MP-102
December 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 answers as per given instructions.
Section A 8 × 2 16
Note: Attempt all the questions within 30 words of each.
How does economics help in business decision making?
Explain why demand curve slopes from left to right.
"Prices are not included in production function". How?
Explain the importance of fixed and variable cost in price determination.
Prove that perfect competition is a myth.
"Profit is a rent of ability". How?
Explain the relationship between national income and economic welfare.
(viii) Distinguish between Balance of payment and Balance of trade.
132
MP-102 400 2 (P.T.O.)
MP-102 400 2
132
Section B 4 × 8 32
Note: Attempt any four questions within 200 words of each.
What is 'managerial economics'? How does it differ from
general economics?
Explain the exceptions of law of demand.
Explain practical importance of income elasticity of demand.
Is monopoly price always higher than the competition price?
Explain in detail.
Does an increase in National Income always lead to common
welfare?
Discuss the role of managerial economics in formulation of
business policies.
What is inflationary and deflating gap?
Explain circular flow of income for an economy.
Section C 2 × 16 32
Note: Attempt any two questions within 500 words for each.
10) Explain the following:
Methods of demand fore casting
Feasible stages of production
11) What is profit? As a business manager which policy maximum
profit or satisfactory profit will be chosen by you and why?
12) Write short note on Inflation and Employment.
13) What is the difference between economic cost and accounting
cost approaches? Which cost is more important in managerial
decisions?