1.

OAn increase in price can change the movement of the supply curve, but a decrease in price cannot
cause a movement in supply curve. is the above statement correct?
A. Yes
B. NO

2. The Law of Supply establishes the functional relationship between price of a commodity & its
quantity supplied. Which factors are not Assumed to be constant?
A. cost of production
B. Methods of production
C. Prices ofother goods
D. Price of the commodity

3. In economics, any physical or mental effort put for the production process is called as
A. Land
B. Labor
C. Capital
D. Organization

4. Which of the following is not a Quantitative forecasting method?

A. Time Series Analysis method
B. Exponential Smoothing method
C. Delphi Method
D. Econometric Models method

5. The incremental concept is useful for managers to analyse changes in revnue and cost. The change in
total revenue resulting from a decision is Called as
A. Incremental revenue
B. Incremental decision
C. Incremental cost
D. Incremental breakeven

6. Managerial Economist cannot afford to overlook various aspects of macroeconomics such as

reactions of rival firms , export and import olicies etc. Is the above statement correct?
A. Yes
B. No

7. Managerial Economics relates to the use of tools and techniques of economic analysis to solve
problems related to costing of resources. State Whether the above statement is true or false
A. True
B. False

8. The main focus in managerial economics is to find an optimal solution to a given managerial
problem. The the managerial economist makes Use of which of the following to find an optimal
solution to a given managerial problem?
 A. Concepts
B. Tools
C. tools of economics
D. Techniques of economics

9. When the percentage change in quantity supplied is greater than the percentage change in price, the
elasticity of supply wil be
A. Less elastic supply
B. Highly elastic supply
C. Unitary elastic supply
D. Perfectly elastic supply

10. Fall in the price of a commodity due to a non price factor is called as
A. Expansion of supply
B. Subsitution of supply
C. Contraction of supply
D. Decrease in supply

11. A fall in the price of wheat will shift the supply curve of rice towards right. State whther the above
statement is true or false.
A. True
B. False

12. When subsidies are provided by the government to producers, the supply curve for a given
commodity will shift
A. Leftward
B. rightward
C. Spiral
D. Concave

13. Marshall has classified time period into four categories on the basis of the degree of responsiveness
of the supply to adjust itself to the Changing market conditions. Which of the following period refers
to period of time for which it is difficult to predict as to what wil happen to The forces of demand
and supply?
A. Very Short Period
B. Short Period
C. Long Period
D. Very Long Period

14. In case of the Sample Survey Method, which of the following statement is not correct?
A. Few consumers are selected to represent the entire population of the consumers of the
commodity consumed
B. Less expensive and less tedious
C. Sample chosen can be too small or too large
 D. Can reliable results especially in case of new brands and new products
15. Survey Methods constitute an important Forecasting Tool. Which of the following statement relating
to survey methods is not correct?
A. Used especially for short-term projections
B. Consumers are directly approached and are asked to give their opinions about the
particular product
C. Questionnaire must be simple and interesting so as to evoke consumers’ response
D. It is an indirect method of estimating demand

16. Which of the following method of forecasting is not included in the Quantitative Methods of demand
forecasting?
A. Time Series Analysis
B. Regression Analysis
C. Consumers Survey Method
D. Input-Output Analysis

17. The lifecycle of a product is divided into several stages. Which of the following forecasting method is
suitable during the Steady Growth Phase
A. Delphi method
B. Time Series Analysis
C. Time Series Model correlation
D. Market trial survey

18. Which of the following Quantitative demand forecasting method provides perhaps the most
complete examination of all the complex inter- Relationships within an economic system?
A. Regression Analysis
B. Econometric Models
C. Exponential Smoothing
D. Input-Output Analysis

19. Which of the following can be considered as a limitation of consumer surplus?

A. It is difficult to measure the marginal utilities of different units of a commodity
consumed by a person
B. Deriving the utility scale for prestigious goods like diamonds is very difficult
C. This concept is acceptable only on the assumption that we can measure utility in terms
of money or otherwise
D. All of the options

20. Price – Elasticity of Demand is the ratio of percentage change in quantity demanded of X to
percentage change in the
A. Price of X
B. Taste of X
C. Fashion ofX
D. All of the options
21. When the price of the Giffen goods decline consumers are expected to
A. Buy less
B. buy more
C. Buy superior good
D. No impact on buying

22. The mathematical technique for adjusting the future value of money and computing present values
is called?
A. Opportunity cost
B. Compounding
C. Discounting
D. Time value

23. Demand is a principle of economics which refers to which particular aspect of the consumer?
A. Need of a product
B. Consumers want for a product
C. Desire of a product backed by purchasing power
D. Desire of a product without an ability to buy that product

24. If a commodity has the capacity to satisfy human wants then we are referring to which concept of
economics?
A. Value
B. Utitiy
C. Demand
D. Input

25. The rate at which a consumer is wiling to trade one good for the other ig called the
A. Replacement rate matrx
B. Neo Goods Rate
C. Consuper substitution index
D. Marginal rate of substitution

26. If the fall in price of one good reduces the demand for another goods then such goods are called as
A. Complementary goods
B. Sunstitute goods
C. Normal goods
D. Inferior goods

27. If change in price brings about change in the quantity demanded in such a way that the total outlay
remains the same then the demand’is
A. Unit Elastic
B. Relatively inelastic
 C. Relatively Elastic
D. Pertecuy inelastic

28. When sugar, tea leaves and milk are demanded together to prepare tea, it is an example of
A. Cross Demand
B. Composite demand
C. Derived demand
D. Joint demand

29. In a real world situation, the firms generally use make-up pricing to generate reasonable profits
rather resort to marginal cost pricing toMarimize profits. Is the above statement correct?”
A. Yes
B. No

30. Firms strive to maximize sales revenue subject to the realization of some minimum e level of profit.
Which of of the uhe following assumptions are not made based on Prof. W.]. Baumol model?
A. Higher advertisement expenditure would certainly increase sales revenue of the firm
B. Market price remains constant
C. Demand and cost curves of the firm are conventional in nature
D. increase in sales does on depend on whether demand is elastic or inelastic

31. The Law of Demand establishes the functional relationship between price of x and the quantity
demanded of commodity x, assuming factors Other than the price of commodity X, remalin
constant. Which of the following are incuded in other factors?
A. Utility of the commodity
B. Tastes & Fashion
C. Disposable income of the consumer
D. All of the options

32. When two or more goods are available and demanded by the consumers then such a demand is
called as
A. complementary demand
B. composite demand
C. competitive demand
D. Compulsive demand

33. The slope at any point on an indifference curve equals the rate at which the consumeris wiling to
A. Discard the old goods
B. Buy new goods
C. Substitute one good for the other
D. spread word of mouth for old goods

34. When supply increases the supply curve shifts to the

A. Right
 B. Left
C. Circular.flow
D. Curvical fiow

35. In economics, which of the following is a special factor that gets the work done during the
production process to earn profit?
A. land
B. Labor
C. Capital
D. Organization

36. In case of supply we must make an effort to give a complete statement of supply. Such a supply will
depend on which of the following factors?
A. Price of the commodity
B. Cost of Production
C. Natural conditions
D. All of the options

37. Abundance exists whenever there is an opportunity cost, that is, whereever a meaningful choice has
to be made. Is the above statement is Correct?
A. Yes
B. No

38. Mathematical tools and techniques are also incorporated in the study of Managerial Economics.
Simple diagrams are drawn to
A. to make the subject interesting and easily understandable
B. help the viewer in captesing the detalled explanation in the shortest and simplest
manner
C. to provide a visual impact
D. All of the options

39. The incremental concept involves the estimation of the effects of decisions alternatives on revenues
and costs. Is the above statement correct?
A. Yes
B. No

40. An economic model is a mathematical representation of a firm or a market or any other entity based
on economic theory. With the help of Which method, theoretical economics tackles its problems?
A. Discrete Anslysis
B. Model Analysis
C. Coeeficient Analysis
D. Beta Analysis
41. It W stands for wages and salaries, R stands for rent, 1 stands for interest and M stands for cost of
materials, then the formula for c Accounting profit is?
A. TR-(W-R+I+M)
B. TR+W+RII+M
C. TR--+R.I-M
D. TR-W+R-(I+M)

42. THe Utility Index Hypothesis has the advantage of placing the theory of the firm on an equal footing
with the theory ol
A. Distributers choice
B. Consumer choice
C. discrete analysis
D. marginal preference

43. In case of a relative elastic demand, if the price falls by 10 %6, and the quantity demanded rises by
20% then the Ed is
A. greater than 1
B. Less than 1
C. Equal to 0
D. Reaches infinity

44. if Change in income brings about change in demand for a commodity in the same drection then
income elasticiy of demand with respect to That good is
A. positive
B. negative
C. zero
D. Either of the options

45. For which of the following goods the demand wll be elastic
A. addicted goods and drugs
B. furniture and washing machine
C. Milk and vegetables
D. Coal and electricity

46. The consumer strongly believes that ‘higher the price, better the product’, and thus greater is the
demand for it. Hence consumers are Governed by
A. Price mirage
B. Price illusion
C. Price indifference
D. Price matrix

47. If our demand for foreign goods is inelastic, we will continue to import goods from abroad and thus
our Balance of Payments wilbecome More unfavourable. Is the above statement correct?
A. Yes
 B. NO

48. The change in consumption that results from the movement to a higher indifference curve is called
as:
A. substitution effect
B. constraint effect
C. income effect
D. Angular effect

49. The consumer chooses consumption of the two goods so that the marginal rate of substitutior
A. equals therelative price
B. More than relativeve price
C. less than relative price
D. is double the relative price

50. The Trend Projection Methiod is more useful for short run estination than for long term forecasting,
State whether the above ntatemert is true or false.
A. True
B. False

51. This Statistical method is undertaken to measure the relationship between two variables where
correlation appears to exist. Which type af Demand forecasting method we are talking about?
A. Regression Analysis
B. Moving average
C. Exponential Smoothing
D. index Numbers

52. The lifecycle of a product is divided into several stages. Which of the following forecasting method is
suitable for the development and Introduction Stage?
A. Delphi method
B. Time Series Analysis
C. Econometric Models
D. Regression techniques

53. Which of the following Quantitative demand forecasting method provides perhaps the most
complete examination of allthe complex inter- Relationships within anleconomic system?
A. Regression Analysis
B. Econometric Models
C. Exponential Smoothing
D. Input-Output Analysis

54. Which of the following is an estimation or prediction about situations which are most likely to occur
in the near or distant futurei
A. Prognosticate
 B. Conjure
C. Forecast
D. Speculate

55. A Forecast is an estimation or prediction about situations which are most likely to occur in the near
or distant future.In Delphi Method of Forecasting
A. The firm makes an effort to obtain the opinion of experts who have long standing
experience
B. A panel of experts is individually presented a series of questions pertaining to the
forecasting problem
C. The consumers are directly approached and are asked to give their opinions
D. A survey is planned of the end users and the estimated demands from all segments of
end users are added

56. The supply curve shifts towards right due to al of the following factors, excep
A. Decrease in the price of ather goeds
B. Increase in the number of firms
C. Expectations of fallin price in future
D. Profit maximization goal

57. When a supply curve passes through the origin, the supply curve is
A. Unitary elastic
B. Perfectly elastic
C. Highly elastic
D. Less elastic

58. An increase in the price of Pepsi may reduce the supply of Coke. Is the above statement correct?
A. Yes
B. NO

59. The supply curve shifts towards right in which of the following cases?
A. Decrease in the price of factors of production
B. Advanced and imrpoved technofggy
C. Imrpovement in means of transport
D. All of the options

60. Economies is multidimentional, ard that creates some difficulties in messuring things like production
,incomes price levels the solution for the problem of Real value is
A. Value added
B. Index numbers
C. Relative inequality
D. All of the options
61. In place of purely theoretical and academic exercise. Managerial economics lays more emphasis on
which of the following method that makes The discipline more practical and useful from the
perspective of a business firm?
A. Interview
B. Case study
C. Electronic survey
D. All of the options

62. The diagnostic principle for economic efficiency has wide applications in modern economics.The
Fundamental Principle of Microeconomics
A. Describes the circumstances under which market outcomes are efficient
B. Important circumstances in which the markets are not efficient
C. Opportunity cost principle to international trade
D. Describes opportunities that come at different times

63. The market equilibrium model could be broken down into several principles.The Entry Principle ideas
are a key to understanding:
A. whether competition is “perfect” or monopolistic
B. How market changes transform society
C. When the market does not move smoothly to equilibrium, but overshoots
D. Lowly of monopoly

64. Utility is a relative concept as well as a subjective concept because?

A. The same commodity has same degrees of utility to different individual consumers
B. the same commodity appears to possess different degrees of utility to different
individual consumers
C. the same commodity appears to possess different rising degrees of utility to different
individual consumers
D. The same commodity appears to possess different falling degrees of utility to different
individual consumers

65. The incremental concept is useful for managers to analyse changes in revnue and cost. The change in
total revenue resulting from a decision Is called as
A. Incremental revenue
B. Incremental decision
C. Incremental cost
D. Incremental breakeven

66. Economic models are of various forms such as tables, diagrams, graphs, flow charts, mathematical
equations and theoretical distributions, Which model represent a set of properties of the collected
facts and figures which are easily amenable to analysis?
A. Iconic models
B. Analogue models
C. Symbolic models
 D. Cajulate models

67. In economics, any natural resource which is above and below the surface of earth and useful for
production is called as
A. Land
B. Labor
C. Capital
D. Organization

68. Marginal Utility refers to the aggregate of utilities derived]by the consumer from all the units of the
commodity consumed. State whether the Above statement is true or false
A. True
B. False

69. The Time Series data would indicate different types of fluctuations. Which of the following
fluctuation refers to irregular and unpredictable Shocks to the system, such as wars, strikes. Natural
catastrophes etc?
A. Secular Trend
B. Cyclical Fluctuation
C. Seasonal Variation
D. Random Fluctuation

70. If the farmers output is 1 0000 kgs of rice and he offers 1000 kgs of rice at Rs.60 per kg, then such
offering of 1000 kgs of rice will be called as
A. Output
B. Supply
C. Stock
D. Demand

71. Although a single want at a time may be satiable. Yet wants are recurring in nature. An economic
problem-mainly arises because of
A. Human wants are unlimited
B. resources to satisfy wants are limited
C. Scarce means have alternative uses
D. All of the options

72. Which type of price of an economic good actually prevails in the market at a given point of time?
A. Market
B. Normal
C. Absresate
D. Relative
73. Economic models are of various forms such as tables. Diagrams, graphs, flow charts, mathematical
equations and theoretical distributions Which models are the simplest type of models represented
in visual and pictorial form?
A. Iconic models
B. Analogue models
C. Symbolic models
D. Cajulate models

74. Some experts have suggested growth or size maximisation as one of the alternative goals for a
business firm, Growth means an increase in
A. Sales
B. Assets
C. number of employees
D. All of the options

75. While calculating the accounting profit only explicit or book costs are taken into consideration. State
whether the above statement is true or False.
A. True
B. False

76. Economic profit is wider than accounting profit because

A. Wages and Salaries are included
B. Implicit costs are also included
C. Rent and interest is excluded
D. All of the options

77. Satisfactory level is a subjective concept. It depends of many factors like industry one is talking
about, the economic situation, the nature of Top management, the perception of the decision-
making manager etc. in each a case the comparison of managerial behavioural becomes a Problem.
State whether the above statement is true or false.
A. True
B. False

78. If change in income brings about change in demand for a commodity in the same direction then
income elasticity of demand with respect to That good is
A. Positive
B. Negative
C. Zero
D. Either of the options

79. If change in price brings about change in the quantity demanded in such a way that the total outlay
remains the same, then the demand is
A. Unit Elastic
B. Relatively Inelastic
 C. Relatively Elastic
D. Perfectly Inelastic

80. The Cross Elasticity of Demand may be either positive or negative or zero or infinity . Is the above
statement correct?
A. Yes
B. No

81. When income rises and the consumer demands less of a particular good or with a reduction in
income more units of that good are demanded Then the income elasticity of demand is
A. Positive
B. negative
C. zero
D. Either of the options

82. The Demand Curve slopes which way from left to right indicating an inverse or a negative
relationship-between price and quantity demanded
A. Upward
B. downwards
C. curvical
D. Spiral

83. The Demand Schedule is a tabular representation expressing the various amounts of commodity X
demanded at different possible qualities And capacity of X at any given time. State whether the
above statement is true or false
A. True
B. False

84. If a commodity can be bought for several uses then such a demand is called as
A. Complementary demand
B. Composite demand
C. Competitive demand
D. Compulsive demand

85. If a consumer buys less of a good when his income rises, economists callit an
A. dominant good
B. inferior good
C. Preference good
D. Resistance good

86. Price – Elasticity of Demand is the ratio of percentage change in quantity demanded of X to
percentage change in the
A. price of X
B. taste of X
 C. fashion of X
D. All of the options

87. The Law of Demand is based on which of the following assumption?

A. The income of the consumer must remain the same
B. Prices of other commodities must remain the same
C. The size and the composition of population must remain reasonably stable
D. All of the options

88. Income- Elasticity of Demand is the degree of responsiveness of quantity demanded of any
commodity x to the change in the consumer’s Income. State whether the above statement is true or
false.
A. True
B. False

89. Survey Methods constitute an important Forecasting Tool. Which of the following statement relating
to survey methods is not correct?
A. Used especially for short-term projections
B. Consumers are directly approached and are asked to give their opinions about the
particular product
C. Questionnaire must be simple and interesting so as to evoke consumers response
D. It is an indirect method of estimating demand

90. If the number of experts is large and their predictions are different, then a simple average or
weighted average is found so as to lead to Unique forecasts. This method of forecasting is called
A. Expert Opinion Method
B. Opinion Method
C. Delphi Method
D. Hunch Method

91. The Trend Projection Method is more useful for short run estimation than for long term forecasting.
State whether the above statement is True or false.
A. True
B. False

92. If the consulted experts are genuinely reliable, then the panel consensus could be perhaps the best
method of Forecasting amongst Expert Opinion Method of Qualitative forecasting. Is the above
statement correct?
A. Yes
B. NO

93. Survey Methods constitute an important Forecasting Tool. In case of End-Use Method, which type of
consumers are covered?
 A. Few consumers are selected to represent the entire population
B. survey is planned of the end users
C. survey is conduced for all the consumers
D. Not meant for consumers

94. Past experience and statistical relationships is used to obtain the expected level of future demand in
which type of forecasting method?
A. Quantitative
B. qualitative
C. Econometric
D. Delphi

95. The Input-Output Analysis Quantitative demand forecasting method has unique features. Which of
the following statement is not correct Relating to Input-Output Analysis?
A. Based on a set of tables that explain the inter-relationship among the various
components of the economy
B. Shows how an increase or decrease in the demand for cars will lead to increase in the
production of steel, glass. Tyres etc
C. Helps us to understand the inter-industry relationships to provide information about the
total impact on few industries
D. Provided examination of all the complex inter-relationships within an economic system

96. A rise in the quantity of commodity supplied due to the increase in price and the other factors
remaining constant is called as
A. Expansion of supply
B. Subsitution of supply
C. Contraction of supply
D. Decrease in supply

97. When the price of the factors of production falls the supply curve of a given commodity willshift
A. Leftward
B. rghtward
C. spiral
D. Concave

98. Supply of a commodity may not include the entire stock of the commodity. Is the above statement
correct.
A. Yes
B. No

99. Which of the following refers to the graphical presentation of the relation between the price &
quantity supplied?
A. Consumer surplus
B. Supply Schedule
 C. Supply equation
D. Supply curve

100. Robbins has made economics a pure and positive science. In Positive approach we are
concerned with the situation
A. As it can be
B. ‘as it ought to be’
C. ‘as it is’
D. As it cannot be’

101. Although the aim of the firm is to maximize profits it may also encounter losses. In which of the
following scenarios the firm should decide to Take an honorable exit?
A. Returns are less due to sales promotions
B. Returns can’t cover the fixed cost
C. Returns cover the variable cost
D. Returns can’t cover even the variable cost

102. Human wants are the starting point of all economic activities and can be in the form of
Necessities, Comforts & Luxuries. Car with high tech Modern accessories, well furnished house with
costly amneties refers to which type of human wants?
A. Necessijes
B. Comforts
C. Luxurles
D. Social utilities

103. Human wants are the starting point of all economic activities and can be in the form of
Necessities, ecessites, comforts Comforts & & Luxuries. Smart TV, Washing Machine, Air Condioner
refers to which type of of human human. Wants?
A. Necessities
B. Comforts
C. Luxuries
D. Social utilities

104. Which type of Quantitative demand forecasting method offer a device to measure changes in a
group of related variables over a period of time
A. Least squares method
B. Moving Averages
C. Exponential Smoothing
D. Index Numbers

105. When change in price of X brings about exactly Proportionate change in its quantity supplied,
then The supply is
A. Unit Elastic Supply
B. Relatively Inelastic Supply
 C. Relatively Elastic Supply
D. Perfectly Inelastic Supply

106. The Supply curve slopes upwards from left to right, iNdicating which type of relationship
between the Price & quantity supplied ?
A. Positive
B. Negative
C. Neutral
D. Spiral

107. When a negligible change in price brings about an Infinite change in the quantity supplied, then
the Supply is said to be
A. Perfectly Elastic Supply
B. Relatively Inelastic Supply
C. Relatively Elastic Supply
D. Perfectly Inelastic Supply

108. Which of the following refers to the tabular Presentation of the various amounts of commodity
Supplied at different possible prices at a time?
A. Consumer surplus
B. Supply Schedule
C. Supply equation
D. Supply curve

109. Marshall has classified time period into four Categories on the basis of the degree of
Responsiveness of the supply to adjust itself to the Changing market conditions. Which of the
following Period refers to that period of time in which the Supply can adjust itself more fully or even
fully to The change in demand?
A. Very Short Period
B. Short Period
C. Long Period
D. Very Long Period

110. The difference between the consumer’s willingness To pay for a product and the actual price
they pay is Known as the
A. Relative price
B. Marginal price
C. Equilibrium price
D. Breakeven price

111. When change in price of A has no effect on demand For Z, then the cross elasticity of demand is
A. Positive
B. Negative
C. Zero
 D. Either of the options

112. Economic models are of various forms such as Tables, diagrams, graphs, flow charts,
mathematical Equations and theoretical distributions. Which Models are the models in which
relationships of Variables are expressed in mathematical symbols And equations represent a set of
properties of the Collected facts and figures which are easily Amenable to analysis?
A. Iconic models
B. Analogue models
C. Symbolic models
D. Cajulate models

113. A firm represents a business enterprise striving to Get the highest profit under particular
conditions. In Economic analysis the concept of the firm Includes,
A. Individual proprietorship
B. partnership
C. corporation
D. All of the options

114. There are two concepts of Price namely, the Market Price and the Normal Price. Which of the
following Statement relating to price is not correct?
A. Market Price goes on fluctuating from time to Time
B. Normal Price is relatively stable
C. Normal Price is more or less hypothetical in Nature
D. Market Price is more unreal

115. A panel of experts is individually presented a series Of questions pertaining to the forecasting
problem In which of the following forecasting methods?
A. Time Series Analysis method
B. Expert Opinion Method
C. Delphi Method
D. Econometric Models method

116. Market Price is more influenced by the supply side Because in the very short period the supply is
Assumed to be almost inelastic. Is the above Statement correct?
A. Yes
B. No

117. Supply of any commodity refers to various amounts Of the commodity which the sellers are
willing to sell At different possible prices at any given time. State Whether the above statement is
true or false.
A. True
B. False
118. When a negligible change in price brings about an Infinite change in the quantity supplied, then
the Elasticity of supply is
A. Less than one
B. Greater than one
C. Zero
D. Infinity

119. Which Utlity is the aggregate of utilities derived by tHe consumer from all the units of the
commodity Consumed?
A. Partial Utitlity
B. Marginal Utility
C. Collapse Utility
D. Total Utiltiy

120. The supply curve shifts towards left due to all of the Following factors, except
A. Complex and outdated technology
B. Poor means of transport
C. Decrease in price of factors of production
D. Unfavourable taxation policy of the government

121. Wants are limited. All wants can be satisfied Simultaneously & fully. State whether the above
Statement is true or false.
A. True
B. False

122. The market equilibrium model could be broken Down into several principles.The Elasticity and
Revenue ideas are a key to understanding
A. Whether competition is “perfect” or monopolist
B. How market changes transform society
C. When the market does not move smoothly ta Equilibrium, but overshoots
D. Lowly of monopoly

123. Degree of responsiveness of quantity Demanded of a commodity to the change in price is Called
A. Consumer surplus
B. Elasticity of demand
C. Law of demand
D. Utility demand

124. Our income may change but if our demand for salt iS not affected due to change in income, then
the Income elasticity of demand for salt will be
A. Positive
B. Negative
C. Zero
D. Either of the options
125. Which economic models are are easily amenable to Analysis such as flow charts and theoretical
Distributions?
A. Iconic models
B. Analogue models
C. Symbolic models
D. Cajulate models

126. The main focus in managerial economics is to find An optimal solution to a given managerial
problem. The problem may not relate to which of the Following?
A. Determination of price
B. Make or buy decisions
C. Numan resources development
D. Capital management or profit planning

127. People don’t want too many unpleasant surprises. If They use the information available to them
Efficiently, then they won’t be surprised in the same Way very often. This can lead to
A. Policy ineffectiveness
B. Permanence
C. Path Dependence
D. All of the options

128. When change in price has no effect on the quantity Demanded, then the demand is
A. Unit Elastic Demand
B. Relatively Inelastic Demand
C. Relatively Elastic Demand
D. Perfectly Inelastic Demand

129. Which of the following concepts of economics refers To the sharing of the wealth produced in
the Community?
A. Production
B. Supply
C. Demand
D. Distribution

130. The Time Series data would indicate different types Of fluctuations.Which of the following
fluctuation Refers to the long run increase or decrease in the Series?
A. Secular Trend
B. Cyclical Fluctuation
C. Seasonal Variation
D. Random Fluctuation

131. Economics is multidimensional, and that creates Some difficulties in measuring things like
Production, incomes, and price levels. The solution For the problem of double counting is
 A. Value Added
B. Index numbers
C. Relative inequality
D. All of the options

132. If the two commodities A and B are so related that Change in price of A brings about change in
demand For B in the same direction then the cross elasticity Of demand is
A. Positive
B. Negative
C. Zero
D. Either of the options

133. Demand Forecasting depends on the responses From the human beings and thus the application
of Even the quantitative or statistical models may no_ Give us a very reliable forecast. State whether
the Above statement is true or false.
A. True
B. False

134. The highest indifference curve that the consumer Can reach is the one that just barely touches
his
A. Preference for goods
B. Discount offered
C. Budget constraint
D. Combination of goods selected

135. The consumer is equally happy at all points on any Given indifference curve, but he prefers some
Indifference curves to others. Which of the following Is not a property of indifference curve?
A. Higher indifference curves are preferred to lower cross
B. Indifference curves are upward sloping
C. Indifference curves do not cross
D. Indifference curves are bowed inward

136. As the Managerial Economist is faced with a number Of uncontrollable variables which of the
following Criteria would be necessary for a good forecast?
A. Durability
B. Flexibility
C. Accuracy
D. Economical

137. Managerial Economics is the application of Economic Theory to managerial practice and
Concentrates on which of the following ?
A. Decision process
B. Decision models
C. Decision variables
 D. All of the options

138. Forecasting does play a key role in managerial Decisions. The objective of Business Forecasting is
To
A. Achieve the target of production and sales
B. Minimize risk and the margin of uncertainty in Business
C. Build a brand for the firm
D. Give presentable information for directors report

139. When change in price brings about more than Proportionate change in the quantity demanded,
Then demand is
A. Unit Elastic Demand
B. Relatively Inelastic Demand
C. Relatively Elastic Demand
D. Perfectly Inelastic Demand

140. The budget constraint is one piece of the analysis: It Shows the combinations of goods the
consumer can Afford based on
A. Quantity of goods
B. Income and the prices of the goods
C. Quality of goods
D. Discounts offered

141. When supply decreases, the supply curve shifts to

A. Right
B. Left
C. Circular flow
D. Curvical flow

142. The macroeconomic theory is designed to Explain how supply and demand in the Aggregate
interact to concern with problems Related with
A. Unemployment and inflation
B. Business cycles
C. Growth
D. All of the options

143. In economics, inflation is a rise in the general Level of prices of goods and services in an
Economy over a period of time. Which of the Followin is not a disadvantage of inflation?
A. Creates uncertainty
B. Discourages productive activity
C. Allows price adjustment
D. Reduces the competitiveness

144. The total quantity of goods available for sale at A given period of time in an economy is called As
 A. Demand
B. Supply
C. Stock
D. Output

145. We cannot create matter, we can only add Utilities to the existing matter by either Changing its
form, place or keeping it over time & create values. Is the above statement Correct?
A. Yes
B. No

146. Normal Price is more influenced by the Demand side because in the long run supply is Capable
of adjusting itself to demand and will Thereby influence the price. State whether the Above
statement is true or false.
A. True
B. False

147. Firm is taken as a production unit that arrives At an output considering the market conditions
And endeavours to produce the same at the Least cost. State whether the above statement Is true or
false.
A. True
B. False

148. Since quantity demanded has a negative Relationship with price, the elasticity of Demand so
obtained will have
A. Positive sign
B. Negative sign
C. Neutral sign
D. Dynamic sign

149. Which of the following economist gave the Definition of consumer surplus as “Excess of The
price that a consumer would be willing to,Pay rather than go without a commodity over That which
he actually pays.”?
A. Robert Giffen
B. Alfred Marshall
C. John Keynes
D. Ragnar Frisch

150. Demand for which of the following goods will Make the demand relatively inelastic?
A. Addicted goods and drugs
B. Furniture and washing machine
C. Milk and vegetables
D. Coal and electricity

151. For which of the following goods the demand Will be relatively elastic?
 A. Addicted goods and drugs
B. Furniture and washing machine
C. Milk and vegetables
D. Coal and electricity

152. When there is a rise in demand due to fall in Price alone and other factors remaining Constant,
then such situation there is
A. Contraction of demand
B. Expansion of demand
C. Increase in demand
D. Decrease in demand

153. Most people would like to increase the Quantity or quality of the goods they consume Based on
A. Quantity of goods
B. Quality of goods
C. Budget constraint
D. Discounts offered

154. In case of a relative inelastic demand, . if price Falls by 10% and demand rises by 5% then Ed is
A. Greater than 1
B. Less than 1
C. Equal to 0
D. Reaches infinity

155. Which of the following forecasting method is Useful when the market demand is assumed to
Remain fairly steady over time?
A. Least squares method
B. Moving Averages
C. Exponential Smoothing
D. Index Numbers

156. If the consulted experts are genuinely reliable, Then the panel consensus could be perhaps The
best method of Forecasting amongst Expert Opinion Method of Qualitative Forecasting. Is the above
statement correct?
A. Yes
B. No

157. Complete enumeration survey is less Expensive and less tedious compared to the Sample Survey
Method. State whether the Above statement is true or false.
A. True
B. False

158. Expert Opinion Method is an important Qualitative forecasting method. Which of the Following
statement relating to Expert Opinion Method is not correct?
 A. The firm makes an effort to obtain the Opinion of experts
B. Main advantage of the Experts’ Opinion Survey Method is its simplicity
C. Requires extensive statistical or Mathematical calculations
D. It substitutes opinion in place of analysis of The situation

159. Marshall has classified time period into four Categories on the basis of the degree of
Responsiveness of the supply to adjust itself to The changing market conditions.Which is that Period
in which the supply can adjust itself Only partly to the change in demand?
A. Very Short Period
B. Short Period
C. Long Period
D. Very Long Period

160. If the commodity is highly perishable, the Reservation price is low. In such scenarios we Are
talking about which aspects of reservation Price?
A. The need for Liquid Cash
B. The cost of storage
C. The durability of the commodity
D. The expectations of the price of commodity

161. Normal Price is more influenced by the Demand side because in the long run supply Capable of
adjusting itself to demand and wil Thereby influence the price. State whether the Above statement is
true or false.
A. True
B. False

162. Which of the following statement is not correct relating to the satisfying behaviour model given
by Simon?
A. Model is consistent with the theory of motivation
B. The model lacks correctness and complete information
C. The model appreciates the difference between information about conditions and
information about changes in conditions
D. The model explains certain real-world situation

163. When the price of a product is and consumers prefer to purchase the goods in small quantities
the demand for goods will
A. Increase
B. Decrease
C. Expand
D. Contract

164. When change in price of x brings about exactly proportionate change in quantity demanded of X,
the demand is
A. Unipt Elastic Demand
 B. Relatively Inelastic Demand
C. Relatively Elastic Demand
D. Perfecty lnelastic Demand

165. With the upgradation of technology, the supply curve for a given commodity will shift:
A. Leftward
B. Rightward
C. Spiral
D. Concave

166. In case of public utlities like railways government can subsidize the price to avoid consumer
exploitation. Which type of demand exists in such Cases?
A. Elastic
B. Inelastic
C. Perfect
D. Cross

167. A close interrelationship between management and economics has led to the development of
managerial economics. Management is Primarily engaged in
A. Study complex data and statistics
B. Research and monitor economic trends
C. Analyse scarcity
D. Getting things done by other people

168. Like the market equilibrium principle, the Income-Expenditure Equilibriumpulls together a
number of subsidiary principles that complement One another and together constitute the which
theory of aggregate demand?
A. Boulding
B. Keynesian
C. Marshall
D. Frisch

169. The production possibility frontier is the diagrammatic representation of which economic
concept in production?
A. Utility
B. marginality
C. Scarcity
D. Curvature

170. The managerial economist after working out the cost will have to fix the price of the product,
The price of the product depends on
A. Marginal utility of the product
B. Demand for the product
C. Money inflation
 D. Consumer demographics

171. Marginal Utility goes on increasing as the consumer goes on consuming unit after unit of that
commodity. Is the above statement correct?
A. Yes
B. No

172. Human wants are the starting point of all economic activities and can be in the form of
Necessities. Comforts & Luxuries. Food. Dlothing, Shelter which are basic needs of life refers to
which type of human wants?
A. Necessities
B. Comforts
C. Luxuries
D. Social utilities

173. A more informative and more useful method of determining the Equilibrium point of the firm is
by comparing the Marginal Revenue with Marginal Cost.The firm will maximize its profit by
producing that level of output where
A. MR>MC
B. MC>MR
C. MC=MR
D. Profit is neither affected by MR or MC

174. Forecasting is not expected to provide absolutely correct results. Which of the following can be
considered as a limitation of forecasting?
A. Although the opinion surveys are simple and straightforward, there is an element of
subjectivity involved
B. As the surveys are expensive and time consuming, there is a tendency to lin gthe sample
of the consumers
C. Although efforts are made to use the scientific method in forecasting, yet there is bound
to be difference between the field experiments And experiments conducted in
laboratories
D. All of the options

175. To forecast demand for a new product we have to use which of the following methods?
A. Qqualitative method
B. Quantitative method
C. Survey method
D. All of the options

176. Qualitative method is mostly used for short-term forecasting. Is the above statement correct?
A. Yes
B. NO
177. Which of the following is not considered as a determinant of supply?
A. Price of given commodity
B. Income of consumer
C. Government taxation policy
D. Means of transportation

178. When the price of the production is increased what will its impact on the supply of commodity?
A. Expansion of supply
B. Subsitution of supply
C. Leftward shift in supply curve
D. Rightward shift in supply curve

179. Money is whatever is generally acceptable as a medium of exchange. Besides medium of

exchange Money is also used as
A. Store of Value
B. Standard of Deferred Payment
C. Measure of Vaoue
D. All of the options

180. Which of the following is an example of complementary goods?

A. Tea and Coffee
B. Coke and Pepsi
C. Rice and Wheat
D. Car and Petrol

181. Which quality of money makes its usage repeatedly and for a longer peirod of time?
A. Divisibility
B. Cognizability
C. Durability
D. Acceptability

182. Which economic concept refers to various amounts of the commodity which the sellers are
willing to sell at different possible prices at any Given time?
A. Demand
B. Supply
C. Utility
D. Value

183. Which of the following is not an essential determinant of supply

A. Period of time
B. Willingness and ability to buy a commodity
C. Price of the commodity
D. Quantity supplied by the firm
184. Survey Method was critisized by joel Dean for which of the following reasons?
A. formidable barriers exists to learning the buying intentions of the hous ehold consumers
B. inability to foresee what choice the consumers will make when faced with multiple
alternatives in the market, restrict the usefulness of this Method of forecasting
C. Consumers are often inconsistent
D. All of the options

185. In Micro Economics we analyze the behavior of individual economic units such as individual
consumer or individual producer. Which of the Following concept is studied in Micro Economics?
A. National Output
B. Determination of prices of goods
C. National Employment
D. Business cycles

186. The Concept of Elasticity of demand is also useful in determining Factor-Prices. Those factors,
the demand for whose services is inelastic Command
A. higher rewards in the factor market
B. Lower rewards in the factor market
C. No rewards in the factor market
D. A mix of higher and lower rewards in the factor market

187. The basic idea of equi-marginal concept is that resources should be allocated among various
economic activities in such a way that the Marginal benefit from each activity is
A. More
B. Less
C. Same
D. More in some less in others

188. There are mainly two approaches to the study of the Science of Economics namely the Micro
Economic Approach and the Macro Economic Approach. The termns Micro Economics and Macro
Economics were coined by?
A. Maynard Keynes
B. Alred Maslow
C. ragner Fnsch
D. Maurice Dobb

189. Stagnation is economic growth that, while positive, is less than the potential growth of the
economy. Which of the following is a cause of Stagnation?
A. High population growth
B. Fewer people might choose to work
C. The growth of labor productivity might slow
D. AI of the options
190. Managerial Economics S more refined and sophisticated discipline as compared to Economics
because
A. it uses modern scientific methods Or statistics and mathemat
B. it uses the methods of Operational Research
C. it uses Computers for building scientific and practical models for analysing and solving
the real business problems under uncertain and Risky environment
D. Techniques of economics

191. If a commodity has several substitutes available in the market then such a demand is called as
A. Complementary demand
B. Composite demand
C. Competitive demand
D. Compulsive demand

192. When consumers have an ilusion that higher priced goods are better then the demand for such
goods wil
A. increase
B. Decrease
C. Expand
D. Contract

193. High rates of taxes on goods will resulti into increase in price of goods. In such Situation the
demand for goods will
A. increase
B. Decrease
C. Expand
D. Contract

194.