QN01. Decision making and ______________ are the two important functions of executive of business firms
- Forward planning
- Directing
- Supervising
- Administration
Answer
(A)Forward planning
QN02. ______________ shows the change in quantity demanded as a result of a change in consumers' income
- Price elasticity
- Cross elasticity
- Income elasticity
- None of these
Answer
(C)Income elasticity
QN03. The firm charges price in tune with the industry’s price is called
- competitive pricing
- going rate pricing
- tune pricing
- target pricing
Answer
(B)going rate pricing
QN04. Which one of the following is not a reason for adopting skimming price strategy
- When the demand of new product is relatively inelastic.
- When there is no close substitutes
- Elasticity of demand is not known
- Product has high price elasticity in the initial stage
Answer
(D)Product has high price elasticity in the initial stage
QN05. Information for pricing decisions involves:
- Product information
- Market information
- Information at the micro level
- All of these
Answer
(D)All of these
QN06. The marginal revenue equation can be derived from the:
- Demand equation
- Supply equation
- Cost equation
- Price equation
Answer
(A)Demand equation
QN07. Functional relationship between input and output known as
- Conversion
- Production function
- Work in progress
- Output function
Answer
(B)Production function
QN08. in economics ______________ means 'a state of rest 'or 'stability'
- Depression
- Equilibrium
- Maturity
- growth
Answer
(B)Equilibrium
QN09. Selling cost is the feature of the market form
- monopoly
- monopolistic competition
- oligopoly
- none of these
Answer
(B)monopolistic competition
QN10. Which is the reason of skimming price?
- Inelastic demand
- Diversion of market
- Safer price policy
- All of these
Answer
(D)All of these
QN11. Which is the condition of for market penetration?
- High price elasticity of demand in the short run
- Savings in production costs
- Threat of potential competition
- All of these
Answer
(D)All of these
QN12. If the commodities are substitute in nature, cross elasticity will be
- Negative
- Positive
- Zero
- Any of the above
Answer
(B)Positive
QN13. Which one of the following is not an internal factor influencing pricing policy
- cost
- objectives
- marketing mix
- demand
Answer
(D)demand
QN14. For the commodities like salt, sugar etc., the income elasticity will be
- Zero
- Negative
- Positive
- Unitary
Answer
(A)Zero
QN15. In the above function, the letter Y stands for
- Yield of production
- Income of consumers
- Utility
- Supply
Answer
(B)Income of consumers
QN16. When a small change in price leads to infinite change in quantity demanded, it is called
- Perfectly elastic demand
- Perfectly inelastic demand
- Relative elastic demand
- Relative inelastic demand
Answer
(A)Perfectly elastic demand
QN17. Price Elasticity of demand=
- Proportionate change in quantity demanded
Proportionate change in price - Change in Quantity demanded / Quantity demanded
Change in Price/price - (Q2-Q1)/Q1
(P2-P1) /P1 - All the above
Answer
(D)All the above
QN18. An increase in income may lead to an increase in the quantity demanded, it is
- Positive income elasticity
- Zero income elasticity
- Negative income elasticity
- Unitary income elasticity
Answer
(A)Positive income elasticity
QN19. Fixing high price during the introduction is called
- skimming
- penetrating
- full cost pricing
- target pricing
Answer
(A)skimming
QN20. In a perfectly competitive market, individual firm
- cannot influence the price of its product
- can influence the price of its product
- can fix the price of its product
- can influence the market force
Answer
(A)cannot influence the price of its product
QN21. Which is the determinant of the pricing policy of a firm?
- Channel of distribution
- Age of product
- Consumer association
- All of these
Answer
(D)All of these
QN22. The causes of emergence of monopoly is/are:
- Concentration of ownership of raw materials
- State regulation
- Public utility services
- All of these
Answer
(D)All of these
QN23. ______________ is situation of severely falling prices and lowest level of economic activities
- Boom
- Recovery
- Recession
- Depression
Answer
(D)Depression
QN24. Purposes of Short term Demand forecasting doesn't includes;
- Making a suitable production policy.
- To reduce the cost of purchasing raw materials and to control inventory.
- Deciding suitable price policy
- Planning of a new unit or expansion of existing unit
Answer
(D)Planning of a new unit or expansion of existing unit
QN25. Unitary elasticity of demand mean
- EP =>1
- EP =<1
- EP =o
- EP =1
Answer
(D)EP =1
QN26. Quantity remains the same whatever the change in price, this is the case of
- Perfectly elastic demand
- Perfectly inelastic demand
- Relative elastic demand
- Relative inelastic demand
Answer
(B)Perfectly inelastic demand
QN27. Which of the following is not a function of managerial economists
- Advice on trade and public relations
- Economic analysis of agriculture
- Investment analysis
- Supervision and control
Answer
(D)Supervision and control
QN28. Analysis of long run and short run affects of decisions on revenue as well as costs is based on
- Principle of time perspective
- Equi-marginal principle
- incremental principle
- None of these
Answer
(A)Principle of time perspective
QN29. Which is the characteristics of managerial economics
- Deals with both micro and macro aspects
- Both positive and normative science
- Deals with theoretical aspects
- Deals with practical aspects.
Answer
(D)Deals with practical aspects.
QN30. In the case of ______________ Consumer may moves to higher or lower demand curve
- Extension of demand
- Contraction of demand
- Shift in demand
- Slopes in demand
Answer
(C)Shift in demand
QN31. ______________ means an attempt to determine the factors affecting the demand of a commodity or service and to measure such factors and their influences
- Demand planning
- Demand forecasting
- Demand analysis
- Demand estimation
Answer
(C)Demand analysis
QN32. In the case of unitary elastic demand, the shape of demand curve is
- Vertical line
- Horizontal line
- Rectangular hyperbola
- Steep
Answer
(C)Rectangular hyperbola
QN33. Demand for necessary goods (salt, rice, etc,) is ______________ and demand for comfort and luxury good is
- Elastic, inelastic
- Inelastic, elastic
- Elastic, elastic
- Inelastic, inelastic
Answer
(B)Inelastic, elastic
QN34. ______________ Method is also known as Sales-Force -Composite method or collective opinion method
- Opinion survey
- Expert opinion
- Delphi method
- Consumer interview method
Answer
(A)Opinion survey
QN35. Which one of the following is an internal factor influencing pricing
- demand
- competition
- distribution channel
- product life cycle
Answer
(D)product life cycle
QN36. ______________ forecasting is more important from managerial view point as it helps the management in decision making with regard to the firms demand and production.
- Macro level
- Industry level
- Firm level
- None of these
Answer
(C)Firm level
QN37. Total Revenue will be maximum at the point where Marginal Revenue is
- One
- Zero
- <1
- >1
Answer
(B)Zero
QN38. Under ______________ Method, a panel is selected to give suggestions to solve the problems in hand
- Opinion survey
- Expert opinion
- Delphi method
- Consumer interview
Answer
(C)Delphi method
QN39. Method of charging low price initially called ______________
- skimming
- penetrating
- full cost pricing
- target pricing
Answer
(B)penetrating
QN40. Which of the following is/ are the reason for adopting skimming price strategy
- When the buyers are not able to compare the value and utility.
- To attract the high income customers.
- When the product has distinctive qualities, luxuries
- All the above
Answer
(D)All the above
