Managerial Economics Page-7 section-5

Section 1 Section 2 Section 3 Section 4 Section 5 Section 6

61.
Match the items of the List-I with those of List-II and suggest the correct answer from the following.

List-I List-II

a. GDP 1. National income

b. GDP at factor cost 2. NDP plus net flow of income from abroad

c. NNP at factor cost 3. Money value of final goods and services produced

d. NNP 4. Total gross value added by all enterprises in the economy

A. a-1, b-3, c-2, d-4

B. a-3, b-4, c-1, d-2

C. a-4, b-3, c-2, d-1

D. a-2, b-1, c-4, d-3

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62.
Market demand for any good is a function of the

A. price per unit of goods

B. price of other goods

C. income and tastes of consumers

D. all of the above

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63.
Match the following:

List-I (GNP) List-II (Formula)

a. GNP at factor cost 1. GNP at market prices - Indirect taxes + subsidies

b. GNP at market prices 2. GDP at market prices + Net Income from Abroad

c. GNP as per Expenditure method 3. Private consumption + Gross Domestic Private investment + Net foreign Investment + Government Expenditure on goods and services

d. GNP as per Income method 4. Wages and salaries + Rents + Interests + Dividends + Undistributed corporate profits + Mixed Incomes + Direct taxes + Indirect Taxes + Depreciation + Net Income from Abroad

A. a-1, b-2, c-3, d-4

B. a-4, b-1, c-3, d-2

C. a-3, b-1, c-2, d-4

D. a-3, b-4, c-2, d-1

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64.
One common definition of luxury goods is goods with an income elasticity

A. Greater than one

B. Equal to one

C. Less than one but more than zero

D. None of these

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65.
If the $$\frac{{{\text{M}}{{\text{U}}_{\text{x}}}}}{{{\text{M}}{{\text{U}}_{\text{y}}}}}$$ for individual A is greater than the $$\frac{{{\text{M}}{{\text{U}}_{\text{x}}}}}{{{\text{M}}{{\text{U}}_{\text{y}}}}}$$ for individual B, it is possible for individual A to gain by giving up

A. Y in exchange for more X from B

B. Y in exchange for more X from A itself

C. Y in exchange for less X from B

D. X in exchange for less Y from A

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66.
Which of the following is one of the assumptions of the indifference curve analysis?

A. Independent utility

B. Ordinal utility

C. Cardinal utility

D. Constant marginal utility of money

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67.
Adam Smith spoke about the famous diamond water paradox to show that

A. Utility could be the cause of value

B. Utility is related to demand

C. Utility is related to supply

D. Utility could not be the cause of value

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68.
Which of the following is the method of measuring elasticity of demand when change in price of a commodity is substantial?

A. Point method

B. Percentage method

C. Arc method

D. None of these

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69.
Long run equilibrium price of a perfect competitive firm is always

A. Equal to AFC

B. Below the LAC

C. Above the LAC

D. Equal to LAC

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70.
Elasticity of demand measures the

A. responsiveness of sales to change in advertisement expenditure

B. responsiveness of demand to change in supply of goods

C. change in price due to change in demand

D. change in demand due to change in tastes of consume

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1 2 3 4 5 6 7 8 9 10

List-I	List-II
a. GDP	1. National income
b. GDP at factor cost	2. NDP plus net flow of income from abroad
c. NNP at factor cost	3. Money value of final goods and services produced
d. NNP	4. Total gross value added by all enterprises in the economy

List-I (GNP)	List-II (Formula)
a. GNP at factor cost	1. GNP at market prices - Indirect taxes + subsidies
b. GNP at market prices	2. GDP at market prices + Net Income from Abroad
c. GNP as per Expenditure method	3. Private consumption + Gross Domestic Private investment + Net foreign Investment + Government Expenditure on goods and services
d. GNP as per Income method	4. Wages and salaries + Rents + Interests + Dividends + Undistributed corporate profits + Mixed Incomes + Direct taxes + Indirect Taxes + Depreciation + Net Income from Abroad

Managerial Economics

Answer & Solution

62. Market demand for any good is a function of the

Answer & Solution

Answer & Solution

64. One common definition of luxury goods is goods with an income elasticity

Answer & Solution

65. If the $$\frac{{{\text{M}}{{\text{U}}_{\text{x}}}}}{{{\text{M}}{{\text{U}}_{\text{y}}}}}$$ for individual A is greater than the $$\frac{{{\text{M}}{{\text{U}}_{\text{x}}}}}{{{\text{M}}{{\text{U}}_{\text{y}}}}}$$ for individual B, it is possible for individual A to gain by giving up

Answer & Solution

66. Which of the following is one of the assumptions of the indifference curve analysis?

Answer & Solution

67. Adam Smith spoke about the famous diamond water paradox to show that

Answer & Solution

68. Which of the following is the method of measuring elasticity of demand when change in price of a commodity is substantial?

Answer & Solution

69. Long run equilibrium price of a perfect competitive firm is always

Answer & Solution

70. Elasticity of demand measures the

Answer & Solution

Read More Section(Managerial Economics)

62.
Market demand for any good is a function of the

64.
One common definition of luxury goods is goods with an income elasticity

65.
If the $$\frac{{{\text{M}}{{\text{U}}_{\text{x}}}}}{{{\text{M}}{{\text{U}}_{\text{y}}}}}$$ for individual A is greater than the $$\frac{{{\text{M}}{{\text{U}}_{\text{x}}}}}{{{\text{M}}{{\text{U}}_{\text{y}}}}}$$ for individual B, it is possible for individual A to gain by giving up

66.
Which of the following is one of the assumptions of the indifference curve analysis?

67.
Adam Smith spoke about the famous diamond water paradox to show that

68.
Which of the following is the method of measuring elasticity of demand when change in price of a commodity is substantial?

69.
Long run equilibrium price of a perfect competitive firm is always

70.
Elasticity of demand measures the