Академический Документы
Профессиональный Документы
Культура Документы
Mechanical Engineering
1
Helping Hands Terms and Conditions
Our SMEs do their best to provide you the best way possible to help you in
passing your exams. The % of subject coverage shown in this section is best of our
knowledge and the objective is to simplify the preparation during the exams. We
recommend you to choose 90% coverage for best results. While we aim to help
you in passing your exams with good marks, eKalasaala.com or it's SMEs or any
other entities are not responsible for your poor marks or failure in the exams.
All the best of your exams!
2
Table of Content
Content Page No
Syllabus 4-5
Short Questions 6 - 10
Essay Questions 11 - 24
3
Syllabus
UNIT – I
Introduction to Managerial Economics and demand Analysis: Definition of
Managerial Economics –Scope of Managerial Economics and its relationship with
other subjects – Concept of Demand, Types of Demand, Determinants of
Demand- Demand schedule, Demand curve, Law of Demand and its limitations-
Elasticity of Demand, Types of Elasticity of Demand and Measurement- Demand
forecasting and Methods of forecasting, Concept of Supply and Law of Supply.
UNIT – II
Production and Cost Analysis: Concept of Production function- Cobb-Douglas
Production function- Leontief production function - Law of Variable proportions-
Isoquants and Isocosts and choice of least cost factor combination-Concepts of
Returns to scale and Economies of scale-Different cost concepts: opportunity
costs, explicit and implicit costs- Fixed costs, Variable Costs and Total costs –Cost
–Volume-Profit analysis-Determination of Breakeven point(simple problems)-
Managerial significance and limitations of Breakeven point.
UNIT – III
Introduction to Markets, Theories of the Firm & Pricing Policies: Market Structures:
Perfect Competition, Monopoly, Monopolistic competition and Oligopoly –
Features – Price and Output Determination – Managerial Theories of firm: Marris
and Williamson’s models – other Methods of Pricing: Average cost pricing, Limit
Pricing, Market Skimming Pricing, Internet Pricing: (Flat Rate Pricing, Usage
sensitive pricing) and Priority Pricing.
UNIT – IV
Types of Business Organization and Business Cycles: Features and Evaluation of
Sole Trader, Partnership, Joint Stock Company – State/Public Enterprises and their
forms – Business Cycles: Meaning and Features – Phases of a Business Cycle.
4
UNIT – V
Introduction to Accounting & Financing Analysis: Introduction to Double Entry
Systems – Preparation of Financial Statements-Analysis and Interpretation of
Financial Statements-Ratio Analysis – Preparation of Funds flow and cash flow
statements (Simple Problems)
UNIT – VI
Capital and Capital Budgeting: Capital Budgeting: Meaning of Capital-
Capitalization-Meaning of Capital Budgeting-Time value of money- Methods of
appraising Project profitability: Traditional Methods(payback period, accounting
rate of return) and modern methods(Discounted cash flow method, Net Present
Value method, Internal Rate of Return Method and Profitability Index)
5
Short Questions
1. Explain the Scope of Managerial Economics
11. Explain the Phases of trade cycle g) What is Accounting Cycle? (1 Time)
6
15. Define the Long-run average cost curve (1 Time)
7
30. Write about Oligopoly (1 Time)
8
45. Define margin of safety.
50. Differentiate between short term and long term demand forecasting
methods.
9
59. Point method Vs Arc method of price elasticity of demand
10
Essay Questions
1. Define managerial economics and explain its relation with other subjects.
5. Explain the conditions of perfect competition and how the price and output
determined in the short-run?
6. Describe the importance of pricing and write any two methods of pricing.
10. The following is an extract of a balance sheet of a company during the last
year.
11
11. Compute current ratio and quick ratio. Also interpret the ratios.
(Rs.)
Land and buildings 50,000
Plant and machinery 1,00,000
Furniture and fixtures 25,000
Closing stock 25,000
Sundry debtors 12,500
Wages prepaid 2,500
Sundry creditors 8,000
Rent outstanding 2,000
12. What is capitalization? And explain the need for capital budgeting.
15. What are the factors on which the elasticity of demand depends?
16. What are the types of price elasticity of demand? Explain them with the
help of diagrams.
12
19. Define the following with reference to production function
(i) linear Function
(ii) power function
(iii) quadratic function and
(iv) Cubic function
20. What are the important features of monopoly? How does it differ from
perfect competition?
21. What is oligopoly? Explain the price rigidity under oligopoly in terms of
kinked demand curve
23. How do you demarcate the sectors of Public enterprises and Joint stock
companies?
25. Describe how point elasticity is more focused than arc elasticity. (1 Time)
26. Explain how short-run and long-run influence the costs. (1 Time)
13
27. A company makes a single product with a sales price of Rs.10 and a
variable cost of Rs.6 per unit, fixed costs are Rs. 60,000.
Calculate
i) Number of units to break even
ii) Sales at break even. (1 Time)
28. Explain the Marris managerial theory of firm growth maximization model. (1
Time)
29. Explain how price determination under monopoly in the long-run. (1 Time)
31. What is a business cycle? Describe the different phases of business cycles
along with examples.
32. Calculate Net profit ratio from the following data. (1 Time)
Sales returns Rs. 1,00,000 Administration expenses Rs. 10,000
Gross profit Rs. 40,000 Selling expenses Rs. 10,000
Income from Investment Rs. 5,000 Loss on account of fire Rs. 3,000
14
35. Radhika enterprises ltd is contemplating the purchase of a machine. Two
machines A and B are available each at Rs. 2,50,000. Net Cash Inflows
(Amt. in Rs.)
Year Machine A Machine B
1 75,000 25,000
2 1,00,000 50,000
3 1,25,000 1,00,000
4 75,000 1,50,000
5 50,000 1,00,000
Calculate Net Present Value Method @10%. (1 Time)
36. Define Managerial economics and explain its nature and scope. (1 Time)
37. Define the law of demand. What are its exceptions? Explain (1 Time)
39. How do you determine BEP? Show graphical presentation of BEA. (1 Time)
15
44. Journalise the following transactions. (1 Time)
2003 Jan.1 ABC firm commenced business with Rs. 40,000
Jan.2 Deposited into bank Rs. 30,000
Jan.3 Bought goods worth Rs. 48,000 from Kamala
Jan.4 Sold goods worth Rs. 60,000
46. A project costs Rs.1,44,000. The average annual cash inflows are likely to
be Rs. 45,000 for a period of 5 years. Calculate the IRR for the project. (1
Time)
16
54. What do you understand by Joint Stock Company? Explain its features. (1
Time)
56. A firm sold goods worth Rs.5,00,000 and its gross profit is 20 percent of sales
value. The inventory at the beginning of the year was Rs. 16,000 and at
end of the year was Rs. 14,000. Compute Inventory Turnover ratio and also
the Inventory holding period. (1 Time)
57. Explain types of accounts and rules governing each account. (1 Time)
58. The cost of a project is Rs. 50,000, the annual cash inflows for the next 4
years are Rs. 25,000. What is the payback period for the project? (1 Time)
62. Define Production function? How can a producer find it useful? (2 Time)
63. Explain the features of short-run average cost curve and long-run average
cost curve. (1 Time)
17
66. Discuss the problems faced by the Public enterprises in India. (1 Time)
69. Differentiate between cash flow and funds flow statements. (1 Time)
71. A project costs Rs. 25,000 and is expected to generate cash inflows as. (1
Time)
Year Cash inflows PV factor @12%
1 10,000 0.893
2 8,000 0.797
3 9,000 0.712
4 6,000 0.636
5 7,000 0.567
Compute the NPV of the project
18
75. ABC firm has a fixed cost of Rs.500000/-; selling price per unit is Rs.500/- and
variable cost per unit is Rs.250/- present level of production is 35000 units,
calculate BEP in terms of volume and sales value.
78. What is sole trading? Explain the merits and demerits of sole trading.
81. From the following information you required to calculate net profit and
cash from operations: Opening stock Rs, 10,000/-; Purchases Rs. 30,000/-;
Sales Rs. 50,000/-; Closing stock Rs. 15,000/- and Expenses Rs. 10,000/-
83. What is NPV? How it calculates and explains the acceptance rule of NPV?
19
86. Why does law of diminishing returns operate? Illustrate with assumed data.
87. The P/V ratio of Lakshmi books Ltd is Rs. 40% and the margin of safety Rs. 30.
Calculate BEP and Net Profit. If the sales volume is Rs. 14000/-.
88. How a firm attains equilibrium in the short run and in the long run under
conditions of perfect competition? Explain.
89. Small is beautiful’. Do you think, this is the reason for the survival of the sole
trader from of business organization? Support your answer with suitable
examples.
90. How ratios are classified for the purpose of financial analysis? With assumed
data illustrate any two types of ratios under each category.
91. What is meant by discounting and time value of money? How is it useful in
capital budgeting?
92. ABC company is considering the purchase of two machines A and B each
costing Rs: 50, 000/-.Earnings after taxes are expected to be as under:
20
95. Describe law of variable proportions in detail.
100. What is double entry book keeping? Explain scope of important records
of Accounting under Double entry system. (1 Time)
102. What is law of demand? Explain various factors that determine the
demand for a computer.
21
105. Describe the BEP with the help of a diagram and its uses in business
decision making.
106. What is perfect competition? State its features and how the price is
determined in this market structure.
107. Explain the concepts of flat rate pricing and usage sensitive pricing
109. What is Funds flow statement? Discuss the significance of funds flow
statement as a tool of financial analysis.
110. Examine the following proposals and evaluate them based on:
i. ARR method (ARR on original investment)
ii.NPV method Initial investment is Rs.12,00,000/- each for all the two
projects, discount factor is 10 %
Year Cash
inflows(Rs.)
Project A Project B
1 6,00,000 5,00,000
2 5,00,000 3,00,000
3 2,00,000 2,00,000
4 3,00,000
22
111. Discuss the nature of problems studied in managerial economics. What is
the importance of the study of such problems in business management?
112. What is promotional elasticity of demand? How does it differ from cross
elasticity of demand?
116. Define a joint stock company & explain its basic features, advantages &
disadvantages
117. Calculate current ratio, debt-equity ratio and proprietary ratio with the
help of following information
23
118. Compare and contrast the NPV and ARR methods of evaluating
investment proposals and illustrate with examples.
24