Principles Of Economics And Management

25 Questions | By Rakesh.shah | Last updated: Mar 17, 2022 | Total Attempts: 74

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Principles Of Economics And Management - Quiz

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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.