Classical

Managerial Economics - Managerial Economics Objective Type Questions

76:  

Imagine a graph showing production possibilities. What does an outward shift of the production possibilities curve indicate?

A.

Overproduction

B.

Inflation

C.

Economic growth

D.

Overfull employment

 
 

Option: C

Explanation :


77:  

A stable equilibrium position is one in which

A.

There are only two forces influencing equilibrium

B.

There are never any departures from the equilibrium position

C.

Any departure from the equilibrium position calls into play forces which tend to restore that position

D.

There are endless oscillations

 
 

Option: C

Explanation :


78:  

Law of diminishing marginal utility states

A.

Utility always diminishes whether something is consumed or not

B.

Total utility diminishes with the consumption of every additional unit

C.

Utility first increases and after that diminishes at every point

D.

The additional benefit which a person derives from a given increase of his stock of a thing diminishes with every increase in stock that he already has.

 
 

Option: D

Explanation :


79:  

Under perfect market and in case of decreasing marginal cost the firm's equilibrium with respect to level of production

A.

Cannot be achieved

B.

Can be achieved after a high level of output

C.

Can be achieved after a small level of output

D.

Will result in run-away inflation

 
 

Option: B

Explanation :


80:  

Competition

A.

Is discriminatory

B.

Is 'Fair' if everybody has an equal chance of being selected

C.

Is inevitable but has desirable forms that can be selected on an economic basis

D.

Is desirable

 
 

Option: B

Explanation :




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