1

PROBABLE
QUESTION
DEVELOPMENT
BANK
(PQDB ON MANAGERIAL ECONOMICS FOR MBA -I)

Prepared by:-
Pushpinder Jit Sharma
(Lect. RIMT-IMCT)
PROBABLE QUESTION DEVELOPMENT BANK (ECONOMICS)
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MBA -I
Short answer questions.
a) Define Managerial economics.
b) What are iso-quant curves?
c) What is law of demand?
d) What is meant by break even analysis?
e) What do you mean by dynamic multiplier?
f) Define transfer pricing.
g) What are explicit costs and fixed costs?
h) Define monopolistic competition.
i) What is meant by external economics of scale?
j) What is meant by price elasticity?
k) Differentiate between Micro economics and Macro economics.
l) What is price elasticity of demand? How it can be measured?
m) What is opportunity cost?
n) Define indifference curve.
o) What are selling costs? Why selling costs are important in monopolistic
Competition?

p) What are the main steps involved in estimating national income by income
Method?

q) What do you mean by static multiplier?

r) Explain the phases of Recession and Depression in a trade cycle.
s) What are the various instruments of monetary policy?
t) Define hyper inflation.
u) What is scope of managerial Economics?
v) Differentiate between fixed costs and variable costs.
w) What are the assumptions of break even analysis?
x) What are the main steps involved in product method of national income?
y) Explain balanced budget multiplier.
z) What is a trade cycle?
aa) What are the main objectives of fiscal policy?
bb) Define GDP, GDI, and GDE.
cc) Social accounting & its techniques.
dd) Say’s law of market.
ee) Types of inflation.
ff) Kinky demand curve.
gg) Difference between perfect & imperfect competition.
hh) Market price vs. normal price.

PROBABLE QUESTION DEVELOPMENT BANK (ECONOMICS)

MBA -I
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Long answer questions.

a. Managerial economics bridges the gap between economic theory and business
practices Explain with examples.

b. What are the determinants of market demand of a commodity? How do the changes in
come effect the demand for a commodity?
c. What is transfer pricing? How is transfer pricing determined if there is no external market
for the transfer product?
d. Describe briefly the factors which determine the national income.
e. Describe the various phases of trade cycle. Discuss the steps a businessman may take to
safeguard himself against evil effects of a trade cycles.
f. Write a notes on:
Delphi method of demand forecasting.
Pricing methods.
g. What is Managerial Economics? Discuss its scope.

h. Discuss the cost output relationship in long run.

i. Explain various pricing methods.
j. Explain classical theory of employment.
k. Describe the main causes of trade cycles in an economy.
l. What are the various measures to control inflation?
m. What is demand forecasting? Discuss various methods of demand forecasting.

n. Explain the concepts of Average fixed cost, Average Variable price discrimination is
possible?

o. What is price discrimination? Under what conditions price discrimination is Possible?

p. Explain Keynesian theory of employment.

q. Describe various measures to control trade cycles.
r. What are the main causes of inflation?
s. Describe main tools of fiscal & monetary policy.