Tag: business economics and quantitative methods

Questions Related to business economics and quantitative methods

Component bar diagrams are also called _______.

business economics and quantitative methods introduction to managerial economics theories of employment and income concept of international trade macro economic analysis

  1. sub bar diagram

  2. parts diagram

  3. sub diagram

  4. both A and C

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Correct Option: C

Given:
           Sales = Rs. 120000
Variable cost = Rs.90000
    Fixed cost = Rs. 10000
what will be BEP?

business economics and quantitative methods introduction to managerial economics theories of employment and income concept of international trade macro economic analysis

  1. 10000

  2. 40000

  3. 30000

  4. 70000

Show answer
Correct Option: B
Explanation:

BEP (in Rs. ) = $\frac{Fixed Cost}{P/V Ratio}$
                      =$\frac{10000}{25}\times100$
                      =40000
P/V Ratio = $\frac{Sales - Variable Cost}{Sales}\times100$
                =$\frac{120000-90000}{120000}\times100$
                 =$\frac{30000}{120000}\times100$
                  =25%.

The term SEZ stands for _________.

business economics and quantitative methods introduction to managerial economics theories of employment and income concept of international trade macro economic analysis

  1. Special Economic Zone

  2. Special Export Zone

  3. Spot Export Zone

  4. Surplus Export Zone

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Correct Option: A
Explanation:

SEZ stands for Special Economic Zone. Government provides a lot of subsidies and facilities to the firms of these areas in order to uplift the standard of economic conditions of those people living in these areas.

When an industry expands all the firms get ______.

business economics and quantitative methods introduction to managerial economics theories of employment and income concept of international trade macro economic analysis

  1. internal economics

  2. external economics

  3. returns to scale

  4. none of the above 

Show answer
Correct Option: B
Explanation:

Industry refers to a number of market grouped together. So when an industry expands, there is a lot of sectors that is benefitted. All the firms in the economy, gets external economies that is they get the benefit of large scale business and they tend to grow further.

If a nation has an open economy it means that the nation ______________.

business economics and quantitative methods introduction to managerial economics theories of employment and income concept of international trade macro economic analysis

  1. allows private ownership of capital

  2. has flexible exchange rates

  3. has fixed exchange rates

  4. conducts trade with other countries

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Correct Option: D
Explanation:

Open economy means that the nation exports and import in goods and services very freely following the rules and regulations of world trade organisation with both fixed as well as flexible exchange rates.

A closed economy is one which ________________.

business economics and quantitative methods introduction to managerial economics theories of employment and income concept of international trade macro economic analysis

  1. Does not trade with other countries

  2. Does not posses any means of international transport

  3. Does not have a coastal line

  4. Is not a member of the U.N.O

Show answer
Correct Option: A
Explanation:

A closed economy is one that has no trading activity with outside economies. The closed economy is therefore entirely self-sufficient, which means no imports come into the country and no exports leave the country.

Capital intensive technique would get chosen in a ___________.

business economics and quantitative methods introduction to managerial economics theories of employment and income concept of international trade macro economic analysis

  1. labour surplus economy

  2. capital surplus economy

  3. developed economy

  4. developing economy

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Correct Option: B
Explanation:

Capital surplus economy refers to an economy where the rate of investment is very high, i.e, quick capital accumulation takes place. Capital intensive techniques would, thus, be preferred as money can be converted into useful assets for production. 

Capitalism is also called as ___________.

business economics and quantitative methods introduction to managerial economics theories of employment and income concept of international trade macro economic analysis

  1. command economy

  2. planned economy

  3. laissez-faire economy

  4. perfectly competitive economy

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Correct Option: C
Explanation:

Laissez-faire refers to a free market economy, where every individual has the right to take their own decisions with regards to economic activities. Under capitalism every individual approaches the central economic problems for maximizing their own personal gains.

SEN Act came info effect in____.

business economics and quantitative methods introduction to managerial economics theories of employment and income concept of international trade macro economic analysis

  1. 2002

  2. 2003

  3. 2006

  4. 2007

Show answer
Correct Option: C
Explanation:

Education and Inspections Act 2006 – this Act extended the law on schools' power to discipline and makes parents responsible for ensuring their excluded child is not in a public place during the first five days of any exclusion.

Keynesian theory of income and employment determination was developed in ____________.

business economics and quantitative methods introduction to managerial economics theories of employment and income concept of international trade macro economic analysis

  1. 1940

  2. 1935

  3. 1936

  4. 1931

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Correct Option: C
Explanation:

John Maynard Keynes was a British economist who presented his ideas on income and employment determination in 1936, in his book, 'The General Theory of Employment'. This came to be known as the Keynesian theory of income and employment, which has impacted many principles and practices of macroeconomics and the way economic policies are formed.