MODEL QUESTION BANK MANAGERIAL ECONOMICS

Q1) Describe the nature, scope and practical significance of Managerial Economics.

Q2) Describe fully the concept of price elasticity of demand.

Q3) State and explain the Law of Diminishing Marginal Returns.

Q4) a) What are the features of Oligopoly

b) Explain Innovation theory of profit.

Q5) What is Cost-Benefit Analysis? Explain the steps involved in it.

Q6) a) Can government intervention helps in controlling monopolies and regulating prices? Support
your answer.

b) Explain the term disinvestment with examples.

Q7) Write notes on (Any two):

● a) Significance of national income accounting.

● b) Consumption function.

● c) Objectives of demand forecasting.

● d) Need for planning in business.

Q6) Define Managerial Economics. Explain its scope and importance for managerial decisions

Q7) a) Explain the various determinants of demand.

b) How is Price Elasticity measured?

Q8) State and explain the ‘Law of variable proportions’.

Q9) Show how price and output are determined under the conditions of perfect competition in the
long run.

Q10) Explain cost-plus pricing and marginal cost pricing.

Q11) a) What are the different steps involved in a project evaluation?

b) Justify the need for Government Intervention in the market.

Q12) Write short notes on any two of the following:

● a) Static and Dynamics.

● b) Break-Even Analysis.

● c) Price Discrimination.
 ● d) Support Price.

Q. 13) Explain with examples, the economic principles underlying the managerial decisions.

Q. 14) Why there is a need for Demand Forecasting? Explain any two methods of demand
forecasting for the established product.

Q. 15) Define ‘Production Function’. Explain with a diagram, the three stages of the Law of Variable
Proportions.

Q. 16) How is price and output determination under monopoly different from that under perfect
competition?

Q. 17) Explain the following pricing strategies:

a) Cost-Plus Pricing.

b) Penetration Pricing.

Q18) Which economic concepts can be used by managers in taking various business decisions.

Q19) Why does the normal demand curve slope downwards? Can there be an upward rising
demand curve? Explain with examples.

Q20) Define the production function. State and explain the ‘Law of Diminishing Marginal Returns’

Q21) Explain the classification of the market on the basis of the degree of competition.

Q22) What is ‘Cost-benefit analysis’? Justify its use in the implementation of developmental
projects.

Q23) a) Explain the term ‘Support price’ and ‘Administered price’.

b) How consumer’s interest can be protected?

Q 24) Write notes on any two:

● a) Methods of measuring price elasticity of demand.

● b) Exceptions to the Law of Supply.

● c) Significance of National Income Accounting.

● d) Innovation theory of profit.

Q 25) Discuss the factors affecting Price elasticity of demand with the help of suitable examples.

Q26) Why is demand forecasting essential? Explain the different techniques of survey method.

Q27) State and explain the theory of Law Of Variable Proportions.

Q28) Distinguish between perfect competition and imperfect competition.

Q29) What do you understand by ‘cost Benefit Analysis’? Discuss the steps involved in it.

Q30) Write Short Notes on (Any Three)

● a) Pricing in Public sector Undertaking(PSUs)

● b) Disinvestment.

● c) Innovation Theory of Profit.

● d) Long-run average cost curve (LRAC).