MP-102
June Examination 2016
Master of Business Administration I Year Examination
Managerial Economics
Paper MP-102
Time 3 Hours Max. Marks 80
Note: The question paper is divided into three sections B and C. Write answer as per the given instructions.
Section A 8 × 2 16
(Very Short Answer Questions)
Note: Attempt all the questions within 30 words of each.
How is economics helpful in formulation of economic policy.
Law of demand is qualitative statement, not quantitative statement, how?
Discuss the main difference in the law of Increasing and Diminishing Returns.
Distinguish in Explicit costs and Real cost.
Is monopoly price always higher?
Profit can be negative. How?
Does an increase in national income always lead to common welfare?
(viii) How can economic growth be measured?
132
MP-102 500 3 (P.T.O.)
MP-102 500 3 (Contd.)
132
Section B 4 × 8 32
(Short Answer Questions)
Note: Attempt any four questions within 200 words of each.
Can the demand of a commodity rise with an increase in its
price? Explain.
What are the different methods of demand forecasting?
Elasticity of demand also depends on price of commodity.
How?
Explain the behavioural theory of the firm. How does it differ
from traditional theory?
Define the market. What are different market structures?
Explain them.
Describe the problems of balance of payments.
What are the reasons for increasing and decreasing returns
to scale? Explain.
Under perfect competition, the state of the firm is determined
by the amount of production. Explain.
MP-102 500 3
132
Section C 2 × 16 32
(Long Answer Questions)
Note: Attempt any two questions within 500 words for each.
10) Explain the following:
Law of increasing returns.
Types of inflation.
11) Explain the equilibrium of firm and industry under perfect
competition.
12) How price is determined in short term under monopolistic
competition?
13) Explain the behavioural theory of the firm. How does it differ
from traditional theory.