2956 + Mcqs in Economics McqOptions

1.	In economic theory, in the short run all the cost are……………
A.	Fixed
B.	Variable
C.	Controllable
D.	Semi variable
Answer» B. Variable

Discussion

2.	Which of the following problems is most likely to occur in a matrix structure?
A.	Decreased employee motivation
B.	Employees receiving conflicting directives
C.	Decreased response to environmental change
D.	Decreased coordination
Answer» C. Decreased response to environmental change

Discussion

3.	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» D. functional

Discussion

4.	Management by objectives emphasizes participatively setting goals that are:
A.	General in nature.
B.	Easy to attain.
C.	Easy to create and develop.
D.	Tangible, verifiable, and measurable.
Answer» E.

Discussion

5.	The output and cost pattern of a product are given below Output (q) 0 1 2 3 4 5 Total in `Cost (Tc) 35 42 53 08 75 88 From the above details what is the fixed cost or sunk cost
A.	`25
B.	`17.5
C.	`22
D.	`35
Answer» B. `17.5

Discussion

6.	Which of the following is a stage in the conflict process?
A.	functional conflict
B.	dysfunctional conflict
C.	hindering conflict
D.	incompatibility
Answer» E.

Discussion

7.	Which of the following trends is gaining momentum?
A.	Using less departmentalization
B.	Geographical departmentalization
C.	Using only one type of departmentalization
D.	Using more customer departmentalization
Answer» E.

Discussion

8.	____________ refers to the network of personal and social relations that is developed spontaneouslybetween people associated with each other.
A.	Formal organization
B.	Informal organization
C.	Business organization
D.	Government organization
Answer» C. Business organization

Discussion

9.	Marginal product is………….
A.	Rate at which total production changes with change in variable input
B.	Rate at which total production changes with change in total cost
C.	Rate at which total production changes with change in fixed cost
D.	None
Answer» B. Rate at which total production changes with change in total cost

Discussion

10.	Budgeting, paying the bills, and collection of funds are activities associated with the
A.	management function
B.	finance/accounting function
C.	production/operations function
D.	staffing function
Answer» C. production/operations function

Discussion

11.	GDP is defined as
A.	The market value of all goods and services produced in the domestic economy during the year
B.	Current value of all the capital goods produced in the country.
C.	Sum of goods and services exported during the year.
D.	All the capital goods and consumable goods produced and sold during the year
Answer» B. Current value of all the capital goods produced in the country.

Discussion

12.	The first stage of the conflict process is called:
A.	cognition and personalization.
B.	behavior.
C.	potential opposition or incompatibility.
D.	outcomes.
Answer» D. outcomes.

Discussion

13.	In our model of decision making under different conditions, what is the difference between risk and uncertainty?
A.	Under risk, there is a well defined problem; under uncertainty, the definition is unclear
B.	Under risk, choices are clear and the chances of different outcomes can be measured; under uncertainty, neither applies.
C.	Under risk, probabilities can be measured; under uncertainty, they cannot.
D.	Under risk, information is reliable; under uncertainty, it is not.
Answer» C. Under risk, probabilities can be measured; under uncertainty, they cannot.

Discussion

14.	According to Abraham Maslow, the most elevated type of need is _____.
A.	Self-actualization
B.	Physiological
C.	Esteem
D.	Safety
Answer» B. Physiological

Discussion

15.	In question No. 127 the optimum level of output of the firm is
A.	355 units
B.	350
C.	340 hrs
D.	300
Answer» B. 350

Discussion

16.	Tannenbaum and Schmidt‟s continuum of possible leadership behaviour identifies four main styles ofleadership by the manager. What are they?
A.	Commands, helps, joins and leads
B.	Tells, sells, consults and joins
C.	Tells, helps, joins and leads
D.	Commands, sells, consults and resists
Answer» C. Tells, helps, joins and leads

Discussion

17.	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» D. conflict is inevitable.

Discussion

18.	Manipulation in CRR enables the RBI to …….
A.	Influence the lending ability of the commercial banks
B.	Check unemployment growth
C.	Check poverty
D.	Increase GDP
Answer» B. Check unemployment growth

Discussion

19.	According to law of demand
A.	Higher the price higher the production of the product
B.	Higher the price lower the cost of production
C.	Lower the price higher the demand for the product
D.	Higher price higher the quantity the more the consumer demand
Answer» D. Higher price higher the quantity the more the consumer demand

Discussion

20.	If price of X falls leading to fall in total outlay on X, the demand of X is
A.	Elastic
B.	Inelastic
C.	Unitary elastic
D.	Less than unit elastic
Answer» C. Unitary elastic

Discussion

21.	You have decided to accept conflict as a natural occurrence and deal with it. You are supporting:
A.	the traditional view.
B.	the human relations view.
C.	the interactionist view.
D.	the behavior modification view.
Answer» C. the interactionist view.

Discussion

22.	Sugar and tea are …………… goods
A.	Complementary
B.	Prefect substitute of each other
C.	Both
D.	Unrelated
Answer» B. Prefect substitute of each other

Discussion

23.	In which sector of Indian economy will we find a high rate of disguised unemployment?
A.	Service sector.
B.	Agriculture sector.
C.	Manufacture sector.
D.	Mining sector.
Answer» C. Manufacture sector.

Discussion

24.	The authors take a broad view of leadership and management (L&M) development, including all activities aimed at building ongoing L&M capacity, enabling the organization to meet its objectives, to sustain itself and to what else?
A.	Transform itself
B.	Develop talent
C.	Agree strategy
D.	Make money
Answer» B. Develop talent

Discussion

25.	A goods can be considered a normal goods in economics if increase in disposal income of theconsumer causes
A.	An increase in demand
B.	No change in demand
C.	Decrease in demand
D.	Less than proportionate change in demand
Answer» B. No change in demand

Discussion

26.	In an open economy
A.	GDP=GNP
B.	GDP>GNP
C.	GDP<GNP
D.	All the three are possible
Answer» E.

Discussion

27.	Which type of decision making process in effect involves no decision per se?
A.	simple decision making
B.	nominal decision making
C.	extended decision making
D.	automatic decision making
Answer» C. extended decision making

Discussion

28.	In the short run, diminishing marginal returns is implied by
A.	Rising MC
B.	Falling MC
C.	Rising AVC
D.	Constant TC
Answer» B. Falling MC

Discussion

29.	A group of employees with expertise in a variety of specialty areas who are brought together to workon a project or specific activity is a:
A.	Cross functional team
B.	Self-managed team
C.	Virtual team
D.	Problem-solving team
Answer» B. Self-managed team

Discussion

30.	Any point beyond PPF curve can be attained by
A.	Increasing supply of factor inputs
B.	Technological innovation
C.	Both
D.	None
Answer» D. None

Discussion

31.	The four main approaches to organisations and management are……..
A.	contingency, social action, scientific management and classical
B.	classical, human relations, bureaucracy and social action
C.	human relations, social action, contingency and scientific management
D.	classical, human relations, systems and contingency
Answer» E.

Discussion

32.	If both the disposal income as well as number of suppliers of a product rises, the equilibrium
A.	Price remain same
B.	Price will go up
C.	Quantity will go up
D.	Quantity will go down
Answer» D. Quantity will go down

Discussion

33.	Allocating extrinsic rewards for behaviour that has been previously intrinsically rewarded tends todecrease the overall level of motivation, and is called:
A.	Reward Evaluation Theory
B.	Extrinsic Evaluation Theory
C.	Cognitive Evaluation Theory
D.	Intrinsic Evaluation Theory
Answer» D. Intrinsic Evaluation Theory

Discussion

34.	Which of the following is one of the six key elements a manager needs to consider when designing anorganization‟s structure?
A.	Job design
B.	Work specialization
C.	Feminine organization
D.	Eliminating chain of command
Answer» C. Feminine organization

Discussion

35.	In the short run an oligopolistic firm will
A.	Make profits
B.	Incur losses
C.	Just break even
D.	Any of these three are possible
Answer» E.

Discussion

36.	Some of the other fields of study that affect management theory or practice include:
A.	Political science, philosophy, anthropology and sociology
B.	Zoology, psychology, sociology and philosophy.
C.	Anthropology, astrology, political science and psychology.
D.	Political science, sociology, typography and economics.
Answer» B. Zoology, psychology, sociology and philosophy.

Discussion

37.	In the BoP statement, current account includes(i) Marchandize, invisible items (ii) Government loans from abroad (iii) Foreign direct investment.
A.	(i) only
B.	Both (i) and (ii) above
C.	Both (i) and (iii) above
D.	Both (ii) and (iii) above
Answer» B. Both (i) and (ii) above

Discussion

38.	What is conflict management?
A.	achieving the desired conflict level
B.	stopping all conflict
C.	stimulating conflict
D.	avoiding conflict
Answer» B. stopping all conflict

Discussion

39.	The quantity that an individual supplier is prepared to supply over a period of time is a function of
A.	Price of the product
B.	Cost of production of the product
C.	Both
D.	None
Answer» D. None

Discussion

40.	Centralization refers to………..
A.	The degree to which decision-making is concentrated at a single point in the organization
B.	The development and maintenance of power in the organization
C.	The decision-making process
D.	The geographic dispersion of an organization
Answer» B. The development and maintenance of power in the organization

Discussion

41.	Which answer corresponds to a person's internal desire to do something, due to such things as interest,challenge and personal satisfaction?
A.	Theory X
B.	Extrinsic motivators
C.	Intrinsic motivators
D.	Theory Y
Answer» D. Theory Y

Discussion

42.	------------ is a condition in which the decision maker chooses a course of action without completeknowledge of the consequences that will follow implementation.
A.	Risk
B.	Uncertainty
C.	Ambiguity
D.	Accuracy
Answer» C. Ambiguity

Discussion

43.	You have decided to allow the conflict to exist so long as it doesn‟t hinder group performance. You willtry to eliminate _____ conflict.
A.	functional
B.	dysfunctional
C.	task
D.	individualized
Answer» C. task

Discussion

44.	One of the greatest effects of e-commerce is that:
A.	Costs will be reduced
B.	Customers will be empowered
C.	Employees become more powerful
D.	Computers will
Answer» B. Customers will be empowered

Discussion

45.	According to law of supply ………..
A.	Higher the price higher the production of the product
B.	Higher the price lower the cost of production
C.	Lower the price lower the demand for the product
D.	Higher the price higher the quantity the seller is prepared to supply in market
Answer» E.

Discussion

46.	Which of the following is/are an essential feature of the market
A.	Buyers
B.	Sellers
C.	Price
D.	All the three
Answer» E.

Discussion

47.	Which of the following was presented as a listening skill?
A.	Use open-ended question
B.	Hold feedback until it is asked for
C.	Concentrate on the whole message, not just the highlights
D.	None of the these items
Answer» B. Hold feedback until it is asked for

Discussion

48.	If there is simultaneous fall in consumers disposal income as well number of suppliers of a product in the market, the
A.	Equilibrium quantity will decrease
B.	Equilibrium price will decrease
C.	Equilibrium price will go up
D.	Equilibrium quantity will increase
Answer» B. Equilibrium price will decrease

Discussion

49.	Which of the following is not a factor is market supply of product
A.	Cost of production
B.	Number of buyers
C.	Market price of the product
D.	Price of related products
Answer» C. Market price of the product

Discussion

50.	The ______________ style of leadership is where the focus of power is with the manager. The manageralone exercises decision-making, authority and the control of rewards or punishments.
A.	democratic
B.	laissez-faire
C.	authoritarian
D.	None of the above
Answer» D. None of the above

Discussion

Explore topic-wise MCQs in Testing Subject.

In economic theory, in the short run all the cost are……………

Which of the following problems is most likely to occur in a matrix structure?

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

Management by objectives emphasizes participatively setting goals that are:

The output and cost pattern of a product are given below Output (q) 0 1 2 3 4 5 Total in `Cost (Tc) 35 42 53 08 75 88 From the above details what is the fixed cost or sunk cost

Which of the following is a stage in the conflict process?

Which of the following trends is gaining momentum?

____________ refers to the network of personal and social relations that is developed spontaneouslybetween people associated with each other.

Marginal product is………….

Budgeting, paying the bills, and collection of funds are activities associated with the

GDP is defined as

The first stage of the conflict process is called:

In our model of decision making under different conditions, what is the difference between risk and uncertainty?

According to Abraham Maslow, the most elevated type of need is _____.

In question No. 127 the optimum level of output of the firm is

Tannenbaum and Schmidt‟s continuum of possible leadership behaviour identifies four main styles ofleadership by the manager. What are they?

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

Manipulation in CRR enables the RBI to …….

According to law of demand

If price of X falls leading to fall in total outlay on X, the demand of X is

You have decided to accept conflict as a natural occurrence and deal with it. You are supporting:

Sugar and tea are …………… goods

In which sector of Indian economy will we find a high rate of disguised unemployment?

The authors take a broad view of leadership and management (L&M) development, including all activities aimed at building ongoing L&M capacity, enabling the organization to meet its objectives, to sustain itself and to what else?

A goods can be considered a normal goods in economics if increase in disposal income of theconsumer causes

In an open economy

Which type of decision making process in effect involves no decision per se?

In the short run, diminishing marginal returns is implied by

A group of employees with expertise in a variety of specialty areas who are brought together to workon a project or specific activity is a:

Any point beyond PPF curve can be attained by

The four main approaches to organisations and management are……..

If both the disposal income as well as number of suppliers of a product rises, the equilibrium

Allocating extrinsic rewards for behaviour that has been previously intrinsically rewarded tends todecrease the overall level of motivation, and is called:

Which of the following is one of the six key elements a manager needs to consider when designing anorganization‟s structure?

In the short run an oligopolistic firm will

Some of the other fields of study that affect management theory or practice include:

In the BoP statement, current account includes(i) Marchandize, invisible items (ii) Government loans from abroad (iii) Foreign direct investment.

What is conflict management?

The quantity that an individual supplier is prepared to supply over a period of time is a function of

Centralization refers to………..

Which answer corresponds to a person's internal desire to do something, due to such things as interest,challenge and personal satisfaction?

------------ is a condition in which the decision maker chooses a course of action without completeknowledge of the consequences that will follow implementation.

You have decided to allow the conflict to exist so long as it doesn‟t hinder group performance. You willtry to eliminate _____ conflict.

One of the greatest effects of e-commerce is that:

According to law of supply ………..

Which of the following is/are an essential feature of the market

Which of the following was presented as a listening skill?

If there is simultaneous fall in consumers disposal income as well number of suppliers of a product in the market, the

Which of the following is not a factor is market supply of product

The ______________ style of leadership is where the focus of power is with the manager. The manageralone exercises decision-making, authority and the control of rewards or punishments.