QUESTION BANK

First year M.B.A.

103 GC-03: ECONOMIC ANALYSIS FOR BUSINESS DECISIONS
(2024 Pattern) (Semester-I)

Q1) two marks questions (2 marks each)

a) List objective of the firm

b) Write down the exceptions of the law of demand.
c) Write down the exceptions of the law of supply.
d) State the uses of concept of elasticity.
e) List the method of demand forecasting.
f) State the law of supply
g) State the law of Demand.
h) Define elasticity of demand.
i) Define elasticity of supply.
j) Define cross-price elasticity of demand.
k) Define output elasticity
l) What is economics cost.
m) What is opportunity cost
n) Difference between quantity demand and demand
o) Define change in supply
p) Define shift in supply.
q) What is cardinal utility?
r) What is marginal rate of substitution?
s) Define marginal rate of technical substitution
t) What is economies of scale?
u) What is economies of scope?
v) Define cost function.
w) Define consumption function.
x) Define production function.
y) Define investment function.
z) Define demand function
a) Define supply function
b) What is price discrimination?
c) State the market equilibrium condition
d) Write down the scope of managerial economics.
e) What is excess demand?
f) What is excess supply?
g) Meaning of perfect competition.
h) What is marginal cost?
i) Define marginal utility.
j) Define average cost
k) Meaning of monopoly market.
a) Firm and Industry
b) What is implicit cost?
c) What is explicit cost?
d) Define Managerial Economics.
e) Define marginal cost.
f) Define supply function.
g) List the objectives of the firm.
h) Define consumption function.
i) What is implicit cost?
j) Define cross-price elasticity of demand
k) What is business cycle?
l) Define Economics and Managerial Economics.
m) Define Elasticity of demand.
n) State the law of demand.
o) List the objectives of the firm.
p) Define investment function.
q) What is economic cost?
r) List the exceptions to law of demand.
s) State the uses of concept of elasticity
t) Define managerial economics.
u) Differentiate between microeconomics and macroeconomics.
v) State the nature of managerial economics.
w) What is Baumol’s static model?
x) Define Marris’ growth maximization model.
y) What is the law of diminishing marginal utility?
z) Explain the concept of indifference curves.
aa) Define consumer surplus.
bb) What are the determinants of demand?
cc) List the criteria for good demand forecasting.
dd) What are survey methods in demand forecasting?
ee) Define market equilibrium.
ff) What is the elasticity of supply?
gg) Define cost-output relationship.
hh) What is transfer pricing?
ii) Differentiate between private cost and social cost.
jj) Define marginal efficiency of capital.
kk) What is the multiplier effect?
ll) State the phases of a business cycle.
What is the accelerator principle?
Q2) Five marks questions (5 marks each)

a) What is demand? What are the factors that affect demand?

b) What is Supply? What are the factors that determine supply?
c) Explain the price leadership?
d) What is private cost and social cost?
e) What is economics profit and account profit?
f) Explain the determinants of demand function.
g) Explain the determinants of supply function.
h) Explain the factors determining elasticity of supply.
i) What is cardinal and ordinal utility?
j) Explain criteria for good demand forecasting.
k) What are the demand forecasting methods?
l) What is excess supply and excess demand?
m) Explain the market mechanism.
n) Explain the economies of scale and economies of scope.
o) Explain the relationship between
p) What is consumer surplus? Explain the measurement of consumer surplus.
q) What is Supply? What are the factors that determine supply?
r) Explain price discrimination in the monopoly.
s) State and explain the law of diminishing marginal utility.
t) State the law of supply and explain the elasticity of supply.
u) What is private cost and social cost?
v) Explain the nature and scope of managerial economics.
w) Discuss the objectives of a firm under Baumol’s model.
x) Describe the concept of consumer equilibrium using the budget line.
y) What are the determinants of elasticity of demand?
z) Explain the significance of demand forecasting in business decisions.
aa) Discuss the factors that determine elasticity of supply.
bb) Explain the relationship between short-run and long-run costs.
cc) What are the objectives of pricing policies?
dd) Describe the phases of a business cycle with examples.
ee) Discuss the measures to control business cycles.

Q) Ten marks questions (10 marks each)

a) Explain the Cyert and March behavioral theory of the firm.

b) Discuss the law of diminishing marginal utility and its practical applications.
c) Explain the determination of consumer equilibrium using indifference curve analysis.
d) Describe the cost-output relationship in the long run with suitable examples.
e) Analyze price-output determination under monopolistic competition.
f) Discuss the phases of a business cycle in detail and its impact on business decisions.
g) Explain the role of government intervention in controlling monopolies.
h) Write a detailed note on Baumol’s and Marris’ models of firm objectives.
i) Explain the economic profit and how the economics profit is differed from the accounting
profit?
j) Explain the nature and scope of managerial economics.
k) State the law of supply and explain the elasticity of supply.
l) “Market can experience only normal profit situation in the long run in perfect competition”,
comment.
m) Explain the price and output determination in the monopolistic competition.
n) Explain the cost output relationship in short run.
o) Write drown the objectives of pricing policies. Explain cyclical pricing, price skimming and
penetration pricing
p) What is business cycle? Explain the phases of business cycle.
q) Explain the need for Government intervention in the market.
r) Explain the determination of consumer equilibrium using Indifference curve analysis.
s) Explain the equilibrium of Monopoly firm under different cost conditions.
APPLYING (10 Marks)
t) Apply the law of diminishing marginal utility to explain consumer behavior in real-life purchasing
decisions.
u) Using the concept of elasticity of demand, suggest a pricing strategy for a new product launch in
a competitive market.
v) Illustrate how firms can achieve cost minimization using economies of scale in production.
w) Design a demand forecasting strategy for a newly launched electric vehicle in India.
x) Apply the indifference curve analysis to explain how consumers make trade-offs between luxury
and necessity goods.
ANALYZING (10 Marks)
y) Analyze the impact of a government-imposed price ceiling on a perfectly competitive market.
z) Compare and contrast the cost-output relationships in the short run and long run with suitable
examples.
aa) Examine the role of pricing power in monopolistic competition and its impact on consumers and
producers.
bb) Analyze the phases of a business cycle in the context of the COVID-19 pandemic and its effects
on global businesses.
cc) Break down the components of transfer pricing and its implications for multinational companies.
EVALUATING (10 Marks)
dd) Critically evaluate Baumol’s static and dynamic models of profit maximization and their
relevance in modern business.
ee) Assess the effectiveness of demand forecasting methods for seasonal products like air
conditioners.
ff) Evaluate the impact of pricing policies (price skimming and penetration pricing) on the market
share of a new product.
gg) Examine the efficiency of government interventions in controlling monopoly power in industries
like telecommunications.
hh) Discuss the implications of business cycle theories for strategic business decisions in the
automobile sector.
CREATING (10 Marks)
ii) Develop a pricing model for a startup entering the oligopolistic e-commerce market.
jj) Propose a cost minimization plan for a manufacturing firm to improve its long-run production
efficiency.
kk) Create a case study showing how a company successfully applied demand forecasting to launch
a best-selling product.
ll) Design a profit policy for a startup facing high competition in a monopolistic competition
scenario.
mm) Draft a business
strategy to address fluctuations during different phases of the business cycle.