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ME Assessment Questions

(for Mondays Test dated 29/07/13)


1) Define Managerial Economics
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2) The relationship between demand & price is ________________
a) inverse
b) unclear
c) direct
d) upward sloping
3) Which of the following is not a factor of demand?
a) Price of commodity
b) Price of raw materials
c) Price of related goods
d) Income of consumer
4) Draw a demand curve

5) Demand for cement and steel rods is called ____________


a) Direct demand
b) Derived demand
c) Demand for Producers goods
d) both (b) and (c)
6) The graphical relationship between Demand and Price is called
a) Demand Curve
b) Demand Schedule
c) Law of demand
d) Demand distinction
7) Which of the following is an exception to the law of demand?
a) Veblens goods
b) Smiths goods
c) Substitutes
d) Consumer goods

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A managerial economist will


a) Study the business environment
b) Formulate business plans & forecasts.
c) neither (a) nor (b)
d) both (a) & (b)
Which of the following is not a feature of ME?
a) It is conceptual and metric
b) It is normative and positive
c) It is purely micro-economic in nature
d) It is both art and science
Law of Demand states that
a) As demand goes up, price falls down
b) As income goes up, demand rises
c) As price goes up, demand falls
d) As income goes up, price falls
When the price of televisions goes up, demand for cable TV ________
a) stays constant
b) falls
c) rises
d) becomes zero
Give an example of when price of commodity X goes up, demand for Y goes up
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Which of the following is not a subject matter of economics?
a) Employee satisfaction
b) Demand Analysis
c) Profit Planning
d) Pricing methods & policies
Giffens goods are
a) Inferior goods
b) Inferior goods that form a large portion of consumers purchase
c) Superior goods
d) Superior goods bought for snob appeal
Give 2 examples each of Durables & Non-Durables
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If the share price of Infosys falls from Rs.2,200 to Rs.1800, then
a) its demand will rise
b) shareholders income will increase
c) its demand will fall
d) Companys profits will increase
Ceteris Paribus means _______________

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a) other things being flexible


b) other things being unavailable
c) other things being constant
d) other things being invisible
Which of the following is a Veblens good?
a) Bata shoes
b) Armani suits
c) Timex watches
d) vanaspati ghee
__________________ is called Father of Economics
a) Adam Smith
b) Amartya Sen
c) Alfred Marshall
d) Joseph Stiglitz
As the income increases, the demand for basmati rice
a) increases
b) decreases
c) initially increases then falls
d) does not respond to change in income
Discuss, with an example, the impact of tastes & preferences on demand
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Demand for Nokia phones is an example of
a) Industry demand
b) Derived demand
c) Firm demand
d) Producers demand
Which statement is incorrect?
a) Demand is ability and timeliness to pay
b) Demand is desire, ability & willingness to pay
c) Demand is desire to pay
d) Demand is willingness to desire
Define Demand
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If the price of iphone 5 is expected to fall in the next month, then
a) its current demand will fall
b) its future demand will fall
c) demand for Samsung Galaxy Note will go up
d) its current demand will go up.

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