Business Economics (MBA-Digital Business)

Questions discussed in class

 Unit-I
1. What is economics?
2. Which are the three circular flow of economy?
3. Production leads to consumption and consumption
necessitates production. Explain?
4. All type of taxes paid by the business sectors to the
government are leakages from the circular flow?
5. Are government expenditures injections into the
economy flow?
6. What is the role of government into the economy?
7. What is the role of firms in the economy?
8. What are the objectives of the firm?
9. What benefits can firms give to society?
10. What is profit maximization?
11. What is the difference between quantity
demand and demand?
12. Does a homeless person will demand to buy a
House?
13. How does taste and preference effects the
demand?
14. Is demand the same as quantity demanded
15. What is quantity demand?
16. What is the law of demand?
17. How the substitute and complimentary goods effects the curve? Explain
with diagram
18. When does the demand curve change
19. how demand & supply at as market forces driving price towards market
equilibrium?
20. How does the market forces demand & supply operate in the bringing it?
21.What is demand forecasting?
22. Why demand forecasting important for business?
23. How does the demand forecasting improved / affect cash flow?
24.How does the market always balance demand and
supply?
25. A rise in price almost always leads to an increase in the
quantity supplied of those goods or services. Explain.
26.How does the market process balance its force?
Explain?
27.If it's not necessary always that an increase in the price
of your product will lead to more revenue always.
Explain?
28. What is the econometric method, What is its diagram & explain example in
detail.

 Unit-2
1. How variable inputs will affect the factors of production?
2. What is production?
3. How does the production function looks?
4. What is Production Function?
5. Relation between Production & factors of production is referred to Law of
variable production? How.
6. The long run is the period of time during which all factors are variable?
Why?
7. A Ltd manufacture Umbrellas. The business has grown rapidly and the
director are now aeselcing to build a new, much bigger factory. Brief explain
how A Ltd may obtain purchasing, technical & specialisation economics of sale?
With diagram.
8. Differentiate with long term production & short term production.
9. Why Average fixed cost (AFC) never become zero?
10. How does Average Cost curves behaviours in short and long run. Show with
help of diagram?
11. Explain how do you get Average total cost curve. How does LR AC curve
created in long run using diagram?
 Law of Diminishing Marginal Utility
12. State the law of diminishing marginal utility?
13. Law of diminishing marginal assumptions.
14. Why law of diminishing marginal utility is short run Or why law of
diminishing marginal utility applicable to a short run?
15. Imagine you own land where we produce more & more rice.
16. How will you determine the 3 stages of when the law of diminishing
marginal utility is working?
17. Which stage of the law of variable proportion should a firm operate in ?
Stage 1, 2 or 3?
 Isoquants
18. what is an isoquants in economics?

 Unit-3
1. Why a single prevail in a perfect competition in a market?
2. Why MR=AR .
3. A firm in the perfectly competitive market is known as a price taker only?
4. Why is the average revenue and marginal revenue horizontal in a perfect
competition?
5. Differentiate between monopolistic and perfect competition?
6. Demand curve facing an individual firm under monopolistic competition
slopes downwards?
7. Why in a monopolistic competition the Demand curve goes downwards?
8. Why in monopolistic competition AR curve is same as demand curve?
9. Why MR curve always lies below AR curve?
10. Why is the Price Discrimination done? Explain with example.
11. When is Price Discrimination possible?
12. Under which market structure price discrimination is possible?
13. When Price Discrimination is Profitable?
14. What is a monopoly?
15. When the industry & firm is one which of type business it is?
16. Why government are discouraging monopolies in certain sector. Illustrate
with example?
17. Why is the Price Discrimination done? Explain with example.

 Unit-4
1. What is the difference between National income and domestic income?
2. Why is National Income important?
3. How National Income impacts the policies of the country?
4. What is the role of monetary policy in business cycle?

 Unit-5
1. What is the advantage of calculating GNP or GDP by income method and not
by production method?
  Unit-4
1. What is the difference between National income and domestic income?
2. Why is National Income important?
3. How National Income impacts the policies of the country?
4. What is the role of monetary policy in business cycle?