Managerial Economics Quiz - 7

1. Market price fluctuates very often.
[A]TRUE
[B]FALSE



2. Market system or market economy suffers from time to time from economic depressions.
[A]TRUE
[B]FALSE



3. Measurement of profit becomes difficult because of the difficulty involved in the calculation of depreciation.
[A]TRUE
[B]FALSE



4. Micro-economics is primarily concerned with the problem of what, how and for whom to produce?
[A]TRUE
[B]FALSE



5. Micro-economics is primarily concerned with the problem of what, how and for whom to produce?
[A]TRUE
[B]FALSE



6. Micro-economics theory studies how a free enterprise economy determines the price of goods and services.
[A]TRUE
[B]FALSE



7. One of the most disturbing characteristics of free – market economies is that waste of resources some times occurs
[A]TRUE
[B]FALSE



8. Poverty is the root cause of Economic problem.
[A]TRUE
[B]FALSE



9. Price discrimination is possible in perfect competition
[A]TRUE
[B]FALSE



10. Price effect is the result of in reality substitution
[A]TRUE
[B]FALSE



11. Price is the, only determinant of demand
[A]TRUE
[B]FALSE



12. Private profit motive is an essential feature of Capitalism.
[A]TRUE
[B]FALSE



13. Professional management signifies separation of ownership and management.
[A]TRUE
[B]FALSE



14. Profit should be large enough for a plough – back for business expansion.
[A]TRUE
[B]FALSE



15. Public corporations are created by special acts of the parliament.
[A]TRUE
[B]FALSE