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11. A car-manufacturing unit is analyzing whether to produce tyres within the factory or purchase from the supplier. This decision is known as a. Production Decision. 1. Which of the following subjects does not fall under the b. Supply Decision. category of Microeconomics c. Make or buy Decision. d. Investment Decision. a. Gross Domestic Product (GDP) b. Demand Theory 12. Optimisation techniques are studied in Managerial Economics c. Cost Theory with the help of following subject: d. Supply Theory a. Economics b. Operations Research 2. Which of the following is taken care by Managerial c. Mathematics Economics? d. Statistics. a. Population 13. Managerial Economics takes the help of following discipline? b. Balance of Payments c. Cost Theory a. Physics d. National Income b. Statistics c. 3. The statement 'Government of India should open up economy' Biotechnology d. Botany is a 14. An industrialist wishes to take a share in profits of a software a. Descriptive Statement company with Rs.1,00,000/-. This decision is known as b. Prescriptive Statement a. Accounting Decision c. Objective Statement d. Normative Statement b. Demand Decision 4. Maruthi car manufacturer, buys tyres in the open market c. Investment Decision instead of manufacturing the same within the factory. This d. Expenditure Decision decision area is falls under the following category: 15. Break-even analysis is a tool used in which of the following a. Investment Decision decisions: b. Inventory Decision a. Input-output Decision c. Make or Buy Decision b. Demand Decision d. Production Decision c. Investment Decision 5. Nature of Managerial Economics is d. Profit related Decision 16. Which of the following is covered by the scope of Managerial a. Normative b. Descriptive Economics? c. Subjective a. Savings Decisions b. Investment Decisions d. Objective 6. Determination of Price in different markets such as Perfect c. Welfare Decisions d. Political Decisions Market and Imperfect Markets is known as a. Input-output Decisions b. Demand Decisions c. Price Decisions d. Market Decisions 17. An Industrialist is trying to divide the total investment of 7. Giffen goods are also called Rs.10,00,000/- into Fixed Capital and Working Capital. This a. Standard goods decision is known as b. Superior goods a. Investment Decision. c. Normal goods b. Working Capital Decision . d. Inferior goods c. Capital Management Decision. 8.Who defined Managerial Economics as seeking to understand d. Fixed Capital Decision. and to analyze the problems of business decision making? 18. Demand Curve a. Spencer and Siegelman a. Horizontal Straight Line to X- Axis b. Brigham and Pappas b. Horizontal Straight Line to Y- Axis c. Hague c. Slopes Downwards from Left to Right d. Salvatore d. Sloped Upwards from Left to Right 9. Managerial Economics takes the help of following Discipline? The demand for Bajaj Scooters is known as 19. a. Zoology a. Derived Demand b. Operations Research b. Firm Demand c. Biotechnology c. Industry Demand d. History d. Total Market Demand 10. Managerial Economist solves the problems of resource 20. Price is a allocation through a. Continuous Variable a. Operations Research b. Discrete Variable b. Accountancy c. Dependent Variable c. Economics d. Independent Variable 21. Tomato is categorized as d. Mathematics. a. Durable Goods b. Perishable Goods JNTU ONLINE EXAMINATIONS [Mid 1 - MEFA]

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c. Perennial Goods d. Temporary Goods 22. You buy a Tape Recorder. The purchase is known as a. Autonomous Demand b. Derived Demand c. Market Demand d. New Demand 23. Demand is a a. Continuous Variable b. Discrete Variable c. Dependent Variable d. Independent Variable

32. People with high incomes purchase luxurious goods even though the price of goods increases. Such goods are known as a. Veblen Goods b. Giffen Goods c. Producer Goods d. Temporary Goods 33. Law of Demand states a. When the Price of a commodity decreases the Demand for the commodity increases b. When the Demand for the commodity increases the Price for the commodity decreases c. When the Demand for the commodity decreases the Price for the commodity increases d. When the Price of the commodity increases the Demand for the commodity increases. 24. Demand is defined as 34. Price is _ _ _ _ _ _ _ _ _ _ _ _ _ proportional to the Quantity a. Desire backed by Purchasing Power Demanded b. Desire backed by the Inab ility to Pay a. Directly b. Inversely c. Desire backed by the Unwillingness to Pay c. Equally d. Willingness to Pay for a commodity without desire d. Unequally 25. Steel is categorized as a. Durable Goods 35. When the Consumer buys more of same goods at the same b. Perishable Goods price the demand is known as c. Perennial Goods a. Extension of Demand d. Temporary Goods b. Contraction of Demand c. 26. You buy a litre of Milk. You also buy a packet of coffee. The Increase of Demand d. Decrease of Demand purchase of coffee is known as 36. When the Consumer buys less of same goods at the same price a. Autonomous Demand b. Derived Demand the demand is known as c. Market Demand a. Extension of Demand d. New Demand b. Contraction of Demand 27. Coffee, Milk and Sugar are known as c. Increase of Demand d. Decrease of Demand a. Producer Goods 37. When the Consumer buys mo re of same goods when the price b. Perishable Goods of the commodity c. Substitutes d. Complementaries decreases the demand is known as 28. A rise in excise duty on car will result in a. Extension of Demand b. Contraction of Demand a. Extension of Demand b. Contraction of Demand c. Increase of Demand c. Incrase of Demand d. Decrease of Demand d. Decrease of Demand 38. When the Price of Commodity X goes up , what will be the 29. Which of the following statements describes the exceptions effect on the quan tity of the substitute Commodity Y. a. The quantity demanded of Commodity Y goes up. to Law of Demand? a. When the Price of a commodity increases the Demand for b. The quantity demanded of Commodity Y g oes down. c. The quantity demanded of Commodity Y remain s unchanged. the commodity increases. b. When the Demand for the commodity increases the Price for d. There won't be any relationship between Commodity X and Y. the commodity decreases 39. When the Price of Commodity X goes down, what will be the c. When the Demand for the commodity decreases the Price for effect on the quantity of the commodity increases the complementary Commodity Y. d. When the Price of the commodity decreases the Demand for a. The quantity demanded of Co mmodity Y goes up. b. The quantity demanded of Commodity Y goes down. the commodity increases. c. The quantity demanded of Commodity Y remain s unchanged. 30. When the Consumer buys less of same goods when the d. There won't be any relationship between Commodity X and Y. price of the commodity increases the demand is known as a. Extension of Demand b. Contraction of Demand c. Increase of Demand 40. When the percentag e change in the quantity demanded is d. Decrease of Demand 31. People whose incomes are low purchase more of inferior equal to the percentage change in the price, the elasticity is known as commodity when its prices rise. Such goods are known as a. Infinite Elasticity a. Veblen Goods b. Giffen Goods b. Relativ ely Elastic c. Producer Goods c. Unit Elasticity d. Relativ ely Inelastic d. Temporary Goods

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49. Where the Income Elasticity of Demand for a Commodity X is less than one, the commodity is known as a. Normal Goods b. Inferior Goods c. Superior Goods d. Temporary Goods. 50. Where the Cross Elasticity of Demand for a Commodity X is less than one, the co mmodity is known as a. Substitutes b. Complements c. Superior Goods d. Temporary Goods. 51. Where the Income Elasticity of Demand for a Commodity X is greater than one, the commodity is known as a. Normal Goods b. Inferior Goods c. Superior Goods 43. Elasticity of Demand is Defined as d. Temporary Goods a. Proportionate change in Demand in relation to change in 52. The quantity demanded of a commodity is 10 ,000 when the any other parameter. price of the commodity is Rs.1,000/-. But when the price of the b. Proportionate change in Price in relation to change in any commodity falls to Rs.800/- the quantity d emanded rises to other parameter. 16000/- units. What is the Price Elasticity of Demand. c. Proportionate change in Income in relation to chang e in any a. 3 other parameter. b. 6 d. Proportionate change in Price of substitute to change in any c. -3 d. -6 other parameter. 53. The quantity demanded of a commodity is 10 ,000 when the 44. Least squares method is a. Trend projection Method income of the consumer is Rs.1,000/-. But when the income of the b. Barometric technique falls to Rs.800/- the quantity demanded falls to 8000 units. What c. Simultaneous equations method is the Income Elasticity of Demand. d. Correlational Method a. 1 b. 45. Price Elasticity of Demand is a. Percentage change in price to the percentage change in income D:\mefa\mef b. Percentage change in income to the percentage change in price a\052101021 c. Percentage change in the quantity demanded to the 06M03BX1.gif percentage change in price c. d. Percentage change in the Ad vertisement expenditure to the D:\mefa\mef percentage change in price. a\052101021 46. The Income Elasticity of Deman d is 06M03C X1.g i a. Percentage change in quantity demanded to the f percentage change in income d. -1 b. Percentage change in income to the percentage change in price 54. The quantity demanded chang es from 100 Kgs to 150 Kgs c. Percentage change in the quantity demanded to the when the Price Changes from Rs.10 to Rs.8. The Elasticity of percentage change in price Demand is d. Percentage change in the Adv esrtisement expenditure to the a. 2 percentage change in price. b. 2.5 47. Cross Elasticity of Demand is d. -2 a. Percentage change in price to the percentage change in income c. -2.5 55. If the Elasticity of Demand is more than 1 and less than b. Percentage change in income to the percentage change in price infin ity it is known as c. Percentage change in the quantity demanded of a. Highly Elastic Commodity X to the percentage b. Highly Inelastic change in price of Commodity Y d. Percentage change in the Ad vertisement expenditure to the c. Relatively Elastic d. Relativ ely Inelastic percentage change in price. 48. Advertisement Elasticity of Demand is a. Percentage change in price to the percentage change in income b. Percentage change in income to the percentage change in price c. Percentage change in the quantity demanded of Commodity X 56. The quantity demanded chang es from 100 Kgs to 150 Kgs when the Price Changes from Rs.10 to Rs.5. The Elasticity of to the percentage change in price of Commodity Y Demand is a. -1 d. Percentage change in the Quantity Demanded to b. 2.5 Percentage change in c. 1 Advertisement expenditure. d. -2.5

41. When the percentage change in the quantity demanded is greater than the percentage change in income, the Income Elasticity of Demand is known as a. Relatively Inelastic b. Unit Elasticity c. Relatively Elastic d. Highly Elastic 42. When the percentage change in the quantity demanded is zero when compared to the change in price, the price Elasticity of Demand is known as a. Highly Inelastic b. Relatively Inelastic c. Unit Elasticity d. Relatively Elastic

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57. Relatively Elastic is represented as a. D:\mefa\mef a\052101021 06S04AX1.g if b. D:\mefa\mef a\052101021 06S04BX1.gif c. =1 d. 0 58. The elasticity between two separate points of demand curve is called as a. Infinite Elasticity b. Unit Elasticity c. Arc Elasticity d. Zero Elasticity 59. You are manufacturing a Product that is a close substitute for a branded product in the market. If your product sales has to increase what should be the kind of Elasticity of Demand? a. Price Elasticity of Demand b. Income Elasticity of Demand c. Cross Elasticity of Demand d. Advertisement Elasticity of Demand

c. Relatively Inelastic d. Relativ ely Elastic 67. Where the consumption of a product can be postponed, the demand is said to be a. Inelastic b. Elastic c. Unit d. Infinite 68. In the case of TV sets, the what will be Demand, if the price of TVs declin e? a. Inelastic b. Elastic c. Unit d. Infinite 69. The Product range of Amul includes Ice creams, cheese, butter, packed milk, chocolates, gulab jamun etc., If we try to find the demand for all the products it is known as a. Short-term Demand b. Long-term Demand c. Firm Demand d. General Demand 70. The Product range of Amul includes Ice creams, cheese, butter, packed milk, chocolates, gulab jamun etc., If we try to find the demand for one of the products it is known as a. Short-term Demand b. Long-term Demand c. Firm Demand 60. You are manufacturing a Luxury Good like Jewellery. d. Specific Demand 71. Finding the Demand for particular brand Cars of Maruti in the What Elasticity of Demand you will co ncentrate on? entire country is a. Price Elasticity of Demand b. Income Elasticity of Demand a. Short-term Demand c. Cross Elasticity of Demand b. Long-term Demand c. Firm Demand d. Advertisement Elasticity of Demand d. General Demand 61. Where the product has mo re number of substitutes, the 72. Finding the Demand for Cars of newly established Car factory demand is said to be is a. Inelastic b. Elastic a. Short-term Demand c. Unit b. Long-term Demand d. Infinite c. Firm Demand 62.Where the product is complementary, the demand is said to be d. New Demand 73. Finding the Demand for particular brand Cars which are a. Relatively Inelastic b. Elastic already being sold in the country is c. Unit a. Short-term Demand d. Infinite b. Long-term Demand 63. What will be the impact o n Demand for Commodity like c. Established Demand d. General Demand SALT for the Price changes? a. Inelastic 74. Demand forecast for the total sales of the company is b. Elastic a. Short-term Demand c. Unit b. Long-term Demand d. Infinite c. Firm Demand d. General Forecast 64. For rice, where it is a necessiy, the demand is said to be 75. Demand Forecast for a period of 20 years is a. Inelastic b. Elastic a. Long-term Demand b. Firm Demand c. Unit elastic c. Industry Demand d. Infin itely elastic d. Specific Demand 65. For gold,where it is a Luxury, the demand is said to be 76. Demand forecast for a particular product of the company is a. Highly Elastic a. Firm Demand b. Highly Inelastic b. Industry Demand c. Relatively Inelastic d. Relatively Elastic c. Specific Demand 66. If the price of Electricity, where the number of alternative d. General Demand uses are more, rises, the demand is said to be a. Highly Elastic b. Highly Inelastic

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77. Finding the Demand for Cars in the entire country is a. Short-term Demand b. Long-term Demand c. Industry Demand d. General Demand 78. Finding the Demand for raincoats for the rainy season in the entire country is a. Short-term Demand b. Long-term Demand c. Industry Demand d. General Demand 79. Where the Demand Forecasting is done by manipulating the major determinants of the demand to suit the tastes and preferences, such forecasting is known as a. Trend Line Method b. Short-term Method c. Controlled Experiment Method d. Judgemental Method 80. Census Method is also known as a. Total Enumeration Method b. Judgemental Method c. Short-term Method d. Industry Demand 81. The daily sales for the first five days of January is 40, 44, 48, 45, 55 (in thousands). What is the first value of three day moving average? a. 44 b. 45 c. 45.7 d. 49

c. Test Marketing d. Sample Method 87. When the Demand Forecasting is done by Selling the product manufactured to a small group of customers, this method of Forecasting is known as a. Sales Force Method b. Test Marketing

c. Least Square Method d. Expert Opinion Method 88. When the Demand Forecasting is done by the management on its own experience, the Method of Demand Forecasting is known as Judgemental Approach a.

b. Controlled Experiments c. Sales Force Method d. Expert Opinion Method 89. In the first stage of Production Function with One Variable Input, a. Average Production is greater than Total Production b. Average Production is greater th an Marginal Produ ctio n. c. Average Production is Less than Marginal Production d. Marginal Production is greater than Total Production. 90. Marginal Production is a. Additional Production obtained by the ad dition of Two Units. b. Additional Production obtained by the addition of one Unit. c. Additional Production obtained by the reduction of One Unit. d. Additional Production obtained by the reduction of Two Units 91. Produ ction Fun ction with one Variable Input, how many factors of production are varied. a. One b. Two c. Three d. Four 82. When the Demand Forecasting is done for only Scooters 92. In the first stage of Production Function with One Variable manufactured by Bajaj Scooters, the Demand Forecasting is Input, Total Production a. Increases known as b. Decreases a. Industry Demand c. Constant b. Firm Demand c. Test Marketing d. Negative d. Expert Opinion 93. In the first stage of Production Function with One Variable 83. Where the Demand Forecasting is done based on the past data Input, by extrapolating the same, the Demand Forecasting is known as a. Margin al Production is greater than Total Production a. Trend Line Method b. Marginal Production is greater than Average Production. b. Least Square Method c. Marginal Production is Less than Average Production c. Firm Demand d. Average Production is greater th an Total Production. d. Expert Method 94. _ _ _ _ _ _ _ _ is a factor of Production 84. If a survey is being conducted in a particular City for the a. Gold entire population, the Forecasting Method is known b. Machinery a. Census Method c. Land b. Sample Method d. Building c. Sales Force Method 95. _ _ _ _ _ _ _ _ is a factor of Production a. Capital d. Expert Opinion Method b. Plant 85. If a survey is being conducted for a small group in the c. Car entire population, the d. Building Forecasting is known as 96. Wages is a return for a. Census Method a. Land b. Sales Force Method b. Labour c. Expert Opinion Method d. Sample Method c. Capital 86. When the Demand Forecasting is done with the help of d. Enterprise Experts in Selling the product, the Forecasting is known as a. Sales Force Method 97. Interest is a return on b. Expert Opinion Method

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a. Land b. Labour c. Capital d. Enterprise 98. Rent is a return on a. Land b. Labour c. Capital d. Enterprise 99. One combination of factor X and factor Y is 1 and 22 and another combination of factor X and Y is 2 and 12. What is the MRTS? a. 1:10 b. 1:32 c. 2:32 d. 1:20

b. Marginal Right of Technical Substance. c. Marginal Rate of Technical Substitution d. Mechanical Rate of Technical Substitution 108. Isoquant curve a. They intersect with each other b. They are concave to the origin c. They do not intersect axis d. They are upward sloping curves. 109. Isocost is a curve a. Where different costs are plotted for one factor combination. b. Where same costs are plotted for for one factor combination c. Where different costs are plotted for two factor combination. d. Where same costs are plotted for for two factor combination 110. A company is located in a remote place and in around, it has no other company for a d istance of 20 Kms. What economy will the company lose? a. Managerial Economies b. Commercial Economies 100. If the price of Factor X is 5 and the price of Factor Y is c. Economies of Concentration d. Marketing Economies Rs.8 and the budget is Rs.400 then which of the following 111. A company is located in a remote place and in around, it has combination of factors is taken to draw the isocost line. no canteen or medical facilities. The company is forced to prov ide a. X = 100 Y = 100 Units. housing, canteen, medical facilities on its own. What economy b. X = 80 Y = 50 Units will the company lose? c. X = 100 Y = 80 Units a. Economies of Concentration d. X = 40 Y = 50 Units b. Economies of Welfare c. Marketing Economies 101. Isoquant refers to the curve in which the a. production is same for different combinations of two factors d. Technical Economies b. production is not same for d ifferent combinations of two 112. Companies which do the same kind of business and situated factors. at one particular place will have the facility of setting up Research c. production is same for different combinations of one factor and Develop ment Facilities. This Econo my of operation is known d. production is same for different combinations of one factor as 102. One combination of factor X and factor Y is 1 and 30 and a. Economies of Concentration another combination of b. Economies of Welfare factor X and Y is 2 and 22. What is the MRTS? c. Financial Economies d. Economies of Research and Development a. 1:30 113. Companies which are situated in one place, will have the b. 1:22 economies on account of facilities like canteen, Buses, Medical c. 2:30 Facilities etc., This economy of operation is known as d. 1:8 103. If the price of Factor X is 4 and the price of Factor Y a. Economies of Concentration is Rs.5 and the budget is Rs.400 then which of the following b. Economies of Welfare c. Financial Economies combination of factors is taken to draw the isocost line. d. Economies of Research and Development a. X = 100 Y = 100 Units. 114. A company like BHEL does business in crores of rupees. b. X = 80 Y = 100 Units c. X = 100 Y = 80 Units The purchases of this company likewise runs into crores of rupees d. X = 40 Y = 50 Units and it has the advantage of bargaining and getting quantity 104. The Isocost line is discounts on all its purchases. This economy is known as a. Horizontal Straight Line to X-Axis a. Managerial Economies b. Commercial Economies b. Parallel Straight Line to Y-axis. c. Financial Economies c. Downward Sloping Curve. d. Upward Sloping Curve d. Marketing Economies 105. Least cost combination of two factors of produ ctio n is a. Where the Isocost line is tangent to Isoquant. b. Where the Isocost line intersects Isoquant c. Where two Isocost lines overlap each other 115. Functional specialization ensures minimum wastage and d. Where two Isoquant lines overlap each other. lowers the cost of production in the long-run. Such Economies are 106. Isoquant means known as a. Equal quantity a. Managerial Economies b. Downward sloping b. Commercial Economics c. Do not interest c. Economies of Concentration d. Convex to origin d. Marketing Economies 107. Acronym for MRTS is 116. Where the volume of purchases increase, it results in a. Marginal Rate of Technical Substance. quantity discounts. Such Economies are known as

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a. Managerial Economies b. Commercial Economies c. Financial Economies d. Marketing Economies 117. Where the large amounts are borrowed from the Financial Institutions, the Banks consider giving reduced interest rates. Such Economies are known as a. Managerial Economies b. Commercial Economies c. Financial Economies d. Marketing Economies

a. Increases with production b. Remains same with production. c. At first decreases and then increases. d. At first increases and then decreases. 127. In cost-output relationship in the short run, as the output increases the Average Variable Cost a. Increases with production b. Remains same with production. c. At first decreases and then increases. d. At first increases and then decreases. 128. What is the Opportunity Cost? a. The Cost is recorded in the Books of Accounts. b. Cost of best alternative foregone. 118. Where the increased productio n levels are a result of the c. Opportunity Cost increases with production. sophisticatio n in machinery and the personnel who are h ired to d. Opportunity Cost decreases with production. handle such machinery, such economies of scale are known as 129. What is Average Total Cost? a. Managerial Economies a. Total Fixed Cost/Quantity. b. Financial Economies b. Total Variable Cost/Ou tput c. Technical Economies c. Marginal Cost/Ou tput d. Risk-bearing Economies d. Total Cost/Output 130. What is Average Fixed Cost? 119. When the Industries of the same type are situated in a particular place, such situation results in Economies known as a. Total Fixed Cost/Quantity. b. Total Variable Cost/Ou tput a. Economies of Concentration b. Technical Economies c. Marginal Cost/Ou tput c. Financial Economies d. Total Cost/Output d. Commercial Economies 131. The Selling Price is Rs.10/-, the Variable Cost is Rs.8/- and 120. The production is increased from 1000 units to 1500 units. the Fixed Cost is Rs.50,000/-. The Actual Sales is Rs.4,00,000/-. The excess costs incurred for 500 units is known as What is the Margin of Safety? a. Rs.1,50,000/a. Replacement Cost b. Rs.2,00,000/b. Opportunity Cost c. Incremental Cost c. Rs.2,50,000/d. Out-of-pocket Costs d. Rs.3,50,000/121. You go to a Electronic Shop and buy a TV. The 132. When you plot Fixed Cost on the Charts how will it look shopkeeper delivers the same to your residence. The costs like? incurred by the shop keeper are known as a. Parallel Line to X-axis a. Explicit Costs b. Parallel Lin e to Y-axis b. Implicit Costs c. Downward Sloping Curve d. Upward Sloping Curve c. Historical Costs 133. The Selling Price is Rs.10/-, the Variable Cost is Rs.8/- and d. Uncontrollable Costs the Fixed Cost is 122. Opportunity cost is Rs.50,000/-. What is the Break-even Point in value? a. Sunk cost b. Explicit cost a. Rs.5,00,000/c. The cost where the ''Cost of the next b est alternative is b. Rs.2,50,000/c. Rs.25,000 /foregone'' d. Rs.12,500/d. Replacement cost 134. The Selling Price is Rs.10/-, the Variable Cost is Rs.8/-. 123. As the output increases the Average Fixed Cost Fixed Cost is Rs.50,000/-, What is the Contribution? a. Increases. b. Decreases. a. Rs.5,000/c. At first decreases and then increases. b. Rs.1,250/c. Rs.2/d. At first increases and then decreases. d. Rs.5/124. What is Replacement Cost? a. The Cost that is not recorded in the Books of Accounts. b. Cost of foregone opportunity. c. Cost of Replacing an Existing Asset d. Cost which is incurred but not recorded in the Books. 135. What is the formula for calculating P/V Ratio 125. The costs which have already been incurred and cannot be a. Selling Price/Contribution b. Contribution/Selling Price controlled are called as a. Historical Costs c. Variable Cost/Selling Price b. Uncontrolled Costs d. Fixed Cost/Selling Price c. New Costs 136. Break-even Point is d. Replacement Costs a. Fixed Cost/Variable Cost 126. In cost-output relationship in the short run, as the output b. Variable Cost/Contribution c. Fixed Cost/Contribution increases the fixed cost

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d. Selling Price/Contribution 137. Margin of Safety is a. Actual Sales - Breakeven Sales b. Breakeven Sales - Actual Sales c. Breakeven Sales - Fixed Cost d. Fixed Cost - Breakeven Sales 138. What is Contribution a. Total Fixed Cost + Variable Cost. b. Selling Price-Variable Cost. c. Variable Cost-Selling Price. d. Total Fixed Cost - Variable Cost

d. Where neither the buyer nor the seller exist. 148. Market is a place a. Where only buyers exist. b. Where only sellers exist c. Where there is competition d. Where neither the buyer nor the seller exist. 149. Which of the following is a Perfect Competition a. Monopoly b. Mo nopo listic Competition c. Oligopoly d. Pure Competition. 150. Which of the following is a feature of Monopolistic Competition? a. Homogenous Product 139. The Selling Price is Rs.10/-, the Variable Cost is b. Only one seller. Rs.8/- and the Fixed Cost is Rs.50,000/-. What is the c. No Barriers to free entry. d. No close substitu tes Break-even Point in units? 151. A market where there are many firms and each one produces a. 5000 units such goods and services that are close substitutes to each other, is b. 6250 un its c. 25000 units known as d. 50000 un its a. Monopoly 140. The Selling Price is Rs.10/-, the Variable Cost is Rs.8/-. b. Duopoly What is the P/V Ratio? c. Mo nopolistic Competition. d. Oligopoly a. 1/5 b. 4/5 152. The Total Revenue is c. 5/4 a. Total Revenue / Rev enue b. Price per Unit X quantity d. 5 141. The markets in which only bulk quan tities are bought and c. Total Revenue / Quantity d. ITotal Revenue/IQuantity sold, it is known as 153. The Marginal Revenue is a. Retail Market b. Wholesale Market a. Total Revenue / Rev enue c. Geographic Market b. Price per Unit X quantity d. Competitive Market c. Total Revenue / Quantity 142. What is the type of market, the Rythu Bazar is known as d. JTotal Revenue/JQuantity 154. Which of the following Organizations falls under the a. Retail Market b. Wholesale Market category of Monopoly? c. Geographic Market a. Oil Industry d. Competitive Market b. Sugar Industry 143. Railways in a good example of which type of Competition? c. Railways d. Petrol Industry a. Monopoly b. Monopolistic Competition 155. Which of the following is a feature of Perfect Competition? c. Oligopoly a. There is only one seller. d. Duopoly b. Large number of buyers and sellers 144. When the market is divided into North, South, East and c. There are two sellers. d. No close substitu tes West, the division is known as 156. Which of the following is a feature of Perfect Competition? a. Retail Market a. There are no close substitutes b. Wholesale Market c. Geographic Market b. There is only one seller d. Competitive Market c. Absence of Transportation Charges 145. Where the goods and services are sold through the Internet,d. Seller can determine his own price. the Market is known as 157. Market where there is a single buyer is known as a. Monopsony a. Wholesale Market b. Mo nopo ly b. Virtual Market c. Geographic Market c. Duopoly d. Physical Market d. Oligopoly 146. Market is a place a. Where only buyers exist. b. Where only sellers exist c. Where both buyers and sellers exist. 158. Which of the following is a feature of Monopoly? d. Where neither the buyer nor the seller exist. a. Homogenous Product 147. Market is a place b. Large number of buyers and sellers a. Where only buyers exist. c. No Transport charges d. No close substitutes b. Where only sellers exist 159. The Average Revenue is c. Where there is a commodity

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a. Total Revenue / Revenue a. Downward Sloping Curve b. Price per Unit X quantity b. Upward Sloping Curve c. Total Revenue / Quantity c. Parallel to X-axis d. I Total Revenue/IQuantity d. Parallel to Y-axis 160. When there are Super Normal Profits in a Perfect 170. In a Monopoly, the profits will be maximized at the Competition, what will be the consequ ences that will follow following point. a. The number of the firms in the industry will remain constant. a. Where the Average Cost Curve Intersects Marginal Revenue b. More number of firms enter the market Curve c. More number of firms leave the market b. Where the Average Cost Curve Intersects Average Revenue d. Less number of firms will leave the market. Curve. c. Where the Marginal Cost Curve Intersects Marginal Revenue Curve. d. Where the Marginal Cost Curve Intersects Average Revenue 161. When there are Super Normal Losses in the Perfect Curve. Competition, what con sequences will follow: 171. Monopoly is Socially undesirable because a. The n umber of firms in the industry will remain constant. a. Of Efficient Allocation of resource b. Of Exploitation of Customers. b. More number of firms will leave the market. c. More number of firms will enter the market. c. Gap between the rich and poor is reduced. d. Unlimited Output is generated. d. Less number of firms will enter the market. 162. In a Perfect Competition when the Marginal Revenue 172. The Price Discrimination can be followed when a. The purchasing power of the customer is high. curve is tangent to the Marginal Cost curve, which of the b. The purchasing power of the customer is low. following statements will be true? c. There is no purchasing power of the customer. a. There are abnormal profits for the firm. d. The customer can exercise choice b. There are normal profits for the firm. c. There are no profits and no losses for the firm. 173. The Price Discrimination is advantageous because d. There are losses for the firm. a. The challenges of the competitors can be met. b. The challenges of the competitors canno t be met. 163. In a Perfect Competitio n when the Marginal Revenue c. The surplus production cannot be disposed off. curve is lying below the Marginal Cost curve, which of the d. It cannot lead to increased demand. following statements will be true? 174. In Monopoly, the demand curve can be represented by a. There are abnormal profits for the firm. a. Marginal Revenue Curve b. There are normal profits for the firm. b. Average Revenue Curve. c. There are no profits and no losses for the firm. c. Marginal Cost Curve d. There are losses for the firm. 164. The price-output relationship in the long run in a Perfect d. Average Cost Curve. Competition which of the following statements will be true? 175. In a Monopoly, what are the characteristics of Marginal a. Short-run Marginal Cost Curve Cuts the Long run Marginal Revenue Curve Revenue Curve from below. a. Marginal Revenue Curve slopes upwards b. Long run Marginal Revenue Curve is tangent to Long b. Marginal Revenue is a Horizontal Straight Line. c. Marginal Revenue Curve lies below Average Revenue run Marginal Cost Curve. Curve. c. Long run Marginal Revenue Curve is tangent to Long d. Marginal Revenue Curve lies above Average Revenue Curve run Average Cost Curve. 176. In a Monopoly, what are the characteristics of Average d. Sho rt-run Average Cost Curve cuts the Long run Revenue Curve Marginal Revenue Curve from below. a. Marginal Revenue Curve and Average Revenue Curve slopes 165. In a Perfect Competition upwards a. TR=AR b. AR=MR=Price b. Marginal Revenue and Average Revenue Curves are a c. Total Revenue = Marginal Revenue Horizontal Straight Line. d. I Total Revenue = I Quantity c. Average Revenue Curve lies above Marginal Revenue 166. In a Perfect Competition Curve. d. Marginal Revenue Curve lies above Average Revenue Curve a. The buyer is the Price Maker b. The seller is the Price Mak er c. The seller is the Price Taker d. The buyer is the Price Taker. 177. In a Monopoly, the Average Revenue Curve 167. The Principle of Equilibrium Point is a. Slopes upward from left to right. a. Marginal Cost must cut Marginal Revenue from above. b. Marginal Cost must cut Marginal Revenue from below. b. Slopes downwards from left to right. c. Marginal Revenue must cut Marginal Cost from above. c. Parallel to X-axis. d. Marginal Revenue must cut Marginal Cost from below d. Parallel to Y-axis. 168. The Principle of Equilibrium Point is 178. In a Monopoly, the Marginal Cost Curve a. MC=MR a. Intersects the Marginal Revenue Curve from above. b. MC<MR b. Intersects the Average Cost Curve first and then intersects c. MC>MR Marginal Revenue Curve later. d. TR=MR c. Does not intersect Marginal Revenue Curve. d. Intersects the Marginal Revenue Curve from below. 169. In a Perfect Competition the Marginal Revenue Line is

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179. When a firm sells its products to its customers of different profile at different prices with no corresponding change in cost, it is said a. Income Discrimination. b. Price Discrimination. c. Cost Discrimination. d. Profit Discrimination.

c. Marginal Cost Pricing d. Going Rate Pricing 189. The price is fixed on the basis of the perception of the buyer of the value of the product is known as a. Price Discrimination b. Demand Pricing c. Perceived Value Pricing. d. Going Rate Pricing.

180. The pricing strategy where a firm charges a fixed fee for the right to purchase its goods, plus a per unit charge for each unit purchased. a. Market skimming b. Market penetration c. Two part pricing

d. Block Pricing. 181. The method of quoting selling price by finding the average cost at normal output and adding the normal profit to it is known as
a. Cost Plus Pricing. b. Sealed Bid Pricing. c. Marginal Cost Pricing. d. Going Rate Pricing. 182. The Pricing done with an intention to increase the volume and the margin of profit is known as a. Market skimming b. Market penetration c. Two part pricing d. Block Pricing. 183. The objective of Pricing is a. To Maximize Profits. b. To reduce the Sales c. To reduce the Market Share. d. To create more co mpetitors. 184. Selling price is fixed in such a way that it always covers fully the variable cost. This method of pricing is known as a. Cost plus pricing. b. Marginal Cost Pricing. c. Sealed Bid Pricing. d. Going Rate Pricing. 185. The method of quoting the price through a Tender is known as a. Cost Plus Pricing. b. Sealed Bid Pricing. c. Marginal Cost Pricing. d. Going Rate Pricing. 186. During seasonal period when demand is likely to be higher, a firm may enhance profits by pricing a product high during this perio d. This method of Pricing is known as a. Commodity Bundling b. Peak Load Pricing c. Cross Subsidization d. Block Pricing 187. Pricing a product for selling certain number of units of a product as one package is known as a. Market skimming b. Market penetration c. Two part pricing d. Block Pricing. 188. The method of quoting the price through the prevailing market price is known as a. Cost Plus Pricing. b. Sealed Bid Pricing.

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