Question bank

Concept testing

What is meant by Managerial Economics?

Define law of demand.
What is meant by market structure?
What is meant by consumer surplus?
What is meant by national income?
What is meant by public goods?
What are externalities?
What is meant by circular flow of income?
Define law of supply.
What is meant by producer’s surplus?
What is meant by price discrimination?
What is meant by perfect competition?
What is meant by market equilibrium?
What is meant by zero-sum game?
What is meant by market failure?
What is meant by consumption function?
Meaning of multiplier.
Investment function.

2. Explanatory notes
Characteristics of Monopoly.
Relationship between Economics and Decision Sciences.
Two sector model with no savings.
Externalities
Decision making
Price floor and price ceiling.
Features of perfect competition.
Market efficiency
Market failures
Features of business cycles
Assumptions of multiplier

1
Dead weight loss
Scope of managerial economics
First degree of price discrimination
Business Cycles

3. Essay types
What is multiplier? Explain the working of multiplier.
Distinguish between perfect competition and monopoly.
What is meant by circular flow of income? Explain in detail the four sector model of circular
flow of income.
What is oligopoly market? State its characteristics.
What is managerial economics? “Managerial Economics is an integration of Economics,
Decision Sciences and Business Management.” Justify.
Enumerate with examples exceptions to the law of demand.
Explain in detail the types of price discrimination.
What is meant by monopolistic competition? State its features.
Explain the phases of business cycle.
Explain in detail income elasticity of demand.
Explain the nature of Managerial Economics.
Explain in detail the three sector model of circular flow of income.
Explain the effects of trade cycle on economic growth and development.
Explain the decision making process.
Explain the models of Oligopoly market structure.

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