MANAGERIAL ECONOMICS

QUESTION BANK FOR END-SEM EXAMINATION (PGDM 2018-2010)

Q1. Explain the nature and scope of Managerial economics and its relevance to
Managers.

Q2. “Managerial Economics helps in forward planning and decision making.”

Examine.

Q3. Discuss the factors influencing elasticity of demand and briefly explain its
significance.

Q4.Explain the concepts of : (a) Consumer surplus (b) Producers surplus (c)
Deadweight loss.

Q5. Project the trend of sales for years 2018 and 2020 based on the following
data:

Years 1999 2005 2007 2010 2012 2017

Sales(in Rs. Lakhs) 150 230 280 330 400 450

Q6. “Isoquant and isocost are tools of constrained optimization.” Elucidate.

Q7. Discuss internal and external economies of scale which accrue to the firm.

Q8. Analyse cost-output relationship in the short run with suitable illustrations.

Q9. Calculate from the following table: (a) Total Variable Cost (b) Average
variable cost (c) Average total cost (d) Marginal cost

Units of output 0 50 100 150 200

Total Cost 130 270 300 370 450

Q10. “Monopolistic competition is characterized by high degree of advertising

and intense rivalry.” Appraise.
Q12. Determine equilibrium price and output under conditions of perfect
competition and monopoly.

Q13. Discuss the causes, consequences and characteristics of oligopoly.

Q14. Explain law of variable proportions. Why does an entrepreneur operate in

second stage of production?

Q15. Briefly discuss various pricing strategies resorted by firms.

Q16. Write short notes on: (a) Dumping (b) Price discrimination (c) cyclical price

Q17. Explain the eight parameters of National income accounts and briefly discuss
difficulties in measuring national income.

Q18. Explain briefly various phases of business cycle. What initiatives does the
Government take to stabilize economic fluctuations.

Q19. Explain the objectives of monetary policy. What are the tools of monetary
policy?

Q20. Explain the impact of symmetrical information on consumer behavior,

financial markets and economy.

Q21.Explain the concepts of : (a) price signaling (b) lemon problem.

Q22. “ Externalities create asymmetry in product pricing.” Elucidate.

Q23.Explain the concepts of : (a) Public goods (b) maximum social advantage

(c ) social marginal cost.

Q24. Explain the importance of fiscal policy in achieving macroeconomic goals.

Q25.What are the causes and consequences of inflation? What measures are
adopted by the Government to control inflation?

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