Managerial Economics MCQ Questions and Answers for Practice

1. The management of the ...............form of business organization is totalitarian in nature.

1. Partnership
2. Individual proprietorship
3. All of the above
4. Cooperative

2. Given the price, if the cost of production increases because of higher price of raw materials, the supply ...........

1. Increases
2. Remains same
3. Any of the above
4. Decreases

3. Distinction between private sector and public sector is determined on the basis of

1. Motive
2. Principle of pricing
3. All of the above
4. Economic system

4. Managerial economics generally refers to the integration of economic theory with business

1. Management
2. Practice
3. All of the above
4. Ethics

5. Under .........., price is determined by the interaction of total demand and total supply in the market

1. Monopoly
2. Imperfect competition
3. All of the above
4. Perfect competition

6. Oligopoly is a type of ..............market. A ................exists in the industry

1. Imperfect, few firms
2. Perfect, many firms
3. Imperfect, many firms
4. Perfect, few firms

7. Demand is determined by

1. Relative prices of other goods
2. Tastes and habits
3. All of the above
4. Price of the product

8. Goods produced on small scale have

1. Highly elastic supply
2. Perfectly elastic supply
3. None of the above
4. Relatively inelastic supply

9. The out of pocket costs are

1. Marginal costs
2. Explicit costs
3. Social costs
4. Sunk costs

10. When a firms average revenue is equal to its average cost, it gets

1. Normal profit
2. Sub normal profit
3. None of the above
4. Super profit

11. A Joint Stock Company is managed by the Board of Directors elected by

1. Shareholders
2. Employees of company
3. None of the above
4. Top management

12. The cost recorded in the books of accounts are considered as

1. Marginal cost
2. Average cost
3. Explicit cost
4. Total cost

13. Under perfect competition, price is determined by the interaction of total demand and ..........

1. Total cost
2. Total utility
3. Total production
4. Total supply

14. The demand curve has a ............. slope

1. Zero c
2. Negative
3. Positive
4. Undefined

15. The short run Average Cost curve is ............shaped

1. U
2. L
3. Any of the above
4. V