QUESTION 1

1. A variable that takes on the values of 0 or 1 and is used to incorporate the effect of
qualitative variables in a regression model is called
an interaction
a constant variable
a dummy variable
none of the above is
correct
1 points   
QUESTION 2
1. Inflation initiated by the increase in cost of production is termed as
Cost Push
Inflation
Demand Pull
Inflation
Stagflation

1 points   
QUESTION 3
1. Fiscal policy refers to the
government's ability to regulate the functioning of financial markets.

spending and taxing policies used by the government to influence the level
of economic activity

techniques used by firms to reduce its tax liability.

the policy by MAS to affect the cash rate.

1 points   
QUESTION 4
1. Which theory is generally included under micro economics ?
Price Theory
Income theory
Employment
theory
None of the
above
1 points   
QUESTION 5
1. A straight-line demand curve along which the price elasticity of demand equals 0 is
one that
forms a 45 degree angle with the
vertical axis.
is horizontal
is vertical
forms a 60 degree angle with the
horizontal axis
 1 points   
QUESTION 6
1. Ceteris paribus, a fall in the price of ink causes the quantity purchased of its complements to move 
in the opposite
direction

in the same
direction

in an insignificant
manner

None of these

1 points   
QUESTION 7
1. Which of the following is the best definition of managerial economics? Managerial
economics is
a distinct field of economic theory.
a field that applies economic theory and the tools of
decision science
a field that combines economic theory and
mathematics. 
none of the above

1 points   
QUESTION 8
1. Under monopoly the supply curve is absent because
MC is falling

MR > MC

Advertising cost is
increasing

Average cost seems

about to fall

1 points   
QUESTION 9
1. For a firm in monopolistic competition, the marginal cost curve intersects the
average total cost curve
at no point
at the minimum average total cost.
to the left of the minimum average
total cost.
to the right of the minimum average
total cost.
1 points   
QUESTION 10
1. Gross National Product
 will exceed gross domestic product if net factor payments from abroad are positive
will always exceed gross domestic product in a closed economy
will be higher in a private sector economy than in an economy where there is also a
public sector that taxes the private sector
is identical to the gross domestic product in Canada

1 points   
QUESTION 11
1. In the short run, a monopolist will shut down if it is producing a level of output
where marginal revenue is equal to short-run marginal cost and price is
greater than average total
cost.
less than average total
cost.
greater than average
variable cost.
less than average variable
cost.
1 points   
QUESTION 12
1. Two goods have to be consumed simultaneously are
substitutes
complemen
tary
identical
none of
these
1 points   
QUESTION 13
1. There are four phases of a business cycle. Identify the correct sequence of the
occurrence of these phases
Recovery, Recession,Expansion,
Depression
Recovery,Expansion,
Depression,Recession
Depression, Expansion, Recession,
Recovery
Recovery, expansion, recession,
depression
1 points   
QUESTION 14
1. A monopolized market is in long-run equilibrium when
zero economic profit is earned by the monopolist.
production takes place where price is equal to long-run marginal cost and long-run
average cost.
 production takes place where long-run marginal cost is equal to marginal revenue
and price is not below long-run average cost.
All of the above are correct.

1 points   
QUESTION 15
1. Banking in India is controlled by
RBI
SBI
United Bank of
India
PNB

1 points   
QUESTION 16
1. The measure of location which is the most likely to be influenced by extreme
values in the data set is the
range
medi
an
mode
mean

1 points   
QUESTION 17
1. Managerial economics generally refers to the integration of economic theory with
business
Ethics
manageme
nt
Practice
all of the
above
1 points   
QUESTION 18
1. In which city is the  Head Office of Reserve Bank of India located?
Mumb
ai
Calcut
ta
Chenn
ai
J&K

1 points   
QUESTION 19
1. The Engel curve passes through the tendency points of 
 isoquant and
budget line 

IC curve and
budgetline

1 points   
QUESTION 20
1. A typical demand curve cannot be
rising upwards towards
the right
convex to the origin
a straight line to
horizontal axis
None of the above

1 points   
QUESTION 21
1. Creeping inflation is when the price rise by 2 to 3%

 True

 False

1 points   
QUESTION 22
1. Bandwagon effect is found in
relative income
hypothesis
permanent income
hypothesis
life cycle hypothesis
absolute income
hypothesis
1 points   
QUESTION 23
1. Name the major components of money supply.
currency and deposit
components
currency
deposits and coins
coins

1 points   
QUESTION 24
1. The most appropriate measure of a country's economic growth is
GDP
NDP
Per Capita Real
 Income
GNP

1 points   
QUESTION 25
1. An example of a monopolistically competitive industry is
phone service
the restaurant
industry.
wheat farming.
the automobile
industry
1 points   
QUESTION 26
1. Banks create credit
on the basis of their cash
deposits
on the basis of demand
deposits
on the basis of savings
deposits
on the basis of recurring
deposits
1 points   
QUESTION 27
1. A cause of inflation is
increase in money supply

increase in money supply and fall in

production

fall in production

decrease in money supply and fall in

production

1 points   
QUESTION 28
1. Who said Money is what money does?
Walker
Jacob
Viner
Adam
Smith
Marshall

1 points   
QUESTION 29
1. Utility means—
 Power to satisfy a
want
Usefulness
Willingness of a
person
Harmfulness

1 points   
QUESTION 30
1. What is Repo Rate?
it is the rate at which RBI sells government
securities from banks
it is the rate at which RBI buys government
securities from banks
it is the rate at which RBI allows small loan in the
market
None of the above

1 points   
QUESTION 31
1. The only merger of two public sector banks took place between 
Punjab national bank and New
bank of India
PNB and Vijaya bank
PNB and Gramin Bank
PNB and Coperative bank

1 points   
QUESTION 32
1. What are open market operations?
exchange of goods for goods
selling of currency by the RBI
Selling of gilt edged securities by the
government
Sale of shares by FIIS

1 points   
QUESTION 33
1. What is the most likely effect of the development of television, videocassette
players, and rental movies on the movie theater industry?
decreased costs of producing movies
increased demand for movie theater tickets
movie theater tickets become an inferior good
increased price elasticity of demand for movie
theater tickets
5 points   
QUESTION 34
1. When the price of a product is increased 10 percent, the quantity demanded
decreases by 15%. In this range of prices, demand for this product is
elastic
inelastic
cross
elastic
Unitary
elastic
5 points   
QUESTION 35
1. Elastciity of supply is determined by marginal cost of production alone

 True

 False

5 points   
QUESTION 36
1. If the demand for a country's exports is inelastic, the fall in the prices of exports as
a result of devaluation will lower their foreign exchange earnings rather than increasing
them.

 True

 False

5 points   
QUESTION 37
1. The equilibrium level of output for the pure monopolist is where
MR=MC
P<ac<
abel=""></ac<>
MR<mc<
abel=""></mc<>
MR>MC

4 points   
QUESTION 38
1. "If the supply curve of a commodity is positively sloped, a rise in the price of the
commodity ceteris paribus, results in "
a decrease in both demand
and supply
a increase in quantity
supplied
a decrease in supply
a decrease in demand

4 points   
QUESTION 39
1. "When Total Revenue is maximum, Marginal revenue is also maximum"
  True

 False

4 points   
QUESTION 40
1. Under Monopolistic Competition there is only one seller of the product

 True

 False

4 points   
QUESTION 41
1. Name the theory which guides the manager in the selection of goods and services
Price
theory
Income
theory
2 points   
QUESTION 42
1. Who gave the theory of invisible hand?
Adam
Smith
Marshall
Viner
Walker

2 points   
QUESTION 43
1. The cost of production is a major determinant of consumer demand.

 True

 False

2 points   
QUESTION 44
1. An increase in the number of available substitutes for a commodity will decrease
the price elasticity of demand for the commodity.

 True

 False

2 points   
QUESTION 45
1. The vertical demand curve for a commodity shows that its demand is
perfectly
inelastic
perfectly
 elastic
elastic
inelastic

2 points   
QUESTION 46
1. Define Production
Creation of
Utility
creation of a
product
creation of a
resource
All of the above

2 points   
QUESTION 47
1. What is extension of demand?
rise in demand when the price
falls
fall in the demand when the
price falls
rise in the demand when the
price rises
none of the above

2 points   
QUESTION 48
1. The number of sellers have a direct impact on supply

 True

 False

2 points   
QUESTION 49
1. What is the main economic problem?
scarcity of
resources
abundance of
resources
2 points   
QUESTION 50
1. Marginal Utility curve is always falling

 True

 False

2 points   
 QUESTION 51
1. The socially desirable output is when P=MC

 True

 False

2 points   
QUESTION 52
1. Name one determinant of cost.
Size of plant
demand
supply
None of the
above
2 points   
QUESTION 53
1. Most goods are normal

 True

 False

2 points   
QUESTION 54
1. The quantity of a commodity demanded by a consumer is influenced by the
number of consumers in the market.

 True

 False

2 points   
QUESTION 55
1. The Engel Curve passes through the tangency point of:
isoquant and budget line
IC curve and budget line

2 points   
QUESTION 56
1. Managerial economics is primarily concerned with the market demand for an
individual firm's output.

 True

 False