity
equation
 Question 10
2 out of 2 points
the market equilibrium analysis is based on the assumption that factors other than own price
of the product remain unchanged.
Selected True
Answer:
Answers: True
False
 Question 11
2 out of 2 points
Total outlay is price multiplied by quantity.
Selected False
Answer:
Answers: True
False
 Question 12
2 out of 2 points
Microeconomics theory assumes full employment.
Selected True
Answer:
Answers: True
False
 Question 13
2 out of 2 points
The law of demand refers to the relationship between consumer income and the quantity of
a commodity demanded per time period.
Selected False
Answer:
Answers: True
False
 Question 14
2 out of 2 points
 What is the elasticity of demand at the midpoint?
Selected Answer: Unity

Answers: Unity
less than one
more than one
infinity
 Question 15
1 out of 1 points
Open Market Operations mean
Selected purchase and sale of securities by the Central Bank
Answer:
Answers: purchase and sale of securities by the Central Bank
sale of bonds
purchase of bonds
none of the above
 Question 16
1 out of 1 points
Full cost pricing method is also known as
Selected cost plus pricing
Answer:
Answers: Full cost plus Pricing
cost plus pricing
moderate fluctuations
Marginal Costing
 Question 17
1 out of 1 points
A fall in the demand for money would affect
Selected a rightward shift in the LM function
Answer:
Answers: a rightward shift in the LM function
a rightward shift in the LM function
a leftward shift in the LM function
a rightward shift in the IS function
 Question 18
0 out of 1 points
A fall in the price of the commodity leads to
Selected Answer: a rise in demand

Answers: a fall in demand

a shift in demand
a rise in demand
None of these
 Question 19
1 out of 1 points
A monoply producer usually earns
Selected Answer: abnormal profits

Answers: abnormal profits

normal profits
losses
all of the above
 Question 20
1 out of 1 points
What is the goal of Monetary Policy?
Selected Answer: price stability

Answers: price stability

economic stability
full utilisation of resources
all of the above
 Question 21
1 out of 1 points
A characteristic of monopolistic competition is that each firm
Selected faces a downward-sloping demand curve.
Answer:
Answers: faces perfectly elastic demand.
faces a downward-sloping demand curve.
has a perfectly inelastic supply
has a perfectly elastic supply.
 Question 22
1 out of 1 points
Price Line is same as
Selected budget line
Answer:
Answers: production possibility frontier
iso-cost line
budget line
MR curve under perfect competition
 Question 23
1 out of 1 points
In case of inferior commodity, the income elasticity of demand is
Selected negative
Answer:
Answers: positive
negative
infinity
 none of these
 Question 24
1 out of 1 points
A group of firms that gets together to make price and output decisions is called
Selected Cartel
Answer:
Answers: Cartel
price leadership
total cost plus pricing
a concentrated industry
 Question 25
1 out of 1 points
The demand curve shows the relationship between
Selected both price and quantity and both are maximum, given the consumer's
Answer: income
Answers: the maximum price and minimum quantity
the minimum price and minimum quantity
maximum quantity and minimum price
both price and quantity and both are maximum, given the consumer's
income
 Question 26
1 out of 1 points
The first financial institution(development) in India that has got merged with a bank is
Selected Answer: ICICI

Answers: HDFC
ICICI
IDBI
SIDBI
 Question 27
1 out of 1 points
All of the following are among the internal factors that affect pricing EXCEPT:
Selected Answer: globalization

Answers: globalization
the company's marketing objectives
the environment
the organization
 Question 28
1 out of 1 points
Marginal utility is equal to average utility at that time when average utility is—
Selected Answer: Maximum

Answers: Increasing
 Maximum
Falling
Minimum
 Question 29
1 out of 1 points
A good with a vertical demand curve has a demand with
Selected Answer: zero elasticity

Answers: infinite elasticity

unit elasticity
zero elasticity
varying elasticity
 Question 30
1 out of 1 points
An explicit cost is
Selected none of the above
Answer:
Answers: the cost of giving up an alternative
the cost of a chosen alternative
calculated by subtracting the monetary cost of an alternative by the time
invested
none of the above
 Question 31
1 out of 1 points
Who will act as the banker to the Government of India?
Selected Answer: RBI

Answers: SBI
NABARD
Punjab National Bank
RBI
 Question 32
1 out of 1 points
The apex organization of Industrial Fianance in India is
Selected IDBI
Answer:
Answers: IDBI
SIDBI
RBI
SBI
 Question 33
1 out of 1 points
At point of satiety, marginal utility is—
 Selected Zero
Answer:
Answers: Zero
Positive
Negative
Maximum
 Question 34
1 out of 1 points
Economics is a science” the basis of this statement is—
Selected All of the above
Answer:
Answers: Relation between cause and effect
Use of deductive method and inductive method for the formations of laws
Experiments
All of the above
 Question 35
1 out of 1 points
The last stage in the five-step decision process described in the text is to
Selected Answer: implement the decision

Answers: Determine the objective

select the best possible solution
implement the decision
explain the decision to managers
 Question 36
1 out of 1 points
Economics is the Science of Wealth” who gave this definition ?
Selected Answer: Adam Smith

Answers: J.K Mehta

Marshall
Adam Smith
Robbins
 Question 37
1 out of 1 points
2 to 3% increase in prices is also called
Selected creeping inflation
Answer:
Answers: creeping inflation
crawling
hyper
galloping
 Question 38
 1 out of 1 points
The long run Phillips Curve is
Selected Answer: Vertical at the NAIRU

Answers: horizontal at the NAIRU

Vertical at the NAIRU
fixed at the origin
does not exist
 Question 39
1 out of 1 points
When RBI announced on increase in Cash Reserve Ratio(CRR) and what does it mean?
Selected the commercial bank will have less money to lend
Answer:
Answers: The Union Government will have less money to lead
The commercial bank will have less money to lend
the commercial bank will have less money to lend
All of the above
 Question 40
1 out of 1 points
Why the average fixed cost curve does not touch the output axis?
Selected Answer: because AFC cannot be zero

Answers: because AFC cannot be zero

because AFC can be zero
 Question 41
1 out of 1 points
Regional Rural Banks are sponsored by
Selected Answer: Nationalised commercial bank
Answers: Nationalised commercial bank
Central bank of India
Reserve bank of India
 Question 42
1 out of 1 points
In depreciation calculation, the useful life of a fixed asset is
Selected Answer: an estimate

Answers: a certain figure

an estimate
a predetermined figure for all fixed assets
 Question 43
1 out of 1 points
Name the note issuing authority in India.
Selected RBI
Answer:
Answers: RBI
 SBI
PNB
Syndicate Bank
 Question 44
1 out of 1 points
Cross elasticity of complementary goods is
Selected negative
Answer:
Answers: zero
high
negative
infinite
 Question 45
1 out of 1 points
Marginal cost pricing method leads to
Selected Answer: frequent price changes

Answers: frequent price changes

stable prices in the market
marketing mix strategy
None of the above
 Question 46
1 out of 1 points
Define opportunity cost?
Selected Cost of the next best option
Answer:
Answers: Cost of what your college fee will be
Cost of the product that you have currently bought
Cost of the next best option
Cost of another option other than your current choice
 Question 47
0 out of 1 points
All of the following are considered to be forms of a cost-based approach to pricing EXCEPT:
Selected break even analysis
Answer:
Answers: cost-plus pricing
break even analysis
pricing to attract low volume in many segments so as to gradually penetrate
the market as a whole.
target profit pricing
 Question 48
1 out of 1 points
Shut down point is one where a firm
 Selected Answer: cannot cover its variable costs

Answers: cannot cover its variable costs

can cover variable costs and fixed costs
cannot cover fixed cost
none of the above
 Question 49
1 out of 1 points
Managerial economics generally refers to the integration of economic theory with business
Selected Practice
Answer:
Answers: Ethics
management
Practice
all of the above
 Question 50
1 out of 1 points
A variable that takes on the values of 0 or 1 and is used to incorporate the effect of
qualitative variables in a regression model is called
Selected a dummy variable
Answer:
Answers: an interaction
a constant variable
a dummy variable
none of the above is correct
 Question 51
1 out of 1 points
Banking in India is controlled by
Selected Answer: RBI

Answers: RBI
SBI
United Bank of India
PNB
 Question 52
1 out of 1 points
From the society’s point of view, the economic function of profits and losses, is to
Selected Reallocate resources from less desired to more desired uses.
Answer:
Answers: Promote the equal distribution of real assets and wealth
Achieve full employment and price level stability
Contribute to a more equal distribution of income.
Reallocate resources from less desired to more desired uses.
 Question 53
1 out of 1 points
Demand is inelastic if
Selected Answer: the price elasticity of demand is less than 1

Answers: a large change in quantity demanded results in a small change in price

the price elasticity of demand is greater than 1
the quantity demanded is very responsive to changes in price
the price elasticity of demand is less than 1
 Question 54
1 out of 1 points
Cobb douglas production function does not possess the characteristics of
Selected Answer: Variable elasticity of substitution

Answers: constant returns to scale

unit elasticity of substitution
Variable elasticity of substitution
 Question 55
4 out of 4 points
With fall in income, demand for a normal good will rise but for an inferior good will fall
Selected False
Answer:
Answers: True
False
 Question 56
4 out of 4 points
If the demand for a good is inelastic, an increase in its price will cause the total expenditure
of the consumers of the good to
Selected Answer: will change the total Revenue in the same direction

Answers: will change the quantity in the same direction

will change the total Revenue in the same direction
will change the total revenue in the opposite direction
will not change the total revenue
 Question 57
4 out of 4 points
If the price of computers goes up, the demand for internet connections will fall.
Selected True
Answer:
Answers: True
False
 Question 58
4 out of 4 points
Goods with substitutes like tea have an elastic demand whereas goods without substitutes
have an inelastic demand.
Selected True
Answer:
Answers: True
 False
 Question 59
4 out of 4 points
In case of luxury goods, the demand is elastic, while for necessity goods, it tends to be
inelastic
Selected True
Answer:
Answers: True
False
 Question 60
0 out of 3 points
Opportunity costs are incurred when budgetary resources are allocated to one department
instead of the other
Selected False
Answer:
Answers: True
False
 Question 61
3 out of 3 points
Price discrimination is done to enhance profits in monopoly
Selected True
Answer:
Answers: True
False
 Question 62
3 out of 3 points
With which of the following is the concept of marginal cost closely related?
Selected Answer: Variable cost

Answers: Variable cost

fixed Cost
Opportunity cost
Economic cost
 Question 63
3 out of 3 points
Which one of the following is the basic objective of monetary policy?
Selected Answer: to control cost and availability of money

Answers: to control deficit of the budget

to control deficit in the balance of payments
to control cost and availability of money
to control public expenditure