GM04 Online Exam Assignment AIMA 2020

Subject Code: GM04

Subject Name: MANAGERIAL ECONOMICS

Component name: TERM END

 

Question 1:- …………………………………..is economics applied to decision making.

1. a) Micro Economics
2. b) Macro Economics
3. c) Indian Economy
4. d) Managerial Economics

Question 2:- Significance of Managerial Economics is-    

1. a) Enable managers to become more competent model builder                       
2. b) Helpful in evaluating choices
3. c) Helps in taking business decisions
4. d) All of the above

Question 3:- The opportunity cost of using idle machine is…………………    

1. a) Zero
2. b) Positive
3. c) Negative
4. d) One               

Question 4:- The demand curve has…………………….slope as being consistent with Law of Demand.    

1. a) Positive
2. b) Negative
3. c) Direct
4. d) Indirect          

Question 5:- ……………………………is when the quantity demanded of the good increases as a result of fall in its price, other determinants remaining constant.           

1. a) Extension of demand
2. b) Contraction of demand
3. c) Direct demand
4. d) Indirect demand

Question 6:- The price of the good decreases from Rs.2,000 to Rs.1,000 and the quantity demanded of good increases from 5,000 to 6,000 units. Which of the following is true  

1. a) The income elasticity is +2
2. b) The income elasticity is +5
3. c) The price elasticity is .4
4. d) The price elasticity is 2.5

Question 7:- ……………………..is the locus of all technically efficient methods or combination of inputs for producing given level of output.          

1. a) Indifference curve
2. b) Isoquant
3. c) Product line
4. d) None of these

Question 8:- ………………………………is considered as the slope of Indifference curve   

1. a) Marginal curve
2. b) Marginal rate of Technical Substitution
3. c) Marginal rate of Substitution
4. d) None of these

Question 9:- Which one of the following property of isoquant is incorrect             

1. a) Isoquants are convex to origin
2. b) Isoquants do not intersect
3. c) Isoquants have positive slope
4. d) Upper isoquants represent higher level of output

Question 10:- There is no unique supply curve in ………………………….market                           

1. a) Perfect competitive
2. b) Monopoly
3. c) Monopolistic
4. d) Oligopoly

Question 11:- What are the necessary conditions for the price discrimination to take place?   

1. a) Different markets must be separable for a seller
2. b) Elasticity of demand must be different in different markets
3. c) There must be effective separation of sub markets so that no reselling can take place
4. d) All of the above

Question 12:- State True or False – In scenario like Pandemic COVID-19, Law of demand does not hold true.  

1. a) true
2. b) false

Question 13:- Which of the following determinants effect demand of gold?             

1. a) Price
2. b) Festive season
3. c) Income
4. d) All of the above

Question 14:- If the price of a commodity decreases, the consumer`s real income increases. The change in consumer basket due to change in real income is called………………………….           

1. a) Income effect
2. b) Substitution effect
3. c) Household effect
4. d) Keynes effect                     

Question 15:- Conditions which must be satisfied for consumer to be in equilibrium-     

1. a) Slope of Indifference curve must be equal to slope of budget line
2. b) At the point of equilibrium , indifference curve is convex to origin
3. c) Both A and B
4. d) None of these

Question 16:- Want satisfying power of a commodity is known as…………………..

1. a) Demand
2. b) Supply
3. c) Utility
4. d) Equilibrium        

Question 17:- The theory of sales revenue maximization as the most important goal of managers is given by ……………………     

1. a) Baumol
2. b) Marris
3. c) Cyert and march
4. d) Williamson

Question 18:- In Game theory each decision maker called player has well defined choices to make called……………..             

1. a) Strategy
2. b) Rules             
3. c) Payoff matrix
4. d) None of these

Question 19:- Kinked demand curve model explains………………    

1. a) Elasticity of demand
2. b) Stickiness of Price          
3. c) Profitability ratio
4. d) Conditions for loss

Question 20:- Which of the following are categorized as non collusive oligopoly models-          

1. a) Cartels
2. b) Price leadership model
3. c) Cournots Duopoly model
4. d) None of these

Case Study

Hindustan Unilever Limited being the leading company in the FMCG sector. It is the largest share holder of the FMCG sector in the Indian market. It was founded in November 1956 and its based in Mumbai, Maharashtra. The mission statement of HUL is, “add vitality to life”. Findings of the research done on the life cycle of HUL, along with its strong presence in the market due to its highest shares in the FMCG market show that HUL has a strong market base which is spread strategically in all the market segments under soaps and detergents due to so many brands by HUL. Also we see there are a lot of emerging competition to the HUL’s soaps and detergent market share and how it has and will continue to tackle these competitions. .HUL in the light of all the competition, is constantly innovating new products so as to dominate the market Additionally we see the HUL firm’s life cycle, along with an understanding of a monopolistic market. Furthermore we see into one of the competitor’s downfall in the soaps and detergent market. In conclusion, this study shows HUL has a strong market share in the soaps and detergent sector. Unlike other companies, HUL has its base under all the segments, thus targeting a wide range of consumers.    

Question 21:- Under which market do you categorize the soap and detergent products from HUL?

1. a) Monopolistic Competition
2. b) Monopoly
3. c) Perfect Competition
4. d) Oligopoly

Question 22:- Inspite of severe competition HUL was able to have strong market base due to-      

1. a) Innovation
2. b) Branding of Products
3. c) Both A and B
4. d) None of these

Question 23:- Which of the following is /are the characteristics of this kind of market categorization?

1. a) Large number of Sellers
2. b) Product Differentiation
3. c) Perfect factor mobility                  
4. d) All of the above

Question 24:- Who gave this model of market?  

1. a) Chamberlin
2. b) P Swezzy
3. c) Manmohan Singh
4. d) Adam Smith

Question 25:- This market is combination of which two markets

1. a) Monopoly plus perfect competition
2. b) Monopoly plus Oligopoly                  
3. c) Monopolistic competition plus Oligopoly
4. d) Monopolistic Competition plus Perfect competition