Top 150+ Solved Managerial Economics MCQ Questions Answer
Q. A fall in the price of a commodity whose demand curve is a rectangular hyperbola causes total expenditure on the commodity to:
a. Increases
b. Decrease
c. Remains unchanged
d. Any of the above
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 axis illustrates 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. Can not 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, the coefficient 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