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Enrollment No

Managerial Economics (Quiz) Subject Code: 12MCEC01 MBA-Trimester I

Date: 6th August, 2012 Total Marks: 10 Marks

Encircle the appropriate Answer. Each Correct answer carries 1 mark and 0.5 marks will be deducted for every wrong answer.

1. Consider the graph to answer the following question:

The movement from point A to point B on the graph showsa) A decrease in demand. b) An increase in demand. c) An increase in quantity demanded. d) A decrease in quantity demanded. 2. What was Robert Giffens observation in relating to price and quantity demanded? a) A commodity whose price and quantity demanded varies in different direction. b) A commodity whose price and quantity demanded varies in same direction. c) A commodity whose price and quantity demanded is always constant. d) Both a) and b) are correct. 3. Match the following: A. For a given 10% change in price, demand changes by zero percent B. For a given 10% change in price, demand changes by 5% C. For a given 10% change in price, demand changes by 10% D. For a given 10% change in price, demand changes by 20%

1. e>1 2. e=1 3. e<1 4. e=0

Codes: A a) 3 b) 1 c) 2 d) 4

B 1 2 3 3

C 2 3 1 2

D 4 4 4 1

4. When with a change in price, the total outlay on a commodity remains constant, it is a case ofa) Perfect Elasticity b) Perfect Inelasticity c) Unit Elasticity d) Zero Elasticity 5. A consumer will be maximizing his utility if he allocated his money income so thata) The marginal utility of the last unit of each product consumed is equal. b) The marginal utility from the last rupee spent on each purchased product is the same. c) Elasticity of demand is the same for all purchased products. d) Total utility gained from each product consumed is the same. 6. The percent of variation in the dependent variable that is explained by the regression equation (independent variable) is measured by thea) Mean Absolute Deviation b) Slope c) Coefficient of Determination d) Correlation Coefficient 7. Simple Trend Analysis assumesa) The future demand will be determined by the same variables that caused the past demands & relationship among the variables will remain the same. b) The future demand will be determined by different variables that caused the past demands & relationship among the variables will also change. c) The future demand will be determined by the same variables that caused the past demands but relationship among the variables will change. d) None of these. 8. The total utility is maximum whena) A.U. is the highest b) M.U. is the highest c) M.U. is zero. d) M.U. is equal to A.U.

9. Which of the following is not a characteristic of simple moving averages? a) It smoothes random variations in the data b) It has minimal data storage requirements c) It weights each historical value equally d) It smoothes real variations in the data 10. Which of the following smoothing constants would make an exponential smoothing forecast equivalent to a naive forecast? a) 0 b) 1 divided by the number of periods c) 0.5 d) 1.0

Answers: 1. c 2. b 3. d 4. c 5. b 6. c 7. a 8. c 9. b 10. d