Total Marks: 100 marks

Subject: Managerial Economics KOFFI SOPIE ROSEMONDE MBA1

Test-3
Multiple Choice Questions: (5 marks each)
1. is made up of institutions and other forces that affect a society’s basic values, perceptions,
perceptions, preference &Behaviours.
a. Political environment
b. Cultural environment
c. Economic environment
d. Natural environment
2. consists of factors that affect consumer purchasing power and their spending patterns.
a. Political environment
b. Cultural environment
c. Economic environment
d. Natural environment
3. The total market value of all final goods and services currently produced within the domestic
territory of a country in a year is
a. GDP
b. GNP
c. NNP
d. National Income
4. The term NNP stands for -
a. Net National Product
b. New National Product
c. Net National Price
d. New National Price
5. The income left after the payment of direct taxes from personal income is called
a. Personal Income
b. Product Income
c. Disposable Income
d. National Income
6. Bills issued by the Reserve Bank of India on behalf of the Central Government for raising money.
a. Treasury bills
b. Certificate of Deposit
c. Business cycle
d. None of these
7. Market situation where demand and supply requirements of all decision makers have been
satisfied without creating surpluses or shortages.
a. Demand
b. General equilibrium
c. Derived demand
d. Demand function
8. a good that decreases in demand when consumer income rises.
a. Inferior good
b. Supply
c. Demand
d. Macro economic
9. Transformation of inputs into output
a. Purchase
b. Sales
c. Production
d. All of these
10. Resources used in the production of goods and services.
a. Inputs
b. Production
c. Sales
d. None of these
11. These are a geometric representation of the production function.
a. Isoquants
b. Long run
c. Short run
d. Return to scale
12. it explains the changes in production that occur when all resources are proportionately changed
in the long run
a. Law of return to scale
b. Production function
c. Long run
d. Short run
13. The time period when all inputs become variable.
a. Long run
b. Short run
c. Both a & b
d. None of these
14. The return from the second best use of the firm’s resources which the firm forgoes in order to avail itself
of the return from the best use of the resources.
a. Variable cost
b. Fixed cost
c. Both a & b
d. Opportunity cost
15. Function specifying output of a firm, an industry, or an entire economy for all combinations of
inputs.
a. Income function
b. Cost function
c. Production function
d. Sales function
16. indicates all possible combinations of two inputs which can be purchased with a given
amount of investment fund
a. Income Elasticity
b. Isoquant
c. Iso cost line
d. Price elasticity
17. cost is the overall actual expense involved in creating a good or service for sale to
consumers
a. Fixed cost
b. Labour cost
c. Real cost
d. Material cost
18. The cost of any activity measured in terms of the value of the next best alternative forgone is
a. Fixed cost
b. Opportunity cost
c. Real cost
d. Material cost
19. Which line is also known as scale line ?
a. Expansion path
b. Isoquant line
c. Isocost line
d. Price line
20. If demand is inelastic then a price increase will lead to an in revenue
a. Decrease
b. Increase
c. Both a & b
d. None of these