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970+ Fundamentals of Economics and Management Solved MCQs

These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Cost Accounting .

451.

Assume Samantha likes hot dogs and hamburgers equally, and the price of hamburgers (a normal good) declines. She will most likely purchase more hamburgers; this is

A. a reflection of the income effect
B. a reflection the substitution effect
C. a reflection of the income and substitution effects
D. None of above
Answer» B. a reflection the substitution effect
452.

Which of the following would not be considered a normal good?

A. Steaks
B. flour
C. . oranges
D. meals at restaurants
Answer» B. flour
453.

A typical demand curve will normally have a

A. positive slope
B. horizontal slope
C. vertical slope
D. negative slope
Answer» D. negative slope
454.

Which of the following would not be considered compliments?

A. shoes and socks
B. tennis racquet and tennis balls
C. Coke and Pepsi
D. automobiles and gasoline
Answer» C. Coke and Pepsi
455.

Which of the following would not be considered substitutes?

A. butter and margarine
B. Coke and Pepsi
C. Fords and Chevrolets
D. Hamburgers and french fries
Answer» D. Hamburgers and french fries
456.

The price of Ford automobiles increases and the price of Chevrolets remains constant, the demand for Chevrolets will

A. increase
B. decrease
C. decrease then increase
D. increase then decrease
Answer» A. increase
457.

An improvement in technology would shift

A. the demand curve inward
B. the demand curve outward
C. the supply curve inward
D. the supply curve outward
Answer» D. the supply curve outward
458.

A shift outward in supply curve will result in equilibrium price

A. increasing and quantity increasing
B. increasing and quantity decreasing
C. decreasing and quantity increasing
D. decreasing and quantity decreasing
Answer» C. decreasing and quantity increasing
459.

A reduction in the number of producers will result in equilibrium price

A. increasing and quantity increasing
B. increasing and quantity decreasing
C. decreasing and quantity increasing
D. decreasing and quantity decreasing
Answer» B. increasing and quantity decreasing
460.

As a certain type of clothing becomes more fashionable, we would expect its equilibrium price

A. to decrease and quantity will remain constant
B. and quantity will decrease
C. to increase and quantity to decrease
D. and quantity to increase
Answer» D. and quantity to increase
461.

If supply and demand both shift outward, but demand shifts outward more than supply, the equilibrium price

A. will increase and quantity will increase
B. will increase and quantity will decrease
C. will decrease and quantity will decrease
D. will decrease and quantity will increase
Answer» A. will increase and quantity will increase
462.

At Christmas time often a certain toy or doll becomes increasingly popular; this is primarily due to a(n)

A. Surplus
B. increase in demand
C. increase in supply
D. decrease in supply
Answer» B. increase in demand
463.

Which of the following is correct for a price floor set above the equilibrium price?

A. quantity supplied is less than quantity demanded at the set price.
B. at the set price there will be a shortage
C. quantity supplied exceeds quantity demanded at the set price
D. None of above
Answer» C. quantity supplied exceeds quantity demanded at the set price
464.

Which of the following is correct for the price ceiling which is set below the market‟s equilibrium price?

A. quantity demanded exceeds quantity supplied at the set price
B. quantity demanded is less than quantity supplied at the set price
C. at the set price there is a surplus
D. None of above
Answer» A. quantity demanded exceeds quantity supplied at the set price
465.

What will happen to the equilibrium price and quantity of peanut butter if peanuts increase in price and the price of jelly decreases?

A. the equilibrium price and quantity increase
B. the equilibrium price will fall and the equilibrium quantity will be indeterminate
C. the equilibrium price will rise and the equilibrium quantity will be indeterminate
D. None of above
Answer» C. the equilibrium price will rise and the equilibrium quantity will be indeterminate
466.

Which of the following would not reduce the transaction cost in a market?

A. a real estate agent, when buying a house
B. a stock broker, when purchasing stock
C. a full page newspaper ad to sell your used lawn mower
D. a farmer’s market for fresh produce
Answer» C. a full page newspaper ad to sell your used lawn mower
467.

Which Indian State has favourable sex ratio?

A. Kerala
B. Uttar Pradesh
C. Haryana
D. Bihar
Answer» A. Kerala
468.

Green revolution is also known as

A. Wheat revolution
B. Milk revolution
C. Grain revolution
D. Chipko movement
Answer» A. Wheat revolution
469.

Green revolution was successful because of use of ……. Seeds

A. HYV
B. Imported
C. Australian
D. Local seeds
Answer» A. HYV
470.

BSNL stands for

A. British Sanchar Nigam Lt(d)
B. Bidesh Sanchar Nigam Lt(d)
C. Bharat Sanchar Nigam Lt(d)
D. Bhartiya Swadeshi Nigam Lt(d)
Answer» D. Bhartiya Swadeshi Nigam Lt(d)
471.

Regulatory framework for Telecom sector is provided by

A. MTNL
B. VANL
C. BSNL
D. TRAI
Answer» D. TRAI
472.

TRAI stands for

A. Trans Communication Regulatory Authority of India
B. Telecom Regulatory Authority of India
C. Telegraphic Regulatory Authority of India
D. Traffic Regulatory Authority of Indi(a)
Answer» B. Telecom Regulatory Authority of India
473.

Sarvya Siksha Abhiyan policy was declared in

A. 2004
B. 2001
C. 1999
D. 2003
Answer» B. 2001
474.

Disguised unemployment is mainly due to

A. Under employment
B. Seasonal nature of work
C. Strike and lock-out
D. Structural changes in the economy
Answer» A. Under employment
475.

Disguised unemployment is mainly found in

A. Urban areas
B. Rural areas
C. Small scale sector
D. Highly qualified work force
Answer» B. Rural areas
476.

Disguised unemployment refers to the situation when

A. Marginal Productivity of the surplus workers is zero
B. Marginal productivity of the surplus workers is less than average productivity
C. Marginal productivity of the surplus workers is falling sharply
D. Marginal productivity of the surplus workers is falling sharply
Answer» A. Marginal Productivity of the surplus workers is zero
477.

Structural unemployment is mainly due to

A. Structural changes in the economy
B. Technological development
C. Growth in GDP
D. Population explosion.
Answer» A. Structural changes in the economy
478.

Which of the following is a cause of frictional unemployment?

A. Non-availability of work due to strike and lock-out.
B. Temporary unemployment due to change over in jo(b)
C. Both
D. None
Answer» C. Both
479.

Which of the following is not a cause of unemployment in India?

A. Growing population
B. Lack of employment opportunity
C. Inappropriate education system
D. Liberalization
Answer» D. Liberalization
480.

Labour cost consists of

A. All people officially employed or unemployed
B. All people over the age of 18 but less than 58 years of age
C. All youth having passed matriculate examination
D. All the three
Answer» A. All people officially employed or unemployed
481.

The type of unemployment that includes those persons who are unemployed for an intervening period of change over in job for better job is known as

A. Seasonal unemployment
B. Voluntary unemployment
C. Frictional unemployment
D. Technical unemployment
Answer» C. Frictional unemployment
482.

Which of these measures would not reduce natural rate of unemployment?

A. Creation of more jobs
B. Reducing the age of superannuation
C. Hike in unemployment allowance
D. Employment oriented education system
Answer» C. Hike in unemployment allowance
483.

Unemployment due to mismatch between skill possessed and present available jobs

A. Cyclical unemployment
B. Structural unemployment
C. Frictional unemployment
D. Seasonal unemployment
Answer» B. Structural unemployment
484.

In an agricultural family all the family members are working the farmland of the family. Due to addition of two more person in the family they are also working in the farmland of the family with no additional increase in farm output. This type of unemployment is known as

A. Cyclical unemployment
B. Disguised unemployment
C. Frictional unemployment
D. Seasonal unemployment
Answer» B. Disguised unemployment
485.

Which of these is/are the feature of an underdeveloped economy?

A. Greater inequalities
B. High incidence of unemployment
C. Orthodox means of production
D. All the three
Answer» D. All the three
486.

Which of these is primary sector.

A. Communication
B. Banking
C. Construction
D. Poultry firming
Answer» D. Poultry firming
487.

Which of these is a secondary sector

A. Manufacturing sector
B. Transport
C. Forestry
D. Animal husbandry
Answer» A. Manufacturing sector
488.

Which of the following is not an economic activity?

A. Painting for self use
B. Maintenance of Public Park by Local administration
C. Painting for commercial use
D. Running an Academic school
Answer» A. Painting for self use
489.

……………. States that rapid growth of per capita income will be associated with a reduction in poverty.

A. The trickle down theory
B. Multiplier theory
C. Malthus population theory
D. None
Answer» A. The trickle down theory
490.

If no one is aware of conflict, it is generally agreed that:

A. employee-employer relations will be goo(d)
B. conflict is subversive.
C. no conflict exists.
D. conflict is inevitable.
Answer» C. no conflict exists.
491.

Which of the following is not a requirement in your text‟s definition of conflict?

A. must be perceived
B. overt acts only
C. incompatibility
D. opposition
Answer» B. overt acts only
492.

_____ is a process that begins when one party perceives that another party has negatively affected, or is about to negatively affect, something that the first party cares about.

A. Politics
B. Consideration
C. Power
D. Conflict
Answer» D. Conflict
493.

Which of the following is not one of the views of conflict?

A. the traditional view
B. the human relations view
C. the interactionist view
D. the inevitability view
Answer» D. the inevitability view
494.

The traditional view of conflict argues that conflict:

A. cannot be avoide(d)
B. indicates a malfunctioning within the group.
C. is good for a group.
D. improves productivity.
Answer» B. indicates a malfunctioning within the group.
495.

The traditional view of conflict is:

A. the belief that all conflict is harmful and must be avoide(d)
B. the belief that conflict is a natural and inevitable outcome in any group.
C. the belief that conflict is not only a positive force in a group but that it is absolutely necessary for a group to perform effectively.
D. no generalization about conflict is appropriate.
Answer» A. the belief that all conflict is harmful and must be avoide(d)
496.

Which one of the following is not part of the traditional view of conflict?

A. inevitable
B. must be avoided
C. indicates malfunctioning
D. harmful
Answer» A. inevitable
497.

Which one of the following views on conflict dominates in most actual groups and organizations?

A. human relations
B. interactionist
C. traditional
D. functional
Answer» C. traditional
498.

The _____ view of conflict argues that conflict is a natural and inevitable outcome in any group.

A. human relations
B. interactionist
C. traditional
D. functional
Answer» A. human relations
499.

The _____ view of conflict argues that some conflict is absolutely necessary for a group to perform effectively.

A. human relations
B. interactionist
C. traditional
D. functional
Answer» B. interactionist
500.

The human relations view of conflict argues that conflict is:

A. an inevitable outcome in any group.
B. always a positive force in determining group performance.
C. always a negative force in determining group performance.
D. necessary for effective group performance.
Answer» A. an inevitable outcome in any group.

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