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# Unit 1 : Managerial Economics and Ethics - Managerial Economics - Managerial Economics Section 1 Online Exam Quiz

Important questions about Unit 1 : Managerial Economics and Ethics - Managerial Economics - Managerial Economics Section 1. Unit 1 : Managerial Economics and Ethics - Managerial Economics - Managerial Economics Section 1 MCQ questions with answers. Unit 1 : Managerial Economics and Ethics - Managerial Economics - Managerial Economics Section 1 exam questions and answers for students and interviews.

### 1. The Revealed Preference Theory is based on

Options

A : Introspection

B : Utility and demand

C : The assumption of indifference

D : Observed consumer behavior

### 2. One would expect a firm to close down rather than continue producing in the short-period if

Options

A : Variable costs were to fall below fixed costs

B : Total revenue were less than total variable cost

C : Total revenue were more than total variable cost

D : Variable costs were to rise above fixed costs

### 3. Marginal Utility (MU) curve is always

Options

A : Parallel to X-axis

B : Falling

C : Rising

D : Parallel to Y-axis

### 4. The Law of Diminishing Returns depends on the assumption that

Options

A : The land is the factor kept constant

B : The state of technical knowledge is unchanged

C : Total output is constant

D : Average output declines faster than the marginal output

### 5. MR n = TR n - TR n_1 is the algebraic expression of

Options

A : Information is insufficient

B : Marginal Revenue, the change in total revenue when there is a change in quantity sold of the product.

C : The addition to TR earned by selling n units of product instead of (n-1) units

D : None of the above

### 46. Isoquant refers to

Options

A : An equal quantity curve of a consumer

B : The production indifference curve

C : Another name of indifference curve

D : An equal-cost curve of a producer

### 47. Under the perfect competition, the transportation cost

Options

A : Is considered to be negligible and thus, ignored

B : Is charged along with the price of the commodity

C : Is considered to be vital for the calculation of the total cost

D : Excluded from the prime cost

### 48. If a demand curve exhibits unit elasticity for all prices, the MR curve

Options

A : Is identical with it

B : Lies below the demand curve

C : Is identical with the X-axis

D : Is identical with the Y-axis

### 49. Which is the best definition of the marginal firm?

Options

A : The firm with the lowest costs

B : The firm with a large profit

C : The firm which makes an only normal profit

D : The firm which equates its marginal costs with marginal revenue.

### 50. The share of revenues paid to suppliers does not depend upon

Options

A : relative productivity.

B : resource scarcity.

C : input market competition.

D : output market competition.

### 55. Given: The above curve is a:

Options

A : Demand curve

B : Product curve

C : Price curve

D : Profit curve

### 56. In the following wing diagram of a competitive firm, T point includes

Options

A : No profit

B : Abnormal profit

C : Normal profit

D : Heavy loss

### 58. Given: The given curve is a

Options

A : Macro-Statics

B : Macro-Dynamics

C : Comparative Statics

D : Capital Budgeting

### 6. Any supply curve which is a straight line passing through the origin whatever its slopes will possess

Options

A : An elasticity which is less than one

B : An elasticity which is greater than one

C : Unitary elasticity of supply

D : An elasticity which is greater than zero

### 7. A monopoly producer has

Options

A : Control over production but not price

B : Control over production, price, and consumers

C : Control neither on production nor on price

D : Control overproduction as well as price

### 8. On an indifference map, higher indifference curves show

Options

A : Levels of satisfaction among which the consumer is indifferent

B : The optimum level of satisfaction

C : The higher level of utility

D : The same lower level of satisfaction

Options

A : 2, 3 and 4

B : 1, 3 and 4

C : 1, 2, 3

D : 1, 2 and 3

### 10. When the TR curve and TC curve are parallel and TR exceeds TC

Options

A : Total profit is minimized

B : Normal profit is minimized

C : Total profit is maximized

D : Normal profit is maximized

### 11. In perfect competition, there is a process of

Options

A : Restricted entry and exit of the firms

B : Free entry and free exit of the firms

C : Free entry but the restricted exit of the firms

D : Semi-free exit but absolute free entry

### 12. 'The increasing returns to scale occurs because larger scale provides greater specialization to various factors' according to

Options

A : Paul Samuelson

B : Alfred Marshall

C : Chamberlain

D : Joan Robinson