Principles Of Economics And Management

25 Questions | Total Attempts: 74

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Principles Of Economics And Management - Quiz

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Questions and Answers
  • 1. 
    Economics is a ----- science which deals with human wants and their satisfaction.
    • A. 

      Social

    • B. 

      Political

    • C. 

      Natural

    • D. 

      Physical

  • 2. 
    The ------------------ problem refers to the possibility that owners and their managers may have different objectives.
    • A. 

      Company- Manager problem

    • B. 

      Principal-Agent Problem

    • C. 

      Firm-Employee problem

    • D. 

      Problem of different objectives

  • 3. 
    Economic profit refers to ------------ minus all relevant costs , both explicit and implicit.
    • A. 

      Profit

    • B. 

      Cost

    • C. 

      Expenses

    • D. 

      Revenues

  • 4. 
    In free market economy, the organization and interaction of producers and consumers is accomplished through the--------------- system.
    • A. 

      Price

    • B. 

      Cost

    • C. 

      Profit

    • D. 

      Revenue

  • 5. 
    An economic system:
    • A. 

      Requires a grouping of private markets linked to one another.

    • B. 

      Is a particular set of institutional arrangements and a coordinating mechanism used to respond to the economizing problem.

    • C. 

      Requires some sort of centralized authority (such as government) to coordinate economic activity.

    • D. 

      Is a plan or scheme that allows a firm to make money at some other firm's expense

  • 6. 
    Which of the following is not an economic cost?
    • A. 

      Wages

    • B. 

      Rents

    • C. 

      Economic profits

    • D. 

      Payments made to the entrepreneur for organizing production

  • 7. 
    The two basic markets shown by the simple circular flow model are:
    • A. 

      Capital goods and consumer goods

    • B. 

      Free and controlled

    • C. 

      Product and resource

    • D. 

      Household and business

  • 8. 
    In economics the central problem is:
    • A. 

      Money

    • B. 

      Scarcity

    • C. 

      Allocation

    • D. 

      Production

  • 9. 
    The total demand for goods and services in an economy is known as:
    • A. 

      Aggregate demand

    • B. 

      Gross national product

    • C. 

      Economy-wide demand

    • D. 

      National demand

  • 10. 
    Unemployment means that:
    • A. 

      People are not willing to work at the going wage rate

    • B. 

      At the going wage rate, there are people who want to work but cannot find work

    • C. 

      There are some people who will not work at the going wage rate

    • D. 

      There is excess demand in the labour market

  • 11. 
    The circular flow of goods and incomes shows the relationship between:
    • A. 

      Firms and households

    • B. 

      Goods and services

    • C. 

      Income and money

    • D. 

      Wages and salaries

  • 12. 
    Goods and Services bought and sold in:
    • A. 

      Product Market

    • B. 

      Factor Market

    • C. 

      Capital Market

    • D. 

      Money Market

  • 13. 
    In factor market suppliers are:
    • A. 

      Firms

    • B. 

      Households

    • C. 

      Government

    • D. 

      None of these

  • 14. 
    Indian economy is:
    • A. 

      Capitalist Economy

    • B. 

      Socialist Economy

    • C. 

      Mixed Economy

    • D. 

      None of these

  • 15. 
    Father of Economics:
    • A. 

      Lionel Robbins

    • B. 

      Adam Smith

    • C. 

      Alfred Marshal

    • D. 

      None of these

  • 16. 
    Business Economics is also known as………….
    • A. 

      Managerial Economics

    • B. 

      Economics for Executives

    • C. 

      Economic analysis for business decisions

    • D. 

      All of these

  • 17. 
    The opportunity cost of a machine which can produce only one product is:
    • A. 

      Low

    • B. 

      Infinite

    • C. 

      High

    • D. 

      Medium

  • 18. 
    .........……cost are also known as Imputed Costs
    • A. 

      Opportunity

    • B. 

      Marginal

    • C. 

      Total

    • D. 

      Historical

  • 19. 
    There are …......…branches of economics.
    • A. 

      2

    • B. 

      3

    • C. 

      4

    • D. 

      6

  • 20. 
    The term `Economics‟ in English language has its origin in................ word.
    • A. 

      Greek

    • B. 

      Italic

    • C. 

      Latin

    • D. 

      Indian

  • 21. 
    The principle reasons behind economic problems
    • A. 

      Unlimited wants

    • B. 

      Limited or Scarce of Means

    • C. 

      Alternatives Uses of Means

    • D. 

      All of these

  • 22. 
    According to profit maximization theory of the firm, management.
    • A. 

      Decides output level which maximizes revenue

    • B. 

      Output level which minimizes cost

    • C. 

      Output level which maximizes difference between the two

    • D. 

      None of these

  • 23. 
    It is the difference between total revenue and total economic cost
    • A. 

      Accounting Profit

    • B. 

      Economic Profit

    • C. 

      Gross Profit

    • D. 

      Net Profit

  • 24. 
    Accounting cost include:
    • A. 

      Owner`s land for company establishment

    • B. 

      Depreciation

    • C. 

      Management skill of a owner

    • D. 

      None of these

  • 25. 
    Factors of production are :
    • A. 

      Inputs into the production process

    • B. 

      Weather, social, and political conditions that affect production

    • C. 

      The physical relationships between economic inputs and outputs.

    • D. 

      The mathematical calculations firms make to determine production.

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