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MCQ MANAGERIAL ECONOMICS VST

Total questions: 71

Worksheet time: 38mins

Name
Class
Date
1.

Father of economics?

a)

Adam smith

b)

Charles Babbage

c)

Martin Luther King

2.

Economics is a________

a)

Science

b)

Social science

c)

Arts

3.

Economics means_____

a)

Study of wealth of Nations

b)

Study of commerce

c)

Study of account

4.

Economics is necessary for______

a)

Human resources management

b)

Any society

c)

Management

5.

Economic is a study of______

a)

Human behaviour

b)

Mathematics

c)

Community

6.

_____ is the primary function of economics.

a)

Financial study

b)

Maintaining rules

c)

Controlling on staff

7.

Micro and macro economics are___________ of economics.

a)

Function

b)

Scope

c)

Objective

8.

Economics is very useful in any business organisation.

a)

True

b)

False

9.

In economics cost control means_______

a)

Determining cost

b)

Decision of production

c)

Prepare plan for products

10.

Price determination and cost control both are different things.

a)

True

b)

False

11.

Economics helps to understand taxation and government policies.

a)

True

b)

False

12.

Economics helps to understand taxation and government policies.

a)

True

b)

False

13.

Economics gives a_________ to any business organisation.

a)

Objective

b)

Goals

c)

Directions

14.

Economic helps to measurement ___________ of firm.

a)

Efficiency

b)

Demand

c)

Wealth

d)

All of these

15.

Management depends on______

a)

Economics

b)

Demand

c)

Business policies

16.

Managerial economics helps to management for finalising_____

a)

Financial issues

b)

Human resources

c)

Wealth of organisation

d)

All of these

17.

A rational consumer always tries to

a)

Minimise his/her utility

b)

Optimise his/her utility

c)

Maximise his/her utility

d)

None of the above

18.

In terms of demand analysis, an income effect of a price change means

a)

Change in the income of the consumer

b)

Change in the income of the supplier

c)

Change in the real income of the consumer

d)

All of the above

19.

The world famous painting Mona Lisa by Leonardo da Vinci is an example of

a)

Perfectly elastic supply

b)

Perfectly inelastic supply

c)

Elastic supply

d)

Inelastic supply

20.

Marginal Rate of Technical Substitution (MRTS) is equivalent to

(a)  

21.

Under law of variable proportion, if labour is assumed as a variable factor, then when Marginal Product of labour (MPL) falls but still above the Average Product of labour (APL), Total product (TP)

a)

Increases at an increasing rate

b)

Increases at a decreasing rate

c)

Reaches at its maximum level

d)

Becomes negative

22.

Father of economics?

a)

Adam smith

b)

Charles Babbage

c)

Martin Luther King

23.

Economics is a________

a)

Science

b)

Social science

c)

Arts

24.

Economics means_____

a)

Study of wealth of Nations

b)

Study of commerce

c)

Study of account

25.

Economics is a________

a)

Science

b)

Social science

c)

Arts

26.

Economics means_____

a)

Study of wealth of Nations

b)

Study of commerce

c)

Study of account

27.

Managerial Economics applies microeconomics theories and techniques in management decision.

a)

True

b)

False

28.

Microeconomics and managerial economics both encourage the use of quantitative methods to analyze economic data

a)

True

b)

False

29.

Managerial Economics basically comprises of two main divisions namely Microeconomics and Macroeconomics

a)

True

b)

False

30.

Statement 1: Managerial Economics covers both micro and macro economics.

Statement 2: All economic theories, tools and concepts are covered under the scope of managerial economics to analyze business environment.

a)

Only statement 1 is correct

b)

Only statement 2 is correct

c)

Both statements are correct

d)

Both statements are incorrect

31.

Statement 1: Demand and forecasting involves huge amount of decision making.

Statement 2: In Managerial economics, demand analysis and forecasting holds a very least important.

a)

Only statement 1 is correct

b)

Only statement 2 is correct

c)

Both statements are correct

d)

Both statements are incorrect

32.

Statement 1: Appropriate planning and measuring profit which is the most important and challenging area on managerial economics.

Statement 2: Success of a firm depends on its primary measure and that is profit.

a)

Only statement 1 is correct

b)

Only statement 2 is correct

c)

Both statements are correct

d)

Both statements are incorrect

33.

Statement 1: Capital management involves planning and controlling of expenses.

Statement 2: Managerial economics is not merely important in capital management to identify the rate of return.

a)

Only statement 1 is correct

b)

Only statement 2 is correct

c)

Both statements are correct

d)

Both statements are incorrect

34.

Statement 1: The demand for the study of managerial economics is increasing because of globalization.

Statement 2: Economy increasing the demand for professional trained management personnel.

a)

Only statement 1 is correct

b)

Only statement 2 is correct

c)

Both statements are correct

d)

Both statements are incorrect

35.

Statement 1: Business firms are combination of manpower, financial and physical resources which help in managerial decisions.

Statement 2: Societies can be classified into 2 categories which are production and consumption.

a)

Only statement 1 is correct

b)

Only statement 2 is correct

c)

Both statements are correct

d)

Both statements are incorrect

36.

The following are the steps in decision making except.

a)

Define the problem

b)

Determine the objective

c)

Discover alternatives and make a choice

d)

Forecast the weather

37.

The following are the steps in decision making except.

a)

Define the problem

b)

Determine the objective

c)

Discover alternatives and make a choice

d)

Forecast the weather

38.

Sensitivity analysis help us determining the weakest features of the optimal choice of action.

a)

True

b)

False

39.

What is Supply?

a)

how much of a good will be offered for sale at a given time

b)

How much of a good will be purchased

c)

Distributing the goods

d)

Marketing the Goods

40.

When the supply may be elastic?

a)

Small change in price causes less changes in supply

b)

Small change in price causes more changes in supply

c)

Large change in price causes more changes in supply

d)

Small Change in price causes less changes in supply

41.

If the new supply curve is drawn to the right of the old curve parallel to it, which means supply has ----------------------

(a)  

42.

Which of the following factors affect the supply?

a)

Price Expectations

b)

Labour trouble

c)

Cost of production

d)

All the above

43.

Large quantities are supplied at ------- prices and small quantities are supplied at -------- prices.

(a)  

44.

The supply curve slopes -------

(a)  

45.

What is Elasticity of supply?

a)

Responsiveness of supply

to changes in price

b)

Rate of change in price

c)

Rate of change in quantity demanded

d)

None of the above

46.

Considered as Economics applied to "Problem of Choice".

a)

Applied Economics

b)

Managerial Economics

c)

Business Economics

d)

Decision Making

47.

It helps in covering the gap between the problems of logic and the problems of policy

a)

Applied Economics

b)

Managerial Economics

c)

Business Economics

d)

Decision Making

48.

The field in applied economics in which quantitative methods and economic theory to analyze business enterprises

a)

Micro Economics

b)

Macro Economics

c)

Business Economics

d)

Scarcity

49.

The field in applied economics in which quantitative methods and economic theory to analyze business enterprises

a)

Micro Economics

b)

Macro Economics

c)

Business Economics

d)

Scarcity

50.

The field of economics that deals with the economic concepts and analysis of problems that are required to formulate rational managerial decisions

a)

Positive Economics

b)

Normative Economics

c)

Macro Economics

d)

Managerial Economics

51.

The most important function in managerial economics

a)

Application of theory and concept

b)

Decision making

c)

Data Gathering

d)

Economic Analyzation

52.

It studies the actions of individual consumers and firms

a)

Microeconomics

b)

Macroeconomics

c)

Consumer demand

d)

Supply of goods

53.

The study of aggregate income and expenditures and the Per Capita income of one country

a)

Micro Economics

b)

Macro Economics

c)

Capital Management

d)

Government Budget

54.

This concept is very useful in explaining what is happening in the market and economy

a)

Demand Analysis and Forecasting

b)

Demand and Supply

c)

Law of Demand

d)

Law of Supply

55.

The art of predicting demand for products or services at some future time

a)

Demand Analysis

b)

Demand Forecasting

c)

Quantitative method

d)

Qualitative method

56.

Characteristics of Managerial Economics that concerned with what management should do under particular circumstances

a)

Normative economics

b)

Positive Economics

c)

Profit Management

d)

Capital Management

57.

It is a Financial Gain, especially the difference between the amount earned and the amount spent

a)

Profit

b)

Capital

c)

Investment

d)

Expenditure

58.

A financial strategy aimed at ensuring maximum efficiency in a company’s cash flow.

a)

Working Capital

b)

Capital Management

c)

Cash Inflow

d)

Cash Outflow

59.

The organization that has a combination of manpower, financial, and physical resources that helps the management in decision making

a)

Corporation

b)

Government

c)

Consumers

d)

Business Firm

60.

Steps for Decision Making after group members determine their needs and decide what they want to accomplish, they should write a general goal (or goals) for their project.

a)

Define the Problem

b)

Determine the Objective

c)

Discover Alternatives

d)

Forecast the Consequences

61.

It helps the organization and management in determining the strong features of the optimal choice of action

a)

Capitalism

b)

Monopoly

c)

Oligopoly

d)

Sensitivity Analysis

62.

The foremost objective of a Business Organization is ?

a)

Revenue maximization

b)

Output maximization

c)

Utility maximization

d)

Profit maximization

63.

The manager of a business organization is responsible for ?

a)

Decision making

b)

Educating people

c)

Looking for markets

d)

Earning social status

64.

Economic Profit of the business organization is obtained by ?

a)

Adding average revenue

b)

Subtracting costs

c)

Adding costs

d)

Finding gap between TR and TC

65.

The total cost of a business organization is ?

a)

Sum of explicit costs

b)

Sum of implicit costs

c)

Sum of explicit and implicit costs

d)

Difference of explicit and implicit costs

66.

The break-even point is obtained by ?

a)

TC - TR > 0

b)

TC - TR < 0

c)

TC - TR = 0

d)

TC + TR = 0

67.

Managerial Economics is based on the principles of ....?

a)

Macroeconomics

b)

Monetary Economics

c)

Microeconomics

d)

Government Economics

68.

The first order derivative of total cost is ....?

a)

Average cost

b)

Average variable cost

c)

Average fixed cost

d)

Marginal cost

69.

Total revenue of the firm is obtained by ......?

a)

MR × Q

b)

AR × Q

c)

Sum of AC and MC

d)

Difference of AC and MC

70.

Total revenue of the firm is obtained by ......?

a)

MR × Q

b)

AR × Q

c)

Sum of AC and MC

d)

Difference of AC and MC

71.
In this type of economy, the people decide the supply, demand, and price.  
a)
Market 
b)
Traditional
c)
Command 
d)
Mixed