102-Economics Analysis for Buisness Decision.pdf - VIM102 Name Marks:539 RollNo Duration:20.0Minutes Total Date_Signature Q1) 1)General 2)Particular

102-Economics Analysis for Buisness Decision.pdf - VIM102...

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Unformatted text preview: VIM­102 Name : ______________________________________________________ Marks: 539 Roll No : ______________________________________________________ Duration: 20.0 Minutes Total : ______________________________________________________ Date : ______________________ Signature : ______________________ Q1) Macroeconomics provides an exploration to the functioning of an economy in 1) General 2) Particular 3) Partial 4) Global Marks : 1.0 Id: 38752 Explanation: Q2) ­­­­­­­­­­­­ cost measures the sacrifice made for taking a decision­ 1) Opportunity cost 2) Marginal cost Marks : 1.0 Id: 44833 3) Average cost 4) Economic cost Explanation: Q3) Which of the following is incorrect? Marks : 1.0 Id: 44908 1) Perfectly elastic – E= ∞ 2) perfectly inelastic ­ E= 1 3) unitary inelastic ­ E = 1 4) relatively inelastic ­ E < 1 Explanation: Q4) If marginal cost equals to average total cost­ Marks : 1.0 Id: 44963 1) Average total cost is falling 2) Average total cost is rising 3) Average total cost is maximized 4) Average total cost is minimized Explanation: Q5) In the short period the national income is determined by 1) Aggregate demand and price 2) Aggregate supply and price 3) Aggregate demand and aggregate supply 4) Aggregate Demand only Explanation: Marks : 1.0 Id: 45120 Q6) EBIT or Operating profit equals­ Marks : 1.0 Id: 45090 1) Sales revenue + cost of goods sold + all 2) Sales revenue ­ cost of goods sold + all 3) Sales revenue ­ all expenses except for 4) Sales revenue ­ cost of goods sold + all expenses except for interest and taxes interest and taxes expenses except for interest and taxes expenses with interest and taxes Explanation: Q7) Economists make assumptions 1) To diminish the chance of wrong answers. Marks : 1.0 Id: 45142 2) To make certain that all necessary variables are included. 3) Because all scientists make assumptions. 4) To make the world easier to understand. Explanation: Q8) Kinked demand curve is the characteristic of – Marks : 1.0 Id: 44973 1) Oligopoly 2) Monopoly 3) Perfect competition 4) Monopolistic competition Explanation: Q9) According to Robbins economics is­ Marks : 1.0 Id: 38772 1) Positive and ethical science 2) Positive and unethical science 3) Normative and ethical science 4) Normative and unethical science Explanation: Q10) Quantity demanded is always expressed at a given – 1) Income 2) Price 3) Value 4) Supply Explanation: Marks : 1.0 Id: 44887 Q11) Scarcity is a condition that exists when: Marks : 1.0 Id: 45017 1) there is a fixed supply of resources. 2) there is a large demand for a product. 3) resources are not able to meet the entire 4) the supply is equal to demand. demand for a product. Explanation: Q12) Monopoly firm , in long run earn Marks : 1.0 Id: 38796 1) Normal profit 2) Abnormal profit 3) Normal loss 4) Abnormal loss Explanation: Q13) Under ­­­­­­­­­­­­­­­method of forecasting firm can obtain the information from door to door survey­ 1) Consumers survey 2) Complete enumeration survey 3) Delphi technique 4) Sample survey Explanation: Marks : 1.0 Id: 44933 Q14) A firm under ­­­­­­­­­­­­­­­ has a regular tendency to show excess capacity 1) Oligopoly 2) Duopoly 3) Perfect competition 4) Monopolistic competition Marks : 1.0 Id: 44982 Explanation: Q15) The period of 12th five year plan is­ Marks : 1.0 Id: 44881 1) 2012­2017 2) 2012­2016 3) 2010­2015 4) 2007­2012 Explanation: Q16) The government wants to reduce the consumption of electricity by 5%. The price elasticity of demand for electricity is ­0.4. The government should 1) raise the price of electricity by .08%. 2) lower the price of electricity by .4%. 3) raise the price of electricity by 12.5%. 4) raise the price of electricity by 2%. Marks : 1.0 Id: 38763 Explanation: Q17) If anything flowing from the circular flow is termed as 1) Leakage 2) Injection 3) Flowing 4) Flying Marks : 1.0 Id: 38759 Explanation: Q18) Money is: Marks : 1.0 Id: 45125 1) Consumer good 2) Capital good 3) Producer good 4) Neither of them Explanation: Q19) The basis of micro economic is­ Marks : 1.0 Id: 44830 1) Price mechanism 2) Full employment 3) National income 4) Price stability Explanation: Q20) How prices are determined in the free market? Marks : 1.0 Id: 38792 1) With the help of demand and supply 2) Price and supply 3) Supply and price 4) Managers Explanation: Q21) When people have very little time to respond to price changes, demand becomes: 1) More elastic 2) Less elastic 3) Unitary elastic 4) Time does not affect price elasticity Marks : 1.0 Id: 45183 Explanation: Q22) In case of increase in demand, the demand curve : 1) Shifts leftwards. 2) Shifts rightwards. 3) Will have upward slope 4) Will be horizontal. Explanation: Marks : 1.0 Id: 45180 Q23) In free enterprise economy basic economic problems are solved with the help of 1) Price mechanism 2) Demand and supply interaction 3) Government 4) Central planning department Marks : 1.0 Id: 44837 Explanation: Q24) Due to a scarcity of resources, 1) Every society must undertake central planning Marks : 1.0 Id: 45139 2) The government must decide how to allocate available resources 3) Some members of each society must live in poverty 4) Every society must choose among competing uses of available resources Explanation: Q25) The elasticity of supply is defined as the responsiveness of the quantity supplied of a goods to a change in ­­­­­­­­­­ 1) One of the variable factor on which supply depends 2) Its income 3) Its price 4) Its cost Explanation: Marks : 1.0 Id: 44949 Q26) Cross elasticity in monopoly is – Marks : 1.0 Id: 44990 1) One 2) Positive 3) Zero 4) Negative Explanation: Q27) In India duopoly exists in the following industry: 1) Heavy Commercial Vehicles 2) Soft Drinks 3) Oral Care Products 4) Detergents Explanation: Marks : 1.0 Id: 45235 Q28) Which one of the following would be an example of market failure requiring government interference? 1) Competition among businesses drives down 2) Negative externalities are generated by 3) Mr. Bhati is offered 50 million per year to play 4) Consumers are influenced by advertising the price of calculators so low that many producers go bankrupt basketball. Explanation: Q29) Marks : 1.0 Id: 45024 business production polluting the environment. convincing them to buy products they do not need. ­­­­­­­­­­­ is the example of mixed economy Marks : 1.0 Id: 44838 1) India 2) USA 3) UK 4) Erstwhile USSR Explanation: Q30) If the demand curve is parallel to x­ axis, then elasticity of demand is­ 1) Zero 2) One 3) Infinite 4) Greater than one Explanation: Marks : 1.0 Id: 44941 Q31) Infinite price elasticity is the characteristic of – 1) Perfect competition 2) Monopoly 3) Oligopoly 4) Duopoly Marks : 1.0 Id: 44976 Explanation: Q32) The profit which the firm must earn if they are remain in the industry is called 1) Marginal profit 2) Normal profit 3) Equi marginal profit 4) Dividend Procuring Explanation: Marks : 1.0 Id: 45119 Q33) Which of the alternatives to the modern theory of the firm holds that managers attempt to meet some goal that is defined in terms of a specified level of sales, profits, growth or market share? 1) Sales maximization model 2) Management utility maximization model 3) Satisficing model 4) Profit maximization model Marks : 1.0 Id: 45156 Explanation: Q34) Under inductive method the logic proceed from­ 1) General to particular 2) Positive to normative Marks : 1.0 Id: 44872 3) Normative to positive 4) Particular to general Explanation: Q35) Microeconomics is concerned with: Marks : 1.0 Id: 45131 1) The economy as a whole 2) The electronics industry 3) The study of individual economic behavior 4) The interactions within the entire economy Explanation: Q36) If the cross­price elasticity between two goods is negative, the two goods are likely to be: 1) Substitutes 2) Complements 3) Necessities 4) Luxuries Marks : 1.0 Id: 45212 Explanation: Q37) Demand for a normal product may shift outwards if: 1) Price decreases 2) The price of a substitute rises 3) The price of a complement rises 4) Income falls Explanation: Marks : 1.0 Id: 45227 Q38) In a free market economy, when consumers increase their purchase of a good and the level of ­­­­­­­­­ exceeds ­­­­­­­­­­­­­­­ then price tends to rise. 1) Demand, supply 2) Supply, demand 3) Prices, demand 4) Profits, supply Marks : 1.0 Id: 44873 Explanation: Q39) Which statement is true of the basic economic problem? Marks : 1.0 Id: 45086 1) The problem will exist as long as resources 2) The problem exists only in less developed 3) The problem will disappear as production 4) The advancement of technology will cause the are limited and desires are Unlimited. countries. expands. problem to disappear Explanation: Q40) Economic cost = ­­­­­­­­­­­­­ cost+ ­­­­­­­­­­­­­­­ cost. 1) Accounting , Explicit 2) Implicit , explicit 3) Accounting, outlay 4) Explicit, imputed Explanation: Marks : 1.0 Id: 44846 Q41) Market with one buyer and one seller is called­ 1) Monospony 2) Monopoly 3) Bilateral monopoly 4) None Marks : 1.0 Id: 45000 Explanation: Q42) Which of the following cost is not recorded in the books of account? 1) Direct cost 2) Indirect cost 3) Opportunity cost 4) Explicit cost Explanation: Marks : 1.0 Id: 44834 Q43) Marginal revenue is equal to price for which one of the following types of market structure? 1) Monopoly 2) Perfect Competition 3) Monopolistic 4) Oligopoly Marks : 1.0 Id: 45246 Explanation: Q44) Err:509 Marks : 1.0 Id: 44816 1) GAAT 2) IMF 3) IBRD 4) None of These Explanation: Q45) Which among the followings means the cost of foregone opportunities? 1) Discounting Principle 2) Opportunity Cost 3) Inventory Management 4) Principle of Time Perspective Marks : 1.0 Id: 38747 Explanation: Q46) ­­­­­­­­­­­ is the probable measurement of uncertainty 1) Opportunity cost 2) Marginal cost Marks : 1.0 Id: 44835 3) Risk 4) Insurance Explanation: Q47) Demand for a commodity is defined as Marks : 1.0 Id: 45218 1) Want for the commodity 2) Quantity demanded for a particular commodity 3) Desire for the commodity 4) Quantity demanded Explanation: backed by willingness to pay. Q48) The Law of Supply states that when the price of a commodity rises, the quantity supplied ­­­­­­­. 1) Rises. 2) Falls. 3) Does not rise. 4) Does not fall Marks : 1.0 Id: 45202 Explanation: Q49) Managerial economics basically Marks : 1.0 Id: 38736 1) Positive Economics 2) Normative Economics 3) Positive and Normative both 4) Negative Economics Explanation: Q50) Homogeneity of the product is a characteristic feature of 1) Monopoly 2) Perfect competition 3) Monopolistic competition 4) Oligopoly Marks : 1.0 Id: 45217 Explanation: Q51) The coordinating mechanism in the economy of the price system was described by Adam Smith as : 1) Visible hand 2) Invisible hand 3) Total Revenue 4) Profits Marks : 1.0 Id: 45016 Explanation: Q52) Full form of FDI is­ Marks : 1.0 Id: 44879 1) Fast direct investment 2) Foreign direct investment 3) Foreign division in India 4) Food direct Investment Explanation: Q53) Under perfect competition, price of the product­ Marks : 1.0 Id: 45002 1) Can be controlled 2) Cannot be controlled 3) Can be controlled with in certain limit 4) Controlled by firm only Explanation: Q54) The value of elasticity of demand ranges from Marks : 1.0 Id: 45280 1) Zero to one 2) One to infinity 3) Always zero 4) Zero to infinity Explanation: Q55) Efficient allocation of resources is likely to be achieved under 1) Monopoly 2) Monopolistic competition 3) Perfect competition 4) Oligopoly Marks : 1.0 Id: 44995 Explanation: Q56) The most basic assumption upon which the foundation of economics is based is that 1) continued technological improvement is necessary to stimulate essential economic growth. Marks : 1.0 Id: 45075 2) private ownership of resources is necessary for maximum economic growth 3) the market system is the best of all possible production systems 4) society's resources are limited and unable to satisfy unlimited wants Explanation: Q57) Economics is­ Marks : 1.0 Id: 44818 1) Science 2) Art 3) Both a and b 4) None of these Explanation: Q58) Price elasticity of cigarette is­ Marks : 1.0 Id: 44914 1) Less than one 2) More than one 3) One 4) Relatively elastic Explanation: Q59) Value maximization theory fails to address the problem of: 1) Risk 2) Uncertainty 3) Sluggish growth 4) Self­serving management Explanation: Marks : 1.0 Id: 45161 Q60) Which of the following curve is horizontal? Marks : 1.0 Id: 44960 1) Variable cost 2) Fixed cost 3) Marginal cost 4) Total cost Explanation: Q61) Interdependencies is the feature of Marks : 1.0 Id: 45164 1) Perfect competition 2) Monopoly 3) Monopolistic competition 4) Oligopoly Explanation: Q62) As per law of demand the relationship between price and demand is 1) Direct. 2) positive. 3) Proportionate. 4) Inverse. Marks : 1.0 Id: 45213 Explanation: Q63) If consumer always spend 15% of their income on foods, then income elasticity of demand for food is­ 1) 1.15 2) 0.15 Marks : 1.0 Id: 38768 3) 1 4) Impossible to determine Explanation: Q64) If labour has less elastic demand than capital, wages would be ______ than interest 1) Less 2) More 3) Equal 4) None Explanation: Marks : 1.0 Id: 45251 Q65) Economic problem arises mainly due to specific reasons­ 1) Human wants are unlimited and to satisfy human wants are scarce Marks : 1.0 Id: 45107 2) Human wants only 3) Enormous raising population only 4) Unlimited mobility of workers Explanation: Q66) Economic progress 1) Reflects that people are achieving higher income levels and living _x000D_ standards. Marks : 1.0 Id: 45122 2) Requires that individuals work longer hours. 3) Implies scarcity is no longer a problem. 4) Indicates income levels are higher even though environmental and health _x000D_ conditions have worsened. Explanation: Q67) The sensitivity of the change in quantity demanded to a change in price is called Marks : 1.0 Id: 38778 1) Income elasticity. 2) Cross­elasticity. Price elasticity of demand. 3) Price elasticity of demand. 4) Coefficient of elasticity. Explanation: Coefficient of elasticity. Q68) The scarcity or scientific or choice making definition of economics is stated by­ 1) Adam smith 2) Samuelson 3) Robbins 4) Scumpeter Marks : 1.0 Id: 44821 Explanation: Q69) Income elasticity of demand for diamonds would be : 1) 1 2) 0 3) >1 4) <1 Explanation: Marks : 1.0 Id: 45252 Q70) Opportunity cost of machine producing only one product is 1) Low 2) High 3) Infinite 4) Medium Marks : 1.0 Id: 45282 Explanation: Q71) Opportunity cost is best defined as: Marks : 1.0 Id: 45066 1) How an economy suffers when in recession? 2) The cost of decision expressed as next best 3) The cost of decision expressed in monetary 4) The financial costs association with the terms alternative production of goods and services. Explanation: Q72) A firm operating under conditions of perfect competition can: Marks : 1.0 Id: 45181 1) Determine the price of its product. 2) Promote the sales through effective 3) Determine only the size of its output. 4) Capture the market by cutting down the price. advertisement. Explanation: Q73) In which type of economy can each producer allocate his resources based on the Marks : 1.0 demand? Id: 45020 1) Mixed economy 2) Market economy 3) Command economy 4) Regulated economy Explanation: Q74) Suppose a firm is selling 5 units of the output at the price of Rs.15 per unit. Now if it wants to sell 6 units instead of 5 units and there by the price of the product falls to Rs.14 then the marginal revenue will be 1) 14 2) 10 3) 15 4) 9 Explanation: Marks : 1.0 Id: 38801 Q75) The study of agreements of economy is done through: 1) Micro Economics 2) Macro Economics 3) Not Micro but with Macro 4) Theory of population Marks : 1.0 Id: 45117 Explanation: Q76) If two goods are perfect substitutes for each other , the cross elasticity between them is – 1) Infinite 2) Zero 3) Positive 4) Negative Explanation: Marks : 1.0 Id: 44921 Q77) A business is said to be making _______ if its revenues exceed the accounting cost 1) An Accounting Profit 2) A Normal Profit 3) An Economic Profit 4) An Abnormal profit Marks : 1.0 Id: 45097 Explanation: Q78) Which is the method of measuring GDP? 1) Income method Marks : 1.0 Id: 45079 2) Productivity method 3) Product persuasion method 4) Cumulative method Explanation: Q79) The discrimination pricing that attempts to take away the entire consumer surplus is called ­­­­­­­­­­­­­­ degree price discrimination. 1) First 2) Second 3) Third 4) Fourth Explanation: Marks : 1.0 Id: 44998 Q80) Which among the following are known as the features of monopoly? 1) Large number of buyers 2) Large number of sellers 3) Single seller 4) Price taker Marks : 1.0 Id: 38794 Explanation: Q81) Which of the following is the example of complementary goods? 1) Tea and coffee 2) Tea and sugar 3) Ball pen and ink pen 4) Shoes and gold Explanation: Marks : 1.0 Id: 44890 Q82) In perfect competitive industries are Marks : 1.0 Id: 38790 1) Price taker 2) Price maker 3) Price determinate 4) Price regulator Explanation: Q83) Profit is the motive of – Marks : 1.0 Id: 44839 1) Mixed economy 2) Socialistic economy 3) Capitalistic economy 4) Centrally planned economy Explanation: Q84) Marginal cost change due to change in Marks : 1.0 Id: 44961 1) Total cost 2) Average cost 3) Variable cost 4) Quantity of output Explanation: Q85) Inequality of income is the characteristic of – Marks : 1.0 Id: 44841 1) Capitalist economy 2) Socialistic economy 3) Mixed economy 4) Planning economy Explanation: Q86) Suppose a firm decides to increase its output. This may involve a rise in its total cost by 30% and with an increase in output by 15% , then incremental cost is­ 1) 2% 2) 3% 3) ½ % 4) None of these Explanation: Marks : 1.0 Id: 44869 Q87) _________ is the study of economic actions of individuals and small groups of individuals. 1) Micro­Economics 2) Macro­Economics 3) Managerial Economics 4) Business Economics Marks : 1.0 Id: 45037 Explanation: Q88) Economists who are concerned about the behavior of individual households, firms and industries are studying: 1) Nanoeconomics 2) Microeconomics 3) Macroeconomics 4) Neoeconomics Explanation: Marks : 1.0 Id: 45070 Q89) When consumer’s income increases, demand for an inferior good ­­­­­­­­­. 1) Increases. 2) Decreases. 3) Does not change. 4) Changes. Marks : 1.0 Id: 45170 Explanation: Q90) For core food items demand is ________ _______. 1) More elastic. 2) Less elastic. 3) Unitary elastic. 4) Not elastic. Marks : 1.0 Id: 45169 Explanation: Q91) Gross profit includes­ Marks : 1.0 Id: 45089 1) Overhead expenses + interest expense + taxes 2) Overhead expenses + interest expense ­ taxes 3) Overhead expenses ­ interest expense ­ taxes 4) Overhead expenses ­interest expense + taxes and extraordinary items and extraordinary items Explanation: and extraordinary items and extraordinary items Q92) In India to some degree perfect competition exists in the following industry: 1) Cement 2) Soaps and detergents 3) Rice Farming 4) Dental Care Products Marks : 1.0 Id: 45237 Explanation: Q93) What type of relationship exists between the price and quantity demanded? 1) Direct. 2) Inverse. 3) Positive. 4) Normative. Explanation: Marks : 1.0 Id: 45260 Q94) Economics includes the following economic activity 1) Production 2) Consumption 3) Exchange 4) All of the above Marks : 1.0 Id: 45285 Explanation: Q95) NNP at market price will be – Marks : 1.0 Id: 45084 1) GNP + cost of capital 2) GNP + cash 3) GNP at market prices – depreciation 4) GNP + dividend Explanation: Q96) ­­­­­­­­­­ is the probable measurement of uncertainty 1) Opportunity cost 2) Marginal cost 3) Risk 4) Insurance Explanation: Marks : 1.0 Id: 45288 Q97) Opportunity cost include­ Marks : 1.0 Id: 44870 1) Implicit cost 2) Explicit cost 3) Both a and b 4) Neither a nor b Explanation: Q98) According to law of demand other things being equal , if the price of commodity falls the quantity demanded of it will………………………… 1) Rise 2) Decrease 3) Increase 4) Fall Explanation: Marks : 1.0 Id: 44891 Q99...
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