PROGRAMME MASTER OF BUSINESS ADMINISTRATION (MBA)

SEMESTER I

COURSE CODE & NAME DMBA105 – MANAGERIAL ECONOMICS

Section A
Multiple Choice Questions (2 Marks each)
[Please answer all the questions]
1. The two major functions of the managerial economist are _____ and _____
a) Economic planning, Decision -making
b) Forward planning, Demand forecasting
c) Decision-making, Forward planning
d) None of the above

2. Delphi method of demand forecasting was originally developed at Rand corporation, in the
late _____ by _____, Dalkey and Gordon.
a) 1920, Hicks
b) 1930, Prof. kahn
c) 1940, Dlaf Helmer
d) 1945, Marshall

3. Expansion in supply means, quantity is supplied at a _____ price and contraction in supply
means _____ quantity is supplied at a price.
a) Lower, more
b) Higher, less
c) Lower, less
d) Higher, more

4. Economies of disintegration arise as a result of dividing one big unit into different small units
for the sake of convenience of _____ and _____.
a) Administration, Planning
b) Management, Administration
c) Management, Decision making
d) None of these
 5. U= f[S, M, Id] The above formula speaks about____
a) Consumption function
b) Investment function
c) The manager’s utility function
d) None of these

6. _____ refers to the number and size distribution of buyers and sellers in the market for a
goods or service.
a) Market size
b) Market flexibility
c) Market structure
d) Market system

7. The price at which demand, and supply are equal is known as _____, the quantity bought
and sold at the equilibrium price is also known as _____
a) Price, quantity
b) Equilibrium quantity, equilibrium price
c) Equilibrium price, equilibrium output
d) Market price, market output

8. Two groups of factors that affect consumption function are _____ and _____.
a) Direct, Indirect
b) Controlled, Uncontrolled
c) Subjective, Objective
d) Induced, open

9. If a change in one variable causes change in another variable, it is called _____ variable
whereas, if the value of the variable varies as a result of variations in the value of some other
variable, it is known as _____ variable
a) Dependent, independent
b) Independent, dependent
c) Stock, flow
d) Constant, parameter

10. Two types of demand schedule are _____ and _____ demand schedule.
a) Price, income
b) Elastic, inelastic demand
c) Individual, market
d) Price, Substitution
Section B
SHORT ANSWERS (5 Marks each)
[Please answer Any Four questions]

a) What is ‘Demand’? Explain the features of demand with suitable examples.

b) Explain ‘production function’ and ‘Isoquants’
c) State and justify various external effects of Inflation.
d) List out the points in which profit maximization can be justified.
e) What are the various levels of demand forecasting?
f) Summarize out the Managerial uses of law of supply.

Section C
LONG ANSWERS (10 Marks each)
[Please answer Any Three questions]

1. List out the various Instruments of Fiscal policy.

2. Define is pricing Policies and state the various Factors that affect the price.
3. What are the various types of cost? Explain in detail.
4. Discuss in detail various determinants of Elasticity of Supply.