QUESTION BANK

SECTION A (2 MARKS)

Attempt all Questions briefly:

1. Scarcity definition
2. Growth definition
3. Demand function
4. Law of supply
5. Opportunity cost
6. Production function
7. Accounting profit
8. Cost plus pricing
9. Define competition
10. Micro Economics.
11. What is utility?
12. Consumer’s equilibrium.
13. Price Elasticity of Demand.
14. Positive Economics.
15. Market Economy.
16. Macro Economics.
17. Margin Utility.
18. Consumer’s Equilibrium.
19. Consumer’s Surplus.
20. Law of Demand.
21. Small expenditure. .
22. Law of Diminishing Returns.
23. ISO Product Curve.
24. Historical Cost.
25. Monopolistic Competitions.
26. Monopoly.
27. Non-price competition.
28. Kinked Demand.
29. National Income.
30. Economic Welfare.
31. Prosperity.
32. Income elasticity of demand
33. Price discrimination
34. Explain the term Micro economics.
35. What do you mean by term demand?
36. Explain marginal utility.
37. What is arc elasticity of demand?
38. Give two assumptions of indifference curve.
39. Explain the term individual demand curve.
40. Why demand curve slope downwards?
41. Explain the breakeven point?
42. What is GDP?
43. What is PDI?
44. Explain depression?
45. What is Macro economics?
46. Explain Income elasticity?
47. What is Marginal Revenue?
48. What is Average cost?
49. What is fixed costs?
50. What is cross elasticity?

Section B (4 marks)

1. Mention the various assumptions of perfect competition?

2. Explain various factors effecting supply.
3. Explain features of ISO-Product curves.
4. Explain Price war.
5. Difference between Extension and Contraction of Demand and Increase and Decrease in
Demand.
6. What is supply? Explain the law of supply.
7. Relationship between Average Cost and Marginal Cost.
8. Price elasticity of Demand.
9. Examine the role of business economics in business decisions.
10. Relationship between Business Economics and Management.
11. What is utility? Explain the total utility and Marginal utility.
12. Explain Consumer’s equilibrium with the help of an indifference curve.
13. Explain the importance of demand.
14. What are the stages of laws of returns?
15. Explain various concepts of cost.
16. Define monopoly market and explain its features.
17. Difference between perfect competition and imperfect competition.
18. Discuss price and output determination under monopoly.
19. What is Gross National Income?
20. Explain different phases of business cycle.
SECTION C (5 MARKS)

1. What is Production? Also discuss the concept of Production function

2. Explain the determinants of supply in detail.
3. Write a short note on extension & contraction of supply & increase & decrease in supply
with diagram.
4. Write a brief note on exceptions to the law of supply.
5. Write a brief note on joint supply & composite supply.
6. Explain the meaning & features of monopoly in detail.
7. Explain the concept of monopolist’s economy & also write its features.
8. Explain any one method of measuring national income.
9. Explain the various forms of internal and external economies of scale.
10. Briefly explain the following with examples:
(a) Fixed cost (b) Variable cost(c) Marginal cost.
11. What is elasticity of supply?
12. What is a break even analysis- Give example?
13. Write short notes on:
(a) Law of supply (b) Income Elasticity of demand (c) Cross Elasticity of demand.
14. A small firm with a fixed Plant has daily fixed cost of 200.The total variable cost of the
successive quantities of output per day is as follows.
Total output 1 2 3 4 5 6 7
units
TVC in units 300 560 750 800 1050 1320 1820
Find the TC, AFC, AVC, AC & MC of the firm for each level of output.
15. Discuss the relationship between TP, AP, and MP.
16. State any four uses of elasticity of demand for managerial decision making.
17. Why does the demand curve slopes downward?
18. Discuss the relationship of AR, MR and elasticity of demand.

SECTION D (10 Marks)

1. Discuss the characteristics of perfect competition. How is price and output

determined under perfect competition during long period.
2. What is National Income? Discuss the different methods of measuring national
income.
3. “Business economics is the integration of economic theory with business practice
for the purpose of facilitating decision making”. Discuss.
4. What is elasticity of demand? How will you measure the elasticity of demand?
5. What is national income? Describe the various problems in measuring national
income.
6. What is Monopoly? Explain the three conditions necessary for the existence of
 monopoly?
7. Critically examine the law of diminishing marginal utility.
8. What is consumer’s surplus? How can you measure it by using indifference curve? Also
define indifference curve and explain its characteristics.
9. Define business cycle. Explain different phases of business cycle.
10. Define cost and explains various concepts of cost.
11. Economics is the science which treats wealth. Explain
12. Critically examine the law of diminishing marginal utility.
13. Define indifference curve and explain its characteristics.
14. What is demand? Explain its importance.
15. Explain change in quality supplied and change in supply.
16. What do you mean by Return to Scale? Explain its various stages.
17. Explain short run costs by using suitable schedule and diagram.
18. “Price of commodity is determined by demand and supply forces”. Explain the
statement with the help of demand and supply forces.
19. Discuss the price and output determination under perfect competition.
20. Discuss price and output determination under oligopoly.
21. Discuss the relationship between national income and economic welfare.
22. What do you mean by business cycle? Explain all the stages of business cycle.
23. Explain with the help of diagrams the relationship between price elasticity,
income elasticity and cross elasticity?
24. Business economics deals with the basic problems of Decision making and
planning. Discuss.
25. Discuss Production Possibility curve.
26. Give statement of Law of demand. Also discuss its Assumptions and exceptions.
27. With the help of table and graph differentiate between Individual and market
demand curve.
28. Discuss demand forecasting with its categorization.
29. Discuss methods of forecasting the demand.
30. Discuss Law of variable Proportion with help of a graph.
31 Explain monopolistic market condition. How can Pricing be done under it?
32. What is inflation and how can it be controlled.
33. Explain various methods of measuring price elasticity.
34 Explain and illustrate shift in demand, extension and contraction of demand.
35. Explain price and output determination under monopoly
36. Distinguish between long run cost and short run cost ?
37. Define pricing policy? What are the factors to be considered while making pricing
decision?
38. Explain the various economies and diseconomies of scale?
39. Distinguish between point price elasticity and arc elasticity of demand. How will
 you measure them?
40. Diffrentitiate between Perfect competition and Monopoly?
41. What is monopolistic competition? Explain the important features of
monopolistic competition.
42. Diffrentiate between micro, macro and managerial economics?
43. Explain the qualitative techniques of demand forecasting?
44. Explain the managerial uses of Production function?
45. Explain the causes of business cycles and the four generally accepted phases.
46. Discuss the three approaches of measuring national income? Show that these
three approaches in summarized form.
47. Discuss monetary policy and explain the tools for controlling money in an
Economy?
48. Discuss Fiscal policy and how it is useful for the economy?
49. Explain in detail the different types of costs involved in economics with the
Diagram?
50.Explain the factors that influence elasticity of demand?