ࡱ > t v s [ bjbj 4 ΐ ΐ s X X < L K K K K & & & $ " s% : D & & & & & D K K & & & & K K & & & & V v @ K I & $ 0 % & % % $ & & & & D D & & & & & & & & % & & & & & & & & & X a : BCOM - SEMESTER VI CM06CAA01 COMPLIMENTARY PRINCIPLES OF BUSINESS DECISIONS MULTIPLE CHOICE QUESTIONS Managerial Economics is mainly deals with the analytical tools, because it is ----------------nature. Micro Macro Pragmatic Positive The process of selecting a particular course of action from a number of alternatives is---- Follow up Decision making Evaluation None ------------------------- cost arises only when there is an alternative. Marginal Opportunity Equi-Marginal None Production may be defined as an act of ----------------- Creating Utility Earning Profit Destroying Profit none ---------------- is the power of commodity to satisfy human wants. Value Utility Willingness none of these The most of the Production functions measure The Productivity of factors of Production Economics of scale Relation between physical inputs and physical output None of these A long run analysis of Production is -------------------------- Economics of scale Law of variable Promotion law of return to scale none of above The word elasticity means -------------------------- usefulness willingness Responsiveness None of these The change in demand due to change in Price when other factors remain constant is known as -------------------------------- Increase in demand Decrease in demand Extension and contraction of demand None of these If a very small fall in price leads to an unlimited increase in demand , the elasticity is -------------- Perfectly elastic demand Unit elasticity Relatively elastic demand None of these If a commodity has substitutes, the demand for that commodity will be--------------------- Inelastic Elastic Unitary elastic None of these Advertisement Elasticity is otherwise called ----------------------------- elasticity Promotional Cross elasticity Zero income elasticity None of these The substitute goods have ---------------- cross elasticity Positive Negative Zero None of these --------------------- level Forecasting may be done at business conditions prevailing in the entire economy Micro Macro Firm None of these -------------------------- forecasting helps to make necessary changes in the sales, purchasing, pricing, etc Short term Long term Market period None of these ------------------- is the most extensively used method of demand forecasting in India Survey method Dineet Projection method Evolutionary method None of these --------------------- is a statistical technique which make use of past data forecasting Economic indicators Controlled experiment Trend projection method None of these ------------------------ the process of transforming the inputs like land, labor, capital and organization in to out put Distribution Supply Production Non of these -------------- production function is the statistical production function i. e . , r= K L a C ( 1 - a ) M a t h e m a t i c a l p r o d u c t i o n f u n c t i o n C r o b b - D o u g l a s p r o d u c t i o n f u n c t i o n N u m e r i c a l p r o d u c t i o n f u n c t i o n N o n e o f t h e s e A c c o r d i n g t o C o b b - D o u g l a s p r o d u c t i o n f u n c t i o n n e a r l y - - - - - - - - - - - - - - - - - - - o f t h e i n c r e a s e i n o u t p u t i s d u e t o t h e l a b o u r i n p u t 2 5% 75% 100% None of these The short run increases in production by increasing the variable input against a given quantity of fixed output ------------------------- Law of returns Law of variable proportion Law of return to scale None of these The up and downs in the economic activity moving like a wave at regular intervals is known as -------------------------- Business cycles Fiscal theory Psychic theory None of these The proponent of monetary theory is ------------------- Prof. R. G Hawtery Prof. A.C Pigou Joseph Schempeter None of these Psychological theory put forward by ------------------ A. C Pigou Joseph Schempeter J.M Keynes None of these ----------------------- theory is one of the oldest explanations of business cycles Climatic theory Innovation theory Hicks theory None of these A high value of cross elasticity indicates that the two commodities are ------------------ Close substitutes Good components Completely unrelated None of these The vertical demand curve for a commodity shows that its demand is -------------------- Highly elastic Perfectly inelastic Fairly elastic Moderately elastic Utility may be defined as --------------------- The Power of a commodity to satisfy wants The usefulness of a commodity The level of satisfaction given by a commodity The desire of a commodity The economic analysis expects the consumer to behave in a manner which is --------------- Rational Irrational Emotional Indifferent Law of diminishing Marginal Utility states ------------------ Total utility diminishes with the consumption of every additional unit Utility always diminishes whether something is consumed or not Utility first increases and after that diminishes at every point None of these Marginal Utility (MU) curve is always ----------------------- MU is zero AU is the highest MU is highest MU is equal to AU The falling part of a TU curve show ---------------- Increasing Marginal Utility Decreasing Marginal Utility Zero Marginal Utility Negative Marginal Utility Total utility curve is -------------------- Convex to X axis Convex to X-axis Concave or convex depending on situations Concave to Y- axis A consumer reaches equilibrium at the point where --------------------------- MU=P MU
P
TU=P
A falling MU curve illustrates ----------------
The principle of diminishing Marginal Utility
The principle of diminishing Marginal rate of substitution
The principle of equi- Marginal Utility
None of these
Which of the following is called as the Gossens First Law?
Law of substitution
Law of equi-Marginal Utility
The law of diminishing Utility
The Law of indifference
The price which a consumer would be willing to pay for a commodity equal to his ---------
Marginal Utility
Total Utility
Average Utility
None of these
Total product will be maximum when
MP is maximum
AP is maximum
MP is zero
MP is negative
Under the law of variable proportions, stage-1 is known as --------------------
Stage of diminishing returns
Stage of negative returns
Stage of constant returns
Stage of increasing returns
Law of variable proportion comes under -------------------------
Short- run production
Long run production function
Both a & b
None of these
An isoquant represents all those input combinations which are capable of producing----------
Same level of output
Different level of output
Either a &b
Both a & b
Match List I and List II
(a) Consumer Surplus (1) Leontief
(b) Concept of compensating variation (2) Newman Morgenstern
Utility index Number (3) Hicks
(d) Input- output Model (4) Marshall
Codes : (a) (b) (c) (d)
1 2 3 4
4 3 2 1
4 2 3 1
1 4 3 2
In Cobb- Douglas production function elasticity of factor substitution is equal to ----------
Zero
Infinity
One
0