MEFA bit bank with answers

NARAYANA ENGINEERING COLLEGE:: NELLORE

B.TECH IIIYear , I Semester   (2019-20)
SUB: MEFA   STAFF: K.SREENIVASULUREDDY

Unit-I
CHOOSE THE CORRECT ANSWER       
1. Which of the following is true?                                   [ ]                                   BL-2/CO-1       
a. Managerial economics deals with issues such as inflation and employment
b. Managerial economics deals with the issues relating to one single individual or firm
c. Managerial economics deals with the issues which are macro nature
d. Managerial economics deals with the issues affect the world economy
2. what is the branch of Managerial economics?  [ ]                                    BL-1/CO-1
a. Micro economics                                           b. Macro economics
c. Economics                             d. Ergonomics
3.         what statement that contains the word ‘ought to’    [ ]                                     BL-1/CO-1
a. prescriptive b. normative c. assertive d. negative.
4. Define Integration of economic theory with business practice is  [ ]               BL-1/CO-1
a. Managerial economics b. economics c. Macro economics d. Micro economics

5. who said this statement “Economics is the study of scarce resources and unlimited wants”
                                                                                                                         [ ]              BL-1/CO-1
a. Paul A. Samuelson b. Prof. Lionel Robbins c. Adam Smith d. Alfred Marshal
6    Which of the following is a normative statement                              [           ]               BL-2/CO-1       
a. Reducing inequality should be a major priority for mixed economies
b. Reducing inequality would be a major priority for mixed economies
c. Reducing inequality could be a major priority for mixed economies
d. Reducing inequality might be a major priority for mixed economies
 7. Which of the following is not a problem of business                         [ ] BL-2/CO-1       
a. optimization of inputs b. Minimization of costs
c. Maximization of revenue d. increased property tax collections
8.      What is the reason for   Economic goods are scarce resources  .          [ ] BL-1/CO-1
          a. are limited in supply to satisfy society requirements
          b. are limited to man made goods
         c. cannot be increased in terms of supply
         d are important to satisfy human needs.
9.    Which of the following indicates micro approach from national perspective
        a. lock out in a factory                                                                          [ ] BL-2/CO-1       
        b  per capita income of the country
      c. total investments in India
      d. total employment in the country
10.  what is the the pre- requisite for rational decision- making ?                [    ] BL-1/CO-1
          a. logical analysis of one’s choices without error
          b. consistency between goals and choices
         c. rigidly defined choices
        d. choices not involving any trade-offs
11. what is law of demand, If the price raises, then demand                          [           ] BL-1/CO-1
 a. rises     b. falls  c. first falls and then rises   d. first rises and then falls.
12. The demand is said to be relatively inelastic when the change in demand     
            Is …….the change in the price.              [           ] BL-2/CO-1       
a. more than   b. less than c. equal to  d. not related.
13. Define If the income elasticity is positive and greater than one it is [           ] BL-1/CO-1       
a. Necessity  b. Inferior good  c. Normal good  d. Superior good   
14. Which of the following refers to quantity demanded in response to given change in price?                                      [         ]                     BL-2/CO-1       
a. price elasticity  b. cross elasticity c. income elasticity  d. advertising elasticity
15. If the price of Colgate tooth paste decreases relative to the price of Close-Up, what is the
demand                                                                                               [           ] BL-1/CO-1       
     a. Close-Up decrease                              b. Close-Up increases
    c. demand for Close Up is not affected  d. demand for Colgate increases.
 16. what type of Demand for petrol [ ] BL-2/CO-1                        a. elastic   b. inelastic       c. perfectly elastic     d. perfectly inelastic
 17.   Write the   Price elasticity of demand  is always [ ]                      BL-1/CO-1       
a. positive  b. negative    c. consistent     d. declining
18.     Which of the following categories is the income elasticity of demand negative ? BL-2/CO-1          [ ]
   a. inferior goods      b. luxury goods c. medium goods  d. necessities
19.   What  Forecasting   level means estimating the demand for the products and services
   offered by a single firm             [ ] BL-1/CO-1       
a. industry b. firm c. national d. global
 20.  Which Demand forecasting is not governed by [ ]                      BL-2/CO-1       
a. forecasting level   b. degree of orientation c. degree of competition  d. market support




UNIT – II

CHOOSE THE CORRECT ANSWER
   1. What is the another name of the law of returns [ ] BL-1/CO-2       
a. law of fixed proportions           b. law of variable proportions       
c. law of constant returns             d. law of increasing returns.
   2. What is the another name of Production function [ ] BL-1/CO-2       
        a. output-costs relationship b. inputs-costs relationship
          c. input-output relationship d. output-input relationship
   3.     What is the another name of IsoQuants                         [ ] BL-1/CO-2       
a. isoproduct curves                  b. isocost curves                                                                           
c. price indifference curve        d. indifference curve         
   4. Which costs of the next best alternative forgone is known as  [ ] BL-2/CO-2       
a. implicit cost  b. sunk cost  c. opportunity cost  d. controllable cost
   5. What is The difference between the total revenue and total cost        [ ]              BL-1/CO-2       
           a. cost of production   b. cost of capital  c. profit  d. cost
   6.      Which of the following is defined at a given stage of technical knowledge?
[ ] BL-2/CO-2       
a. theory of production b. production function  c. law of diminishing returns
d. law of constant returns
7. How many stages are there in the law of returns to scale ? [ ] BL-2/CO-2       
a. one b. three c. four    d. five
8. what is called  transformation of physical inputs into outputs    [ ] BL-1/CO-2       
a. production b.supply c. demand d.cost
   9. Which of the following varies with the volume of production           [          ] BL-2/CO-2       
          a. Fixed cost   b. Variable cost   c. Semi fixed cost   d. Semi variable cost
  10. what is the role of ‘k’ in cobb-  douglas production function   [ ] BL-1/CO-2       
        a. land   b. labour   c. capital      d. organization
 11. which Production function is not a factor                                            [         ]                BL-2/CO-2       
a. land    b. labour    c. cost of capital        d. organization
 12. The producer has to manufacture product at what level               [           ]         BL-1/CO-2                  .                                               
a. Higher cost to attain profit b. lower cost to attain profit c. natural cost to attain profit
d. marginally cost to attain profit
 13. Which of the following refers to the returns enjoyed by the firm as a result of change in all the input
                                                                                                                                 [           ]   BL-2/CO-2       


a. returns to business b. returns to scale  c. increasing returns to scale
d. decreasing returns to scale
 14. which of the following refers to the short run relationship of input and output  [           ] BL-2/CO-2       
a. productivity b.factor of productivity
c.returns to scale  d. Labour productivity
 15. what is the total physical product increases along with a                                [           ] BL-1/CO-2       
A. decrease in the input  b. increase in the input  c. constant in the input    d. none
16.      The economies in the production costs which accrue to the firm alone when it expands its
          Output is called                                                                 [           ] BL-2/CO-2       
             a. external economics b    internal  economics
            c  diseconomies           d  marginal  economics
17.   Which of the following benefits all the firms in the industry as the industry expands [         ] BL-2/CO-2                      a. Internal economics b.external economics     c. deferring economics d. consent economics
18.     Which of the following are mostly marginal in nature [           ] BL-2/CO-2         
            a. Economics b. diseconomies c. costs d. expenses
19.    To overcome the problem of diseconomies, modern organization have started     [           ]                          a. Horizontal structure              b. Vertical structure 
           c. grape vine structure              d. flat and lean structure
20.   which are not related to  external economies                  [           ]                     BL-2/CO-2       
         a. economies of concentration  b. economies of  R&D
         c. economies of welfare    d. economies of health 


UNIT – III

CHOOSE THE CORRECT ANSWER

1. Based on which of the following the market can be divided into perfect competition and imperfect competition [ ]           BL-2/CO-3
a. degree of concentration b. degree of differentiation
c. degree of condition d. degree of competition
2. what is the meaning of price in the long run                                        [           ] BL-1/CO-3
            a. Standard price    b. Retail price c. Market price   d. Normal price
3. Which of the following is said to be existing, when a large number of sellers produce differentiated products ? [ ]                        BL-2/CO-3
a. perfect competition b. oligopoly
c. monopoly d. monopolistic competition
4.       On the basis which the number of buyers, imperfect markets  can be classified as
[ ] BL-2/CO-3

a. monopoly b. duopoly    c. oligopoly     d. monopolistic competition
5. Either of which a monopolist can control  price or…….. but not two [ ] BL-2/CO-3
a. cost b. output c. input d. profit
6. which of the following refers to the practice of selling the same product at different price to different buyers? [ ]            BL-2/CO-3
a. product differentiation b. price in differentiation
c. price discrimination d. product discrimination
 7 what is the   nature of demand curve in monopoly      [ ]            BL-1/CO-3
a. perfect elastic b. unit elasticity c. Inelastic d. none of the above.
    8.        What is  the firm’s demand curve  In a perfect competition market  known as[ ] BL-1/CO-3
a. average price curve b. marginal cost curve  c. average cost curve 
d. average revenue curve
9. Under perfect competition, at which scenario the price is equal to [ ] BL-2/CO-3
     a. AR=MR b. AR>MR    c. MR>AR d. MR not equal to AR
   10. Which is the degree of product differentiation, the more is the power         
              to control the price. [ ] BL-2/CO-3
a. lower  b. lesser         c. greater       d. least

11. What is the relationship between two or more persons who are agree to share the profits of the business carried on by all or any one of them acting for all is called.             [           ]        BL-1/CO-3
a. Sole trading    b. partnership     c. joint venture Company      d. a and b
12. what is the written agreement among the partners  [        ]                            BL-1/CO-3
a. trading deed b. demand draft c. partnership deed d. bill of exchange.             
13. In a partnership firm what are a minimum  and maximum of members  required to carry on non-banking business .                              [         ]           BL-1/CO-3
             a. 2 and 10 b. 7 and unlimited c. 2 and 50 d. 2 and 20
14. what is the  maximum number of members of a public company         [           ]            BL-1/CO-3
a. 7    b.10    c.50    d. unlimited
15. what type companies Shares   are freely transferable                          [           ]              BL-1/CO-3
a. public  b. private  c. government  d. foreign
16.        which of the following is not a public enterprise?                         [           ]      BL-2/   CO-3
           A .  Govt company b. public corporation
           c. departmental undertaking    d. public limited company
17.      what type of   partner who lends his name to the firm without having any real interest
a. Ostensible partner b. Sleeping partner or dormant partner [         ]        BL-1/CO-3     
             c. Nominal partner d. Partner by Estoppel
18.    In which year  Indian partnership Act    came in to force      [           ] BL-2/CO-3
            a. 1932 b. 1942 c. 1952 d. 1962
19.     what is the   minimum paid up capital in a public limited company    [           ] BL-1/CO-3
a.   2   lakhs and higher              b.10 lakhs and higher 
            c. 24  lakhs and higher              d.5 lakhs and higher
20.    Which of the following integrates economy with the world economy?[           ]      BL-2/CO-3
      a. Privatization    b. Liberalization    c. Globalization   d. Stabilization


UNIT –IV
1. what is the correct equation below [ ] BL-1/CO-4
a. assets=liabilities – capital  b. assets = liabilities + capital
c. liabilities = assets + capital  d. capital = assets +liabilities
2. Wages are  related to which   type of account  - [ ] BL-2/CO-4
a. personal account b. real account
c. nominal account d. impersonal account
3. Assets are related to   which v type of   account [ ] BL-2/CO-4
a. personal  b. real  c. nominal  d. impersonal
4. The  rent paid in cash to land lord is credited to  what type of account [ ] BL-1/CO-4
a. land lord account                                   b. business account
c. cash account                                          d.  rent account
5.         To which account is the rule ‘Debit the receiver and credit the giver’   applicable
                                                                                                       [                 ] BL-2/CO-4
a. personal account                b. real  account 
c. nominal account d. impersonal account
6.  To whom Managers use accounting information to report  [ ]         BL-2/CO-4
           a.    Employees b. CFO
c.        CEO                                    d. Owners or Shareholders
7. what is the  process of using accounting data for the purpose of addressing the managerial
Problems  called [ ]                     BL-1/CO-4
a. Cost accounting b. Management Accounting
c. Financial Accounting d. Marginal Accounting
8. what is an example of  goods are money used for personal purpose    [ ] BL-1/CO-4
a. net sales b. net purchases
c. drawings d. capital
9. what is the other name of  trading and  profit&loss account  [ ]                      BL-1/CO-4
a. Account statement             b. Income statement
c. Balance statement              d. Cost statement
10.   Define what   Financial accounts comprises [ ] BL-1/CO-4
a. Ledger ,Trial balance b. Trading ,Profit account     
c. Profit & loss account    d. Trading ,profit&loss account &Balancesheet
11. What is the formula of  Liquid assets  [ ] BL-1/CO-4
a. current assets + stock                                 b. current assets – stock
c. current assets – prepaid expenses + stock  d. current assets – current liabilities

12. What is the formula  of  Cost of goods sold  [ ] BL-1/CO-4
a. sales – gross profit  b. sales – net profit   c. sales proceeds  d. loss profit
13.   What is the ratio of   current assets/current liabilities  [ ] BL-1/CO-4
a. current ratio            b. quick ratio             c. debtors turnover ratio  d. EPS
14.   What is the ratio of   Long term loans/share holders funds  [ ] BL-1/CO-4
a. current ratio            b. quick ratio            c. debtors turnover ratio 
d. debt-equity ratio
15. What is the ratio of   Net profit before interest and taxes/fixes interest charges  [ ] BL-1/CO-4
a. interest coverage ratio     b. quick ratio    c. debtors turnover ratio 
d. debt-equity ratio
16. Which would a business be most likely to use its solvency [ ] BL-2/CO-4
a. Gross profit ratio b. Debtors collection period
            c. Current ratio d. Debt-equity ratio
17.         purchase of stock for  cash                                                                              [ ] BL-1/CO-4
            a)  decreasing total ass            b. increasing total assets
            c)   no change in assets            d. increases total liabilities
18. which of the following is not a subset of accounting [           ] BL-2/CO-4
a. Book keeping b. financial accounting
            c. cost accounting d. management accounting
19. A company’s return on investment indicates its what [ ] BL-1/CO-4
a. Solvency b. Stock turnover c. Profitability d. Debtor Collection
20. Which of the following is useful to see if fixed assets are used efficiently in the business?
a. Gross profit ratio b. debtors collection period [ ] BL-2/CO-4
            c. Current ratio d. Asset turnover ratio

UNIT – V

CHOOSE THE CORRECT ANSWER

. 1. working capital explains the excess of……over current liability                  [          ] BL-2/CO-5
a. current assets  b. fixed assets  c. fictitious assets  d. both a & b
   2. which is concerned with making long term investment decision             [         ] BL-1/CO-5
a. capital budgeting b. working capital management
c. working capital style d. both a and b
  3.. what represents number of  years required to recover the original investment  [          ] BL-1/CO-5
a. IRR method b. payback period method c. NPV method d. ARR method
  4. In which method the value of  money is taken into consideration             [          ] BL-2/CO-5
a. IRR method    b. payback period method    c. NPV method    d. ARR method
  5. In NPV method  Positive values can be written as                                    [          ] BL-1/CO-5
a. rejected  b. accepted  c. both (a) and (b) d. both (a) or (b)
  6.        Which of the following is not a type of fixed asset?            [          ] BL-2/CO-5
a. Intangible fixed assets b. Tangible fixed assets c.Operational fixed assets      d. Financial fixed assets
 7.        The flow of money in the business can be defined as                                   [          ] BL-1/CO-5
a. capital formation b. cost cycle
            c. working capital cycle d. capital cycle
 8.     Explain   a debenture holder             [          ] BL-2/CO-5
       a. Creditor to the company b. Debtor to the company
       c. Proprietor to the company d. Shareholder to the company
 9.      Which of the following is excluded from Current liabilities            [          ] BL-2/CO-5
            a. Creditors B bank loan
            c. Bills Payable d. Prepaid expenses
10.    The shares of the existing companies are bought and sold in which market       [          ] BL-1/CO-5   a. Capital markets b. Primary market             c. Secondary Market d. Bond market
11. which of the following is created over a period of time through abstinence to spend  [    ]       BL-2/CO-5
a. profit                               b. wealth
c. cash                                d. contribution
12. What is the  aggregate of funds used in the short run and long run     [ ]             BL-1/CO-5 a. profit  b. cash   c. capital   d. titles
13. Capital is the value of total assets available with business, was
           Expressed   by   whom                                                                  [        ]                               BL-2/CO-5                                                         
a. accountant            b  manager.            c. economist  d. physicist
14. Which of the following sees the capital as the difference between the assets and liabilities                                                                                                   [        ]               BL-2/CO-5
              a. Manager                           b. accountant
              c. economist                         d. none
15. In what scenario Capital creates and enhances the level of    [ ] BL-1/CO-5
                     a. capital gains                           b. wealth management         
                     c. employment opportunities    d. current expenses
16. In which of the  following ,Capital can be used for all the  purposes expect [ ] BL-2/CO-5
a. to expand and diversify b. to value the assets
            c. to winding up d. to meet contingencies
17.         The portion of capital which is invested in acquiring long term assets is called [      ] BL-2/CO-5
             a. Work in capital            b. working capital
              c. fixed capital                       d. none
18. These are the features of fixed assets expect profit generation [           ]    BL-1/CO-5
a. high liquidity            b. permanent in nature
             c. amount of fixed capital d. low liquidity
19.    Which of the following provides the basic assets as per the business needs [ ] BL-2/CO-5
a. working capital b. fixed assets c. fixed capital d. financial fixed assets
20     which of the following is a type of fixed asset          ?
            A bill payable b. tangible fixed assets [ ] BL-2/CO-5
           c. fixed capital d. bill receivable






















NARAYANA ENGINEERING COLLEGE: NELLORE
DEPARTMENT  OF  CSE
II  B.TECH (2019-20) I SEM
                                                                            SUB: MEFA         

OBJECTIVE KEY

UNIT - I
Answers
1 B 6 A 11 B                                                                                                                                                                                                                                                            16 B
2 C 7 D 12 B 17 B
3 B 8 A 13 D 18 A
4 A 9 A 14 A 19 B
5 B 10 B 15 A 20 D


UNIT - 2
Answers
1 B 6 B 11 C 16 B
2 C 7 B 12 B 17 B
3 A 8 A 13 B 18 B
4 C 9 B 14 B 19 D
5 C 10 C 15 B 20 D


UNIT - 3
Answers
1 D 6 C 11 B 16 D
2 D 7 C 12 C 17 C
3 D 8 D 13 D 18 A
4 C 9 A 14 D 19 D
5 B 10 C 15 A 20 C


UNIT - 4
Answers
1 B 6 b 11 C 16 11
2 C 7 b 12 A 17 12
3 B 8 C 13 A 18 13
4 C 9 B 14 D 19 14
5 A 10 D 15 A 20 15


UNIT - 5
Answers
1 A 6 d 11 B 16 B
2 A 7 C 12 C 17 C
3 B 8 A 13 C 18 B
4 C 9 D 14 B 19 C
5 b 10 C 15 C 20 C



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