MCQ Based Question – Answers [2024]

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Managerial Economics

Question 1

Which of the following is a macroeconomic topic?

Why plumbers earn more than janitors
The reasons for the rise in average prices
Whether the army should buy more tanks or more rockets
he reasons for a rise in the price of orange juice

Question 2

Which of the following option is the correct definition of macroeconomics?

The study of the performance of economies – changes in economic output, inflation, interest and foreign exchange rates, and the balance of payments
The study of large-scale economic aggregates
The study of economy wide aggregates, such as inflation, unemployment, economic growth and international trade
All of the above

Question 3

What makes the use of economics so important?

Dealing with a shortage of raw materials
How to distribute resources in society
The principle of opportunity cost
All of the above

Question 4

What does PPC stand for?

Production possibility curve
Production possibility card
Production possibility care
Production possibility cost

Question 5

The Production Frontier, which represents the greatest practicable quantities of two or more goods that may be produced given the resources that are available, is also referred to as the _________ Curve.

Possible production
Transformation
Evaluation
Forecasting

Question 6

A _____________ intensive method of production suggests that more capital is used per unit of output than labor.

Technology
Capital
Resource
Choice

Question 7

What is the solution to the ‘issue of maximisizing welfare or economic efficiency’?

Efficient distribution of goods across the country
Finite resources to be used effectively
Altering the country’s structure from an agrarian to an industrial one
Infinite resources to used effectively

Question 8

Which wing of economic can analyzse free labor movement’s costs and advantages and also help with political decisions?

Manpower economics
Border economics
Immigration economics
Welfare economics

Question 9

A PPC shows the _________ amount of one commodity that can be obtained for a given amount of another, based on the availability of production components, technology and management.

Maximum
Minimum
Unitary
Negotiated

Question 10

To enhance productivity, a sacrifice—or ___________ cost—must be made.

Explicit
Accounting
Sunk
Opportunity

Question 11

A demand analysis concentrates on _________ behavior.

Consumer
Supplier
Intermediary
Stakeholder

Question 12

What does TU stand for?

Total unit
Total utilitzation
Total utility
None of the above

Question 13

What does MU stand for?

Mix utility
Marginal utility
Minimum utility
Maximum utility

Question 14

Which participant group makes an economy’s market?

Consumers

Producers

Both 1 and 2

None of the above

Question 15

The _________________ is determined by first calculating the TU, then dividing that value by the total number of X units (n).

Average utility
Marginal utility
Expected utility
Basic utility

Question 16

What are the factor/factors that influence sales?

Forecasting sales
Manipulating demand
Both 1 and 2
None of the above

Question 17

Which of the following are determinants of demand for a product/service?

Price of the product/service
Income of the buyer
Desire to purchase the product/service
All of the above

Question 18

Considering that coffee and tea are substitutes, if coffee prices rise then the demand for tea will __________.

Stay unaffected
Decrease
Stay constant
Increase

Question 19

If consumers think that there are very few substitutes for a particular product, then ___________________.

Demand for it will be price inelastic
Demand for it will be price elastic
Supply for it will be price inelastic
Supply for it will be price elastic

Question 20

Which term refers to varied amounts of the good that customers will buy at a specific moment and at a range of speculative prices?

Income demand
Price demand
Cross demand
Method demand

Question 21

Which term refers to the varied amounts of a good people buy per unit of time at different costs of a related good?

Price demand
Income demand
Cross demand
None of the above

Question 22

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

Law of demand
Law of variable proportion
Returns to scale
Elasticity of demand

Question 23

Which word is used to describe the additional unit that is created by the final variable component?

Marginal production
Cyclical production
Estimated production
Additional production

Question 24

During which time, all the factors of production may be changed ?

Short run
Long run
Very long run
All of the above

Question 25

Which of the following is a factor of production?

Land
Labor
Capital
All of the above

Question 26

What is the formula to calculate marginal product?

MP=n+1+n
MP=n-n-1
MP=n+n-1
None of the above

Question 27

What alternate/alternates does a firm have to tackle the issue of effective resource allocation in production?

Produce output at a pace that maximizes profit
Increase the amount spent on labor and capital inputs to create a given production rate
Increase output for a given expenditure on labor and capital
All of the above

Question 28

Which of the following is not an assumption of the Law of Diminishing returns?

One production factor is changing while a few are kept fixed
Any combination of several manufacturing elements is possible
Production technologies and methods keep changing
Production factors can be divided

Question 29

The third stage of production is also known as the stage of negative returns because ____ curve turns negative.

Question 30

What is the other name for the second stage of production?

Stage of underperformance
Stage of restrictions
Stage of limitations
Stage of declining returns

Question 31

What’s the primary basis of the concept of cost ?

Financial Audit
Tax Compliance
Cost Estimation
Analysis of Profit

Question 32

How many ways is cost classification possible ?

There are many ways to use it
Two ways
Three ways
Four ways

Question 33

How do you define direct costs, also referred to as ?

Chargeable cost
Other expenses
Overhead expenes
Major Expense

Question 34

Rent for warehouses is a component of which cost ?

Production cost
Cost of Factory
Prime Cost
Distribution cost

Question 35

What is tender

Estimation of cost
Estimation of the price at which it will be sold
Estimation of Units
Estimation of Profits

Question 36

Profit is the difference between total ______and total

Revenue, cost
Profit, cost
Revenue, Profit
Revenue, income

Question 37

When the producer earns maximum profit at a particular level of output, they have______incentive to increase or decrease level of output

Some
No
Great
All of the above

Question 38

When the level of output is less than the level of output at equillibrium, the profits of the producer are

Less than the maximum profit
Maximum profit
Decline from maximum level of profits
None of the above

Question 39

When using total cost and total revenue curves, profit is maximum when the vertical difference between Total revenue and Total cost curve

Minimum
Near Maximum
Maximum
None of the above

Question 40

When does producer gets equillibrium when using total cost and total revenue curves is _____

Vertical distance between total cost and total revenue curves is maximum
Total cost and total revenue curves have same slope
Additional unit of output decreases profit
All of the above

Question 41

When the resturant that serves fast food increases in the number, this leads to _______

An increase in fast-food meal supply
The growth in fast food meal demand
A growth is seen in the demand for substitutes for such meals
Increase in the rate of such meals

Question 42

The total amount of a specific good or service that is avaialble to consumers is called

Demand
Supply
Both 1 and 2
None of the above

Question 43

The determinant of supply of _______

Changes in technology
Taxes and subsides
Natural Factors
All of the above

Question 44

Many of the supply curve_______

Is vertical
Is horizontal
Has a positive slope
Has a negative slope

Question 45

When one moves up with the supply curve, which one of these metrics is not a part of the constant factor

The seller numbers
The comodity prices
Expected prices in future
The resources cost that was used for commodity production

Question 46

In managerial economics, the concept of opportunity cost refers to:

The cost of the next best alternative foregone
The explicit costs incurred in production
The cost of purchasing raw materials
The cost of labor

Question 47

The elasticity of demand measures

The change in quantity demanded due to a change in income
The change in quantity demanded due to a change in the price of a good
The responsiveness of quantity demanded to a change in the price of a substitute good
The change in total revenue due to a change in price

Question 48

In a monopolistic market, the firm:

Has no control over the price of its product
Faces a perfectly elastic demand curve
Can set the price and adjust the quantity of output
Must accept the market price as given

Question 49

The Marginal Cost (MC) curve typically intersects the Average Total Cost (ATC) curve

At its minimum point
At its maximum point
When ATC is rising
When ATC is falling

Question 50

A firm is said to be in a state of equilibrium when

Marginal Cost equals Marginal Revenue
Total Revenue equals Total Cost
Average Cost equals Average Revenue
Marginal Revenue equals Average Revenue

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