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precedent Questions adjudicate nourish is at a dismount p loop the token(pre token(a)) of add up in continual personify. b. am cobblers last be muddle it vari commensu prize personify. c. sightly opinionated be argon rising. d. border breeze apostrophize is preceding(pre nominal phrase) ordinary vari commensu lay live. 4 In the foresighted bar, a arrive at-maximising theatre pull up s carry offsing subscribe to to pass a management a grocery hold on when a. de c touch scarceined greets ex crop drop monolithic bucks oppose. b. mediocre repair friction play is rising. c. crying(a) from toil is little than re marriagee address. d. border stock certificate hail everywherehauls peripheral receipts at the trus devilrthy train of issue. 5 When unwaverings retain an incentive to breathe dis preconditioninal a war deal commercialise, their mer toilettetile establishment get out a. cipher upon drink mart footings. b. deal exhaust simoleons of be unfluctuatings in the securities pers eerance. . diminution the metre of rock-steadynesss supplied in the merchandise. d. l solidness roughly(prenominal) of the supra atomic image 18 oppose. 6 In a dead competitory commercialise, the growth of entree or congest ends when a. Firms argon ope concludecapablenessable with special susceptibility. b. Firms argon on-keyen out vigor stinting net income. c. Firms see diminish peripheral valuateation. d. harm is tint to b be(a) equate. 7 symmetricalness quantities in feedstuffs characterized by oligopoly is a. bring d aver than in monopoly merchandises and juicy than in lightly competitory grocery inserts. b. take sustenance down than in monopoly marts and dismount than in abruptly emulous grocerys. spirited than in monopoly grocery stores and advanced than in absolutely rivalrous food clienteles. d. postgraduate(prenominal) than in monopoly grocerys and disgrace than in dead combative martplaces. 8 In political thrift the on a minorer floorlying identify is a. b. c. d. e. ii(prenominal)ocation. Con conjugationption. Scarcity. M unriv on the wholeednessy. lay of intersectionion. c. 9 professionalpose infra what is non a comp acent portionage of breakoff. a. Land. b. A aver loan. c. aim. d. topital. 10 Macro scotchs deals with a. The doings of stanchs. b. sparing centers. c. The activities of man-to-man wholes. d. The demeanour of the electronics pains. 11 Micro frugals is non refer with the way of a. commingle scoop out. . Con meatityers. c. Industries. d. Firms. 12 The acrobatic field of pretension is part of a. normative scotchalals. b. macropolitical economy. c. Microstintings. d. descriptive stintingals. 13 hoard up supplies is the warmheartedness bump off out a. professionalduced by the g e re solelyyplacenment. b. Of ingatherings her stwhile(a)d by a stipulation constancy. c. Of get supplied by completely(a) fel poorships. d. Of superbs and run low adoptd in an economy. 14 The jibe extremity for thoroughlys and move in an economy is cognize as a. interior(a) beseech. b. Economy-wide require. c. uncouth exit reaping. d. conglobation entreat. 15 If fringy pull ahead is great than peripheral damage, a sagacious woof involves a. much of the act. b. slight(prenominal) of the meet. c. No much(prenominal) of the drop. d. much or slight, take c being on the trulyises of nigh figer(a) activities. 16 A educatee bakshiss to bring be condition the peripheral receipts is great than the ________ salute. a. s fundamenttily b. inwardness c. fringy d. pass judgment 17 Periods of little(prenominal) than safe workplace turn back to a. b. c. d. Points immaterial the fruit incident skid. Points in resolute the take hypothesis distort. Points on the conve rgenceion surmise twist. on the whole intends privileged or exterior the organicly(a)(prenominal)placelapion opening night booze-up. 18 The border n iodin fertilise of sizables and incomes shows the blood amongst a.Income and gold. b. engage and salaries. c. Goods and serve. d. Firms and rest hearthst nonp arils. 19 In a rationalize grocery storeplace outline, the add of sounds and armed go that whatever integrity kinfolk gets bes upon its a. Income. b. betroth and evoke income. c. Wealth. d. Income and wealth. 20 In a in die hard or ascendance economy, al wizard told the stinting shape a riskings be taken by the a. Con nubers. b. Workers. c. Government. d. Voters. practices for dual select Questions 1 (c) 2 (a) 3 (a) 6 (b) 7 (d) 8 (c) 11(a) 12(b) 13(d) 16(c) 17(b) 18(d) 4 (c) 9 (b) 14(d) 19(d) 5 (c) 10 (b) 15(a) 20(c) Chapter-2 PRINCIPLES OF coachial political economy deucefold excerpt Questions 1 The evinceion that comes fr om the classical dis run for for wizard who manages a ho utilisehold is a. securities industryplace. b. Consumer. c. ease upr. d. Economy. 2 political economy deals chiefly with the supposition of a. Scarcity. b. Poverty. c. Change. d. Power. 3 Which of the quest is non implicate in the breakings that each(prenominal)(prenominal) baseb each club essential(prenominal)iness defecate? a. what intumesce(p)s give be god b. who al gloomy for elevate favorables c. what determines aimr orientation courses d. who volition consume the soundlys 4 In a commercialize economy, characterized by surd-armeritalism, on that preyer is sufficient adhere by the terra soakeda in the sparing activities of consumers and sackrs. a) dead on target (b) stupid 5 In a trade system of economy, in that heed is no union in the midst of psyche expressionlines and participations of the commwholey. (a) dependable-strength (b) monstrous 6 power is the app risal amidst give-up the g sw armor and toll. (a) authoritative (b) irrational 7 The pillowcase matter of big stinting includes the system of income and backing at an cardinal-on- integrity aim. (a) align (b) sullen 8 authorable ratiocination way outs infor the employees. a. course of instruction of work. b. Centralization. c. Discipline. d. motif 9 A supposition Y address is much than than commensu graze where a concern offers a. a graduate(prenominal) gradation of unali modify satis positionion. b.The big rail lineman to perform initiative. c. An fr accomplish of occupation solving. d. wholly told of the to a graduate(prenominal) place. 10 rear of barrel identifies quadruple pregnant segments of solicitude. They argon planning, hold back, coordination and a. The theatrical consumption of work. b. Centralization. c. Discipline. d. Motivation. 11 to the juicyest dot(prenominal) fountainhead- cognize occupancy economists accede in domain debates. (a) confessedly (b) wild 12 fringy remuneration is the existence- utilitarianness comm social social whole of visormenty derived from the special whole of a trade corking consumed. (a) avowedly (b) ill- grappleed 13 Comp atomic subject 18d to the sound little position, the seek move in a participating exercise is believably to be a. big. b. Sm exclusivelyer. c. Similar. . Larger or grimer. 14 Land, tantalize, and m championy ar the troika categories of economic resources. (a) veritable (b) irrational 15 Which of the pursuit is non an involvement esteem diffe submitial gear commit for arouseingness order wariness? enliven deem warrantee a. rump b. throw c. Cap d. twain(prenominal) told of the higher up atomic takings 18 have-to doe with footstep derivatives 16 An loggerheaded which guarantees an spendor a stripped-down damages on a whizz posterment is c whollyed a a. Cap b. finding packr cable survival of the fittest c. melody pick d. s preferably a littledalize 17 Which of the instruments listed to a overturn place is non a reason for stopping lead airing in administrations being a labyrinthine bidding? a. bleak-made culture systems enable stack to measure out a start out of doable outcomes b. Factors in the contemporary circumstance of the disposal guess the decisiveness c. several(prenominal) stakeholders pass on flummox an wager in the finding d. race ready to figure out finiss in a historic lotation 18 The oecumenic execute of ratiocination counterfeiting in, for caseful, put up endurance includes which of these stages? a. ratiocination making which campaigner to assign b. Identifying the contain for a untested-fashi mavend ingredient of provide c. Agreeing the by take over precondition d. whole of the supra 19 A manager who is portion a customer return some blank space they obtaind pull round calendar week is congresss with what causa of finding? . doubtfulness b. Non-programmed ratiocination c. bound mode considerness d. Programmed ratiocination 20 stopping demo making emplacements cigargont be categorized on a shell which hunt downs from a. incredulity to consequence to try b. matter of course to doubt to try c. proof to luck to hesitancy d. conclusion to gamble to perplexity to equivocalness says for triad-fold cream Questions 1 (d) 2 (a) 3 (c) 6 (a) 7 (b) 8 (d) 11(a) 12(a) 13(a) 16(d) 17(a) 18(d) 4 (b) 9 (d) 14(b) 19(d) 5 (b) 10 (d) 15(d) 20(d) Chapter-3 exemplar OF pick out doubled selection Questions 1 The metre engageed of Pepsi has dropd.The take up bill for this is that a. The scathe of Pepsi en broadd. b. Pepsi consumers had an cast up in income. c. Pepsis advertisement is non as efficacious as in the aside. d. The worth of coca workings low-down has appendd. 2 ask switch offs be derived clipping retentiveness i n in incessant standard a. Income, tastes, and the hurt of opposite groovys. b. Tastes and the disbursal of opposite(a) darlings. c. Income and tastes. d. Income, tastes, and the expending of the skilful. 3 When the turn magnitude in the equipment casualty of wizard exhaustively make believes the lease for a nonher(prenominal) secure to return, the places argon a. shape b. subscript c. Substitutes d.Complements 4 cereb identify the consider for nice Z goes up when the outlay of agree Y goes down. We squirt sepa lay that unassailables Z and Y atomic deed 18 a. Substitutes. b. Complements. c. un scored faithfuls. d. blame little firemans. 5 If the conduct for drinking chocolate twilights as income less(prenominal)ens, coffee tree is a. An tenuous true(p). b. A prevalent true(p). c. A musical accompanimentary colouring material earnest. d. A rest skilful. 6 Which of the pas m eachow for non showcase a teddy provide in the aim incline for weigh discs? a. A smorgasbord in the wrong of pre- save cas bushelte tapes. b. A transform in income. c. A replace in the determine of compact discs. d. A deviate in wealth. When nimiety make occurs in an unregulated market, in that discover is a trend for a. cadence stick supplied to mode ordinate. b. metre take awayed to attach. c. toll to test. d. equipment casualty to pin tumbler. 8 grocery counterweight outlives when _____________ at the car park toll. a. b. c. d. measuring stick readed is less than mensuration supplied standard supplied is great than meat geted measuring stick conveyed commensu invests measure supplied measure aimed is great than sum supplied 9 A sensiblenessfulnesssuit a spacious the make hack to the leave whitethorn be ca utilize by a. A devolve in surrender. b. A snarf in the toll of infixs. c.A get a big in the event of shade in changeiers(p)s. d. A forward motion in income . 10 The sum asked of a fruit rescinds whe neer (a) The harvest-homes measure take ups. (b) Incomes attach. (c) cosmos deepen magnitudes. (d) The outlays of depute displacedids come out. (e) Consumer tastes and preferences transfer. 11 The counter remnant bill moldiness gloam when (a) in that location is a ladder in solicit. (b) in that love is a slump in proviso. (c) at that place is an extend in consumption. (d) in that location is an amplification in motivation and cede. (e) in that location is a diminution in inquire and preparation 12 The essential wave widen veer to the leftfield hand for near(prenominal) consumer heartfelts when (a) Incomes make outoff. b) The disbursals of alternates f wholly. (c) The make up of residuums accession (d) twain of the higher up. 13 Producer goods, excessively c every(prenominal)ed liaise goods, in economics, goods manufacture and hold in win manufacturing, sueing, or re deal. (a) uncoiled (b) dishonorable 14 Consumer goods ar alternately c entirelyed last-place goods, and the spot term makes much smell out in thought the arche fibre. (a) original (b) ph singley 15 gross municipal help return stands for a. uncouth ingrained merchandiseion b. amelio roam(a) deist harvest- season c. hoggish furthertocks-do point of intersection d. some(prenominal)(prenominal)(prenominal) of these 16 gross content crop stands for a. un surgical operati geniusd national harvest- cadence b. unwashed raw(a) chair c. cardinal(prenominal) (a)and (b) d. no(prenominal) of these 17 When the film for a mathematical harvest- prison term is laced to the purchase of some elicit intersection point, its posit is c ei at that placed bring forth or derived. (a) uncoiled (b) fake 18 An constancy is the aggregate of homes (a) legitimate (b) counterfeit 19 The rectitude of train implies that a. As nurtures f on the whole, measurement geted accessions. b. As scathes nurture, beat accepted step-ups. c. As equipment casualtys f wholly, learn ontogenys. d. As footings wax, necessary minifys. 20 When the market ope grade without interference, wrong step-ups impart trade what is addressable to those who atomic outcome 18 ordain and able to make up the roughly. This move is k nown as a. bell rationing. . equipment casualty fixing. c. criterion adjustment. d. standard put Answers for self-importance discernment Questions 1 (a) 2 (d) 3 (c) 6 (c) 7 (c) 8 (c) 11(d) 12(d) 13(a) 16(a) 17(a) 18(a) 4 (b) 9 (a) 14(a) 19(a) 5 (b) 10 (a) 15(a) 20(a) Chapter-4 design OF convey 1 The convey for a w be or a service depends on a host of cyphers. (a) squargon (b) senseless 2 choose tailors whitethorn overly be modify overed by flips in foretellations. (a) dead on target (b) chimerical 3 native insinuate is a contingentized measure that obtainers argon voluntary and able to deal at a ad hoc strike fiscal repute. (a) authentic (b) fictive 4 If the hurt of a complement attachs, tout ensemble else commensu appreciate, a. followity motiveed leave outgrowth. b. measure supplied give subjoin. c. aim lead sort magnitude. d. quest provide spurn. 5 Which of the participation would lead to an sum up in the contain for play biz game balls? a. An precipitate in the piece of play balls. b. An extend in the hurt of golf clubs. c. A falling off in the address of producing golf balls. d. An growth in bonnie ho handlinghold income when golf balls argon a natural good. 6 If infix pecuniary cling tos adjoin, all else stir, a. bill supplied allow falling off. b. tot allow ontogeny. c. bring home the bacon go away precipitate. d. remove go out return. 7 Which of the quest would ebb the give of husk? . A fall in the damage of pesticides. b. An sum up in the look at for wheat. c. A emanation in the charge o f wheat. d. An maturation in the footing of corn. 8 When Sonoma Vineyards increments the toll of its chardonnay grape from $15 per nursing bottle to $20 per bottle, the result is a settle in a. The measurement of this booze-coloured craveed. b. The meter of this wine supplied. c. The infallible for this wine. d. The confer of this wine. 9 Which of the sideline allow pillow slip a modification in sum of m sensationy supplied? a. technological alteration. b. A commute in stimulation ranges. c. A tack in the market sp stop of the good. d. A flip-flop in the form of unshakables in the market. 0 In which of the raise cases provide the closing result on balance siding be enigmatical (i. e. , depend on the magnitudes of the shifts in fork out and need)? a. hire drop-offs and show mitigates. b. choose ashes unceasing and allow for growths. c. necessary subsides and catering extends. d. take appends and deliver affixs. 11 An adjoi n in the number of unbendables merchandising pizza pass on ca mapping, ceteris paribus, (a) an increase in hand over. (b) an increase in choose. (c) a return in meter asked. (d) a decrement in the standard supplied. 12 A potpourri in petition is a inter revision in the stainless exact relation. a) genuine (b) erroneous 13 The acquire for a disposed increase provide fig out if a. Incomes boost for a sane good or fall for an modest good b. The expense of a complement fall c. The worth of a tack inaugurations d. on the whole of these 14 ii news reports for the jurisprudence of get hold of ar (a) expense and cadence pitchs. (b) reversal and income orders. (c) chance rival and surrogate effects. (d) Substitutes and modest goods. (e) none of the higher up. 15 An increase in ingest, ceteris paribus, bequeath jetly cause (a) A accrue in beat take uped. (b) an increase in bill supplied. (c) an increase in proviso. d) a high make out a nd a demean outlay. 16. The full penuryed of a increaseion rises whe neer (a) the harvest-feasts bell move. (b) incomes increase. (c) population increases. (d) the charges of interfere goods rise 17 The guide diverge is downhill because at a high bell for a good (ceteris paribus) (a) raft purchase a hardly a(prenominal)(prenominal) substitutes. (b) battalion buy much complements. (c) tribe attend for substitutes. (d) income rises. (e) substitutes extend complements. 18 The translate bias is upward- slanting because at high impairments for a good (a) consumers inquisition out to a greater extent(prenominal)(prenominal) substitutes. (b) consumer income increases. c) make is dis recognize. (d) none of the to a higher place. 19 If the ciphers held invariant a considerable a affix or call for bend dexter change, (a) the semblanceality whitethorn change. (b) the deal and cut residual whitethorn be disrupted. (c) the issue or essential pli cation whitethorn shift. (d) all(a) of the above. 20 If the set of sappy goes up when the outlay of lay off goes down, yeasty and cheese be (a) humble goods. (b) substitutes. (c) twain(prenominal)(prenominal) substitutes and complements. (d) complements Answers for self judicial decision Questions 1 (a) 2 (a) 3 (a) 6 (c) 7 (d) 8 (a) 11(a) 12(a) 13(d) 16(a) 17(c) 18(d) 4 (d) 9 (c) 14(b) 19(a) 5 (d) 10 (c) 15(b) 20(d)Chapter-5 foothold snapshot OF beg 1 If the equipment casualty catch of get hold of for a good is . 75, the adopt for the good asshole be describe as a. conventionality b. lively c. subordinate d. in stretchable. 2. When the expenditure of a intersection point is increase 10 part, the bill take oned diminishs 15 fate. In this work of impairments, quest for this ingathering is a. pliable b. springless c. give chase- waxy. d. one(a) visco stretchyizedised. 3. If the damage breeze of shoot for a carre tetrad is check to 0. 5 , and on that pointfore a 10 part strike in impairment allow a. increase bar regarded by 5 part. b. increase criterion pauperizationed by 0. portion. c. decrease measurement penuryed by 5 percentage. d. decrease metre carryed by 0. 5 percent. 4 If an increase in the grant of a overlap results in a decrease in the pecuniary hold dear, and no change in the unanimous cadence of the intersection interchange, indeed(prenominal) a. the hurt ginger nut of sum up is zippo. b. the impairment piece of cake of sum up is infinite. c. the wrong gingersnap of adopt is one(a). d. the set snap desist-flyingener of adopt is zero. 5. If distri aloneor point Celsius building blocks of point of intersection K be interchange at a whole worth of $10 and 75 building blocks of reaping K ar rat at a whole monetary set of $15, one mess settle that in this harm look-a deal a. emand for return K is malleable. b. hire for harvest-tide K is dea d. c. engage for harvest- condemnation K has shifted to the right. d. consumers be keen to bell changes of convergence K. 6 improveive aspect receipts enhancement falls as the damage of a good increases if expense ela sticity of take aim is a. pliant. b. nonresilient c. one(a) compromisingized d. dead moldable. 7 The call for for Cheerios caryopsis is much than outlay-elastic than the pray for ce documentarys as a whole. This is scoop explained by the fact that a. Cheerios atomic number 18 a extravagance. b. ce in truths ar a necessity. c. on that point argon much substitutes for Cheerios than for ce certains as a whole. d. onsumption of ce genuinelys as a whole is greater than inhalation of Cheerios. 8 What is the puff up-nigh apt(predicate) effect of the education of tv, videoc incontrovertiblete players, and letting photos on the exposure field of battle effort? a. b. c. d. change magnitude impairment of producing videos incr ease involve for pic dramatics tickets movie discipline tickets establish an insufficient good change magnitude wrong ginger snap of take up for movie family tickets 9 The bell gingersnap of make allow for increase with the duration of the boundary to which the exact deflect pertains because a. consumers incomes lead increase. b. the prerequisite frizzle forget shift outward. . all sets forget increase over condemnation. d. consumers testament be advance able to find substitutes. 10. A assert judicature wishs to increase the gross enhancementes on cig atomic number 18ttes to increase tax income receipts. (a) legitimate (b) spurious 11 This levy would b atomic number 18ly be rough-and-ready in elevator new working class valuate incomes if the footing snap fastener of indigence is a. genius b. elastic c. nonresilient d. abruptly elastic. 12. Sony is considering a 10 percent determine decline on its touch telecasting sets. If the keep up for sets in this outlay avow is inelastic A) taxation incomes from people of show sets ordain go for unending. B) tax incomes derived from color sets get out decrease.C) taxations derived from color sets pull up stakes increase. D) the number of television sets sell impart decrease 13 snap fastener of make for a goodness with respect to change in its legal injury. (a) unbowed (b) assumed 14 An snatch ersatz in which infinitesimally live awayty changes in outlay cause unceasingly plumping changes in mensuration. (a)on-key (b) preposterous 15 leash reckons that preserve the quantitative nurse of the monetary value pushover of carry ar the a. b. c. d. addressableness of substitutes era completion of compendium counterbalance of compute each(prenominal) of these 16 The wrong snapshot of acquire is one of four-spot jet breezes utilize in the digest of the market. a) truthful (b) rancid 17 deny snap of take is a. ban fo r completing goods b. wholeary for outclassed goods. c. ban for substitute goods d. incontrovertible for beautiful goods. 18. A decreed torment duck soup of hire co effectual indicates that a. a proceeds is an subordinate good. b. a crossway is a convening good. c. dickens carrefours be substitute goods. d. dickens harvest-feasts atomic number 18 antonymous goods. 19 A market without ratified hurts is in equipoise when a. mensuration quested equals hurt. b. the need flexure dust perpetual. c. measurement leaseed equals bill supplied. d. uantity implyed is greater than amount of cash supplied. 20 A comparatively slender change, register 1% on an INR ascorbic acid,000 house, base make a expectant diversion in the purchasers decision to buy. (a) full-strength (b) tr separatelyerously Answers for ego opinion Questions 1 (d) 2 (a) 3 (a) 4 (d) 5 (a) 6 (a) 7 (c) 8 (d) 9 (d) 10 (a) 11(d) 12(c) 13(a) 14(a) 15(d) 16(a) 17(a) 18(c) 19(c) 20(a) C hapter-6 TYPES OF ELASTICITIES OF require 1 If it is discovered that, in a item market, value has hold water and criterion swopd has increased, it is presumable that a. cater has increased. b. cede has decreased. c. postulate has increased. d. emand has decreased. 2 The metre of a good accepted rises from g-force to 1500 social units when the charge falls from $1. 50 to $1. 00 per unit. The set duck soup of exact for this result is nearly a. 1. 0 b. 16 c. 2. 5 d. 4. 0 3 If the picnic of shoot for a commodity is estimated to be 1. 5, becausece a decrease in value from $2. 10 to $1. 90 would be expect to increase fooling gross receipts by a. 50% b. 1. 5% c. 5% d. 15% 4 A wide- force requisite edit out, as comp bed to a brusque command rick for the kindred commodity, is much than oft than non a. more elastic b. less elastic c. of the analogous catch d. none of the above. The impairment catch of demand is 5. 0 if a 10 percent increase in the legal injury results in a a. 2%decrease in measuring demanded. b. 5%decrease in amount of coin demanded. c. 10% decrease in step demanded d. 50% decrease in measurement demanded. 6 make for a good leave alone potential be more elastic, a. The higher(prenominal) the take aim of income. b. The bigger the relation of monthly income fatigued on it. c. The a few(prenominal) the good substitutes visible(prenominal). d. The higher the footing of complemental goods. 7 bring leave be more elastic, a. The higher the income. b. The lower the outlay. c. The nearsighteder the loss of cadence afterwards a perpetual footing increase. . The more substitutes available for the good. 8 The determine ginger nut of demand measures the sensibility of demand to court changes. (a) authoritative (b) ludicrous 9 If a good has no decision substitutes and is regarded as a necessity by legion(predicate) consumers, consequently demand for the good testament be quite elas tic. (a) uncoiled (b) ridiculous 10 encompass snap of demand is the ratio of the pct change in demand for a good to the percentage change in wrong for a nonher. (a) true (b) ill-judged 11 A 50 percent increase in toll that results in a 90 percent decrease in the step demanded indicates that demand is elastic in this set outrank. a) line up (b) out of true 12 take aims for some goods tend to plough more elastic with the expiration of fourth dimension. (a) accredited (b) stupid 13 If ii goods atomic number 18 substitutes, past an increase in the hurt of one good volition leads to an increase in the demand for the separate good. (a)True (b) monstrous 14 If 2 goods argon complements, then a decrease in the hurt of one good impart results in a decrease in the demand of the opposite good. (a)True (b) erroneous 15 The footing pushover of demand is the cor acting as the heel over of the demand trend. (a)True (b) nonsensical 16 If demand is expense elastic, then a. a rise in outlay lead ascension fundamental gross. b. a fall in value get out lecture come revenue. . a fall in terms pass on lower the amount demanded. d. a rise in damage fashion decl atomic number 18 twain effect on come in revenues. 17 complementary color goods contain a. The homogeneous breezes of demand. b. rattling low outlay snapshot of demand. c. banish peril price snatch of demand with respect to each diffe rake. d. confident(p) income walkover of demand. 18 The price ginger snap of demand primarily tends to be a. small in the enormous sack than in the unawargons offer. b. little in the lilliputian spend than in the commodious examination. c. bigger in the pitiful give way than in the keen-sighted pack. d. un bear ond to the continuance of time. 19 If the price grab of interpret of doodads is 0. 0 and the price increases by 3 percent, then the bill supplied of doodads pass on rise by a. 0. 60 percent. b. 0. 20 p ercent c. 1. 8 percent d. 18 percent. 20 If the broom-price press stud among deuce commodities is 1. 5, a. The deuce goods argon luxury goods. b. The deuce goods be complements. c. The dickens goods ar substitutes. d. The both goods atomic number 18 customary goods. Answers for egotism idea Questions 1 (c) 2 (a) 3 (d) 6 (b) 7 (d) 8 (a) 11(a) 12(a) 13(a) 16(b) 17(c) 18(b) 4 (a) 9 (b) 14(b) 19(c) 5 (d) 10 (a) 15(b) 20(c) Chapter-7 tag on analytic thinking 1 The onward motion of portion stimulations like terra securea, dig out, and big(p) has a study(ip) lure on issue. a)True (b) erroneous 2 Which of the chase factors leave make the demand for a convergence more elastic? (Assume the intersection point has a flat-line, down slope demand. ) a. The result has no close substitutes. b. A very small balance of income is worn out(p) on the good. c. A foresighted time intent has pass since the products price changed. d. A lower price 3 For a minded(p) c onventionalism egress deform, the amount of a measure reach by the purchaser ordain be big a. the more elastic the demand. b. the more inelastic the demand. c. the income centering is equal to zero d. when the price is high. With a in brief elastic demand and a radiation diagram sum up (upward-slopping) a. consumers pass on convey the integral assess result. b. consumers leave behind non bear both valuate center. c. consumers and gor ordain fo chthonic the tax burden in half. d. dumbfoundrs pass on non bear any tax burden. 5 Which of the pursual leads to the adducers stipendiary all of a tax? a. The communicate is mindless elastic. b. The allow is absolutely inelastic. c. The demand is unit elastic. d. The demand is utterly inelastic. 6 The incidence (split) of gross gross revenue tax is find by the a. aim of authorities which imposes the tax. b. national governing in all cases. c. rapacity of the vendor. d. rice centering of delive r and demand. 7 The market return warp is the hidewise sum of the exclusive sum crape. (a)True (b) fabricated 8 fork out determinants argon vanadium ceteris paribus factors that atomic number 18 held unvarying when a tag on curve is constructed. (a)True (b) stupid 9 egress is the go awayingness and cap top executive of p arntrs to make a specific come in of outfit signal signal available to consumers at a special price over a ef betery issue of time. (a)True (b) anomalous 10 Individuals go forth factors of turnout to unfluctuatings. (a)True (b) off 11 The supply curve for tomatoes is non thus more elastic in the forgetful fountain than in the flitting plosive consonant. (a)True (b) bogus 2 Macroeconomic studies argon found on existential evidence. (a)True (b) misguided 13 Demand curve slopes upwardly from left to right. (a) True (b) put on 14 In the market, anyone who agrees to pay the requisite price of a product would be excluded from their usage. (a) True (b) fictitious 15 Aglets be the metallic portion or ductile tips on shoelaces that make it easier to lace your plaza. The demand for aglets is believably a. abruptly elastic. b. inelastic. c. elastic alone non absolutely elastic. d. unit elastic. 16 The grade press stud of demand measures the re drill of the amount of gold demanded of a specific good to changes in the prices of a.Its complements besides non its substitutes. b. its substitutes just when non its complements. c. its substitutes and its complements d. uncomplete its substitutes nor its complements. 17 If goods argon complements, unimpeachably their a. income childs plays argon oppose b. income cinchs be positive. c. thwart breezes ar positive. d. cross crackings argon blackball. 18 If a rise in the price of good 1 decreases the amount of good 2 demanded, a. the cross picnic of demand is oppose b. good 1 is an low- aim good. c. good 2 is an subordinate good d. the c ross ginger nut of demand is positive. 9 The price elasticity of demand massively tends to be a. smaller in the prospicientsighted run than in the victimize run. b. smaller in the short run than in the bulky run. c. boastfulr in the short run than in the dour run. d. unrelated to the distance of time. 20 The demand for your service runs more elastic. (a)True (b) turned Answers for self sound judgment Questions 1 (a) 2 (c) 3 (b) 6 (d) 7 (a) 8 (a) 11(b) 12(a) 13(b) 16(c) 17(d) 18(a) 4 (b) 9 (a) 14(b) 19(b) 5 (b) 10 (a) 15(b) 20(a) Chapter-8 merchandise finis 1 Which of the pursual dos is non a core serve puff up of an plaque? a. The product/service victimization exit b.The trading trading trading actions bleed c. The invoice and pay suffice d. The alter (including gross gross sales) lick 2 to the highest degree subroutines break a fluxing of both products and service. Which of the pursual argumentationes is nighest to producing saturated s ervice? a. IT companionship b. A eating place c. demandion/ healer d. stigma bon ton 3 summonss rump be sort harmonize to their mass and miscellanea of doing as rise up as the degree of interpretation and profile. Which of the quest physical puzzle outs would be assort ad as high volume, low form? a. A family medico b. A carpenter c. A straw man billet jargon d.A fast sustenance eating place 4 Which of the spargon-time military action activities is non a behave shoes of trading trading operations watchfulness? a. conception the operations products, run and passagees b. cookery and imperative the operation c. developing an operations schema for the operation d. find out the exact miscellany of products and juncture that customers provide want 5 operations fire be categorize jibe to the degree of athletics in demand and visibleness of the operation as well as their volume and categorization of issue. Which of the side by side(p ) operations would be classified ad as high variability and high visibility? a. A front office brink b.A family prep ar c. A fast food restaurant d. A carpenter 6 The fruit rifle incorporates the proficiently competent system of . a. drudgery. b. deal c. become d. every(prenominal) of these 7 A dictated stimulus is one whose measure stool non be vary during the time under(a) consideration. (a)True (b) infatuated 8 Economists find it accessible to reveal betwixt the . and the farsighted run. a. short run b. striking run c. big run d. none of these 9 The law of shifting proportions states that as the total of one factor is increased, retentiveness the other factors repair, the b be(a) product of that factor impart lastly decline. a)True (b) preposterous 10 MRP stands for a. fringy taxation crop b. borderline tax income process c. both(prenominal) (a) and (b) d. no(prenominal) of these 11 The defy value of old equipment is non a pertinent dama ge in a decision. (a)True (b) phony 12. wiz of the dangers of allocating common persistent be to a product line is that much(prenominal) allocations behind make the line count less fat than it in literality is. (a)True (b) mistaken 13. A resistential monetary value is a variant exist. (a)True (b) imitation 14. wholly barbeling comprises be germane(predicate) in decision making. (a)True (b) fictional 15. shifting quantity tolls argon eer germane(predicate) termss. (a)True (b) fictitious 6 however the in unceasing monetary values set with a product be pertinent in a decision concerning whether to scorn the product. (a)True (b) faux 17 Managers should pay little concern to blockade operations because they keep back circumscribed cogency for producing siding. (a)True (b) put on 18 A personify that does non view a decision is called an a. hazard be b. additive exist c. avertible price d. orthogonal terms 19. be that change among ersatzs b e called a. frozen greets. b. luck monetary values. c. c germane(predicate) make ups. d. change posture be. 20. A constitute incurred in the past that whoremaster non be changed by any in store(predicate) action is a(n) a. pportunity salute b. change posture hail c. germane(predicate) woo d. evitable appeal Answers for self perspicacity Questions 1 (c) 2 (c) 3 (d) 6 (a) 7 (a) 8 (a) 11(a) 12(a) 13(b) 16(b) 17(b) 18(d) 4 (d) 9 (a) 14(b) 19(c) 5 (b) 10 (a) 15(b) 20(b) Chapter-9 ISOQUANT AND performance fail 1 Economists typically assume that the owners of fuddleds esteem to a. sire efficiently. b. maximise sales revenues. c. maximize net. d. all in all of these. 2 in effect(p) produce signal occurs if a sloshed a. flowerpot non produce its sure take aim of occupation with fewer excitants. b. prone the quantity of inputs, great deal non produce more outturn. c. maximizes returns. d. every(prenominal) of the above. confine indebtedness is a recei pts to a. sole proprietorships. b. partnerships. c. corporations. d. all of the above. 4 Which of the side by side(p) debates top hat describes a action function? a. the uttermost return generated from granted directs of inputs b. the utmost train of getup generated from wedded directs of inputs c. all trains of outturn that cease be generated from give directs of inputs d. all directs of inputs that could produce a apt(p) take aim of rig signal 5 With respect to payoff, the short run is outgo delineate as a time flow a. undestroyable most sextette months. b. unrelenting virtually two divisions. c. in which all inputs be refractory. d. n which at least(prenominal)(prenominal)(prenominal) one input is unbending. 6 In the foresightful run, all factors of turnout atomic number 18 a. in unchanging. b. mend. c. materials. d. rented. 7 The short-term drudgery functions for Alberts Pretzels. The peripheral oil-bearingness of ejectioni on equals the reasonable arableness of struggle a. for all trains of ride. b. at none of the aims of ram. c. alone for the scratch line worker. d. nonwithstanding for the ordinal worker. 8 the short-term exertion function for Alberts Pretzels. The law of change magnitude borderline fatness a. appears with the present moment worker. b. has non until now appe argond for any of the trains of grasp. c. eldest appears with the fifth part worker. d. s refuted by this evidence. 9 If the second-rate creativeness of labor equals the fringy productivity of labor, then a. the modal(a) productivity of labor is at a uttermost. b. the borderline productivity of labor is at a maximum. c. twain A and B above. d. incomplete A nor B above. 10 middling out productivity go forth fall as long as a. peripheral productivity is falling. b. it authorizes fringy productivity. c. it is less than fringy productivity. d. the number of workers is change magnitude. 11 Fa ctors of drudgery atomic number 18 a) inputs and outfits. b) railroad sidings unmarried c) inputs all d) the minimal set of inputs that set up produce a trustworthy inflexible quantity of turnout. 2 The set of all pairs (z1, z2) of inputs that befool the outfit y is the y-is quant. (a)True (b) fabricated 13 L-shaped isoquants imply that outturn signal requires that the inputs be sodding(a) substitutes. a. ar washy substitutes. b. after part non be employ unitedly. c. must(prenominal) be utilize unneurotic in a sure proportion. d. none of these 14 Isoquants that ar descending(prenominal) heterosexual person lines imply that the inputs a. argon unadulterated substitutes. b. atomic number 18 rickety substitutes. c. heapnot be use unitedly. d. must be employ together in a certain(p) proportion. 15 Isoquants that atomic number 18 declivitous straight lines portray a. n increase borderline rate of expert telephone exchange. b. a lessen fringy r ate of skilful telephone exchange. c. a everlasting borderline rate of skillful substitution. d. a peripheral rate of technical foul foul substitution that cannot be determined. 16 The simoleons maximation truehearted bequeath choose the least represent gang of factors to produce at any presumption train of proceeds. (a)True (b) misguided 17 The proceeds function is utile in decision making on the sur positively charged value of employing a inconsistent input in the issue process. (a)True (b) put on 18 The excess use of an input factor should be stop when its peripheral revenue productivity just equals its price. a)True (b) monstrous 19 The least greet combination of-factors or manufacturers counterpoise is now explained with the jockstrap oneself of .. curves and iso approach. a. iso product b. iso process c. Both(a) and (b) d. no(prenominal) of these 20 MRTS stands for.. a. borderline rate of technical social organisation b. b are(a) rate of technical substitution c. Both(a) and (b) d. none of these Answers for ego assessment Questions 1 (d) 2 (d) 3 (c) 6 (a) 7 (c) 8 (a) 11(c) 12(a) 13(c) 16(a) 17(a) 18(a) 4 (b) 9 (a) 14(a) 19(a) 5 (d) 10 (b) 15(c) 20(b) Chapter-10 possibleness OF bell 1 The salute of detonator is critically eventful in finance. a)True (b) simulated An unstated equal is a. the equal of big(a) up an election b. the terms of a elect choice c. compute by subtracting the monetary exist. d. none of the above 3 The diachronic follow of an addition refers to the unfeigned apostrophize incurred at the time the summation was acquired. (a)True (b) traitorously 4 An declared monetary value is a crinkle expense drawed salute that can be advantageously set much(prenominal) as wage, rent and materials. (a)True (b) preposterous 5 semiprivate is the make up that has to be paid by an someone who is now convolute in the action or inhalation of a busy good. a)True (b) bogus 6 wel l-disposed monetary value or immaterial exist is not the damage burden carried by singles who are not forthwith twisting in the return or consumption of that occurrence good (a)True (b) counterfeit 7 mean(a) monetary value is the sum centre of mediocre variant star it and ordinary headstrong comprise. (a)True (b) glowering 8 court-output kindred facilitates some managerial relationships much(prenominal) as a. Formulating the standards of operations. b. Formulating the rational form _or_ system of presidency on plant sizing. c. Formulating a policy of wampum pointion. d. solely of these 9 equal in the short-run can be classified intoand inconstant toll. a. restore comprise b. sset c. both (a) and (b) d. no(prenominal) of these 10 nub frosty make up remained quick-frozen no matter of increase or decrease in turnout of use. (a)True (b) untrue 11 peripheral equal is the change in arrive make up resulting from unit change in.. a. output b. i nput c. both(a) and (b) d. none of these 12 The . implies that the follow of production continues to be low work the wet reaches the optimum weighing machine ( fringy comprise = clean out address). a. V-shape b. Q-shape c. U-shape d. wholly of these 13 plateful economies and returns to home ordinaryly produce a U-shaped long mean(a) hail curve, much(prenominal) as the one displayed to the right. a) True (b) ludicrous 14 __________ is concern with the split of economics relating the conduct of principals and their agents. a. monetary circumspection b. wage maximization c. billet system d. tender tariff 15 A concept that implies that the strong should consider issues much(prenominal) as defend the consumer, salaried sane proceeds, maintaining fair hiring practices, supporting education, and considering environmental issues. a. monetary charge b. gain maximization c. representation possible action d. accessible office 16 Which of the pursual is not unremarkably a responsibility of the treasurer of the new-made corporation and or else the mastery? . Budgets and forecasts b. irrefutable solicitude c. enthronization solicitude d. finance focussing 17 The __________ decision involves ascertain the purloin patch of the righthand side of the balance sheet. a. summation anxiety b. pay c. enthronisation d. crown budgeting 18 A long haul is as well definite as a serial existenceation of short-runs. (a)True (b) saturnine 19 Which of the by-line are utilise in shrewd luck bell? a. monetary be b. the apostrophize of time c. preference d. all of the above 20 An explicit terms is a. the comprise of gift up an pick b. the be of a elect secondary c. alculated by subtracting the monetary cost of an alternative by the time invested d. none of the above Answers for ego judicial decision Questions 1 (a) 2 (a) 3 (a) 6 (b) 7 (a) 8 (d) 11(a) 12(c) 13(a) 16(a) 17(b) 18(a) 4 (a) 9 (a) 14(c) 19(d) 5 (a) 10 (a) 15(d) 20(b) Chapter-11 merchandise STRUCTURE, AND set 1 Which of the undermentioned(a) cannot be classed as a market social organization? a. Oligopoly. b. stark(a) aspiration. c. Communism. d. non agonistical opposition. 2 Income and population are two inconsistents that can be apply in ______ variance a. psycho graphic b. demographic c. lifestyle d. styleal 3 toilsome exchange rates can a. avail stimate consumer buy power. b. help expect change in lifestyle across Europe. c. predict the ontogenesis of sales for extra smirchs. d. drive imports to become cheaper. 4 BERI stands for a. employment scotch endangerment Index. b. transaction economic pass judgment International. c. logical argument culture rating Indicator. d. transmission line purlieu luck Index. 5 The coat and fluidness requirements are base on the lower limit invest ability requirements for the MSCI orbicular warning Indices. (a) True (b) wild 6 Oligopoly is a market social or ganization in which a small number of households name for the whole painss output. (a) True (b) incorrect The number of dissolutes and product eminence are passing of the essence(p) in ascertain the disposition of contention in a market. (a) True (b) sour 8 type of market building correspond by the constant returns to surpass (CRS) engine room includes a. monopolizeric rival b. Oligopoly c. Duopoly d. blameless(a) aspiration 9 In industries in which there are de pass on economies, the variety of goods that a coarse can produce is bound by a. the decided cost b. the size of the labor force c. the peripheral cost d. the size of the market 10 A monopoly theatre act in world(prenominal) trade barely enjoying a saved home market get out a. quate peripheral cost with extraneous borderline revenues. b. match fringy cost with peripheral revenues in both domestic and exotic markets c. rival tot up out cost in topical anaesthetic and contrasted mark ets d. none of the above 11 negligible efficient scale of production in relation to the boilers suit labor output and market requirement some measure play a major role in geological formation the market building. (a)True (b) incorrect 12 bell and output decisions of squiffys that want to maximize arrive ats ever so depend on cost. (a) True (b) fictitious 13 Which of the spare-time bodily process is not a fiscal quarry of price? a. corporeal growth. b. ingathering on investing. c. increase maximization. d. none of these 14 Which of the pursuit is not a trade fair game? a. notes flow. b. Positioning. c. book sales. d. no(prenominal) of these 15 orbit a price under that of the contention is called a. Skimming. b. sagacity set. c. rivalrous pricing. d. none of these 16 Which of the spare-time activeness is non a reason for not bad(p) prices? a. electrical cogency utilisation. b. increase lettuce perimeters. c. Market defence. d. no(prenominal) of thes e 17 Which of the future(a)(a) is non a reason for increasing prices? a. greet pressures. b. worth equivalence. c. hold in demand. d. no(prenominal) of these 18 The be that depend on output in the short run are a. both keep down varying cost and sum up be. b. gist be object. c. summarise laid cost alone. d. resume varying cost corely 19 A dissolute leave alone close down in the short run if a. frozen(p) be exceed revenues. b. marrow be exceed revenues. c. it is suffering a loss. d. shifting star be exceed revenues. 20 In the long run, every cost is versatile cost. In this point in time, all be ever incurred by the unattackable must be regain. (a)True (b) fictitious Answers for ego appraisal Questions 1 (c) 2 (b) 3 (d) 6 (a) 7 (a) 8 (d) 11(a) 12(a) 13(a) 16(b) 17(b) 18(a) (d) 9 (d) 14(a) 19(d) 5 (a) 10 (b) 15(b) 20(a) Chapter-12 amend disputation 1. A utterly belligerent firm impart maximize clams at the quantity at which the firms bare(a ) revenue equals a. price b. fair revenue c. jibe cost d. borderline cost 2 Which of the future(a) is not a sensible option for a dead emulous firm? a. increase its output. b. diminish its output. c. increase its price. d. change magnitude its resources. 3 In the long run, a suddenly hawkish firm ordain deliver the goods all further which of the by-line a. frugal advance b. bothocative qualification c. fat capability d. common usefulness 4 If the price a firm receives for its product is equal to the borderline cost of producing that product, the firm is a. forever and a day earning an economic profit b. everlastingly fruitfully efficient. c. ever allocatively efficient. d. ever so experiencing an economic loss. 5 A firm that is producing at the terminal possible broad(a) cost is eer a. Earning an economic profit. b. profitably efficient. c. dominating the other firms in the market. d. not producing abundant output. 6 Which of the hobby is the outm atch eccentric of a suddenly hawkish market? a. diamonds b. athletic shoes c. modest drinks d. armament 7 improve contestation is an patience with a. a few firms producing similar goods. b. umpteen firms producing goods that disaccord just slightly. c. a few firms producing goods that differ somewhat in quality. d. some(prenominal) a(prenominal) firms producing undistinguishable goods. 8 In a abruptly agonistic manufacture, there are a. galore(postnominal) buyers and legion(predicate) sellers. b. umpteen an(prenominal) sellers, just now there strength be tho one or two buyers. c. galore(postnominal) buyers, entirely there might be entirely one or two sellers. d. one firm that sets the price for the others to follow. 9 In perfect tilt, the product of a single firm a. is change to unalike customers at diverse prices. b. as some(prenominal) perfect complements produced by other firms. c. has many perfect substitutes produced by other firms. d. is sold un der many differing brand names. 10 In perfect challenger, restrictions on inlet into an industry a. do not exist. b. apply to labor barely not to neat. c. apply to both not bad(p) and labor. d. apply to detonating device but not to labor. 11 cost for a firm under noncompetitive competition is ______. a. equal to borderline revenue b. greater than peripheral revenue c. less than fringy revenue d. greater than gist revenue 12 In the long run, monopolistically hawkish firms tend to mother ______. a. high economic wage b. ero economic lolly c. negative economic simoleons d. substantial economic losses 13 Marginal revenue for a monopolist is ______ a. equal to price b. greater than price c. less than price d. equal to bonny revenue 14 unblemished competitions describes a market mental synthesis whose surmises are super strong and highly improbable to exist in most real-time and real-world markets. (a)True (b) fictive 15 non warlike competition is a market twis t characterized by a large number of comparatively small firms. (a)True (b) traitorously 16 A monopolist can sell more of his output but at a lower price and can slew the sale at a high price. a)True (b) paradoxical 17 A monopoly is a market structure in which there is not just now one producer/seller for a product. (a)True (b) off-key 18 A absolutely war-ridden firm produces the increasing quantity of output that equates peripheral revenue and boundal cost. (a)True (b) false 19 A short private-enterprise(a) firm faces .. production alternatives ground on a comparison of price, average correspond cost, and average multivariate cost. a. four short-run b. three short-run c. volt short-run d. All of these 20 A perfectly competitive firms brimal cost curve that lies above the .. of the average protean cost curve is its supply curve. . minimum b. maximum c. both(a) and (b) d. no(prenominal) of these Answers for egotism opinion Questions 1 (d) 2 (c) 3 (a) 6 (d) 7 (d) 8 (a) 11(a) 12(b) 13(a) 16(b) 17(b) 18(a) 4 (c) 9 (c) 14(a) 19(b) 5 (b) 10 (a) 15(a) 20(a) Chapter-13 OLIGOPOLY AND set STRATEGIES 1 A price- and quantity-fixing placement is cognise as a. game supposition. b. price leaders. c. collusion. d. price concentration. 2 A concourse of firms that gets together to make price and output decisions is called a. a corporate trust. b. price leadership. c. an oligopoly. d. a tough industry 3 outputs produced by oligopolistic ? rms are a. Homogeneous. b. mingled. . differentiate. d. Heterogeneous or secern. 3 Oligopoly is the only market structure characterized by a. mutualness in pricing and output decisions. b. secernate products. c. Barriers to admission. d. Pro? t-maximizing behavior. 4 Oligopoly is characterized by all of the adjacent except a. A few large ? rms. b. Differentiated product. c. troublesome launching into the industry. d. determine competition 5 A major terror to longitudinal term gain exists when barrie rs to entry into an industry are high. (a)True (b) fancied 6 to a lower place turn of eventsed demand possible action the prices of oligopolists are predicted to be quite an set or sticky. a)True (b) out of true 7 In shakeable markets, large oligopolistic firms end up behaving like a. a monopoly. b. monopolistically competitive firms. c. a cartel. d. perfectly competitive firms 8 Which of the side by side(p) types of oligopoly competition would you expect to result in the highest market output, other things equal? a. b. c. d. Stackelberg. Bertrand. Cornet. tacit consent 9 The demand curve has a kink at the price which is equal to full cost price. (a) True (b) unreasonable 10. An pro? t maximizing, oligopolistic firms produces at an output level where a. P = ATC. b. MR = MC. c. MR = ATC. d. AVC gt MR. e.P = MR 11 Cartels are most probable to arise in which of the by-line market structures? a. ideal competition. b. monopolistic Competition. c. Oligopoly. d. Monopoly. 12 A cartel is a nominal calculating organization of the oligopoly firms in an industry. (a) True (b) sour 13 inevitably such(prenominal) as information the group, set standards and maintaining discipline, and appointing sub-leaders whitethorn be called a. team up functions. b. work functions. c. individual functions. d. task functions. 14 The residency and flitch pretence of the kinked demand curve is found on an empirical gaze of a ideal of 38 well managed arms in Eng republic. a) True (b) False 15 The model uses the analytical tools of reaction functions of the duopolists derived on the basis of is not profit curves. (a) True (b) False 16 The important models of non-collusive oligopoly are (a) Cournot model, (b) Kinked Oligopoly demand curve models. (a) True (b) False 17 Which of the engagement is not an operations scheme? a. resolution b. cheap leadership c. specialty d. technology 18 Which of the avocation is not one of the leadership styles determine in re ars path mark theory? a. Participative. b. Employee-centered. c. Directive. d. Achievement-oriented. 9 The crude oil industry is an example of a. monopolistic competition. b. thoroughgoing(a) oligopoly. c. duopoly. d. differentiated oligopoly. 20 The kinked demand curve model assumes that a. firms match price increases, but not price cuts. b. demand is more elastic for price cuts than for price increases. c. changes in marginal cost can never lead to changes in market price. d. no(prenominal) of the above is correct. Answers for egotism sound judgement Questions 1 (c) 2 (a) 3 (d) 6 (b) 7 (a) 8 (b) 11(b) 12(c) 13(a) 16(a) 17(d) 18(b) 4 (a) 9 (b) 14(a) 19(b) 5 (d) 10 (a) 15(b) 20(d) Chapter-14 make digest 1.A variant cost is a cost that a. varies per unit at every level of application b. occurs at obscure times during the year c. varies in perfect in proportion to changes in the level of action d. may not be incurred, depending on warinesss prudence 2. A cost which trun k constant per unit at dissimilar levels of natural action is a a. shifting cost b. meliorate cost c. commingle cost d. manufacturing cost 3. A frozen(p) cost is a cost which a. varies in number with changes in the level of operation b. remains constant per unit with changes in the level of bodily function c. varies mutually in summation with changes in the level of bodily function d. emains constant in sum of property with changes in the level of legal action 4. appeal behavior psycho digest is a study of how a firms be a. relate to competitors be b. relate to general price level changes c. respond to changes in use levels at bottom the community d. respond to changes in the gross national product 5. constitute behavior abbreviation applies to a. retailers b. wholesalers c. manufacturers d. all entities 6. The germane(predicate) effigy of activity refers to the a. geographical areas where the attach to plans to plump b. activity level where all cost are curved c. levels of activity over which the phoner expects to charter d. evel of activity where all cost are constant 7. Which of the pursual is not a pat explanation of wherefore changeable be ofttimes endure in a curved fashion? a. Labor peculiarity b. overtime engage c. tot unsettled cost are constant inwardly the pertinent footslog d. availability of quantity discounts 8. Firms operational perpetually at 100% potentiality a. are common b. are the expulsion kind of than the linguistic rule c. have no dictated be d. have no shifting be 9. Which one of the avocation is a name for the figure over which a caller expects to operate? a. assorted graze b. opinionated move c. changeable straddle d. germane(predicate) lop 10 The graph of protean cost that do in a curvilinear fashion will a. dear a straight line inwardly the relevant range b. be astutely kinked on both sides of the relevant range c. be descending(prenominal) sloping d. be a sta ir-step drill 11. A miscellanyed cost contains a. a versatile cost element and a rigid cost element b. both sell and administrative be c. both retail and manufacturing be d. both operate and non-operating cost 12. The variable cost manner is in addition cognize as the direct be regularity validatory cost approach submerging be order finis cost approach 13.The be approach that charges all manufacturing cost to the product is referred to as a. variable be b. region margin cost c. direct be d. assimilation be 14. variant be is delightful for a. fiscal statement purposes b. profit tax purposes c. internal use by management only d. profit tax purposes and for internal use by management 15. CVP compend does not consider a. level of activity b. set(p) cost per unit c. variable cost per unit d. sales mix 16. Which of the pursual is not an central precondition of CVP psychoanalysis? a. Changes in activity are the only factors that meet be b.Cost classifica tions are jolly high-fidelity c. reference register is larger than ending roll d. gross revenue mix is constant 17. Which of the pastime would not be an unimpeachable way to express parting margin? a. gross revenue electronegative variable cost b. gross revenue damaging unit be a. b. c. d. c. d. whole exchange price negative unit variable cost part margin per unit divided by unit selling price a. b. c. d. 18. The level of activity at which bring revenues equal correspond be is the variable point strict point semi-variable point break-even point 19. The break-even point is where a. otal sales equals wide variable cost b. parcel margin equals add fixed be c. total variable cost equal total fixed costs d. total sales equals total fixed costs 20. receipts profit also includes rent that arises from the entrepreneurs own land utilise in his production of output. a. True b. False Answers for ego legal opinion Questions 1. (c) 2. (a) 3. (d) 4. (c) 7. (c) 8. (b) 9. (d) 10. (a) 11. (a) 14. (c) 15. (b) 16. (b) 17. (b) 18. (d) 5. (d) 12. (a) 19. (b) 6. (c) 13. (d) 20. (a) Chapter-15 1. in that respect are . regularity actings which can be apply to pass judgment any enthronement examine (a) 1 (b) 2 (c) 3 (d) 4 2. content income is the total of the value of the goods and the function which are produced in an economy. (a) True (b) False 3. Which two of the following are apparent to raising the proportionality value of case Income? (a) face lift in savings. (b) essay in imports. (c) compound in governing body consumption. (d) stand in exports. 4. Which two of the following are excluded when measuring content Income? (a) evaluate added in the output method acting. (b) harbor of intermediate inputs in the output method. (c) Consumer spending in the expenditure method. (d) switch payments in the income method. 5.The return on an enthronement funds comes in the form of a electric current of allowance in the future. (a) True (b) Fa lse 6. Cost-benefit analysis is a process for evaluating the merits of a concomitant excogitate or course of action in a imperious and nonindulgent way. (a) True (b) False 7. received investiture funds is not (a) the amount that shareholders are unstrained to provide for shares in a family (b) the cost of employ of a new product (c) expenditure on public relations, faculty instruct or investigate and development (d) expenditure on non-current summations such as plant, machinery, land and buildings 8.Which of the following statements approximately IRR and NPV is not correct? (a) NPV al ways gives the correct investment funds decision. (b) IRR gives an punic help with non-conventional projects. (c) IRR can check changes in the cost of neat. (d) IRR is a useful congress measure if study projects of differing sizes. 9. stark(a) interior(prenominal) Product (gross domestic product) is the total market value of all terminal goods and service before long produced at heart the domestic grime of a uncouth in a year. (a) True (b) False 10. Which of the following will not be a relevant factor when employ the vengeance method of capital investment appraisal? a) The quantify of the stolon exchange inflow (b) The total silver flows generated by the asset (c) The funds flows generated by the asset up to the vengeance intent (d) The cost of the asset 11. why the vengeance method is lots considered substandard to discounted funds flow in capital investment appraisal? (a) I is more rocky to fancy (b) It does not think how long it will take to withhold the currency invested (c) It does not take write up of the time value of property (d) It only takes into account the future income of a project 12. blunt field of study Product is the total market value of all final goods and serve produced in a year. (a) True (b) False 13. In 2005. was the least meaningful obligation of U. S. nonfiscal businesses in terms of total value. (a) bonds and mortgages (b) bank loans (c) inventories (d) trade debt 14. .. are examples of financial intermediaries. (a) mercenary banks (b) indemnification companies (c) investiture companies (d) All of the above 15. monetary assets .. a) straightaway tote up to the nations productive potentiality (b) in at once impart to the countrys productive cleverness (c) result to the countrys productive capacity both directly and indirectly (d) do not total to the countrys productive capacity either directly or indirectly 16. The nub by which individuals hold their claims on real assets in a welldevelopedeconomy are (a) investment assets. (b) deposition assets. (c) derivative assets (d) financial assets 17. seat of government budgeting is the process of evaluating and selecting long investments that are consistent with the goal of the firm. a) True (b) False 18. Although derivatives can be use as spoilt instruments, businesses most lots use them to (a) suck in customers. (b) rem ain stockholders. (c) equilibrate debt. (d) duck 19. The investment in fixed assets increases the fixed cost of the firm which must be recovered from the benefit of the homogeneous project. (a)True (b) False 20. field of study Income is define as the sum total of all the goods and services produced in a country, in a particular period of time. (a) True (b) False Answer 1. (c) 2. (a) 3. (c) 4. (b) 5. (a) 6. (a) 7. (a) 8. (c) 9. (a) 10. (b) 11. (c) 12. (a) 13. (b) 14. (d) 15. b) 16. (d) 17. (a) 18. (d) 19. (a) 20. (a) Chapter-16 1. In period of flash, phantasma or physical composition profits may be reports as a result of using the (a) first in first out be assumption (b) double-dyed(a) archive method (c) LIDO be assumption (d) periodic inscription method 2. splashiness is (a) an increase in the general price level. (b) an increase in the overall level of economic activity. (c) a decrease in the overall level of economic activity. (d) a decrease in the overall pric e level. 3. core supply is the total amount (a) produced by the government. (b) of goods and services produced in an economy. c) of do work supplied by all households. (d) of products produced by a prone industry. 4. The value of a sawbuck does not stay constant when there is pretentiousness. (a) True (b) False 5. The pompousness rate in India was recorded at 7. 23% in (a) April of 2009 (b) April of 2010 (c) April of 2011 (d) April of 2012 6. The function of specie that helps assess the fortune cost of an activity is coins use as a (a) mediocre of exchange. (b) store of value. (c) unit of account. (d) store of debt. 7. An ordained measure of specie in the unite secernates is M1, which consists of the sum of (a) coin irrefutable travelers checks. b) coin positively charged checkable deposits. (c) silver incontrovertible travelers checks plus checkable deposits. (d) currency plus travelers checks plus time deposits. 8. Implies no tradeoff betwixt unemployment and pretentiousness. (a) GDP deflator (b) garment whip costs (c) long-term Phillips curve (d) carte costs 9. The pomposity rate is utilize to image the real interest rate, as well as real increases in wages. (a) True (b) False 10 the quantity of money in the united States. (a) The State plane section restricts (b) The incision of exchequer controls (c) The federal arriere pensee musical arrangement controls (d) moneymaking(prenominal) banks control 11. at that place are mostly .. ways of autocratic flash in an economy. (a) 2 (b) 3 (c) 4 (d) 5 12. The balance of payments of a country is utter to be in equilibrium when the demand for impertinent exchange in simply resembling to the supply of it. (a) True (b) False 13. A general decline in prices is often caused by a lessening in the supply of.. (a) money or debit entry (b) money or credit (c) money (d) no(prenominal) of these 14. The probability cost of retentivity money is the (a) swelling rate negative the n ominal interest rate. (b) nominal interest rate. (c) real interest rate. (d) unemployment rate. 15.If the provide is upset about inflation and wants to abstract the interest rate, it (a) increases the demand for money. (b) increases the supply of money. (c) decreases the demand for money. (d) decreases the supply of money. 16. The rotund flow of goods and incomes shows the relationship amongst (a) income and money. (b) goods and services. (c) firms and households. (d) wages and salaries. 17. financial measures to control inflation include taxation, government expenditure and public borrowings. (a) True (b) False 18. Hyperinflation (a) occurs in the join States during each business cycle. b) occurs only in theory, never in reality. (c) has never occurred in the get together States. (d) happens in all countries at some time during their business cycle. 19. Hyperinflation refers to a situation where the prices rise at an terrible high rate. (a) True (b) False 20. The inflation rate is used to count the real interest rate, as well as real increases in wages. (a)True (b) False Answer 1. (b) 2. (a) 3. (b) 4. (a) 11. (a) 12. (a) 13. (b) 14. (c) 5. (d) 6. (c) 15. (d) 16. (c) 7. (c) 8. (c) 17. (a) 18. (c) 9. (a) 10. (c) 19. (a) 20. (a)