Classical

Managerial Economics - Managerial Economics Objective Type Questions

91:  

Marginal utility has no place in a ordinal theory because it is

A.

Not observable

B.

Subjective

C.

Introspective

D.

Additive

 
 

Option: D

Explanation :


92:  

The degree of price elasticity of demand used for goods is influenced by whether

(1) It has close substitutes

(2) Its output is easily altered

(3) It accounts for a small input

(4) It is a durable use or single use goods

A.

1, 3 and 4 only

B.

2 and 3 only

C.

1 and 2 only

D.

2, 3 and 4 only

 
 

Option: A

Explanation :


93:  

The demand for pepper is likely to have a low price elasticity because it

(1) Involves only a small proportion of consumers expenditure

(2) It is single-use good

(3) Has no close substitutes

(4) Can readily be foregone

A.

1 and 3 only

B.

1 and 2 only

C.

2 and 3 only

D.

2 and 4 only

 
 

Option: C

Explanation :


94:  

Efficient allocation of resources is likely to be achieved under

A.

Monopolistic competition

B.

Monopoly

C.

Perfect competition

D.

Any market form

 
 

Option: C

Explanation :


95:  

When at a given price, the quantity demanded of a commodity is more than the quantity supplied, there will be

A.

An upward pressure on price

B.

Price will remain unaffected

C.

A downward pressure on price

D.

All of these

 
 

Option: A

Explanation :




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