PANNALA RAMREDDY COLLEGE OF BUSINESS MANAGEMENT MBA I YEAR I SEM, INTERNAL EXAMINATION-I Paper: M.

.E- Managerial Economics Marks: 15 Fill in the Blanks: 10 x = 5 Marks Duration: 30min,

1) _________________ facilitates decision making and forward planning in an organization. 2) Name any 2 objectives of the firm ____________________, _______________________ 3) Name 2 optimization tools __________________________________________ 4) Give example for perishable goods ____________________ 5) Give example for Substitute goods _____________, _______________ 6) Give example for complementary goods ___________________, _______________ 7) Give example for giffen goods __________________ 8) Name any 2 types of elasticity of demand ____________________,__________________ 9) Name any 2 applications of elasticity of demand _________________________________ 10) When Supply is equal to Demand ___________________ occurs. Choose the correct answer from the following: 1. Price elasticity of demand is said to be perfectly elastic when A) Pe = infinity B) Pe = 0 C) Pe = 1 D) Pe >1 [ ] 5 x 1 = 5 Marks

2. According to Law of Demand , which of the following is correct A) D P B) D 1/P C) Both D) None [ [ ] ]

3. Which of the following represent Perfectly inelastic demand ?

A)

B)

C) None

4. At Unit price elasticity of demand, which of the following is true? A) Demand = Price price. 5. When demand decreases , demand curve shifts towards ______ A) Left B) Right C) Upwards D) None. B) Demand > Price C) Demand < Price D) Change in demand = Change in

Answer the following questions: 1. What is opportunity cost? 2. What is Marginal cost? 3. Write demand function along with its determinants? 4. What is Law of diminishing marginal utility? 5. What is indifference curve?

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