Managerial Economics Online Test Part 4

16. What are the usual objectives of a company while fixing its pricing policy?

i] Profit
ii] Price Stability
iii] Market share

a. i and ii
b. i and iii
c. ii and iii
d. i, ii and iii


17. "Time element plays an important role in price determination." Who proposed this?

a. Ke Ke Thompson
b. Samuel Sagathy
c. Dr. Alfred Wisconsin
d. Adam Smith


18. Match the Following

1] Price elasticity of demand	i] Change in demand due to change in price
2] Income elasticity of demand	ii] Change in demand due to change in income
3] Cross elasticity of demand	iii] Change in demand of X commodity due to change in price of Y commodit
4] Price elasticity of Supply	iv] Change in supply due to change in price
	v] Change in demand dur to change in raw material
	vi] Change in supply due to change in supplier

a. 1-iii, 2-vi, 3-iv, 4-ii
b. 1-ii, 2-vi, 3-iv, 4-iii
c. 1-i, 2-ii, 3-iii, 4-iv
d. 1-i, 2-vi, 3-iv, 4-iii


19. Who proposed Risk-taking theory of profit?

a. J.M. Keynes
b. Adam Smith
c. Hawley
d. Alfred Wisconsin


20. Which of the following is true about "Aggregate supply function", as per keynes?

i] Refers to the minimum price of revenue which the entrepreneurs must get
ii] Associated with different levels of employment
iii] Explains that the level of output varies with the level of input
iv] Explains that the level of output varies with the level of employment

a. Only i and ii
b. Only i and iii
c. Only iii and iv
d. Only i and iv