INDIAN ACADEMY SCHOOL OF MANAGEMENT STUDIES
HENNUR CROSS, BANGALORE-560 043.
MANAGERIAL ECONOMICS-QUESTION BANK-I SEM
MODULE 1:
SECTION A: 2MARKS QUESTIONS
1. What is managerial economics?
2. Define Opportunity cost
3. What do you know about ‘Marginalism’?
4. State the basic business problems in decision making.
5. What is meant by endogenous variable?
SECTION B: 8 MARKS QUESTIONS
1. “Managerial economics is the integration of economic theory, decision
science and business management”-Comment
2. Discuss the significance of Managerial economics.
3. What are the steps involved in scientific approach of managerial economic
analysis?
SECTION C: 12 MARKS QUESTIONS
1. Explain the basic economic theories applied to managerial decision making.
MODULE 2:
SECTION A: 2MARKS QUESTIONS
1. State the important determinants of demand
2. What do you understand by change in demand?
3. Are there any exceptions to the law of demand?
4. Distinguish between autonomous demand and derived demand
5. Distinguish between short-run demand and long-run demand
6. What is elasticity of demand?
7. Define Cross elasticity of demand
8. What are the important methods of demand forecasting?
9. Distinguish between market survey and experiments
SECTION B: 8 MARKS QUESTIONS
1. Explain the assumption underlying the law of demand
2. Explain the reasons for change in demand
3. Explain the law of demand with suitable illustrations
SECTION C: 12 MARKS QUESTION
1. Critically examine the various methods of demand forecasting.
2. Explain the types of demand and its usefulness
3. Examine the role of price elasticity in business decisions
MODULE 3:
SECTION A: 2MARKS QUESTIONS
1. Define Production function?
2. What do you know about ‘returns to scale’?
3. Distinguish between equal product curve and indifference curve
4. What is Iso-quant?
5. State the properties of Iso-quant?
SECTION B: 8 MARKS QUESTIONS
1. Explain the laws of returns to scale?
2. Explain Cobb-Douglas production function and its properties
3. How do you arrive optimum factor combination by
SECTION C: 12 MARKS QUESTIONS
1. Explain the law of variable proportions with suitable illustrations
2. Give a detail note on the various empirical productions
MODULE 4:
SECTION A: 2MARKS QUESTIONS
1. Define Prime cost
2. State the importance of Opportunity cost
3. Why is short run average cost curve U-shaped?
4. Differentiate marginal cost with average cost
5. What is ‘envelope’ curve?
6. What is meant by economies of scale?
7. What are the major types of external economies?
8. What do you know about the term ‘Cost control’?
9. State the areas of cost control
10.Differentiate cost control with cost reduction
11.What is break-even analysis?
SECTION B: 8 MARKS QUESTIONS
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4.
Explain AFC,AVC, ATC and marginal cost and their interrelationship.
Discuss the various types of internal economies available to a firm
Discuss the cost output relationship in long-run.
“Marginal cost curves are variable”-Do you agree?
SECTION C: 12 MARKS QUESTIONS
1. Explain the different cost concepts available to managerial decision making
2. Discuss the economies of scale into an expanding software firm in Bangalore.
3. Explain and illustrate break-even chart and point out its usefulness.
MODULE 5:
SECTION A: 2 MARKS QUESTIONS
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5.
Define Monopoly
Distinguish between firm demand and industry demand
Trace the relationship between price and revenues under monopoly
How do you classify the market?
What are the necessary and sufficient conditions for equilibrium of the firm
under perfect competition
6. What makes a monopoly?
7. Compare monopoly with perfect competition.
8. What is meant by price discrimination?
9. When is price discrimination profitable?
10.What is dumping?
11. What is product differentiation?
12. Define Kinked demand curve (price rigidity)
13. What is transfer pricing?
14.What are the objectives of pricing policy?
15. Define Administered prices
16.What is normal profit?
SECTION B: 8 MARKS QUESTIONS
1. Explain the features of perfect competition
2. Do firms normally equate their MC with MR in practice
3. Explain how an individual firm attains equilibrium in long-run under perfect
competition.
4. Explain briefly the benefits of the monopoly
5. How does a monopoly firm attain equilibrium under different cost
conditions?
6. Explain the essential condition for price discrimination
7. Describe the main features of Oligopoly
8. Discuss the major factors involved in pricing
9. Explain the method of cost plus pricing
SECTION C: 12 MARKS QUESTIONS
1. “Monopoly price need not necessarily be high”. Examine this statement
2. Explain how a discriminating monopolist will distribute his total output
among different markets.
3. Show how an individual firm will attain equilibrium under monopolistic
competition.
4. Explain how prices and output decisions are made in a Oligopolistic market.
5. Discuss the major factors involved in pricing policy
6. Describe the important pricing methods
MODULE 6:
SECTION A: 2 MARKS QUESTIONS
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6.
State the objectives of firms of modern business
Define Profit
Distinguish between insurable and non-insurable risks
Trace the relationship between innovation and profit
State the sources of profit
Distinguish between product innovations and market innovations
SECTION B: 8MARKS QUESTIONS
1. Outline Baumol’s model of sales maximization
2. Explain the multiple objectives of a business firm
SECTION C: 12 MARKS QUESTIONS
1. Critically examine the modern theory of profit
2. Discuss why profit maximization is not the sole aim of a business firm