Managerial Economics and Financial Analysis

1. if a rupee in hand is worth more than a rupee earned next year, this principle is

• profitability

• discounting

• liquidity

• solvency

2. the ability of a company to survive in the business is

• liquidity

• solvency

• profitability

• incremental reasoning

3. the ability of a company to meet its financial obligations is

• liquidity

• solvency

• discounting

• profitability

4. if a firm can turn a loss into net profit by making use of idle factors of production then it is using

• contribution

• incremental reasoning

• opportunity

• liquidity

5. managerial economics deals with

• macro economics

• micro economics

6. consumers on their purchase and consumption can gain knowledge and experience that will help them for future purchase. this is called

• consumer behaviour

• consumer learning

• impulsive purchase

• cognitive dissonance

7. which of these deals with marginal utilities of two products being at equilibrium

• law of equi-marginal utility

• law of diminishing marginal utility

• indifference curve

• consumer equilibrium

8. When the budget line is tangential to any of the indifference curves, it leads to

• consumer surplus

• consumer equilibrium

• indifference curves

• elasticity

9. when the price increases, demand ________ and supply ____________

• increases, decreases

• decreases, increases

10. if elasticity is 0 then it is

• perfectly elastic

• perfectly inelastic