Managerial Economics (ECO404)

1. Which of the following shows accounting profit of the firm?

   1. Total revenue + explicit or accounting costs of production
   2. Total revenue - explicit or accounting costs of production
   3. Total revenue / explicit or accounting costs of production
   4. Total revenue × explicit or accounting costs of production

2. The quantity of a good or service that producers are willing and able to sell during a certain period of time is known as:

   1. Demand
   2. Supply
   3. Market demand
   4. Market supply

3. When price of any commodity decreases, consumer’s purchasing power increases. This is known as:

   1. Income effect
   2. Price effect
   3. Substitution effect
   4. Real balance effect

4. Fluctuations should be random. It is the requirement of which of the following technique(s)?

   1. Moving average technique only
   2. Exponential smoothing technique only
   3. Both moving average and exponential techniques
   4. Barometric technique

5. The Isoquants have a shape of curvature for the inputs which are:

   1. Perfect substitutes
   2. Imperfect substitutes
   3. Perfect compliments
   4. Imperfect compliments

6. Consider the following equation of time series data: Yt = f (Tt, Ct, St, Rt) ________ shows trend component at time t.

   1. Tt
   2. Ct
   3. St
   4. Rt

7. Tax rates are determined by the government in:

   1. Fiscal policy
   2. Monetary policy
   3. Trade policy
   4. Exchange rate policy

8. Periods of economic expansion and contraction in an economy is named as:

   1. Business cycle
   2. Life cycle
   3. Poverty cycle
   4. Unemployment cycle

9. Both moving average and exponential techniques require:

   1. Random fluctuations
   2. Seasonal fluctuations
   3. Cyclical fluctuations
   4. No fluctuations

10. Which of the following statements is TRUE?

    1. The sum of the coefficient of determination (R2) is the absolute value of the coefficient of correlation r
    2. The square root of the coefficient of determination (R2) is the absolute value of the coefficient of correlation r
    3. The difference of the coefficient of determination (R2) is the absolute value of the coefficient of correlation r
    4. None of the given statements is true

11. To avoid the problem of bandwagon effect, ___________ method of forecasting is used.

    1. Personal insight
    2. Panel consensus
    3. Delphi
    4. Time series

12. A function that relates inputs with outputs is called:

    1. Production function
    2. Consumption function
    3. Investment function
    4. Demand function

13. Which of the following is based on the data and equation?

    1. Qualitative forecasting
    2. Quantitative forecasting
    3. Regression analysis
    4. Time series analysis

14. Which of the following is (are) the assumption of regression analysis?

    1. Homoscedasticity
    2. No autocorrelation
    3. No perfect multicollinearity
    4. All of the given options

15. Two products are said to be substitutes if cross price elasticity of demand between these two products is:

    1. Positive
    2. Negative
    3. Zero
    4. Infinite

16. Y = a + bX + e In this regression equation, "X" is:

    1. Dependent variable
    2. Independent variable
    3. Slack variable
    4. Random variable

17. Given the Cobb Douglas production function: Q = A La Kb There will be constant returns to scale if:

    1. a + b > 1
    2. a + b < 1
    3. a + b = 1
    4. a + b = 0

18. The total cost (TC) function is given as: TC = 200 + 80Q. What is the variable cost?

    1. 80Q
    2. 200
    3. 350
    4. 200

Select a course code for Objective Questions:

ACC311 ACC501 BIF101 BIF401 BIF501 BIO101 BIO201 BIO202 BIO203 BIO204 BIO301 BIO302 BIO303 BIO401 BIO503 BNK603 BT101 BT201 BT301 BT302 BT401 BT402 BT403 BT404 BT405 BT406 BT501 BT504 BT505 BT604 CHE201 CHE301 CS001 CS101 CS201 CS202 CS204 CS301 CS302 CS304 CS311 CS401 CS402 CS403 CS408 CS501 CS502 CS504 CS506 CS508 CS601 CS602 CS604 CS605 CS607 CS609 CS610 CS614 CS707 CS710 ECO401 ECO402 ECO403 ECO404 EDU302 EDU401 EDU402 EDU501 EDU601 ENG101 ENG201 ENG301 ENG501 FIN611 FIN624 FIN625 ISL201 IT430 MCM101 MCM301 MGMT623 MGT101 MGT211 MGT301 MGT401 MGT402 MGT501 MGT502 MGT503 MGT510 MGT601 MGT603 MKT501 MKT610 MKT630 MTH101 MTH202 MTH302 MTH501 MTH601 MTH634 PAK301 PHY101 PHY301 PSY101 PSY403 PSY502 PSY512 SOC101 SOC301 SOC401 STA301 STA630 STA641 ZOO102 ZOO401 ZOO501 ZOO502 ZOO503 ZOO504 ZOO505 ZOO506 ZOO510 ZOO630

Select a course code for Subjective Questions:

ACC311 CS001 CS101 CS201 CS301 CS607 CS701 CS702 CS703 CS704 CS707 CS708 CS710 CS711 CS718 CS721 CS724 ECO401 ECO403 ENG101 ENG301 MGT703 MTH501 STA301