Quiznetik

Managerial Economics 1 | Set 3

1. Under ….. Method, a panel is selected to give suggestions to solve the problems in hand

Correct : C. Delphi method

2. Consumer Interview method of demand forecasting may undertaken by;

Correct : D. All the above

3. In …….. approach, the demand for new product is estimated on the basis demand of existing product

Correct : B. Evolutionary approach.

4. In …….approach, Consumers reactions on the new products are found out indirectly with the help of specialized dealers

Correct : D. Vicarious approach.

5. In ………approach, on the basis of the growth of an established product, the demand for the new product is estimated

Correct : A. Growth curve approach

6. Method of demand forecasting is also called “economic model building”

Correct : C. Correlation and regression

7. Criteria for good demand forecasting includes;

Correct : D. All the above.

8. ………..is the base of marketing planning

Correct : D. Demand forecasting

9. Growth curve approach is used for forecasting demand of ………….products

Correct : A. New

10. Which of the following is not a method of demand forecasting of new products

Correct : A. Trend projection

11. ………..= R2‐R1/Q2‐Q1

Correct : C. Marginal revenue

12. ……….. Measures the differences between the new total revenue and existing total revenue

Correct : D. Incremental revenue

13. ………. means the total receipts from sales divided by the number of unit sold.

Correct : A. Average revenue

14. So long as Average Revenue is falling, Marginal Revenue will be …………. Average Revenue

Correct : A. Less than

15. Where Marginal revenue is negative, TR will be …………..

Correct : B. Falling

16. Total Revenue will be maximum at the point where Marginal Revenue is

Correct : B. Zero

17. ………….. is the change in total revenue irrespective of changes in price or due to the effect of managerial decision on revenue

Correct : D. Incremental revenue

18. In…………..pricing fixed cost are excluded.

Correct : D. marginal cost pricing

19. Fixing high price during the introduction is called

Correct : A. skimming

20. The firm charges price in tune with the industry’s price is called

Correct : B. going rate pricing

21. Method of charging low price initially called……………

Correct : B. penetrating

22. Pricing is done on the basis of managerial decisions, not on the basis of cost, demand etc…

Correct : B. Administered pricing

23. Which of the following method of pricing is popular in wholesale and retail trades

Correct : C. full cost pricing

24. Which one of the following is not an internal factor influencing pricing policy

Correct : D. demand

25. Which one of the following is an internal factor influencing pricing

Correct : D. product life cycle

26. Cost plus pricing is also called

Correct : D. all the above

27. Average cost pricing is also called as

Correct : D. both a & c

28. Under which method, the cost is added with the predetermined target rate of return on capital invested

Correct : B. Target pricing

29. Target pricing is also called as

Correct : B. Rate of return pricing

30. Under the Marginal cost pricing, the price is determined on the basis of;

Correct : B. Variable cost

31. Cinema Theater, telephone bills etc..are following

Correct : C. Differential pricing

32. Price discrimination is also called as

Correct : D. a & b above

33. The method of pricing which is also known as Parity pricing and Acceptance pricing is

Correct : B. Going rate pricing

34. The pricing of cup of tea or coffee, is an example of

Correct : C. Conventional pricing

35. ……………………is the method of leadership pricing

Correct : C. Barometric pricing

36. Generally used strategy for pricing new products is/are

Correct : C. Both a & b

37. …………… provide guidelines to carry out ……………

Correct : B. Pricing policies, pricing strategies

38. Psychological pricing is also called as;

Correct : C. Odd pricing

39. Prices of Bata shoe as Rs.99.99, this pricing is

Correct : B. Odd pricing

40. Which one of the following is not a reason for adopting skimming price strategy

Correct : D. Product has high price elasticity in the initial stage

41. Which one of the following is not a reason for adopting penetration price strategy

Correct : D. When the buyers are not able to compare the value and utility

42. Customary pricing is also known as

Correct : B. Conventional pricing

43. Which of the following is/ are the reason for adopting penetration price strategy

Correct : D. All the above

44. Which of the following is/ are the reason for adopting skimming price strategy

Correct : D. All the above

45. The market with a single producer’’

Correct : D. monopoly

46. In the oligopoly market there are

Correct : B. a few firms

47. The short run production function is called;

Correct : B. law of variable proportion

48. Under oligopoly a single seller cannot influence significantly

Correct : D. all the above

49. Average revenue is the revenue per

Correct : A. unit commodity sold

50. The distinction between variable cost and fixed cost is relevant only in

Correct : B. short period

51. The condition for the long run equilibrium of a perfectly competitive firm

Correct : A. Price=MC=AC

52. Product differentiation is the important feature of

Correct : C. monopolistic competition

53. The no. of firms under oligopoly is

Correct : D. few

54. The law of diminishing returns applies more to

Correct : A. agriculture

55. The opportunity cost of a given activity is

Correct : A. the value of next best activity

56. The function of combining the other factors of production is done by

Correct : B. labour

57. The factors used in the production

Correct : C. both a&b

58. In a perfect market both buyers and sellers are

Correct : C. price taker

59. Which is the determinant of the pricing policy of a firm?

Correct : D. All of these

60. Information for pricing decisions involves:

Correct : D. All of these

61. Which is the reason of skimming price?

Correct : D. All of these

62. Which is the condition of for market penetration?

Correct : D. All of these

63. Production may be defined as an act of:

Correct : A. Creating utility

64. The demand curve of a firm in the case of perfect competition is:

Correct : A. Parallel to output axis

65. The implication of the kinked demand curve is reflected in a discontinuity in the:

Correct : A. Marginal revenue curve

66. A firm that is the sole seller of a product without close substitutes called:

Correct : A. Monopoly

67. When all the productive services are increased in a given proportion, the product is increased in the same proportion. This situation is called:

Correct : B. Situation of constant returns

68. Which factors is/are influencing price policy?

Correct : D. All of these

69. Pricing methods are:

Correct : D. All of these

70. Which is the feature of perfect competition?

Correct : D. All of these

71. Which is/are the salient features of monopolistic competition?

Correct : D. All of these

72. Which are the characteristics of monopoly?

Correct : D. All of these

73. The causes of emergence of monopoly is/are:

Correct : D. All of these

74. Which are not the features of oligopoly?

Correct : C. One firm

75. The monopoly can be controlled by:

Correct : D. All of these

76. The properties of indifference curves are:

Correct : D. All of these

77. Price discrimination occurs when variation in prices for a product in different markets does not reflect variation?

Correct : A. Costs

78. The competitive firm’s long run supply curve is the portion of it’s …………..curve lies above average total cost.

Correct : A. Marginal cost

79. Whenever marginal cost is more than …………average total cost is falling:

Correct : B. Average total cost

80. Whenever ………..is greater than average total cost, average total cost is rising.

Correct : A. Marginal cost

81. The claim that, other things equal, the quantity supplied of a goods rises when the price of goods raises known as:

Correct : B. Law of supply

82. The marginal revenue equation can be derived from the:

Correct : A. Demand equation

83. Marginal revenue is ………….at the quantity that generate maximum total revenue and negative beyond that point.

Correct : A. Zero

84. ------------is situation of severely falling prices and lowest level of economic activities

Correct : D. Depression

85. ------------is situation with increased investment and increased price

Correct : C. Boom

86. Which of the following is not a macroeconomic concept?

Correct : D. None of these

87. Where boom ends,……….. starts

Correct : B. Recession

88. Factors which change over a long period of time are called……..factors

Correct : C. Secular

89. In business cycle concept, the period (approximately) of “Kit chin cycle” is of:

Correct : D. 4 months

90. The “law of variable proportion” is first explained by

Correct : A. Edward west

91. Functional relationship between input and output known as

Correct : B. Production function

92. …………..product will never be zero or negative

Correct : C. Average

93. A graph indicating different combination of inputs with different level of output is called

Correct : D. Iso-quant map

94. Which is not a property of ISOQUANT?

Correct : D. Positive slope

95. Which of the following is not a variable input?

Correct : C. Equipment

96. Which of the following is a short run law?

Correct : C. Law of diminishing return

97. …………is called produced means of production

Correct : C. Capital

98. In the long run all input become …………

Correct : B. Variable

99. The term “Economies” refers to

Correct : B. Cost advantage

100. Who classified economies of scale into internal and external?

Correct : B. Marshall