Top 1000+ Solved Fundamentals of Economics and Management MCQ Questions Answer
Q. An organization that seeks to eliminate the chain of command, have limitless spans of control, andreplace departments with empowered teams is called a/an………..
a. Cooperative organization
b. Virtual organization
c. Boundaryless organization
d. Modular organization
Q. Neoclassical economics concerns itself with the determination of various prices. In the branch of Microeconomics, economists are concerned with _________, while in Macroeconomics they consider _________
a. Price rises: price falls
b. Real prices: nominal prices
c. Individual product prices: the aggregate price level
d. Costs to consumers: costs to producer
Q. The Keynesian productivity deal………
a. called for the active intervention of the state to stimulate growth in productivity and output
b. linked increases in wages to increases in productivity so that wages and profits could both rise
c. linked increases in wages to increases in productivity so that wages and profits could both rise
d. all of the above
Q. The field of economics that is now called Macroeconomics grew out of the era of the Great Depression, which saw the economy experience a prolonged downturn and persistent high unemployment. Classical economics could not explain these problems because its models assumed all of the following EXCEPT
a. prices are flexible
b. recessions were self correcting
c. wages would adjust in the labor market, thereby eliminating unemployment
d. the government should intervene in the economy
Q. During the downturn portion of a business cycle, the economy is characterized by
a. rising unemployment and rising investment
b. falling unemployment and falling output
c. rising profits and falling wages
d. falling output and rising unemployment
Q. Changes in behavior as a result of observation and manipulation of conditions in an environment aretermed…………….
a. The Hawthorne effect
b. Group dynamic
c. Social influence
d. Sociometry
Q. Economic efficiency means
a. Production of goods of mass consumption at lower cost
b. Production of goods and services for those who have purchasing power
c. Getting greatest satisfaction from available resources
d. Full employment of working force
Q. Opportunity cost of increasing production of Gun to 3 units in combination D is –tons of bread
a. 200
b. 100
c. 300
d. 400
Q. Opportunity cost of increasing production of Gun to 4 units in combination E is –tons of bread
a. 200
b. 500
c. 300
d. 400
Q. Opportunity cost of increasing production of Gun to 5 units in combination F is –tons of bread
a. 200
b. 100
c. 600
d. 500
Q. In question No. 53 if the economy produces only 3 guns and 900 tons of wheat instead of 1100 tons of wheat what does it indicates
a. Under employment of resources
b. Production in efficiency
c. Sub-optimal production
d. All the three
Q. If a firm is operating at any point inside the PPF, the firm is
a. Efficient firm
b. Inefficient firm
c. Poised for abnormal growth
d. None
Q. Any point beyond PPF curve can be attained by
a. Increasing supply of factor inputs
b. Technological innovation
c. Both
d. None
Q. Economic growth is best depicted by
a. Outward shift in PPF
b. Upward movement in PPF
c. Inward movement in PPF
d. Downward movement in PPF