Top 250+ Solved Managerial Economics 1 MCQ Questions Answer
Q. The utility may be defined as:
a. the desire for a commodity
b. the usefulness of a commodity
c. the necessity of a commodity
d. the power of a commodity to satisfy wants
Q. The utility of a commodity is:
a. its expected social value
b. the extent of its practical use
c. its relative scarcity
d. the degree of its fashion
Q. Marginal utility curve of a given consumer is also his:
a. indifference curve
b. total utility curve
c. demand curve
d. supply curve
Q. The relationship between demand for a commodity and price, ceteris paribus, is:
a. negative
b. positive
c. non-negative
d. non-positive
Q. A demand curve which takes the form of horizontal line parallel to quantity axisillustrates elasticity which is:
a. zero
b. infinite
c. greater than one
d. less than one
Q. Consider a demand curve which takes the form of a straight line cutting both axes.Elasticity at the mid-point of the line would be:
a. zero
b. one infinite
c. infinite
d. cannot be calculated
Q. The elasticity of demand for a product will be higher:
a. the more available are substitutes for that product
b. the more its buyers demand loyalty
c. the more the product is considered a necessity by its buyers
d. all of the above
Q. In case of Giffen goods, demand curve will slope:
a. vertical
b. horizontal
c. upward
d. downward
Q. If the percentage increase in quantity of a commodity demanded is its price, thecoefficient of price elasticity of demand is:
a. greater than 1
b. equal to 1
c. less than 1
d. zero
Q. If the quantity of a commodity demanded remains unchanged as its price changes, thecoefficient of price elasticity of demand is
a. greater than 1
b. equal to 1
c. less than 1
d. zero
Q. The real business cycle theory is most closely related to
a. keynesian theory
b. monetarist theory
c. the classical theory
d. the new keynesian theory
Q. In the real business cycle model, business cycles are
a. efficient and do not represent lost output
b. driven by technology shocks
c. occur when markets clear
d. all of the above
Q. Real business cycle proponents argue that
a. recessions are caused by movements of output away from the natural rate of output
b. prices and wages are sticky
c. macroeconomics should be based on the same assumptions as microeconomics
d. monetary policy is important in determining recessions