ME Questions
ME Questions
ME Questions
Managerial Economics
Short Answer Questions
1. Define Managerial Economics.
2. What do you understand by demand?
3. What is elasticity of demand?
4. What do you mean by Cross Elasticity?
5. What do you understand by supply?
6. Write Cobb-Douglas production function?
7. What do you mean by past cost?
8. Give some examples of variable cost.
9. What do you mean by the term market in economics?
10. Managerial economics is a subset of pure economics. Justify.
11. What is equi-marginal Principle?
12. Demand curve and demand schedule both are complementary to each other. How?
13. Briefly explain the kinds of elasticity of demand.
14. What are the attributes of production function?
15. What are the major features of isoquants?
16. What is the shape of demand curve faced by a firm under perfect competition?
17. Differentiate between perfect completion and monopoly.
18. Define national income.
19. What is opportunity cost?
20. What do you mean by income-demand?
21. What do you mean by law of supply?
22. What do you mean by long-run and short-run in managerial economics?
23. What do you mean by historical cost and replacement cost?
24. What is monopoly?
25. What do you mean by price discrimination?
26. What is time concept in managerial economics?
27. Explain kinked demand curve.
28. What do you mean by cartel?
Unit – 2
1. What is law of demand? Also Explain some exceptions to the law of demand.
2. What do you mean by income elasticity? Also explain the type of income elasticity.
3. Discuss the different factors which affects the demand.
4. What is demand forecasting? Explain its usefulness for a business firm.
5. What do you understand by a change in demand?
6. Explain various Statistical methods of demand forecasting.
7. What is the impact of changes in demand and supply on the price of a product?
Unit – 3
1. Explain the law of variable proportion with the help of suitable diagram.
2. What do you mean by isoquants? Also discuss the different types of isoquants.
3. What do you mean by law of supply? Also discuss its limitations.
4. Write an explanatory note on cost concepts and analysis from the point of view of business firm.
5. Explain the law of variable proportions. Explain various stages with suitable example. At what
stage will a rational producer prefer to operate?
6. Summarize the relationship between Average Cost & Marginal cost with the help of suitable
example.
Unit – 4
1. Define monopoly. What is the reason of monopoly?
2. Why is a firm under perfect competition a price-taker and not a price-maker?
3. Define oligopoly. Explain how prices and output decision are made in an oligopolistic market.
4. Explain the meaning and features of monopolistic competition; state the difference between
monopoly and monopolistic competition.
5. How is seller under perfect competition a price taker? What is the relevance of the characteristic
that there are large numbers of sellers in this context?
6. What is meant by price discrimination? Why do monopoly firms adopt discriminatory pricing
policy?
Unit – 5
1. What do you mean by cost-push inflation? Explain it with the help of a suitable diagram.
2. Define Inflation. Also explain the types of Inflation.
3. What is a business cycle? Describe the various phases of a business cycle.
4. What do you mean by perfect competition? Explain main characteristics of perfectly competitive
market structure.
5. Explain the types of inflation on the basis of rapidity of price rise.
6. Briefly discuss the income method of national income estimation. What
7. precautions should be taken while using this method?
8. Discuss demand pull and cost-push inflation with the help of suitable examples.
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