QB 1 yr ME part 1

QUESTION BANK

UNIT I

1.       ”Managerial Economics is Economics applied in decision-making”- Discuss (OU.Mar.2005)

2.       Define Managerial Economics and show how differs from economic theory. (OU.Mar.2004)

3.       Explain the meaning and scope of Managerial Economics in Market Economy (OU.Mar.2000, Mar, 1999)

4.       “Managerial Economics is prescriptive rather than descriptive in character”-Discuss (OU.Mar.1996)

5.       “Managerial Economics is the integration of economic theory with business practice for the purpose of facilitating decision-making and forward planning”- Discuss

6.       “Managerial Economics bridges the gap between economic theory and economic practice”. Discuss

7.       What role does the managerial economist play in business?

8.       Discuss the nature and scope of managerial economics.

9.       Explain the incremental concept and state its importance (OU.Mar.2000)

10.    What is opportunity cost? How is it calculated? Describe the significance of opportunity cost in allocation of resources by firms.

11.    What is the difference between incremental concept and marginal concept? When can the decision by an entrepreneur be considered valid according to the incremental principle?

12.    How far is profit maximization the basic objective of the firm? What are the reasons for limiting profits?

13.    How is the behavior of the profit-maximizing firm different from the revenue-maximizing firm?

14.    Why is demand analysis essential for successful production planning and capital expansion?

15.    Explain price elasticity of demand. How can it be measured? (OU.Mar.2004)

16.    What is income elasticity? How do you measure it? What is its significance? (OU.Mar.2005)

17.    What are the types of elasticity of demand? Explain cross elasticity of demand (OU.Mar.2000)

18.    “Elasticity of demand plays an important role in demand forecasting”- Discuss (OU.Nov.1999)

19.    What is the purpose of forecasting? Discuss the factors involved in demand forecasting

20.    What is the significance of demand forecasting? What are the steps involved in forecasting demand?

21.    Discuss critically the different methods of demand forecasting

22.    “Economics is a science of choice making”. Discuss (PE-I.Nov.1994)

23.    Explain and illustrate the role of deductive and inductive methods in Economic analysis (PE-I. Nov.1996)

24.    “Macroeconomics and Microeconomics are interdependent”. Do you agree (PE-I.May.1997)

25.    Explain the characteristics of economic laws (PE-I.Nov.2003)

26.    What is the purpose of an economic model? Explain different types of economic models. (PE-I. May.2001)

27.    State the uses of the concept of elasticity of demand (PE I-May.1995)

28.    Define Price elasticity of demand. Explain the methods for its measurement (PE-I.May.1998)

29.    What is price elasticity of demand? Distinguish between point elasticity and arc elasticity of demand (PE-I.May.2002)

30.    Explain and critically examine the concept of consumer’s surplus (PE-I.Nov.1995)

31.    Explain consumer’s equilibrium with the help of Indifference curve analysis (PE-I.May.1996)

32.    Explain the law of equi-marginal utility.(b) What are the main properties of indifference curve (PE-I.May.2004)

33.    Briefly describe the various methods of demand forecasting (PE-I.Nov.1996)

UNIT II

1.       Define production function. Explain the nature and managerial uses of production function (OU.Mar.2005)

2.       Explain the law of variable proportions. (OU.Mar.2004,Mar.2000)

3.       Define production function and explain the effect of economies of scale in the optimization of production. (OU.Nov.1999)

4.       Briefly explain production function through isoquants.( OU.Mar.1999)

5.       Explain the concept of production function and discuss the production function of Cobb- Douglas type.

6.       How are the returns to scale different from returns to proportion?

7.       Derive the optimum decision rule for attaining the least-cost combination of inputs in a given productive process

8.       “Economies of scale may be either internal or external, they may be technical, managerial, financial, or risk bearing”- Elucidate.

9.       Discuss briefly the different cost concepts relevant to managerial decision of planning and control (OU.Mar.2005.Mar.2004)

10.    Explain the cost-output relationship in the short and long run.

11.    What are economies of scale? How do they influence the size of the firm?

12.    Distinguish between fixed and variable costs.

13.    Analyse the importance of U-shaped average cost of a firm(a) in fixing the volume of goods to be produced in short period,(b)in deciding the size of the plant in the long run.

14.    What is Marginal rate of substitution? Why does it diminish? What is its relationship with marginal utility (PE-I.May.2000)

15.    Explain producer’s equilibrium with the help of isoquants (PE-I.Nov.2001)

16.    Explain labour supply curve (PE-I.May.2003)

17.    Discuss factors affecting the elasticity of supply (PE-I.May.2002)

18.    Explain the characteristics of labour as a factor of production (PE-I.May.2004)

19.    Explain and illustrate different stages of the law of variable proportions (PE-I.May.2002)

20.    Explain capital formation and describe the various stages of capital formation (PE-I.Nov.1996)

21.    Explain and illustrate the average cost curves of a firm in the short-run (PE-I.May.2001)

22.    What is cost function? Explain the determinants of cost. (PE-I.Nov.2000)

23.    Explain the major components of total cost of production (PE-I.May.2004)

UNIT III

1.       Explain how price and output are determined in perfect competition. (OU.Mar.2005)

2.       Describe the features of perfect competition and show how the price is determined in perfect competition. (OU.Mar.2004)

3.       What are the main features of perfect competition? When does a firm earn super normal profits? What happens to such profits in the long run? (OU.Mar.2000)

4.       Explain the price-output equilibrium under monopoly (OU.Mar.2004)

5.       What is price discrimination under monopoly? How is the price determined under monopoly? Explain. (OU.Mar.2000)

6.       A monopolist can control either price or output, but not both. Explain

7.       Explain the efficiency of monopoly and competition in terms of price, output and cost. Should monopolies be controlled?

8.       How are the price and output determined under monopolistic competition? (OU.Mar.2005)

9.       Define oligopoly and state the importance of selling costs (OU.Nov.1999)

10.    What is meant by monopolistic competition? Is product differentiation an outcome of monopolistic competition or vice versa? Discuss the behavior of the firm under monopolistic competition.

11.    What is Oligopoly? Explain the price and output decisions taken under conditions of oligopoly.

12.    Explain price rigidity under oligopoly in terms of kinked demand curve. What will happen if firms under oligopoly (i) collide, (ii) collude

13.    “Monopolistic competition necessarily implies presence of excess capacity” Comment.

14.    What are the conditions necessary for price leadership? Is it restrictive trade practice? Substantiate the argument.

15.    Explain Kinked demand curve hypothesis. (PE-I.May.2004)

16.    What factors determine the extent of market for a commodity? (PE-I.May.1999)

17.    What are the main characteristics of a free market economy? How does it solve its basic problems? (PE-I.Nov.2001)

18.    Describe the characteristics of Oligopoly. (PE-I.May.2003)

19.    Examine the role of time element in price determination (PE-I.Nov.2001)

20.    Explain and illustrate the determination of price under monopolistic competition in the short run and long run (PE-I.May.2001)

21.    Explain and illustrate the equilibrium position for a firm under perfect competition (PE-I. Nov.2003)

22.    “Perfect competition is a myth”. Comment (PE-I.Nov.1999)

23.    Explain price discrimination giving suitable examples. Describe the conditions necessary for price discrimination (PE-I.Nov.2000)

24.    What are the three types of price discrimination followed by monopoly firms? Discuss (CS Foundation.June.2004)

25.    “A competitive firm is not a price determinator, but an output adjustor”. Elucidate (CS Foundation.June.2000)