2956 + Mcqs in Economics Page 18 McqOptions

851.	True value added
A.	value added-depreciation
B.	Value added – depreciation – tax
C.	Value added – interest – tax
D.	Value added – depreciation-interest
Answer» B. Value added – depreciation – tax

Discussion

852.	The two dimensions of conflict-handling orientations are:
A.	awareness and assertiveness.
B.	reliability and awareness.
C.	cooperativeness and assertiveness.
D.	independence and interdependence.
Answer» D. independence and interdependence.

Discussion

853.	In a pure monopoly firm a firm can make abnormal profit at the long run equilibrium level due to
A.	Price discrimination
B.	Cost effectiveness
C.	Banned entry of new firms
D.	Sales promotion
Answer» D. Sales promotion

Discussion

854.	Hersey and Blanchard present a form of situational leadership based on the ___________ of the peoplethe leader is attempting to influence.
A.	Readiness
B.	personality
C.	intelligence
D.	motivation
Answer» B. personality

Discussion

855.	If there are 1000 firms in the market dealing the product under question what would be the aggregate supply if the price is `4 (Ref. Q. No. 274)
A.	20,000
B.	23,000
C.	25,000
D.	21,000
Answer» C. 25,000

Discussion

856.	A firm that makes profit in excess of normal profit is earning
A.	Economic profit
B.	Costing profit
C.	Normal profit
D.	Super normal profit
Answer» E.

Discussion

857.	If price of Choco bar decreases we except
A.	The quantity demanded to increase
B.	Quantity demanded to decrease
C.	Demand curve to shift left
D.	No change in quantity demanded
Answer» B. Quantity demanded to decrease

Discussion

858.	Which of these is not a function of money?
A.	Means of exchange
B.	Store value
C.	Power indicator
D.	Measurement of value
Answer» D. Measurement of value

Discussion

859.	In a PERT network, slack time is _____.
A.	The end point that represents the completion of a major activity
B.	The time or resources required to progress from one event to another
C.	The amount of time an individual activity can be delayed without delaying the whole Project
D.	The longest or most time-consuming sequence of events and activities
Answer» D. The longest or most time-consuming sequence of events and activities

Discussion

860.	Repo transaction means
A.	Sale of securities by the bolder to the investor with the agreement to purchase them at a predetermined rate and date.
B.	Sale of securities by the holder to the investor with the agreement to resell them at a predetermined rate and date.
C.	Sale and purchase of securities by the holder to the investor with the agreement to purchase them at the prevailing rate and date
D.	Sale of securities by the holder to the investor with the agreement to purchase them at market driven rate.
Answer» B. Sale of securities by the holder to the investor with the agreement to resell them at a predetermined rate and date.

Discussion

861.	Cultivating a learning culture where organizational members systematically gather knowledge andshare it with others in the organization so as to achieve better performance is called:
A.	Knowledge management
B.	Technical management
C.	Software management
D.	Systems management
Answer» B. Technical management

Discussion

862.	India is a recipient of loan from which of these agencies
A.	World Bank
B.	IMF
C.	IDA
D.	All the three
Answer» E.

Discussion

863.	In question No. 348. What is the equilibrium quantity of demand and supply
A.	2525
B.	2600
C.	2650
D.	2725
Answer» C. 2650

Discussion

864.	Who studied the nature of specific jobs, and broke the tasks into basic work units with the end resultproviding the one right way to perform the job?
A.	Douglas M. McGregor
B.	Frederick W. Taylor
C.	Henry L. Gantt
D.	Henry L. Gantt
Answer» C. Henry L. Gantt

Discussion

865.	The negatively sloped part of long run cost curve of a firm is due to
A.	Increase in production due to specialization and division of labour
B.	Diseconomies of scale
C.	Diminishing returns to scale
D.	Marginal utility theory
Answer» B. Diseconomies of scale

Discussion

866.	Self-managed work teams are generally:
A.	Groups of employees who take on the responsibilities of their former supervisors.
B.	Those who meet weekly to discuss ways of improving quality, efficiency, and work environment.
C.	From different work areas, but at similar hierarchical levels, who work together to accomplish tasks.
D.	Employees who take on responsibilities for other employees unable to make decisions.
Answer» B. Those who meet weekly to discuss ways of improving quality, efficiency, and work environment.

Discussion

867.	Contingency theories of leadership are based on the belief that
A.	there is no single style of leadership appropriate to all situations
B.	there is a single style of leadership appropriate to all managers
C.	there is a single style of leadership appropriate to all situations
D.	none of the above
Answer» B. there is a single style of leadership appropriate to all managers

Discussion

868.	Marginal cost is defined as…………………….
A.	Change in total cost due to addition of one unit
B.	Total cost divided by additional unit
C.	Total cost divided by total units produced
D.	Total sales / Total production
Answer» B. Total cost divided by additional unit

Discussion

869.	If supply and demand both shift outward, but demand shifts outward more than supply, the equilibrium price
A.	will increase and quantity will increase
B.	will increase and quantity will decrease
C.	will decrease and quantity will decrease
D.	will decrease and quantity will increase
Answer» B. will increase and quantity will decrease

Discussion

870.	Balance of trade is
A.	The difference between balance on current account and capital account
B.	Same as the balance of merchandize trade
C.	Same as the balance of current account
D.	Overall BoP balance.
Answer» C. Same as the balance of current account

Discussion

871.	What is span of control?
A.	empowering lower-level employees
B.	concentrating decision-making on one specific point in the organization
C.	centralization
D.	number of subordinates a manager can effectively direct
Answer» E.

Discussion

872.	Individual-level independent variables include all of the following except.
A.	Leadership
B.	Learning
C.	Perception
D.	Motivation
Answer» B. Learning

Discussion

873.	In question No. 127 what the average output for 5 hours of labour
A.	55
B.	50
C.	60
D.	65
Answer» D. 65

Discussion

874.	Which of the following is not an assumption of the classical decision model?
A.	Problems are clearly defined.
B.	Decision makers behave logically.
C.	Evaluation criteria are drawn from objectives and the definition of the problem.
D.	Choice is made once sufficient information on alternatives is available
Answer» E.

Discussion

875.	Another contingency model of leadership is the path-goal theory. This suggests that subordinates willsee leadership behaviour as a motivating influence if
A.	their effective performance will satisfy their needs
B.	the necessary direction, guidance, training and support is provided
C.	path-goal relationships are clarified
D.	all the above
Answer» E.

Discussion

876.	Long run supply curve of a increasing cost industry is
A.	Horizontal line overlapping X axis
B.	Upward sloping line
C.	Downward sloping line
D.	Vertical line
Answer» C. Downward sloping line

Discussion

877.	Which of the following structures is characterized by centralization, high formalization, extensivedepartmentalization, and a limited information network?
A.	Technology model
B.	Mechanistic model
C.	Job satisfaction model
D.	Organic model
Answer» C. Job satisfaction model

Discussion

878.	Under law of supply, ceteris paribus is
A.	Cost of production
B.	Production technology
C.	None
D.	Both
Answer» E.

Discussion

879.	The following four different approaches to management thinking were developed in the first half of the20th century:
A.	Scientific management, general administrative, quantitative, and contingency approach.
B.	Scientific management, general administrative, quantitative, and organizational behavior.
C.	General administrative, globalization, organizational behavior, and quantitative.
D.	Systems approach, scientific management, general administrative, and organizational behaviour.
Answer» C. General administrative, globalization, organizational behavior, and quantitative.

Discussion

880.	____________ is the power to give positive benefits or rewards.
A.	Expert power
B.	Reward power
C.	Legitimate power
D.	Coercive power
Answer» C. Legitimate power

Discussion

881.	TVC curve begins to………with the onset of increasing returns
A.	Rise at an increasing rate
B.	Rise at an decreasing rate
C.	Fall at an Increasing rate
D.	Stabilize
Answer» C. Fall at an Increasing rate

Discussion

882.	Nominal GDP is
A.	The total value of goods and services net of exports
B.	The total value of goods and services produced during periods of low unemployment
C.	The total value of goods and services measured at current prices
D.	The total value of goods and services produced at full employment.
Answer» D. The total value of goods and services produced at full employment.

Discussion

883.	If a firm shut down at a level when AVC > Price, the firm restricts its losses to
A.	Total fixed cost
B.	Average fixed cost
C.	Variable cost
D.	Average variable cost
Answer» B. Average fixed cost

Discussion

884.	A supply curve passing through any point on X axis(quantity) will have elasticity
A.	Less than 1
B.	More than 1
C.	Just one
D.	Zero
Answer» B. More than 1

Discussion

885.	Aggregate market demand in question No. 270 If there are 5000 customers will be ……
A.	40,000
B.	30,000
C.	20,000
D.	16,000
Answer» E.

Discussion

886.	Conflict is constructive when:
A.	it improves the quality of decisions.
B.	it stimulates creativity and innovation.
C.	it fosters an environment of self-evaluation and change.
D.	all of the above
Answer» E.

Discussion

887.	Legitimate power is based on the subordinate‟s perception that the leader has a right to exerciseinfluence because of the leader‟s
A.	role or position within the organisation
B.	ability to punish or reward
C.	personal characteristics and personality
D.	expertise and knowledge
Answer» B. ability to punish or reward

Discussion

888.	In question No. 269 the quantity demanded if the price is 5 will be ……….
A.	8
B.	2
C.	5
D.	10
Answer» C. 5

Discussion

889.	Which of the following steps in the planning process should be completed before the others can beaddressed?
A.	Putting plans into action
B.	Stating organizational objectives
C.	Listing alternative ways of reaching objectives
D.	Developing premises on which to base each alternative
Answer» C. Listing alternative ways of reaching objectives

Discussion

890.	Price elasticity demand of product will be more elastic if it
A.	Has no substitutes
B.	Has number of substitutes
C.	Is an item of necessity
D.	Is life saving Product
Answer» C. Is an item of necessity

Discussion

891.	If a firms cost of raw material decreases then
A.	Marginal cost curve will shift downward
B.	Marginal cost curve will shift upward
C.	Market price will go down
D.	Market price will go up
Answer» B. Marginal cost curve will shift upward

Discussion

892.	Which of the following is correct for a price floor set above the equilibrium price?
A.	quantity supplied is less than quantity demanded at the set price.
B.	at the set price there will be a shortage
C.	quantity supplied exceeds quantity demanded at the set price
D.	None of above
Answer» D. None of above

Discussion

893.	Which characteristic was found by Raudsepp among creative managers?
A.	They had few hobbies or interests outside work.
B.	They focused intensely on immediate needs.
C.	They were irritated by the status quo.
D.	They had little energy to spare.
Answer» D. They had little energy to spare.

Discussion

894.	The unbroken line of authority that extends from the top of the organization to the lowest echelon andclarifies who reports to whom is termed………
A.	Unity of command
B.	Authority
C.	Power and authority structure
D.	Chain of command
Answer» E.

Discussion

895.	The income elasticity of demand of inferior goods is generally
A.	>1
B.	< 1
C.	< 0
D.	0
Answer» D. 0

Discussion

896.	Which leadership theory suggests that management style should adapt itself to changingcircumstances?
A.	Contingency theory
B.	Delegation theory
C.	Autocratic theory
D.	Participatory theory
Answer» B. Delegation theory

Discussion

897.	Which of the following is/ are not an economic resource
A.	Land
B.	Capital
C.	Labour
D.	Air
Answer» E.

Discussion

898.	Which of the following is not a method of measurement of price elasticity of demand in economics
A.	Total Outlay
B.	Total savings
C.	Point method
D.	Arc method
Answer» C. Point method

Discussion

899.	Which of the following is/ are an economic resource
A.	Land
B.	Capital
C.	Labour
D.	All the three
Answer» E.

Discussion

900.	This is a supervisory style which involves high-directive–high-supportive behavior (HD–HS) and is appropriate when interacting with moderate-capability employees.
A.	autocratic style
B.	participative style
C.	consultative style
D.	laissez-faire style
Answer» D. laissez-faire style

Discussion

Explore topic-wise MCQs in UPSC IAS Exam.

True value added

The two dimensions of conflict-handling orientations are:

In a pure monopoly firm a firm can make abnormal profit at the long run equilibrium level due to

Hersey and Blanchard present a form of situational leadership based on the ___________ of the peoplethe leader is attempting to influence.

If there are 1000 firms in the market dealing the product under question what would be the aggregate supply if the price is `4 (Ref. Q. No. 274)

A firm that makes profit in excess of normal profit is earning

If price of Choco bar decreases we except

Which of these is not a function of money?

In a PERT network, slack time is _____.

Repo transaction means

Cultivating a learning culture where organizational members systematically gather knowledge andshare it with others in the organization so as to achieve better performance is called:

India is a recipient of loan from which of these agencies

In question No. 348. What is the equilibrium quantity of demand and supply

Who studied the nature of specific jobs, and broke the tasks into basic work units with the end resultproviding the one right way to perform the job?

The negatively sloped part of long run cost curve of a firm is due to

Self-managed work teams are generally:

Contingency theories of leadership are based on the belief that

Marginal cost is defined as…………………….

If supply and demand both shift outward, but demand shifts outward more than supply, the equilibrium price

Balance of trade is

What is span of control?

Individual-level independent variables include all of the following except.

In question No. 127 what the average output for 5 hours of labour

Which of the following is not an assumption of the classical decision model?

Another contingency model of leadership is the path-goal theory. This suggests that subordinates willsee leadership behaviour as a motivating influence if

Long run supply curve of a increasing cost industry is

Which of the following structures is characterized by centralization, high formalization, extensivedepartmentalization, and a limited information network?

Under law of supply, ceteris paribus is

The following four different approaches to management thinking were developed in the first half of the20th century:

____________ is the power to give positive benefits or rewards.

TVC curve begins to………with the onset of increasing returns

Nominal GDP is

If a firm shut down at a level when AVC > Price, the firm restricts its losses to

A supply curve passing through any point on X axis(quantity) will have elasticity

Aggregate market demand in question No. 270 If there are 5000 customers will be ……

Conflict is constructive when:

Legitimate power is based on the subordinate‟s perception that the leader has a right to exerciseinfluence because of the leader‟s

In question No. 269 the quantity demanded if the price is 5 will be ……….

Which of the following steps in the planning process should be completed before the others can beaddressed?

Price elasticity demand of product will be more elastic if it

If a firms cost of raw material decreases then

Which of the following is correct for a price floor set above the equilibrium price?

Which characteristic was found by Raudsepp among creative managers?

The unbroken line of authority that extends from the top of the organization to the lowest echelon andclarifies who reports to whom is termed………

The income elasticity of demand of inferior goods is generally

Which leadership theory suggests that management style should adapt itself to changingcircumstances?

Which of the following is/ are not an economic resource

Which of the following is not a method of measurement of price elasticity of demand in economics

Which of the following is/ are an economic resource

This is a supervisory style which involves high-directive–high-supportive behavior (HD–HS) and is appropriate when interacting with moderate-capability employees.