M.B.A. DEGREE EXAMINATION, NOVEMBER 2017
First Semester
MANAGERIAL ECONOMICS
(Common for
(CBCS 2016 onwards)
Time 3 Hours Maximum 75 Marks
Part A x 3 15)
Answer all questions.
All questions carry equal marks.
1. What do you mean by Time value of money?
2. Explain the concept of Law of demand.
3. Write a short note on penetrative price.
4. Define National Income. Also explain the concept of
National Income.
5. Explain the cost output relationship.
Part B x 10 50)
Answer all questions choosing either or
6. What are the determinants of Demand?
Or
What are the determinants of Supply?
Sub. Code
632105/
641105/
643105/
652105
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7. What are the different methods of Pricing?
Or
Explain the concepts of risk and return
relationships.
8. Explain any two theories of Profit.
Or
Write a short note on Balance of Payment.
9. Discuss a different phases of business cycle. What
are the effects during the expansion and recession?
Or
Explain the method of Price determination under
Monopolic competition.
10. What you mean by Duopoly and Oligopoly?
Or
Explain the concept of Cost volume Profit analysis.
Part C x 10 10)
Compulsory
11. Case study
The public distribution system in Tamil Nadu is unique
since it is based on the size of the people and covers all
families. The state government has adopted the
Universal Public Distribution system as against the
targeted Public Distribution system advocated by the
government of India. Under the targets Public
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Distribution system, the families living below the poverty
line are supplied essential commodities at much
Lower prices than the families above the poverty line
(APL).
But under the Universal Public Distribution system
followed by the government of Tamil Nadu, no such
distinction is made among the families and all families
are supplied essential commodities at the same rates.
The essential commodities that are supplied under the
public distribution system are rice, wheat, sugar, and
kerosene Here, the details of rice supplied under the
public distribution system since 3rd June 2006, its price
and the scale of supply given below in the table.
Item Price per kg Scale of supply
Rice Rs. 2 per kg 4 kg per adult and 2 kg child
minimum of 12 KG and maximum of 20
kg per month8/card. In Nilgiris District
minimum of 16 kg and maximum of
24 kg
Let us assume that the free market price of rice is
Rs. 9 per kg. However, the Tamil Nadu Government
decides to supply rice at Rs.2 per kg through its Public
Distribution system.
Questions
What will be the policy affect on consumer and
Producer Surplus?
Describe the likely Economy Impact.