Management: Concepts- Functions- Decision-Making Communication and Managerial Economics
Q1. Managerial economics is concerned with which combination of the following?
(a) Investment Analysis and Decisions
(b) Production Behaviour and Cost Analysis
(c) Input Reward Analysis and Decisions
(d) Economic Environment Analysis
Code :
(1) (a), (b) and (c)
(2) (b), (c) and (d)
(3) (a), (b) and (d)
(4) (a), (c) and (d)
Correct Answer : (3) (a), (b) and (d)
Explanation : Managerial economics assists in decision-making related to investment, production and external economic environment. Input reward is not its core focus.
Q2. When P₀ and P₁ & Q₀ and Q₁ denote before and after change in price and quantity respectively, and total outlay remains the same, which formula gives similar arc price-elasticity values?
(1) (b), (c) and (e)
(2) (a), (b) and (e)
(3) (a), (c) and (e)
(4) (b), (c) and (d)
Correct Answer : (3) (a), (c) and (e)
Explanation : Arc elasticity uses midpoint method; these formula options maintain proportional change when expenditure remains same.
Q3. In case the producer’s equilibrium shifts to a higher isoquant due to decrease in input price, the curve combining successive equilibrium positions is called—
(1) Product Possibility Curve
(2) Price Factor Curve
(3) Expansion Path
(4) Product Line
Correct Answer : (3) Expansion Path
Explanation : Expansion path shows optimal input combinations with cost variations while keeping technology constant.
Q4. The achievement of goals with the least amount of resources is—
(1) Effectiveness
(2) Synergy
(3) Efficiency
(4) Economy
Correct Answer : (3) Efficiency
Explanation : Efficiency means organizational objectives achieved with minimum inputs and maximum productivity.
Q5. Match the following pioneers of Scientific Management:
| List-I | List-II |
|---|---|
| (a) F.W Taylor | (i) Fair day’s pay for fair day’s work |
| (b) Henry L. Gantt | (iii) Graphic scheduling |
| (c) Frank & Lillian Gilbreth | (ii) Motion study |
| (d) Max Weber | (iv) Bureaucratic organization |
Codes:
(1) (i), (ii), (iii), (iv)
(2) (i), (iii), (ii), (iv)
(3) (iv), (iii), (ii), (i)
(4) (iv), (i), (ii), (iii)
Correct Answer : (2)
Explanation : Taylor – wage system; Gantt – Gantt chart; Gilbreths – motion study; Weber – bureaucracy.
Q6. “Costs equaling average cost where average cost is minimum” refers to—
(1) Marginal cost declines faster
(2) Marginal cost rises faster
(3) Marginal cost equals average cost where AC is minimum
(4) Average cost equals marginal cost where MC is minimum
Correct Answer : (3)
Explanation : MC intersects AC at its minimum point; fundamental law in cost curves.
Q7. Which one is NOT suitable for Cost-Plus Pricing?
(1) Product tailoring
(2) Profit maximizing
(3) Monopsony pricing
(4) Public utility pricing
Correct Answer : (2)
Explanation : Cost-plus pricing focuses on cost recovery not maximizing profits.
Q8. Match the Communication Models
| List-I | List-II |
|---|---|
| (a) Lasswell Model | (iv) Persuasive model |
| (b) Shannon-Weaver | (i) Information theory |
| (c) Gerbner’s | (ii) Different shapes of process |
| (d) Berlo | (iii) Dynamic interactive process |
Codes:
(1) (i) (iii) (iv) (ii)
(2) (iii) (ii) (i) (iv)
(3) (iv) (i) (iii) (ii)
(4) (ii) (iv) (i) (iii)
Correct Answer : (3)
Q9. Decision-making is a _________ process.
(1) Routine
(2) Mental & Logical
(3) Financial
(4) Automatic
Correct Answer : (2) Mental & Logical
Explanation : Decision-making requires evaluation, reasoning and selection of alternatives.
Q10. Planning means—
(1) Recruiting manpower
(2) Deciding in advance what, when and how to do
(3) Allocating resources
(4) Monitoring efficiency
Correct Answer : (2)
Explanation : Planning is a primary function that precedes all management activities.