Managerial Economics

1

From the resource allocation point of view, perfect competition is preferable because

A) the firm operate at excess capacity B) there is no idle capacity C) there is a whole variety of output D) free entry and exit of firms

Discuss

Answer & Solution

Answer: Option B

No explanation is given for this question. Let's Discuss on Board

2

The marginal product curve is above the average product curve when the average product is

A) Becomes constant B) Increasing C) Decreasing D) None of the above

Discuss

Answer & Solution

Answer: Option B

No explanation is given for this question. Let's Discuss on Board

3

Which of the following does not have a uniform elasticity of demand at all points?

A) A horizontal demand curve B) A vertical demand curve C) A rectangular hyperbola demand curve D) A downward sloping demand curve

Discuss

Answer & Solution

Answer: Option C

No explanation is given for this question. Let's Discuss on Board

4

The total effect of a price change of a commodity is

A) substitution effect + price effect B) substitution effect - income effect C) substitution effect + income effect D) substitution effect - price effect

Discuss

Answer & Solution

Answer: Option C

No explanation is given for this question. Let's Discuss on Board

5

Demand Analysis includes:

A) Demand Forecasting B) Demand Differentials C) Demand Determinations D) All of the above

Discuss

Answer & Solution

Answer: Option D

No explanation is given for this question. Let's Discuss on Board

6

A Consumer's Demand Curve can be obtained from

A) Engel's Curve B) Income Consumption Curve C) Price Consumption Curve D) Lorenz curve

Discuss

Answer & Solution

Answer: Option C

No explanation is given for this question. Let's Discuss on Board

7

Given:
P = Rs. 20
Q = Rs. 5000
P₁ = Rs. 22
Q₁ = Rs. 4000
What will be point of elasticity?

A) 2000 B) 2 C) 20 D) 200

Discuss

Answer & Solution

Answer: Option B

No explanation is given for this question. Let's Discuss on Board

8

If the price is statutorily fixed and equal to MC, monopoly profits will be

A) At same level B) Decreased C) Eliminated D) Increased

Discuss

Answer & Solution

Answer: Option C

No explanation is given for this question. Let's Discuss on Board

9

Economists associated with the develop ment of indifference curve analysis are

A) Hicks and Robbins B) Hicks and Allen C) Marshall and Hicks D) Hicks and Walras

Discuss

Answer & Solution

Answer: Option C

No explanation is given for this question. Let's Discuss on Board

10

Goods X and Y are perfect substitutes. A consumer's indifference curve for these commodities is represented by a

A) Upward sloping straight line B) Upward sloping curve which is convex from below C) Downward sloping straight line D) Downward sloping curve which is convex to origin

Discuss

Answer & Solution

Answer: Option C

No explanation is given for this question. Let's Discuss on Board