Managerial Economics
Section – A
Q1. Attempt any 10 (10X1=10)
1. Demand is determined by
a. Price of the product
b. Relative prices of other goods
c. Tastes and habits
d. All of the above
2. The short run Average Cost curve is __ shaped
a. V
b. U
c. L
d. Any of the above
3. Goods produced on small scale have
a. Relatively inelastic supply
b. Highly elastic supply
c. Perfectly elastic supply
d. None of the above
4. The main criterion of indivisibility of a good is that the good
a. Should be equally available to all the members of society
b. Financing of the good is through public expenditure
c. The principle of exclusion does not apply
d.All of the above
5. Oligopoly is a type of ________ market. A ________ exists in the industry
a. Perfect, few firms
b. Imperfect, few firms
c. Perfect, many firms
d. Imperfect, many firms
6. The management of the _________ form of business organization is totalitarian in nature.
a. Cooperative
b. Partnership
c. Individual proprietorship
d. All of the above
7. – The fiscal policy includes
a. Formation of taxation policy
b. It is an instrument for economic stabilization
c. Monitoring of public expenditure
d. All of the above
8. Preference Shares can be classified as
a. Simple Shares
b. Cumulative Shares
c. Redeemable Shares
d. All of the above
9.Under perfect competition, price is determined by the interaction of total demand and ________.
a. Total supply
b. Total cost
c. Total utility
d. Total production
10. Negative slope means curve slopes downwards from________
a. Left to left
b. right to right
c. Left to right
d. Right to left
Section – B
Q2. Attempt any 5(10X5=50)
1. What are the characteristics of monopolistic Competition?
2. Write a short note on opportunity cost principle ?
3. What is Foreign trade multiplier how does it work?
4. What is managerial economics?
5. Define Marginal propensity to consume (MPC)?
6. Define National Income?
7. What is free trade ?
8. What is meant by Cartels?
SECTION –C
Q3. Attempt any 2 (10X2=20)
1. State and explain the various phases and effects of trade cycle. How can a trade cycle be controlled?
2. Explain the factors influencing elasticity of demand
3. What do you mean by FDI? What are its merits? Explain the factors influencing FDI
4. What is inflation? Explain its economic effect on different people.
Q4. Attempt the question (20X1=20)
CASE STUDY:
Describe the effect of each of the following managerial decisions or economic influences on the value of the firm
a. The firm is required to install new equipments to reduce air pollution.
b. Through heavy expenditures on advertising the firms marketing department increases sales substantially
c. The production department purchases new equipment that lowers the manufacturing costs
d. The federal Reserve System takes action that lower interest rates dramatically
