Here are the answers to the questions provided in the document.

UNIT-I
Choose the Correct Answer Questions (Objective Type):10
1. Integration of economic theory with business practice is called a) Managerial economics
b) Macro economics c) Micro economics d) Economics Answer: a) Managerial economics
2. When aggregate economic activity is increasing, the economy is said to be in a) An
expansion b) A contraction c) A peak d) A turning point Answer: a) An expansion
3. Which of the following is not covered by business economics? a) Price output decision
b) Profit related decision c) Investment related decisions d) Foreign direct investment decisions
Answer: d) Foreign direct investment decisions
4. NIFA stands for a) National income from agriculture b) National income from automobile c)
National income from abroad d) Net income from abroad Answer: d) Net income from abroad
5. The low point in the business cycle is referred to as the a) Expansion b) Boom c) Trough
d) Peak Answer: c) Trough
6. The responsibility to pay to outsider as and when an amount is due is called as a)
Active b) Profit c) Liability d) Loss e) None of the above Answer: c) Liability
7. Indian companies Act was enacted in a) 1936 b) 1912 c) 1956 d) 1966 Answer: c) 1956
8. The trough of a business cycle occurs when __________ hits its lowest point. a)
Inflation b) the money supply c) aggregate economic activity d) the unemployment rate Answer:
c) aggregate economic activity
9. Time duration of short term capital a) More than one year b) More than 3 years c) Less
than or equal to one year d) None of the above Answer: c) Less than or equal to one year
10. ____ is facility to buy a fixed asset while paying the price over a long period of time ()
a) Hire purchase b) Instalment c) Leasing d) None of the above Answer: a) Hire purchase
Fill in the Blanks Questions :10
1.​ Any activity aimed at earning and spending money is called Economic Activity.
2.​ National income analysis is one of tools of Macro economics.
3.​ The statements that states how one should behave in a given context are called
Normative statements.
4.​ The liability extending to the personal property of a trader is called Unlimited Liability.
5.​ An artificial person created by law with perpetual succession and common seal is called a
Company.
6.​ GDP stands for Gross Domestic Product.
7.​ A unit of capital is called a Share.
8.​ In the eyes of law the company is a legal/artificial person.
9.​ The study of economic activities at individual level and national level is called as
Economics.
10.​Overdraft is an special arrangement with the banker where the customer can draw more
than what he has in his account.

UNIT-II
Choose the Correct Answer Questions (Objective Type) : 10
1. The supply of a good refers to: a. Stock available for sale b. Total stock in the warehouse c.
Actual Production of the good d. Quantity of the good offered for sale at a particular price per
unit of time Answer: d. Quantity of the good offered for sale at a particular price per unit of time
2. Income elasticity of demand is defined as the responsiveness of a. Quantity demanded
to a change in income b. Quantity demanded to a change in price c. Price to a change in
income d. Income to a change in quantity demanded Answer: a. Quantity demanded to a
change in income
3. In a market system, prices are determined by a. corporate executives b. government
bureaucrats c. supply and demand d. total market demand Answer: c. supply and demand
4. According to the law of demand a. there is a positive relationship between quantity
demanded and price b. as the price rises, demand will shift to the left c. there is a negative
relationship between quantity demanded and price d. as the price rises, demand will shift to the
right Answer: c. there is a negative relationship between quantity demanded and price
5. According to law of supply if price increases the quantity supplied will a) constant b)
Increases c) Decreases d) None of the above Answer: b) Increases
6. The demand curve slopes a) Upward b) Downward c) Linear d) Straight line Answer: b)
Downward
7. Price elasticity is always a) Positive b) Negative c) Declined d) Consistent Answer: b)
Negative
8. Supply curve slopes a) Left to right - upward b) Right to left Downward c) Horizontal d)
Vertical Answer: a) Left to right - upward
9. Any quantity can be sold at a given price and when there is no need to reduce price is
called as a) Perfectly Inelastic b) Relatively elastic c) Perfectly Elastic d) Relatively Inelastic
Answer: c) Perfectly Elastic
10. A product or service is said to have demand when a a) The buyer has desire b) When
the buyer doesn't have money c) When the buyer is not willing to pay for it d) When the buyer
has a desire, willing and ability to pay for it Answer: d) When the buyer has a desire, willing and
ability to pay for it
Fill in the Blanks Questions :10
1.​ The quantity for a particular product at given the price of a related product is Cross
Demand.
2.​ Other things remaining the same, the amount of quantity demanded increase with every
fall in the price is called the Law of Demand.
3.​ Rate of responsiveness in demand of a commodity for a given change in price is called
Price Elasticity of Demand.
4.​ Demand forecasting is relatively easier in case of existing/established products.
5.​ The method of forecasting which considers that the average of the past events
determined the future events is called Time Series Analysis.
6.​ One set of data is used to predict another set is Regression Analysis.
7.​ The more the no. of alternative uses, the demand for a particular product said to be
elastic demand.
8.​ Necessary products will have inelastic of demand.
9.​ The equal change in quantity demanded and price of the product is called Unitary Elastic
Demand.
10.​Census method is also called as Complete Enumeration Method.

UNIT-III (Up to MID-I Syllabus)

Choose the Correct Answer Questions (Objective Type):10
1. According to following expert, production function is defined as the maximum amount
of output produced with a given set of inputs (a) Samuelson (b) Michael R Baye (c)
Cobb-Douglas (d) Boney. Answer: (a) Samuelson
2. The production function is also known as (a)Output-costs relationship (b) inputs-costs
relationship (c) input-output relationship (d) output-input relationship. Answer: (c) input-output
relationship
3. Production function is not a factor of (a) Land (b) labor (C) cost (d) organization Answer:
(C) cost
4. With which of the following is the production function more concerned? (a) Financial
aspects (b) technology aspects (c) Physical aspects (d) economics aspects Answer: (c)
Physical aspects
5. The function that indicates the maximum output per unit of time that a firm can
produce for every combination of inputs is called (a) An Isoquant. (b) A production
possibility curve. (c) A production function. (d) An Isocost function Answer: (c) A production
function.
Fill in the Blanks Questions:10
1.​ The law of Returns is also called Law of Variable Proportions.
2.​ Cobb-Douglas production is of the form Q = A L^\alpha K^\beta.
3.​ Returns of scale are called long-run phenomena.
4.​ The ratio of input to output is called input-output ratio.
5.​ The additional output for a given additional unit of input is called Marginal Product.

UNIT-III (From MID-II Syllabus)

Choose the Correct Answer Questions (Objective Type) : 10
1. The structure of the market is not based a) Degree of seller concentration b) Degree of
buyer concentration c) Degree of product Differentiation d) Condition of Exit from the market
Answer: d) Condition of Exit from the market (Note: All listed options are generally considered
determinants of market structure, but conditions of entry and exit are often grouped as one
factor).
2. Perfect competition is based on a) Few number of buyers and sellers b) Heterogeneous
products and service c) Each firm is a price maker d) Perfect mobility of factors of production
Answer: d) Perfect mobility of factors of production
3. If the _____ is the degree of product differentiation, the more is the power to control
the price. a) Lower b) Lesser c) Greater d) Least Answer: c) Greater
4. Identify the objectives of pricing from the following a) To maximize the profits b) To
increase the sales c) To increase the market value d) All of the above Answer: d) All of the
above
5. ______ is one of the Imperfect market a) Monopoly b) Duopsony c) Oligopoly d) None of
the above Answer: a) Monopoly
Fill in the Blanks Questions :10
1.​ The place or a point at which buyers and sellers negotiate the terms of purchase or sale is
called a market.
2.​ The Market with few sellers is called Oligopoly.
3.​ In a monopolistic competition, the product is similar but not identical.
4.​ The market with a single buyer is called Monopsony.
5.​ A market in which there is a freedom of entry and exit for the traders is called a perfect
market.