Managerial Economics Quiz Exam!

10 Questions | Total Attempts: 314

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Managerial Economics Quiz Exam! - Quiz

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Questions and Answers
  • 1. 
    Opportunity cost is not zero ______________
    • A. 

      During general unemployment

    • B. 

      Sunk costs

    • C. 

      Free goods

    • D. 

      When a machine has multiple uses

    • E. 

      Full employement

  • 2. 
    PPC curve is convex to the orgin:
    • A. 

      Decreasing marginal rate of substitution

    • B. 

      Constant marginal rate of substitution

    • C. 

      Increasing marginal rate of substitution

    • D. 

      Because of specialised resources

    • E. 

      Maximum quantity produced at increasing cost

  • 3. 
    Reservation price refers to?
    • A. 

      Maximum price

    • B. 

      Minimum price

    • C. 

      Price floor

    • D. 

      Price ceiling

    • E. 

      Seller's price

  • 4. 
    Price floor
    • A. 

      Meant for buyers

    • B. 

      Meant for sellers

    • C. 

      Both buyers and sellers

    • D. 

      Set by the government

    • E. 

      Set on the floor

  • 5. 
    Excess supply happens when there is:
    • A. 

      Price floor

    • B. 

      Rent control

    • C. 

      Consumer surplus

    • D. 

      Due to govt subsidies

    • E. 

      Due to govt taxes

  • 6. 
    When income of the consumer increases the demand for Giffen good:
    • A. 

      Goes up

    • B. 

      Goes down

    • C. 

      Depends up on the price of the good

    • D. 

      Constant

    • E. 

      It goes up certain level then remain constant

  • 7. 
    The deadweight loss refers to:
    • A. 

      Loss of social welfare

    • B. 

      Loss of sellers

    • C. 

      Loss of buyers

    • D. 

      Excess demand

    • E. 

      Excess supply

  • 8. 
    Which of the following are not determinants of supply?
    • A. 

      Income of the consumer

    • B. 

      Price of substitues

    • C. 

      Infrastructure

    • D. 

      Cost of inputs

    • E. 

      Price of complements

  • 9. 
    If the price of the commodity tends to high then it enjoys:
    • A. 

      Elastic demand

    • B. 

      Inelastic demand

    • C. 

      Unit elastic

    • D. 

      Perfectly inelastic demand

    • E. 

      Perfectly elastic demand

  • 10. 
    Which of the following statement is false?
    • A. 

      Price line is required to draw consumer's equilibrium under IC analysis

    • B. 

      The consumer is hooked to highest possible IC under equilibrium

    • C. 

      Under price ceiling hoarding and black marketing take place

    • D. 

      Wider the substitute for a good higher elasticity of demand for a good

    • E. 

      The MU of money cannot remain constant

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