MANAGERIAL ECONOMICS
1. According to ______, “Managerial Economics is concerned with the application of economic concepts and
economic analysis to the problems of formulating rational managerial decisions.
Mansfield Wilson Adam Treek Anderson
2. ______ economics is applied to operational issues. They include all those problems which arise within the business
organisation and fall within the purview and control of the management.
Managerial Micro Tabular Scientific
3. _______ decision-making is essentially a process of selecting the best out of alternative opportunities open to the
firms.
Management Floor Business Sales
4. Environmental _________ pertains to the general business environment in which a business operates.
Theories Regulations Threats Issues
5. Economic _______ states the functional relationship between two or more economic variables under certain given
conditions.
Agenda Theories Issues Curve
6. _______ Programming is a major tool in usage in decision-making in business and industry.
Linear Popular String Loop
7. _________ economics is a branch of economics besides Macroeconomics and Microeconomics.
Perspective Actual Remedial Managerial
8. According to ______, “Managerial economics is the use of economic modes of thought to analyse business
situations”.
McMohan and David Mc Nair and Meriam
Anderson and Elger John Hopkins
9. _______ is one of the most critical economic decision variables/It reflects the size and the pattern of the market.
Demand Supply Logistics Packaging
10. _______ helps in the empirical testing of theory. This helps in better decisions relating to demand and cost
functions, production, sales or distribution, etc.
Analysis Mathematics Economics Statistics
11. Profit is the difference between revenues and ______, and it is influenced by the demand-supply conditions for
output and input.
Price Debts Costs Liabilities
12. Management Theory and Accounting are helping the aspects of profit ______, cost reduction and control, etc.
Supervision Maximisation Minimisation Stabilisation
13. The demand for a product refers to the amount of it which will be bought per unit of time at a particular ______.
Place Region Price Country
14. A ________ income determines his/her purchasing capacity. It is an important determinant of demand.
Buyer’s Wholesaler’s Retailer’s Industry’s
15. Economics is all ______ and makes its presence felt when consumers and nations make decisions.
Persuasive Pervading Prevailing Predicting
****----****
1. _______ product means the production of an additional unit of output by employing an additional unit of a variable
input.
Sales Price Production Marginal
2. The _____ run refers to a particular time in which the supply of all the inputs is elastic. Production of a commodity
can be increased by increasing both variable and fixed inputs.
Very Long Long Short Very Short
3. _______ theory refers to the transformation of resources into outputs of goods and services.
C. E. S Single Management Production
4. ________ theorem states that if factors of production are paid according to their marginal product, then the total
product will just exhaust.
Euler’s David’s Chan’s Euth’s
5. By ______, P.H. Douglas had concluded his lifetime research on the measurement of the laws of production.
1990 1945 1947 1987
6. The full form of C.E.S. is ___________.
Constant Elasticity of Subtraction Constant Energy of Substitution
Charged Elasticity of Substitution Constant Elasticity of Substitution
7. A ____ period refers to a period in which technological advances may also take place.
Long short very long very short
8. _______ function represents a production function where all types of returns may be analysed.
Labelling C.E.S. Sales Promotion
9. When the production function is _____ of degree one, the elasticity of production equals one.
Homogeneous Heterogeneous Promogeneous Negative
10. In logarithmic form, the function becomes simple to handle and can be empirically estimated using linear ______
analysis.
Depression Subtraction Progression Regression
11. In a study of production functions for ________, V.N. Murti and V.K. Sastry took up the problem of aggregation
of the Cobb-Douglas production function.
Nepal Sri Lanka India Bhutan
12. Jointly published by K. J. Arrow, H.B. Chenery, B.S. Minhas and R.M. Solow in ______, C.E.S. production
function, though relatively difficult to fit data, generalises and is an improvement on Cobb-Douglas production
function.
1961 1991 1981 1971
13. Cobb and Douglas tried to find out the actual form of the production function prevailing in the manufacturing
industry of ______ by statistical methods.
Mexico Germany England United States
14. The firm may face ________ returns to scale when a proportionate increase in inputs leads to a less than
proportionate rise in the marginal output.
Actual Decreasing Increasing Assets
15. If the increase in input by 50 per cent leads to an increase in output by more than 50 per cent, then the law of
_______ return to scale is in operation.
Increasing Diminishing Decreasing Elasticity
*****---*****
1. If the consumer is indifferent between two products to use, those products are perfect ______.
Elastic Demanded Complementary Substitutes
2. Firms which are earning ______ profits in the short run will either expand and/or attract new firms to the market.
Normal Supernormal Illegal Premium
3. In the case of remote substitutes and non-availability of substitutes, there is no competition at all in the market. That
market is known as ______.
Monopoly Monopolistic Oligopoly Duopoly
4. The concept of perfect competition is very old and was discussed in a casual way by ______ in his wealth of
nations.
Adam Sandler Steve Smith Williamson Adam Smith
5. The firm, after producing the product, goes for ______ analysis.
Floor Market Price Factor
6. The price determined by the market demand and market supply under perfect competition is the _____ price.
Average Marginal Equal Equilibrium
7. If the consumer expresses preference between two products, they are _____ substitutes.
Real Different Close Classical
8. Legislative enactments regarding patents and copyrights, trademarks, etc., grant a monopoly to privileged firms,
and such provision obstructs the entry of potential competitors in the field. These are called _______ monopolies.
Legal Legislative Political Radical
9. The monopolist has absolute control over the supply of the commodity and is free to fix the _______ for the
commodity.
Demand Supply Discount Price
10. The extent of competition faced by any product or service can be assessed by ________ criteria.
Four Two Three Five
11. By definition, MR decreases at ____, the rate of decrease in AR.
Half Double Multiple Triple
12. According to _____, “pure monopoly is that where the cross-elasticity of demand of the monopolist’s product is
zero.”
Triffin Zovan Chan Mathew
13. TVC is___________.
Treatment Of Vending Cost Tested Vest Challenge Team Variable Charge Total Variable Cost
14. _____ collusions aim to eliminate group competition, gain monopoly power, curb rivals, and block new
competitors' entry.
Legal Cartel Business Diamond
15. The equilibrium occurs at a point where the average cost curve is declining, which means the firm is not operating
at its ______ costs.
Minimum Optional Operating Desired
***********-**********
1. Marris’s model is found in an article entitled “A Model of the Managerial Enterprise”, which was published in the
Journal of Economics in ________.
1963 9173 1993 1983
2. _______ pricing involves offering just the right combination of quality and good service at a fair price.
Productive Marginal Market Value
3. _________ argued that managers have discretion in pursuing policies which maximise their own utility rather than
attempting to maximise profits, which maximises the utility of shareholders.
Wilson Chamberlin Williamson Anderson
4. Competition-based pricing is also used when firms bid for jobs. This is known as _________ pricing.
Sealed Bid Opened Bid Final Bid Legal Bid
5. Williamson’s basic form of the model is U = ________.
U(S, M, D). f(S,M,K). f(S,N,D). f(S,M,D).
6. _________ is of the opinion that in modern large-scale firms, the goals of managerial utility maximisation, sales
maximisation and growth rate maximisation are obviously combined under the managerial drive for prestige and
technical virtuosity.
Prof. J. R. Hicks Prof. Galbraith Prof. Jacob Mathew Prof. Anna Tischner
7. A pricing approach that considers the _________ of prices and not simply the economics; the price is used to say
something about the product.
Psychology Sociology Anthology Scientology
8. FIFO stands for ________.
Freight in, first out First in, first out First in, final out Fire in, first out
9. A firm that plans to develop a new product faces __________ problem.
Processing Operating Launching Positioning
10. Cost uncertainties are either due to changes in the prices of raw materials, wages, rent, etc. or due to _________
changes.
Weather Political Technology Legal
11. _________ salaries or remuneration are linked to sales and not to profits.
Auditors Managers Scientists Advocates
12. ___________ pricing strategy is producing a high-quality product and charging the highest price.
Premium Discounted Sealed Spatial
13. LIFO stands for_____________.
At least in the first out Large in, first out Last in, first out Late in the first out
14. Williamson found ___________ major types of expenses from which managers derive utility.
Three Four Two Five
15. In the value-based pricing method, the key to pricing is the __________'s perception of value, contrasting with
cost-based pricing which focuses on the seller’s costs.
Retailer’s Manufacturer’s Buyer’s Seller’s
1. During ____ phase, there is a slight improvement in economic activity, to start with.
Depreciation Inflation Depression Recovery
2. In recent years, ______ has discovered an eight-year cycle of rainfall in America, which, according to him, causes
variations in the yield of agricultural crops.
Prof. Henry L. Moore J. A. Hobson W. C. Mitchell Anderson
3. Prof. Mitchell, thus, insists upon a measure of regularity in _____ fluctuations.
String Wave Cyclical Tabular
4. _____ theory is known as the under-consumption theory of business cycles. Socialistic-minded economists like
Major Douglas and J.A. Hobson propounded it.
Overexpendituring Under passing Meteorological Oversaving
5. The two longest depressions in the ____ history were those of 1873-1879 (65 months) and 1929-1933 (44 months).
U. K. Germany U. S. China
6. According to _____ theory, business fluctuations are the result of the waves of optimism and pessimism among
businessmen and industrialists.
Psychological Sociological Political Radical
7. According to _____, “A trade cycle is composed of periods of good trade characterised by rising prices and low
unemployment percentages, altering with periods of bad trade characterised by falling prices and high unemployment
percentages.”
Palmer Keynes Williamson Anderson
8. The over-production theory is also known as the _____ theory of business cycles.
Money Cycle Debt Competition
9. The longest sustained period of prosperity occurred in the U.S.A. between 1923 and _____, with some minor
interruptions in 1924.
1980 1976 1929 1939
10. M.E.C. stands for______________.
Medical Efficiency of Capital Marginal Efficiency of Current
Mega Efficiency of Capital Marginal Efficiency of Capital
11. The Australian and the Canadian tax authorities do not permit _____.
LIFO FIFO SIFO DIFO
12. According to Prof. Hicks, Hansen Harrod, Samuelson and Kurihara, the leading Economists, explain the business
cycle in terms of the concepts of the multiplier and the ______.
Player Accelerator Divisor Additional
13. Money is one of the most crucial elements of _____ science.
Artificial Bio Market Economic
14. _____ is the stage of rapid expansion in business activity to new high marks, resulting in high stocks and
commodity prices, high profits and overfull employment.
Bane Boom Depression Super profits
15. By money supply, we mean the total volume of monetary media of exchange available to the _______ for use in
connection with the economic activity of the country.
Community Country Banks Government
Managerial Economics-Assignment 2
1. According to ______, Managerial Economics is concerned with the application of economic concepts and
economic analysis to the problems of formulating rational managerial decisions.
Mansfield Wilson Adam Treek Anderson
2. _______ decision-making is essentially a process of selecting the best out of alternative opportunities open to the
firms.
Management Floor Business Sales
3. Economic _______ states the functional relationship between two or more economic variables under certain given
conditions.
Agenda Theories Issues Curve
4. _________ economics is a branch of economics besides Macroeconomics and Microeconomics.
Perspective Actual Remedial Managerial
5. _______ is one of the most critical economic decision variables/It reflects the size and the pattern of the market.
Demand Supply Logistics Packaging
6. Profit is the difference between revenues and ______, and it is influenced by the demand-supply conditions for
output and input.
Price Debts Costs Liabilities
7. The demand for a product refers to the amount of it which will be bought per unit of time at a particular ______.
Place Region Price Country
8. Economics is all ______ and makes its presence felt when consumers and nations make decisions.
Persuasive Pervading Prevailing Predicting
9. The economics meaning of demand refers to the _______ demand, i.e., the amount the buyers
are willing to purchase at a given price and over a given period of time.
Individual Collective Effective Alternative
10. _________ demand refers to the demand for a commodity from the individual point of view.
Market Price Individual Consumable
11. Demand for commodity should always have a reference to price and ________.
Market Sales Elasticity Time
12. Market demand for many products is affected by changing _________.
Government Climate Fashions Politics
13. A ________ statement of price/quantity relationship is called the demand schedule.
Chart Tabular Division Circular
14. Demand means effective desire or want for a commodity, which is backed up by the ability and ______ to pay for
it.
Need Asked Willingness Ordered
15. The term ______ is not used here in the context of the quality of the commodity; it simply refers to the case of an
exception to the normal income demand relationship.
Griffin Inferior Superior Inclined
16. _______ elastic demand is an extreme case where no reduction in price is needed to cause an increase in quantity
demand.
Perfectly Marginally Total Relative
17. A mathematical expression of the relationship between the quantity demanded of the commodity and determinants
is known as the ______ function.
Sales Demand Market Economy
18. ______ broadly classify goods into capital goods, consumer durables, and non-durable goods; for each of these
categories of goods, there would be a distinctive pattern of demand.
Scientists Economists Analyst Managers
19. Many companies use demand or sales forecasting in setting the _____ targets.
Forecast Price Demand Sales
20. The market demand for a product is greatly influenced by the scale of ______ the buyers in general.
Choices Capacity Ideas Preferences
21. Forecasts can be physical as well as financial in nature and are used mostly for________ purposes.
Labelling Packing Planning Sales
22. In perfectly ______ demand, the amount of change in price has absolutely no effect on the quantity demand.
Elastic Curved Inelastic Reliable
23. Long-term forecasts are normally for the period exceeding _______ years or even a decade or more.
Five Three Seven Ten
24. If the proportion of change in the quantity demanded is greater than that of price, the demand is said to be
_______ elastic.
Perfectly Purely Relatively Imperfectly
25. In ________ method, consumers are contacted personally to disclose their future purchase plans. A questionnaire
may be prepared in this regard.
Barometric Controlled Experiment Opinion Polling Consumer Survey
26. The _____ of demand states that the higher the price, the lower the quantity demanded, and vice versa, other
things remaining constant.
Nature Art Law Science
27. Under _______ method, efforts are made to vary separately certain determinants of demand which can be
manipulated, e.g. price, advertising, etc., and conduct the experiments assuming that the other factors remain constant.
Controlled Experiment Simultaneous Equation Barometric Utility
28. If the proportion of change in demand is exactly the same as the change in price, the demand is said to be _______
elastic.
Perfectly Unitary Totally Regressive
29. Under a complete _____ survey, the probable demands of all the consumers for the forecast period are summed up
to have the sales forecast for the forecast period.
Barometric Market Demand Enumeration
30. There are _____ types of demand elasticties.
Five Three Four Two
31. Quantities of all inputs, both fixed and variable, will be kept constant, and only one variable factor input will be
varied. e.g., The law of variable proportions. This is also known as the ______ variable production function.
Single Production Classical Multiple
32. In the words of _______, Production means any activity, whether physical or mental, which satisfies the wants of
other people through exchange
Prof. J. R. Hicks Prof. Adam Carter Prof. Jacob Mathew Prof. Anna Tischner
33. AP = Q/L, where AP stands for Average Product, Q, stands for Quantity of Total Product (TP), L stands for
______.
Land Labour Lease Limit
34. _______ product means the production of an additional unit of output by employing an additional unit of a
variable input.
Sales Price Production Marginal
35. _______ theory refers to the transformation of resources into outputs of goods and services.
C. E. S Single Management Production
36. By ______, P.H. Douglas had concluded his lifetime research on the measurement of the laws of production.
1990 1945 1947 1987
37. A ____ period refers to a period in which technological advances may also take place.
Long Short very long very short
38. When the production function is _____ of degree one, the elasticity of production equals one.
Homogeneous Heterogeneous Promogeneous Negative
39. In a study of production functions for ________, V.N. Murti and V.K. Sastry took up the problem of aggregation
of the Cobb-Douglas production function.
Nepal Sri Lanka India Bhutan
40. Cobb and Douglas tried to find out the actual form of the production function prevailing in the manufacturing
industry of ______ by statistical methods.
Mexico Germany England United States
41. If the increase in input by 50 per cent leads to an increase in output by more than 50 per cent, then the law of
_______ return to scale is in operation.
Increasing Diminishing Decreasing Elasticity
42. In the case of variable proportion, it is assumed that the __________ factors cannot be changed in the short run.
Variable Technological Fixed Flexible
43. ______ returns to scale are recorded when a change in output is proportional to the change in inputs.
Fixed Constant Chartered Costly
44. _______ to scale are measured by comparing the percentage change in output for a percentage change in all
inputs.
Packs Sales Returns Purchase
45. ______ has attempted the C.E.S. function and concludes that it is difficult to generalise it to n-factors of
production.
Prof. J. R. Hicks Prof. H. Uzawa Prof. Jacob Mathew Prof. Anna Tischner
46. DMRTS stands for _________.
Diminishing Marginal Rate of Technical Substitution Demanding Marginal Rate of Technical Substitution
Dating Market Rate of Technical Substitution Diminishing Marginal Rate of Technical Solution
47. In the _______ Approach method, a list of different alternative combinations of inputs producing the same output
is prepared.
Mathematics Arithmetical Scientific Socialist
48. The Kinked IsoQuant assumes limited substitutability of inputs, Labour (L) and Capital (K), only at the points of
kink. This is also known as Linear Programming IsoQuant or _______ Analysis IsoQuant.
Data Activity Price Movement
49. __________ means the cost of different combinations of two inputs which the firm can purchase at a given price
with a given amount.
Iso-Data Iso-Price Iso-change Iso-Cost
50. Iso Product curve is a technique which helps in identifying the equilibrium of production with a ________
variable factors inputs.
Four Three One Two