Top 250+ Solved Managerial Economics 1 MCQ Questions Answer
Q. D = f (P, Y, T, Ps, U),where the letter U stands for
a. Utility
b. Units of consumption
c. Usage
d. Consumer expectation & others
Q. In the above function, the letters Ps stands for
a. Preference of consumers
b. Price of commodity
c. Price of substitutes
d. Product supply
Q. In the above function, the letter Y stands for
a. Yield of production
b. Income of consumers
c. Utility
d. Supply
Q. In the above function, the letter T stands for
a. Target price
b. Total supply
c. Total consumption
d. Taste and preference of consumers
Q. Basic assumptions of law of demand does not include
a. There is no change in consumers’ taste and preference
b. Income should remain constant.
c. Prices of other goods should change.
d. There should be no substitute for the commodity
Q. The change in demand due to change in price only, where other factors remaining constant, it iscalled……….
a. Shift in demand
b. Extension of demand
c. Contraction of demand
d. Both extension and contraction
Q. When the quantity demanded of a commodity rises due to a fall in price, it is called
a. Extension
b. Upward shift
c. Downward shift
d. Contraction
Q. When the demand changes due to changes in other factors, like taste and preferences, income, priceof related goods etc... , it is called
a. Extension of demand
b. Contraction of demand
c. Shift in demand
d. None of these
Q. In the case of …………… Consumer may moves to higher or lower demand curve
a. Extension of demand
b. Contraction of demand
c. Shift in demand
d. Slopes in demand
Q. Higher the price of certain luxurious articles, higher will be the demand, this concept is called
a. Giffen effects
b. Veblen effects
c. Demonstration effects
d. Both b & c above
Q. Demand for milk, sugar, tea for making tea, is an example of
a. Composite demand
b. Derivative demand
c. Joint demand
d. Direct demand
Q. Demand for electricity is an example of
a. Composite demand
b. Derivative demand
c. Joint demand
d. Direct demand
Q. Demand for tyres depends on demand of vehicles, the demand for tyres called as
a. Composite demand
b. Derivative demand
c. Joint demand
d. Direct demand
Q. Determinants of demand includes
a. Price of a commodity
b. Nature of commodity
c. Income and wealth of consumer
d. All the above
Q. Exceptional Demand Curve (Perverse demand curve)
a. Moving upward from left to right
b. Moving upward from right to left
c. Moving horizontally
d. Moving vertically