II B.

Tech I Semester

I Mid Examintions

Objective Exam Paper

Paper Code Subject: MEFA

Time: . Branch C.S CE Max.Marks:

10M

Answer the following questions 20 X 1/2=10

1-Demand is determined by
a. Price of the product
b. Relative prices of other goods
c. Tastes and habits
d. All of the above

2-When a firm’s average revenue is equal to its average cost, it gets ________.
a. Super profit
b. Normal profit
c. Sub normal profit
d. None of the above

3-Managerial economics generally refers to the integration of economic theory with

business
a. Ethics
b. Management
c. Practice
d. All of the above

4-Given the price, if the cost of production increases because of higher price of raw
materials, the supply
a. Decreases
b. Increases
c. Remains same
d. Any of the above

5-The cost recorded in the books of accounts are considered as

a. Total cost
b. Marginal cost
c. Average cost
d. Explicit cost

6-A Joint Stock Company is managed by the Board of Directors elected by _____ .
a. Top management
b. Shareholders
c. Employees of company
d. None of the above

7-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

8-Under perfect competition, price is determined by the interaction of total demand and
________.
a. Total supply
b. Total cost
c. Total utility
d. Total production

9-The out of pocket costs are ________.

a. Sunk costs
b. Marginal costs
c. Explicit costs
d. Social cost

10-The short run Average Cost curve is __ shaped

a. V
b. U
c. L
d. Any of the above
11.In production function, production is a function of:
(a) Price
(b) Factors of Production
(c) Total Expenditure
(d) None of these
12. The basic reason of operating the Law of Diminishing Returns is:
(a) Scarcity of Factors
(b) Imperfect Substitution between Factors
(c) Both (a) and (b)
(d) None of the above

13. Which of the following explains the short-run production function ?

(a) Law of Demand
(b) Law of Variable Proportion
(c) Returns to Scale
(d) Elasticity of Demand
14. Long-run production function is related to:
(a) Law of Demand
(b) Law of Increasing Returns
(c) Laws of Returns to Scale
(d) Elasticity of Demand
15. In which stage of production a rational producer likes to operate in shot-run production
?
(a) First Stage
(b) Second Stage
(c) Third Stage
(d) None of these
16. Law of variable proportion explains three stages of production. In the first stage of
production:
(a) Both MP and AP rise
(b) MP rises
(c) AP Falls
(d) MP is zero
17. At which time all the factors of production may be changed ?
(a) Short run
(b) Long run
(c) Very Long run
(d) All the three
18. Production function is expressed as:
(a) Qx = Px
(b) Qx = f(A, B, C, D)
(c) Qx = Dx
(d) None of these
19. Which factors among following we find in short-run production process?
(a) Fixed Factors
(b) Variable Factors
(c) Both (a) and (b)
(d) None of these
20. The cycle which increases first and after being constant starts to reduce is called :
(a) APP
(b) MPP
(c) TPP
(d) All of these
 II B.Tech I Semester

I Mid Examintions

Objective Exam Paper

Paper Code Subject: MEFA

Time: . Branch C S E Max.Marks: 10M

Answer the following questions 3X5=15

1) a) Explain in detail the objectives Managerial economics.

(OR)

b) Law of Demand.

2) a) scope of Managerial Economics. (OR)

b) what are the disadvantages of production function ?

3) a) Assumptions of B.E.P.

(OR)

b) Limitations of BEP.

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Paper set by

Dr. M. Satya Narayana.

M.Com., L.L.B., M.Phi., Ph.D.