Managerial Economics

1. Which of the following is the best definition of managerial economics? Managerial economics is __________

• 1. 1. 
        a distinct field of economic theory.
        

• 1. a field that applies economic theory and the tools of decision science.
     

• 1. a field that combines economic theory and mathematics.
     

• 1. none of the above.

Normally the demand curve will have a _______________ shape.

• vertical

• horizontal

• upward sloping

• downward sloping

Sales Maximisation theory was given by _________________

• John Maynard Keynes

• William J. Baumol

• Adam Smith

• Milton Friedman

In Economics Utility Refers to ____________

• profit or loss

• supply and demand

• inflation or deflation

• satisfaction or usefulness

According to law of demand, when price reduces, demand ____________

• increases

• fluctuates.

• remains constant.

• decreases.

Which of the following is not an determinant of demand?

• Supply

• Climatic conditions

• Consumer preferences

• Price of substitute goods

Change in demand because of determinant other than price is called as ______________

• Movement

• shift in demand

• elasticity of demand

• price inelasticity

Responsiveness of supply to the change in price is called as ______________

• demand elasticity

• price elasticity of demand

• price elasticity of supply

• supply elasticity

According to law of supply, when price rises, supply _________________

• decreases.

• fluctuates.

• increases

• remains constant.

Responsiveness of demand to the change in price of related goods is called as _________________

• elasticity of demand

• cross elasticity of demand

• price elasticity of demand

• income elasticity of demand