Top 150+ Solved Managerial Economics MCQ Questions Answer
Q. Cargil foods, an MNC has bought over which indigenous Indian company?
a. amul
b. britannia
c. parakh foods
d. dabur
Q. For motors entered the Indian automobile business in collaboration with which Indian manufacturer?
a. mahindra and mahindra
b. tata motors
c. maruthi suzuki
d. hindustan motors
Q. Trade between countries
a. determines prices of products in different countries
b. decreases competition between countries
c. makes a country dependent on the other
d. none of these
Q. Globalization by connecting countries leads to
a. lesser competition among producers
b. greater competition among producers
c. no competition between producers
d. none of these
Q. If tax is imposed on Chinese toys, what will happen?
a. chinese toy makers will benefit
b. indian toy makers will proposer
c. chinese toys will remain cheap,
d. indian consumers will buy more chinese toys
Q. Which of the following is an example of a trade barrier?
a. foreign investment
b. delay or damage of goods
c. tax on imports
d. none of these
Q. Which out of the following industries has a large number of well off buyers in urban areas?
a. footwear
b. automobile
c. jewellery
d. clothing and accessories
Q. Automatic fiscal stabilizers
a. Keep the federal budget balanced
b. Keep the federal high employment budget balanced
c. Help to reduce the severity of recessions and inflationary boom periods
d. Increases structural deficits over the business cycle
Q. The higher the marginal income tax rate, the
a. Higher the MPC out of disposable income
b. Lower the MPC out of disposable income
c. Highest the autonomous expenditure multiplier
d. lower the autonomous expenditure multiplier
Q. Suppose that the MPC out of disposable income was 0.8 and the tax function for a given economy was T= -30+0.25Y. an increase in the intercept of the tax function of 10 units(from -30 to -20 would cause equilibrium income in the simple Keynesian model to fall by
a. -20 units
b. 10 units
c. 20 units
d. 40 units
Q. If the tax function is given by T= -20+0.1 Y the average tax rate would
a. Be 0.1
b. Fall as income falls
c. Vary negatively with income
d. Be -20 _0.1
Q. The role of the progressive tax system as an autonomous fiscal stabilizer requires that the budget
a. Should require actual deficits be equal to zero on average
b. Should go into a surplus at appropriate points in the business cycle.
c. Cannot have a structural deficit component
d. Both a & b
Q. In the simple Keynesian model, if the tax function is given by T=0.15Y and the consumption function is C= 50 + 0.7 YD then a 10-unit ncrease in government spending would increase equilibrium income by
a. 10 units
b. 11.2 units
c. 22.4 units
d. 30 units
Q. Advocates of the public-choice view argue that voting behaviour is influenced by the
a. Rate of inflation prior to an election.
b. Level of economic activity.
c. “Favourite son syndrome.
d. Campaign issues