Managerial Economics & Business Strategy Quiz:
Ques. Managerial economics uses
(a) Micro Economics only
(b) Macro Economics only
(c) Both Micro & Macro Economics
(d) None of the above
Ques. Economic Profit =
(a) Sales Revenue – (Implicit Costs + Explicit Costs)
(b) Sales Revenue – Explicit Costs
(c) Sales Revenue – Implicit Costs
(d) None of the above
Ques. In economics, the market means:
(a) A physical place to buy and sell goods / services
(b) A Mechanism to exchange goods / services for a consideration
(c) Local area market only
(d) None of the above
Ques. Balance of payments of a country includes :
(a) Current account
(b) Capital account
(c) Monetary account
(d) All of the above
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Ques. If savings exceed investment, then:
(a) National income rises
(b) National income falls
(c) National income is not affected
(d) None of the above
Ques. Profit is :
(a) Salary to the entrepreneur for his / her services
(b) Remuneration to the entrepreneur for his / her services
(c) Both (a) and (b)
(d) None of the above
Ques. The low point in the business cycle is referred to as the
(a) Expansion
(b) Boom
(c) Trough
(d) Peak
Ques. Managerial economics helps in decision making through the application of
(a) Economic theory only
(b) Economic theory and methods of science
(c) Economic theory and methods of decision science
(d) None of the above
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Ques. The production function is
(a) Purely an economic relationship between inputs and outputs
(b) Purely a technical relationship between inputs and outputs
(c) Both (a) and (b)
(d) None of the above
Ques. To avoid double counting when GDP is estimated, economists:
(a) Use GDP deflator
(b) Calculate value added at each stage of production
(c) Use retail prices
(d) Use price of only intermediate goods
Ques. Maximum Profit arises in a :
(a) Dynamic economy
(b) Static economy
(c) Neither (a) nor (b)
(d) None of the above
Ques. Business Profit =
(a) Total Sales Revenue – Implicit Costs
(b) Total Sales Revenue – Explicit Costs
(c) Total Sales Revenue – Total Costs
(d) None of the above
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Ques. The law of variable proportions is also known as
(a) Law of Diminishing Returns
(b) Law of Increasing Returns
(c) Law of Constant Returns
(d) None of the above
Ques. The total value of all final goods and services produced in a country during one year is:
(a) Net National Product (NNP)
(b) Gross National Product (GNP)
(c) Gross Domestic Product (GDP)
(d) National Income (NI)
Ques. National income is estimated by:
(a) Product, import and export methods
(b) Product, income and consumption methods
(c) Product, income and market methods
(d) Product, income and expenditure methods
Ques. __ profit is the difference between total revenue and total explicit and implicit cost.
(a) Marginal Profit
(b) Gross Profit
(c) Net Profit
(d) None of the above
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Ques. Business Profit is __
(a) An accounting concept
(b) An accrual concept
(c) Both (a) and (b)
(d) None of the above
Ques. The basic economic problem is the problem of
(a) Abundance of resources
(b) Scarcity of resources
(c) Human Resources
(d) None of the above
Ques. Balance of payments of a country includes:
(a) Balance of trade
(b) Capital receipts & payments
(c) Saving & investment account
(d) Both (a) and (b)
Ques. The national income of a country does not include :
(a) Self-service, low wages
(b) Donations and high salaries
(c) Corporate taxes and gifts
(d) Illegal incomes and unreported incomes
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Ques. Implicit Cost refers to
(a) Marginal cost
(b) Total Average Cost
(c) Opportunity cost of resources
(d) None of the above
Ques. Under the Law of variable proportions, a single factor is
(a) Constant
(b) Variable
(c) Both constant and variable
(d) None of the above
Ques. “Return to scale‟ means
(a) Change in output when only some factors of production are increased
(b) Change in output when only variable factors of production are increased
(c) Change in output when only fixed factors of production are increased
(d) Change in output when all factors of production are increased simultaneously
Ques. A TV set purchased from a retail store is an example of:
(a) Intermediate good
(b) Capital good
(c) Surplus good
(d) Final good
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Ques. The goods which are used directly by people are called:
(a) Consumer goods
(b) Capital good
(c) Direct good
(d) None of these
