Managerial Economics Quiz

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Economics MCQs → Managerial Economics Quiz from 46 to 50
FEATURED MANAGERIAL ECONOMICS QUIZ
1. Which of the following characteristic can exist both in perfect competition and in monopoly?
(A) ease of entry
(B) many sellers
(C) many buyers
(D) perfectly elastic supply curve

ANSWER: MANAGERIAL ECONOMICS QUIZ
1. (C) many buyers

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46. A businessman or a company should accept investments that offer rates of return _____ their opportunity costs of capital.
(A) equal to
(B) greater than
(C) less than
(D) related to

47. When price rises, the quantity demanded generally tends to fall because of:
I. income effect
II. substitution effect
(A) I only
(B) II only
(C) I or II
(D) I and II

48. If there are changes in factors other than a product’s own price that affect the quantity purchased, the phenomena is termed as
(A) Law of upward-sloping demand
(B) Law of downward-sloping demand
(C) shifts in demand
(D) In-equilibrium of supply and demand

49. An increase in supply generally _____ price and _____ quantity demanded.
(A) lowers, raises
(B) raises, lowers
(C) lowers, lowers
(D) raises, raises

50. Marginal revenue (MR) is _____ when demand is elastic, _____ when demand is unit-elastic, and _____ when demand is inelastic.
(A) zero, positive, negative
(B) zero, negative, positive
(C) positive, negative, zero
(D) positive, zero, negative

ANSWERS: MANAGERIAL ECONOMICS QUIZ
46. (B) greater than
47. (D) I and II
48. (C) shifts in demand
49. (A) lowers, raises
50. (D) positive, zero, negative