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Test Started Submitted Status Attempt Score Time Elapsed Instructions Mr. Anand Balaso Chavan Managerial Economics (Micro) Exercise - 1 1/7/14 5:05 PM 1/21/14 4:32 PM Completed 37.25 out of 39 points 335 hours, 27 minutes.

Question 1 1 out of 1 points What is meant by economics? Answer Selected Answer: The study that deals with the decision and allocation of the resources.

Question 2 1 out of 1 points ________ market is based on law of supply and demand and prices of goods and services. Answer Selected Answer: free

Question 3 1 out of 1 points What are the two basic concepts of economics? Answer Selected Answer: Production possibility frontier and opportunity cost

Question 4 1 out of 1 points

What is the meaning of a market economy? Answer Selected Answer: A type of economic system in which the trading and exchange of goods and services and information takes place in a free market.

Question 5 1 out of 1 points "In Command Economy, government can utilise land, labour and capital to fulfil its political and economic agenda." Answer Selected Answer: True

Question 6 1 out of 1 points What is the meaning of opportunity cost? Answer Selected Answer: The value of what is given up in order to have something else.

Question 7 1 out of 1 points Opportunity cost is similar for each individual and nation. Answer Selected Answer: False

Question 8 1 out of 1 points Which of the following is not a scarce resource for individual? Answer Selected Answer: Capital

Question 9 1 out of 1 points Which of the following is not a scarce resource for a country?

Answer Selected Answer: Time Question 10 1 out of 1 points Each individual and nation will have same set of values and due to same level of scarce resources; their decision on utilisation of those resources is also same. Answer Selected Answer: False Question 11 1 out of 1 points "Producers decide which goods are to be produced in what quantity, depending on _______ demand." Answer Selected Answer: Question 12 1 out of 1 points A _____ good is one which people consume more as price rises. Answer Selected Answer: Question 13 1 out of 1 points "In price ceiling, the consumers can afford some essential goods or services that they could not afford at the ___________ price." Answer Selected Answer: Question 14 1 out of 1 points "In Perfectly Inelastic Demand ,the entire tax portion is absorbed by the _____________." Answer Selected Answer: buyer equilibrium giffen consumer

Question 15 1 out of 1 points "If the price of a product is unfairly high, the government can set a price floor." Answer Selected Answer: False

Question 16 1 out of 1 points The change in demand is less in comparison to change in price in inelastic demand. Answer Selected Answer: True

Question 17 1 out of 1 points Equilibrium is a price where there is no surplus and deficit of goods. Answer Selected Answer: True

Question 18 1 out of 1 points In Perfectly Elastic Demand who will be responsible to pay tax? Answer Selected Answer: Supplier

Question 19 1 out of 1 points Which concept is applicable for higher price? Answer Selected Answer: Price Ceiling

Question 20 1 out of 1 points

What is the rate of quantity demanded due to price change called? Answer Selected Answer: Price elasticity of demand Question 21 1 out of 1 points Which of the following two approaches are used in utility theory? Answer Selected Answer: Cardinal and Ordinal approach Question 22 0.25 out of 1 points Match the following. Answer Question Average Product curve rises with the rise in Selected Match B. Marginal Product of Labour C. Average Product of Labour A. Production Function D. Marginal Product curve

The amount by which output rises with addition of one extra unit of a variable factor The relationship between production factor and output Ratio of output to the number of units of labour

Question 23 1 out of 1 points "What will be the total utility , if a person consumes five units of commodity and derives U1, U2, U3, U4 and U5 utility from the successive units of goods?" Answer Selected Answer: U1 + U2 + U3 + U4 + U5

Question 24 1 out of 1 points

What is the additional satisfaction or amount of utility gained from each extra unit of consumption called? Answer Selected Answer: Marginal Utility Question 25 0 out of 1 points The _______ product curve rises with the rise in Marginal Product curve. Answer Selected Answer: Question 26 1 out of 1 points PPF stands for Production Possibility Frontier. Answer Selected Answer: True Question 27 1 out of 1 points The slope of total ______ curve for labour is equal to change in output (?Q) divided by change in units of labour (?L). Answer Selected Answer: Question 28 1 out of 1 points The marginal utility comes to ______ when the total utility is maximum. Answer Selected Answer: Question 29 1 out of 1 points "Which of the following is an abstract concept rather than a concrete, observable quantity?" Answer zero product avarage

Selected Answer: Utility Theory Question 30 1 out of 1 points "Consumption of more amounts of goods and services up to certain extent is acceptable, beyond which a saturation point will be reached, which may reduce the total _________." Answer Selected Answer: Question 31 1 out of 1 points Firms use ______________ factor to produce products. Answer Selected Answer: Question 32 1 out of 1 points Period of time where at least one factor of production or variable is fixed is called _______ run. Answer Selected Answer: Question 33 1 out of 1 points The relationship between production factor and output is called _______________function. Answer Selected Answer: Question 34 1 out of 1 points "_______ is an abstract concept rather than a concrete, observable quantity." Answer Selected Answer: Question 35 utility production short production utility

1 out of 1 points Which is the ratio of output to the number of units of labour? Answer Selected Answer: Average Product of Labour Question 36 1 out of 1 points Marginal product curve declines and reaches zero when the total product curve achieves ________value. Answer Selected Answer: Question 37 1 out of 1 points "When marginal product is ________ average product, then the average product is rising." Answer Selected Answer: Question 38 1 out of 1 points When the total product curve moves downward the marginal product curve becomes __________. Answer Selected Answer: Question 39 1 out of 1 points Total product _____ shows the quantity of outputs can be obtained from different amount of variable factor of production. Answer Selected Answer: curve negative above maximum

Tuesday, January 21, 2014 4:32:53 PM IST