NEW
Font size
S
M
L
XL
WorksheetsME_CIA_III
Total questions: 50
Worksheet time: 50mins
Name
Class
Date
1.
Implicit Cost is also known as
a)
Sunk Cost
b)
Marginal Cost
c)
Opportunity Cost
d)
Composite Cost
2.
Revenue =
a)
Price X Quantity
b)
Price X Cost
c)
Cost X Quantity
d)
Price X Product
3.
NPV Stands for
a)
Net Positive Value
b)
Net Present Volume
c)
National Productivity Volume
d)
Net Present Value
4.
IRR Stands for
a)
Internal Rate of Return
b)
Internal Rate of Risk
c)
Internal Rate of Revenue
d)
Implicit Rate of Risk
5.
Setting Objectives is a part of
a)
Demand Analysis
b)
Strategic Planning
c)
Cost Analysis
d)
Pricing Strategy
6.
Forecasting Market Size is a part of
a)
Trend Analysis
b)
Market Analysis
c)
Demand Analysis
d)
Price Analysis
7.
Total Revenue – Explicit Cost =
a)
Economic Profit
b)
Pure Profit
c)
Normal Profit
d)
Accounting Profit
8.
Total Revenue – both Explicit & Implicit Costs =
a)
Accounting Profit
b)
Abnormal Profit
c)
Economic Profit
d)
Normal Profit
9.
_________ is the minimum level of economic profit
a)
Normal Profit
b)
Economic Profit
c)
Accounting Profit
d)
Abnormal Profit
10.
Situations where the potential outcomes are known is called as
a)
Return
b)
Risk
c)
Profit
d)
Loss
11.
The probability of each outcome is unknown is called as
a)
Risk
b)
Return
c)
Loss
d)
Profit
12.
Accept Projects where
a)
NPV=1
b)
NPV=0
c)
NPV<0
d)
NPV>0
13.
Accept Projects where
a)
IRR>Cost of Capital
b)
IRR<Cost of Capital
c)
IRR=Cost of Capital
d)
None of these
14.
WACC Stands for
a)
Weighted Asset Cost of Capital
b)
Wait and Cash Carry
c)
Weighted Average Cost of Capital
d)
Weighted Accounting Cash Component
15.
EMV Stands for
a)
Enumerated Monetary Value
b)
Expected Monetary Value
c)
Expected Money Value
d)
Elasticity of Marginal Variable
16.
Example of Maximin Criterion
a)
Pessimistic
b)
Optimistic
c)
Maximum Pay off
d)
Positive Outcome
17.
Example of Maximax Criterion
a)
Minimum Pay off
b)
Worst Outcome
c)
Pessimistic
d)
Optimistic
18.
M&A Stands for
a)
Mergers & Alternatives
b)
Mergers & Acquisitions
c)
Money & Asset
d)
Make & Alter
19.
LBO Stands for
a)
Liability Buyouts
b)
Land Building Outsourcing
c)
Leveraged Buyouts
d)
Loss Buyouts
20.
Normal Profit is also known as
a)
Zero Economic Profit
b)
Accounting Profit
c)
Financial Profit
d)
None of these
21.
________ is the process of planning and managing a firm’s long term investments.
a)
Capital Gain
b)
Capital Budgeting
c)
Capital Revenue
d)
Capital Cost
22.
The length of time required to recover the initial investment is called as ___________.
a)
Leveraged Buyouts
b)
Accounting Profit
c)
Pay Back Period
d)
Capital Budgeting
23.
The proportion of debt and equity is
a)
Capital Revenue
b)
Capital Budgeting
c)
Capital Gain
d)
Capital Structure
24.
_____________ does not appear in book of accounts.
a)
Explicit Cost
b)
Implicit Cost
c)
Direct Cost
d)
Indirect Cost
25.
One would expect a firm to close down rather than continue producing in the short-period if
a)
Variable costs were to fall below fixed costs
b)
Total revenue were more than total variable cost
c)
Total revenue were less than total variable cost
d)
Variable costs were to rise above fixed costs
26.
A Monopoly producer has
a)
Control over production but not price
b)
Control over production, price, and consumers
c)
Control neither on production nor on price
d)
Control overproduction as well as price
27.
In Perfect Competition, there is a process of
a)
Restricted entry and exit of the firms
b)
Free entry and free exit of the firms
c)
Free entry but the restricted exit of the firms
d)
Semi-free exit but absolute free entry
28.
Basic objective of a firm today is ________.
a)
Profit Optimization
b)
Sales Maximization
c)
Service Oriented
d)
None of these
29.
Absence of change in movement in economics is called ___________.
a)
Variation
b)
Equilibrium
c)
Indifference
d)
Constant
30.
In the short period only ___________ factor inputs are changed.
a)
Variable
b)
Indifference
c)
Constant
d)
None of these
31.
In ______ model, the important assumption is that the entrepreneur aims at maximising his profits.
a)
Welfare Maximization
b)
Service Maximization
c)
Profit Maximization
d)
Sales Maximization
32.
The full form of TR is ___________
a)
Total Revenue
b)
Total Risk
c)
Total Return
d)
Time Run
33.
Business decisions are made to cope with _____.
a)
Profit Only
b)
Sales Only
c)
Revenue Only
d)
Changes
34.
In oligopoly market structure, the firms compete more in terms of advertisement, product variations etc. rather than ____.
a)
Profit
b)
Price
c)
Product
d)
Promotion
35.
____________ is the total income realized from the sale of its output at a price.
a)
Total Profit
b)
Total Risk
c)
Total Revenue
d)
Total Cost
36.
TR / Q =
a)
P
b)
TC
c)
MR
d)
AR
37.
Additional revenue earned by selling an additional unit of output is called ________.
a)
Marginal Revenue
b)
Marginal Cost
c)
Average Revenue
d)
Average Cost
38.
Cost plus pricing = cost + ______________.
a)
Unfair Profits
b)
Fair Profits
c)
Fair Revenue
d)
Unfair Revenue
39.
The objective of charging high prices for new products is to __________ from market.
a)
Skim the cream from the market
b)
Penetrate
c)
Evade
d)
Avoid
40.
Administered prices are the prices which are fixed and enforced by the _________ in the overall interested of community
a)
Manufacturer
b)
Market
c)
Government
d)
Private
41.
The cost of production is a major determinant of consumer demand.
a)
True
b)
False
42.
Managerial economics is primarily concerned with the market demand for an individual firm's output.
a)
True
b)
False
43.
The quantity of a commodity demanded by a consumer is influenced by the price of the commodity.
a)
True
b)
False
44.
The quantity of a commodity demanded by a consumer is influenced by the number of consumers in the market.
a)
True
b)
False
45.
The law of demand refers to the relationship between consumer income and the quantity of a commodity demanded per time period.
a)
True
b)
False
46.
Butter and bread are substitutes.
a)
True
b)
False
47.
Monopoly refers to a situation in which there is only one producer of a commodity for which there are many close substitutes.
a)
True
b)
False
48.
If the demand for a firm's output is horizontal, then the firm is a perfect competitor.
a)
True
b)
False
49.
Monopolistic competition is a form of market organization that combines elements of perfect competition and monopoly.
a)
True
b)
False
50.
The ability of consumers to do comparison shopping on the Internet is likely to put pressure on profit margins at the retail level.
a)
True
b)
False
Reset
