PRELIM EXAM - Managerial Economics - 1st Semester SY 2025-2026

Who is considered the father of Economics?

• Alfred Marshall

• Lionel Robbins

• Adam Smith

• David Ricardo

Economics is primarily concerned with:

• Study of foreign trade

• Study of capital markets

• Human behavior under scarcity

• Production of luxury goods

According to Alfred Marshall, economics is:

• A study of political systems

• Study of wealth only

• Study of man's actions in the ordinary business of life

• Study of trade and exchange

Microeconomics deals with:

• National income

• Aggregate demand

• Individual consumers and firms

• Inflation and deflation

Demand exists only when a desire is backed by:

• Credit score

• Reputation

• Ability and willingness to pay

• Subsidy

Which is a characteristic of consumer goods?

• Used in manufacturing

• Yield satisfaction indirectly

• Generate income

• Give immediate satisfaction

Derived demand refers to:

• Demand caused by advertising

• Demand based on derived preferences

• Demand for inputs arising from demand for final goods

• Independent demand

Demand that reacts quickly to price change is:

• Perfectly inelastic

• Perfectly elastic

• Relatively elastic

• Unitary elastic

What does the demand function describe?

• Level of supply in a market

• Relationship between demand and income only

• Relationship between demand and its determinants

• Pricing strategies

In the demand function, 'PR' represents:

• Past Revenues

• Price of the product

• Price of related goods

• Public Rating