Business Economics

1. Managerial Economics is

  1. Dealing only micro aspects
  2. Only a normative science
  3. Deals with practical aspects
  4. All of the above
Correct answer: (D)
All of the above

2. The techniques of optimization include

  1. Marginal analysis
  2. Calculus
  3. Linear programming
  4. All of the above
Correct answer: (D)
All of the above

3. In economics, desire backed by purchasing power is known as

  1. Utility
  2. Demand
  3. Consumption
  4. Scarcity
Correct answer: (B)

4. Basic assumptions of law of demand include

  1. Prices of other goods should change.
  2. There should be substitute for the commodity.
  3. The commodity should not confer any distinction.
  4. The demand for the commodity should not be continuous
Correct answer: (C)
The commodity should not confer any distinction.

5. Higher the price of certain luxurious articles, higher will be the demand, this concept is called

  1. Giffen effects
  2. Veblen effects
  3. Demonstration effects
  4. Bothb&cabove
Correct answer: (B)
Veblen effects

6. In the case of perfect elasticity, the demand curve is

  1. Vertical
  2. Horizontal
  3. Flat
  4. Steep
Correct answer: (B)

7. Outlay method of measurement of elasticity is also called as

  1. Percentage method
  2. Expenditure method
  3. Point method
  4. Geometric method
Correct answer: (B)
Expenditure method

8. ______________ demand forecasting is related to the business conditions prevailing in the economy as a whole

  1. Macro level
  2. Industry level
  3. Firm level
  4. None of these
Correct answer: (A)
Macro level

9. ______________ is the base of marketing planning

  1. Demand Estimation
  2. Demand analysis
  3. Demand function
  4. Demand forecasting
Correct answer: (D)
Demand forecasting

10. ______________ is the change in total revenue irrespective of changes in price or due to the effect of managerial decision on revenue

  1. Average revenue
  2. Total revenue
  3. Marginal revenue
  4. Incremental revenue
Correct answer: (D)
Incremental revenue
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