Managerial Economics Quiz - 2

1. Any point on the production possibility curve indicates under utilization of resources
[A]TRUE
[B]FALSE



2. Average Product is calculated by dividing Total product by variable Factor Units.
[A]TRUE
[B]FALSE



3. Bargaining is one of the remedies of corrective action.
[A]TRUE
[B]FALSE



4. Business families have started spending more on research and development.
[A]TRUE
[B]FALSE



5. Capitalism emphasis more on turnover rather than creating profits
[A]TRUE
[B]FALSE



6. Changes in the value of money because of inflation make inventory valuation of finished products difficult.
[A]TRUE
[B]FALSE



7. Consumer’s protection involves protection to the consumers from unfair trade practices.
[A]TRUE
[B]FALSE



8. Contraction of supply is traced by the downward movement on the supply curve.
[A]TRUE
[B]FALSE



9. Cyclical fluctuations are recurrent in nature
[A]TRUE
[B]FALSE



10. Demand and desire are one and the same.
[A]TRUE
[B]FALSE



11. Demand curve slopes downwards from left to right.
[A]TRUE
[B]FALSE



12. Demand curve slopes upwards from left to right.
[A]TRUE
[B]FALSE



13. Demand for food grains is inelastic but the demand for wheat is elastic.
[A]TRUE
[B]FALSE



14. Demand for luxury goods is inelastic.
[A]TRUE
[B]FALSE



15. Demand forecasts are of no use to a firm, for long term investment decision.
[A]TRUE
[B]FALSE