MCQ’S ON APPLICATION OF THEORY OF PRODUCTION IN MANAGERIAL DECISION-MAKING- 1. Production efficiency:
A. Occurs when consumers derive the greatest utility from the Purchase of goods and services.
B. Answers the three basic economic questions of what, how, and for whom. C. Refers to least cost production technology.
2. Which of the following represent scarce productive resources? A. Land, technology, labour, organizational skills. B. Land, labour, investment, managerial ability.
C. Land, capital, natural resources, executive skills. D. Land, labour, capital, entrepreneurial ability.
3. The ﬁeld of economics that is most relevant to the managerial Decision making process is:
C. Labour economics.
D. International economics.
4. The proﬁt motive is important because:
A. It is the signalling mechanism for the dynamic reallocation of Society’s scarce productive resources.
B. It encourages unethical behaviour by shareholders. C. It discourages monopolistic markets.
D. It promotes the equitable distribution of income in an economy. 5. Quantitative methods:
A. Refer to the tools and techniques of economic analysis. B. Include optimization analysis and statistical methods. C. Include game theory and capital budgeting.
D. All of the above.
6. Economic proﬁt is:
A. Total revenue minus total cost.
B. Total economic revenue minus total economic cost.
C. Total revenue minus total economic cost.
D. Total revenue minus total explicit cost.
7. Market processes:
A. Rely on the intervention of government regulators to answer Three basic economic questions.
B. Summarize the interaction of supply and demand to answer the Three basic economic questions.
C. Are only possible with barter transactions.
D. Use custom and tradition to answer the three basic...
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