SCDL

Program Name: C-PGDBA

Subject: Managerial Economics
Assessment Name: ME - Exam
Weightage: 70
Total Marks: 70
Duration: 80 mins

Online Examination:

Online examination is a Computer based examination.

Online examination comprises of Total 29 Questions - Out of 70 marks.

Duration of online examination will be of 1 Hour 20 minutes (80 minutes).

Section - I Instructions:

- It is compulsory and has total 3 Subjective Questions.

- Students are required to solve any 2 Subjective Type Questions. Each question is of 5 marks.
- Section I is out of 10 Marks.

Please refer following instructions regarding Subjective examination:

- While attempting subjective examination Text formatting facility will be disabled such as use of bullets,
making the text bold, underlining the text etc. Only normal character on the key board will be available.
- Special characters available on the keyboard will be allowed.
- Students can not attempt more than 2 questions out of given 3.
- A blank (space typed) or any entry in the space provided will be considered as question is answered.
- Hand written answers are not allowed. Subjective test can be answered by using key board.
- No brail support shall be provided, but writer assistance shall be allowed. The student has to intimate it to
SCDL well in advance by completing applicable formalities.
- Answers for both the questions should not exceed more than 110 words. The maximum word limit per
answer is 55 words (for Subjective part).

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1) Sometimes change in demand takes place even though there is no change in price. What are the factors
which affect demand?
(5)

A change in demand takes place when the basic factors affecting demand other than price changes. An
increase or decrease in demand is brought about by many kinds of changes. Some of the important
changes are: Change in income Change in the pattern of income distribution. Change in tastes, habits and
preferences. Change in fashions and customs. Change in the supply of the substitutes and in their prices.
Change in the supply or demand of the complementary goods and change in their prices. Change in
population. Advertisement and publicity persuasion.

2) What is equilibrium of a firm?

(5)

A firm or a business enterprise will try to maximise its profit. Profit is the difference between total revenue
and total cost and the firm will make an attempt to maximise this difference. Thus, the firm will stabilise
its activity at the point where it achieves the maximum profit. This point is called equilibrium. Equilibrium
of a firm will be established when its output maximises its money profit.

3) When do you think a firm gets an opportunity to produce multiple products?

(5)

In theory, it may be assumed that a firm produces only one product. In practice, it may be producing a
number of products, should the opportunity arise. Opportunity for producing multiple products arises due
to: Excess capacity: The excess capacity could be in manufacturing, management or distribution.
Seasonal variation: It may be possible to use the same machinery for manufacturing some other goods in
the off season. Cyclical changes: The demand for certain goods shows downward trend due to business
cycles. Secular shifts: As per changes in tests and preferences of consumers, the firm may have to add new
products in the product line. Vertical Integration of production process may also offer opportunities for
increasing the number of products. Research: Availability of new methods of production.

Section 1 is complete.

Please click on "Next" button to proceed.

Section - II Instructions:

- It comprises of Objective Questions Only.

- Total 60 marks are allotted for objective type questions.
- The objective questions are of following type and carries marks as given under.

Multiple Choice Multiple Response : 4 Questions - 16 Marks (Each 4 marks)

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Multiple Choice Single Response : 9 Questions - 18 Marks (Each 2 marks)

True or False : 5 Questions - 5 Marks (Each 1 mark)
Select a Blank : 5 Questions - 5 Marks (Each 1 mark)
Match the Column : 4 Questions - 16 Marks (Each 4 marks)

Total Questions : 27
Total Marks : 60

1) Demand for a product is not affected by ; a

(2)
1] level of technology
2] price of related products
3] tastes and preferences
4] income of a person

2) Factors of production are also known as :BLANK

(1)
1] inputs
2] output
3] capital
4] basket of goods

3) A downward movement from one point to another point on the same demand curve implies
(2)
1] Increase in demand
2] Decrease in Demand
3] No change in Demand
4] Seasonal Demand

4) The law of supply is hypothetical.

(1)
1] True
2] False

5) A plant is an economic unit which takes various decisions related to production and distribution.
(1)
1] True
2] False

6) When the outputs increased from 4 units to 5 units, the total revenue went up from Rs.100 to Rs.120 and
the total cost went up from Rs.80/- to Rs.95/-. In this case, the profit of the firm will be :BLANK
(1)
1] Rs.600/-
2] Rs.120/-
3] Rs.125/
4] Rs.25/-

7) Under monopoly entry of new firms is

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(2)
1] prohibited
2] permitted
3] free
4] subject to licence

8) If there is one buyer and one seller, it is called as :BLANK monopoly

(1)
1] bipolar
2] bilateral
3] unilateral
4] dual

9) Match the Following

(4)
1] Chicken and Egg 1] Alternate products
2] Meat and Hide 2] Joint products
3] Car and petrol 3] Complimentary products
4] Tea and coffee 4] Substitute products
5] Unrelated products
6] Cyclical products

10) Sick public enterprises should be referred to :BLANK for the purpose of rehabilitation .
(1)
1] IFCI
2] IDBI
3] RBI
4] BIFR

11) In cost benefit analysis for finding the present value of future cash flows, one has to make use of
(2)
1] discount rate
2] compound rate
3] flat rate
4] simple rate

12) Match the Following

(4)
1] Defence Service 1] indivisible goods/services
2] A cup of tea 2] divisible goods
3] A private clinic 3] impure public goods/services
4] A body massage 4] pure private goods/services
5] external goods
6] internal goods

13) Problem of scarcity does not exist in rich nations.

(1)
1] True
2] False

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14) The methods of calculating depreciation are

(4)
1] Diminishing Balance Method
2] Annuity Method
3] Service Unit Method
4] Deferred Expenditure method

15) Match the Following

1] To a layman, profit means
2] To an accountant profit means
3] While calculating accounting profit
4] Explicit cost is
(4)
1] All incomes that flow to the investors
2] Revenue minus all paid out costs
3] Only explicit costs are considered
4] Book cost
5] Sacrifice
6] Both explicit and implicit costs considered

16) Withdrawal of close substitutes to the commodity in question will increase its demand.
(1)
1] True
2] False

17) If the price of a commodity increases from Rs.10,000/- per unit to Rs.15,000/- per unit and if the quantity
supplied does not change then it is :BLANK elasticity of supply
(1)
1] unitary
2] less than unitary
3] more than unitary
4] zero

18) When the inputs increased from 9 units to 10 units the total product went up from 100 units to 120 units.
In the case average product is
(2)
1] 20 units
2] 120 unit
3] 12 units
4] 100 units

19) The study of costs at different level of production is called as

(2)
1] profit volume relationship
2] profit revenue relationship
3] cost output relationship
4] cost input relationship

20) Addition to the total revenue due to sale of one more unit is called as
(2)
1] Profit per unit
2] Gross profit
3] Average Revenue
4] Marginal Revenue

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21) A firm is guided by its own profit motives

(1)
1] True
2] False

22) According to Keynes the motives for holding cash for liquidity preference are
(4)
1] The speculative motive
2] The reserve motive
3] The transactions motive
4] The precautionary motive

23) Food corporation of India buys agricultural products at prices which ensure that the farmers make
(2)
1] a certain minimum loss
2] a certain minimum profit
3] a certain normal profit
4] a certain maximum profit

24) Industries where security concerns are predominant are reserved for
(2)
1] public sector
2] private sector
3] joint sector
4] multi national companies

25) Main aims of the New Industrial Policy (1991) are

(4)
1] To unshackle the Indian industrial economy from the cobwebs of unnecessary bureaucratic control
2] To take political mileage
3] To remove restrictions on direct foreign investment
4] To introduce liberalization with a view to integrate the Indian economy with the world economy

26) Match the Following

(4)
1] Raw hides and skin industry 1] Industrial licence compulsory
2] Hosiery industry 2] Industrial licence not compulsory
3] Arms Industry 3] Reserved for public sector
4] Sale of public sector industry 4] Disinvestment
5] Reserved for exports
6] Reserved for imports

27) The economists who defined the term 'market' different from that of the traditional sense are
(4)
1] Cournot
2] Jevons
3] Keynes
4] Samulson

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Section 2 is complete.

Please click on "Next" button to proceed.

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