THE SUPERIOR COLLEGE LAHORE

BBA-1-A, B, C & D
dd
Final- Term Exam (Objective)
Semester 1 (2021-24)

Department: Management Science department

Subject: Microeconomics Marks Obtained:
Total Marks: 20

Name: ___________________ Instructions:

Roll No: _________________ 1. No cutting or overwriting is allowed.

2. Use of mobile phone is strictly prohibited.
Date: ___________________
3. No extra time will be given.
Time Allowed: 30 Min.

Q1) Write short answers to following questions: (2*5=10)

(i) Explain the relationship between price elasticity of demand and revenue.

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(ii) How total quality management helps to achieve optimization for the company?
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(iii) What is benchmarking?

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(iv) Describe the reasons for fluctuation in Time-series data?

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(v) Write down the difference between monopoly and oligopoly?

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Q2) There are four options for each question Circle the correct one (10*1=10)

1. A qualitative forecast
a. Predicts the quality of a new product. 
b. Predicts the direction, but not the magnitude, of change in a variable.
c. Is a forecast that is classified on a numerical scale from 1 (poor quality) to 10
(perfect quality).  
d. Is a forecast that is based on econometric methods? 
2. Which of the following is not one of the four types of variation that is estimated in time-series
analysis?

a. Predictable 
b. Trend 
c. Cyclical
d. Irregular  

3. In time-series analysis future forecasting is done by

a. Examining Past Observations
b. Regression Analysis
c. Plotting histograms
d. Both a and b 
4. In response to a decrease in price from $6 per kilo to $5 per kilo, the demand for wheat
increases from 400 kilos to 500 kilos per week. What is the price elasticity of demand?
a. 0.8 
b. 0.9 
c. 1.2
d.  1.25 
5. The income elasticity of demand is high for
a. Shelter
b. Luxuries
c. Clothing
d. Food
6. Which of the following is not the method of qualitative demand estimation?
a. Consumer surveys
b. Consumer clinics
c. Market experiments
d. Regression analysis
7. Market equilibrium refers to a situation in which market price
a. Is high enough to allow firms to earn a fair profit. 
b. Is low enough for consumers to buy all that they want. 
c. Is at a level where there is neither a shortage nor a surplus. 
d. Is just above the intersection of the market supply and demand curves
8. What is included in microeconomics?
a. The calculation of national income and expenditure 
b. The effects of change in the exchange rate of a country 
c. the effects of an increase in the price of a good or service

d. Impact of Inflation
9. The responsiveness of the demand to the change in price is known as
a. Price Elasticity of Income
b. Price Inelasticity of Demand
c. Price Elasticity of Demand
d. None of the above
10. Which of the following is not one of the four types of variation that is estimated in time-series
analysis?
a. Predictable 
b. Trend 
c. Cyclical
d. Irregular  
 THE SUPERIOR COLLEGE LAHORE
BBA-1-A, B, C & D
dd
Final - Term Exam (Subjective)
Semester 1 (2021-24)

Department: Management Science department

Subject: Microeconomics
Total marks: 20

Name: ___________________ Instructions:

Roll No: _________________ 1. Attempt all questions

2. Time management is the key of success.
Date: ___________________
3. No extra time shall be given.
Time Allowed: 1.5 hr

Question. 1: This table shows the oil sale in Pakistan (in thousands of barrels)

Time Quantity sale

Q1 11
Q2 15
Q3 17
Q4 21
Q5 10
Q6 11
Q7 19
Q8 25
Q9 12
Q10 29
Q11 30
Q12 32

By drawing upon Smoothing Techniques of Forecasting, use the method of Moving Averages
and calculate the three-quarter moving average forecasts for the firm’s Quantity Sale. Use the
Root-Mean-Square-Error (RMSE) of the forecast to decide the optimum range of the sale.
(10)

Question.2

Write a note on consumer survey and opinion polls? (10)