Download Anna University (AU) MBA ( Master of Business Administration) Important Question Bank 1st Sem 1915101 Economic Analysis for Business (Latest Important Questions Unit Wise)
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?
DEPARTMENT OF MANAGEMENT STUDIES
QUESTION BANK
I SEMESTER
1915101 ? ECONOMIC ANALYSIS FOR
Regulation ? 2019
Academic Year 2019 - 2020
Prepared by
Dr. K. Sentamilselvan ? Asst. Professor
Dr. L.Sujatha ? Asst. Professor
FirstRanker.com - FirstRanker's Choice
(An
?
DEPARTMENT OF MANAGEMENT STUDIES
QUESTION BANK
I SEMESTER
1915101 ? ECONOMIC ANALYSIS FOR
Regulation ? 2019
Academic Year 2019 - 2020
Prepared by
Dr. K. Sentamilselvan ? Asst. Professor
Dr. L.Sujatha ? Asst. Professor
(An
? .
DEPARTMENT OFMANAGEMENT STUDIES
QUESTION BANK
SUBJECT: 1915101 ? ECONOMIC ANALYSIS FOR
SEM / YEAR: I Semester / I Year
UNIT ? I ? INTRODUCTION
SYLLABUS: Definition of Economics - Micro Vs. Macroeconomics ? Fundamental Economic
Problem ? Production Possibility Curve ? Assumptions and Criticism. Economic Systems and Types
? Social, Capital and Mixed Economies and its characteristics.
PART- A
S.NO QUESTIONS BT LEVEL COMPETENCE
1 How would you define Economics? Level 1 Remembering
2
Can you explain when scarcity arises?
Level 2 Understanding
3
State the importance of understanding Economic
Problem
Level 3 Applying
4
Can you outline difference between Micro and
Macro Economics?
Level 4 Analysing
5
What is your opinion of Production-possibility frontier
(PPF)?
Level 5 Evaluating
6
In your opinion what are the differences between
Productive and Economic Efficiency?
Level 6 Creating
7 How would you explain Economic Growth? Level 1 Remembering
8
What is meant by ?Efficiency??
Level 2 Understanding
9 Describe Economic Stability Level 3 Applying
10
Identify the role of Government in present Economic
Scenario
Level 4 Analysing
11 Explain Transformation Curve. Level 5 Evaluating
12 Write short note on Economic Stability. Level 6 Creating
13 What are the elements of Economic Growth? Level 1 Remembering
14
State the reasons for Economic Problem?
Level 2 Understanding
15 What is meant by Mixed Economy? Level 3 Applying
16
Identify the criticisms of Production Possibility Curve.
Level 4 Analysing
17
Outline the role of Markets in today?s economic scenario.
Level 1 Remembering
18
What are the various types of Economic Efficiency?
Level 2 Understanding
FirstRanker.com - FirstRanker's Choice
(An
?
DEPARTMENT OF MANAGEMENT STUDIES
QUESTION BANK
I SEMESTER
1915101 ? ECONOMIC ANALYSIS FOR
Regulation ? 2019
Academic Year 2019 - 2020
Prepared by
Dr. K. Sentamilselvan ? Asst. Professor
Dr. L.Sujatha ? Asst. Professor
(An
? .
DEPARTMENT OFMANAGEMENT STUDIES
QUESTION BANK
SUBJECT: 1915101 ? ECONOMIC ANALYSIS FOR
SEM / YEAR: I Semester / I Year
UNIT ? I ? INTRODUCTION
SYLLABUS: Definition of Economics - Micro Vs. Macroeconomics ? Fundamental Economic
Problem ? Production Possibility Curve ? Assumptions and Criticism. Economic Systems and Types
? Social, Capital and Mixed Economies and its characteristics.
PART- A
S.NO QUESTIONS BT LEVEL COMPETENCE
1 How would you define Economics? Level 1 Remembering
2
Can you explain when scarcity arises?
Level 2 Understanding
3
State the importance of understanding Economic
Problem
Level 3 Applying
4
Can you outline difference between Micro and
Macro Economics?
Level 4 Analysing
5
What is your opinion of Production-possibility frontier
(PPF)?
Level 5 Evaluating
6
In your opinion what are the differences between
Productive and Economic Efficiency?
Level 6 Creating
7 How would you explain Economic Growth? Level 1 Remembering
8
What is meant by ?Efficiency??
Level 2 Understanding
9 Describe Economic Stability Level 3 Applying
10
Identify the role of Government in present Economic
Scenario
Level 4 Analysing
11 Explain Transformation Curve. Level 5 Evaluating
12 Write short note on Economic Stability. Level 6 Creating
13 What are the elements of Economic Growth? Level 1 Remembering
14
State the reasons for Economic Problem?
Level 2 Understanding
15 What is meant by Mixed Economy? Level 3 Applying
16
Identify the criticisms of Production Possibility Curve.
Level 4 Analysing
17
Outline the role of Markets in today?s economic scenario.
Level 1 Remembering
18
What are the various types of Economic Efficiency?
Level 2 Understanding
19
What are the assumptions of Production Possibility
Curve?
Level 1 Remembering
20
How would you explain Productive efficiency?
Level 1 Remembering
PART- B
S.NO QUESTIONS
BT
LEVEL
COMPETENCE
1
Write a detailed note on the nature of Macro Economics.
Level 1 Remembering
2
i) Explain Economic Efficiency. (5Marks)
ii) Explain the various types of Economic Efficiency. (8Marks)
Level 2 Understanding
3
How would you show your understanding of ?Scarcity and
Efficiency are the twin themes of Economics??
Level 3 Applying
4
i) What is Production Possibility Frontier? (7Marks)
ii) Explain the significance of PPF. (6Marks)
Level 4 Analysing
5
Explain the importance of Macroeconomics.
Level 5 Evaluating
6
Government plays a vital role in today?s economic scenario ?
Discuss
Level 6 Creating
7
?The markets and government play a significant role for the
economy development of a nation? - Examine
Level 1 Remembering
8
Outline a detailed role of Markets in today?s economy.
Level 2 Understanding
9
i) Explain the concept of Transformation Curve. (7Marks)
ii) State the assumptions of the transformation curve. (6Marks)
Level 3 Applying
10
i) Explain the themes of Economics (7Marks)
i) Explain how stability in leads to economic growth .
(6Marks)
Level 4 Analysing
11
Suggest measures to overcome fundamental economic problems.
Level 1 Remembering
12
Can you explain the fundamental economic problems?
Level 2 Understanding
13
Compare Productive Efficiency Vs Economic Efficiency.
Level 4 Analysing
14
Explain the significance of economic growth and stability and
discuss how to attain them.
Level 1 Remembering
PART - C
S.NO QUESTIONS
1
The Government suddenly made a ?U? turn in its economic policies in 1991, making a
fundamental departure from ?Nehruvian Policies of Socialism?, even without discussing the
issue in the Parliament. Even Communist and Socialist members of the Parliament, and also
pro-labor organizations kept quiet ? Discuss about these in groups, regarding the significance
and implications.
FirstRanker.com - FirstRanker's Choice
(An
?
DEPARTMENT OF MANAGEMENT STUDIES
QUESTION BANK
I SEMESTER
1915101 ? ECONOMIC ANALYSIS FOR
Regulation ? 2019
Academic Year 2019 - 2020
Prepared by
Dr. K. Sentamilselvan ? Asst. Professor
Dr. L.Sujatha ? Asst. Professor
(An
? .
DEPARTMENT OFMANAGEMENT STUDIES
QUESTION BANK
SUBJECT: 1915101 ? ECONOMIC ANALYSIS FOR
SEM / YEAR: I Semester / I Year
UNIT ? I ? INTRODUCTION
SYLLABUS: Definition of Economics - Micro Vs. Macroeconomics ? Fundamental Economic
Problem ? Production Possibility Curve ? Assumptions and Criticism. Economic Systems and Types
? Social, Capital and Mixed Economies and its characteristics.
PART- A
S.NO QUESTIONS BT LEVEL COMPETENCE
1 How would you define Economics? Level 1 Remembering
2
Can you explain when scarcity arises?
Level 2 Understanding
3
State the importance of understanding Economic
Problem
Level 3 Applying
4
Can you outline difference between Micro and
Macro Economics?
Level 4 Analysing
5
What is your opinion of Production-possibility frontier
(PPF)?
Level 5 Evaluating
6
In your opinion what are the differences between
Productive and Economic Efficiency?
Level 6 Creating
7 How would you explain Economic Growth? Level 1 Remembering
8
What is meant by ?Efficiency??
Level 2 Understanding
9 Describe Economic Stability Level 3 Applying
10
Identify the role of Government in present Economic
Scenario
Level 4 Analysing
11 Explain Transformation Curve. Level 5 Evaluating
12 Write short note on Economic Stability. Level 6 Creating
13 What are the elements of Economic Growth? Level 1 Remembering
14
State the reasons for Economic Problem?
Level 2 Understanding
15 What is meant by Mixed Economy? Level 3 Applying
16
Identify the criticisms of Production Possibility Curve.
Level 4 Analysing
17
Outline the role of Markets in today?s economic scenario.
Level 1 Remembering
18
What are the various types of Economic Efficiency?
Level 2 Understanding
19
What are the assumptions of Production Possibility
Curve?
Level 1 Remembering
20
How would you explain Productive efficiency?
Level 1 Remembering
PART- B
S.NO QUESTIONS
BT
LEVEL
COMPETENCE
1
Write a detailed note on the nature of Macro Economics.
Level 1 Remembering
2
i) Explain Economic Efficiency. (5Marks)
ii) Explain the various types of Economic Efficiency. (8Marks)
Level 2 Understanding
3
How would you show your understanding of ?Scarcity and
Efficiency are the twin themes of Economics??
Level 3 Applying
4
i) What is Production Possibility Frontier? (7Marks)
ii) Explain the significance of PPF. (6Marks)
Level 4 Analysing
5
Explain the importance of Macroeconomics.
Level 5 Evaluating
6
Government plays a vital role in today?s economic scenario ?
Discuss
Level 6 Creating
7
?The markets and government play a significant role for the
economy development of a nation? - Examine
Level 1 Remembering
8
Outline a detailed role of Markets in today?s economy.
Level 2 Understanding
9
i) Explain the concept of Transformation Curve. (7Marks)
ii) State the assumptions of the transformation curve. (6Marks)
Level 3 Applying
10
i) Explain the themes of Economics (7Marks)
i) Explain how stability in leads to economic growth .
(6Marks)
Level 4 Analysing
11
Suggest measures to overcome fundamental economic problems.
Level 1 Remembering
12
Can you explain the fundamental economic problems?
Level 2 Understanding
13
Compare Productive Efficiency Vs Economic Efficiency.
Level 4 Analysing
14
Explain the significance of economic growth and stability and
discuss how to attain them.
Level 1 Remembering
PART - C
S.NO QUESTIONS
1
The Government suddenly made a ?U? turn in its economic policies in 1991, making a
fundamental departure from ?Nehruvian Policies of Socialism?, even without discussing the
issue in the Parliament. Even Communist and Socialist members of the Parliament, and also
pro-labor organizations kept quiet ? Discuss about these in groups, regarding the significance
and implications.
2
The City of Pune has a hundred petrol pumps selling identical products, but owned by
different owners. The total market demand is given by Q = 50000 ? 20000p. The total supply
function is given by: Q = 2500P. Cone of the Oil companies decided to take over all these
pumps. There is no apparent cost advantage because the cost function remains the same,
regardless of whether it is one large company or many small ones. The users of petrol are
disturbed and annoyed at this because they anticipate exploitation. You are required to
calculate the following:
i. The price prior to the merger.
Ii.The price post-merger.
Note that the supply function is nothing but the rising part of the relevant cost function.
Questions:
i. If the Government steps in and decides to regulate the price, would you recommend a
marginal cost pricing regulation? Why or why not? (8 Marks)
ii. Discuss the ideal market structure, given the nature of the commodity.(7 Marks)
3
Explain as to how the study of Economics helps you in better decision making in
scenario?
4
How is this going to help me?
Ms. X wants to be a manager. She enjoyed her accounting, finance and marketing courses.
Each of these provided her with some clear cut answer. Now the professor in her economics
course is telling her that needs and wants and unlimited and the resource are limited. She
comes to school to get an answer on how to be an effective manager, and meeting unlimited
needs with limited resource is found to be difficult for her to concentrate.
Questions:
i. How would you relieve Ms. X?s anxiety? How is the course in going to help her?
(8Marks)
ii. How does a course in economics differ from other fields? (7Marks)
UNIT ? II ? CONSUMER AND PRODUCER BEHAVIOUR
SYLLABUS: Law of Demand and Supply ? Assumptions ? Determinants ? Exceptions ? Elasticity
of Demand and supply and its types. Consumer Behaviour ? Approaches ? Law of Diminishing
Marginal Utility ? Law of Equi Marginal Utility ? Indifference Curve Analysis. Producer Behaviour
? Production Function ? Long run and Short run . Law of Diminishing Marginal returns ? Returns to
scale ? Marginal Rate of Technical Substitution ? Co Function ? Concepts ? Long and short run Cost
curves ? Economies and Diseconomies of Scale ? Concept of Consumer Surplus and Producer
Surplus.
PART- A
S.NO QUESTIONS BT LEVEL COMPETENCE
1
Define Law of Supply.
Level 1 Remembering
2
What is Marginal Rate of Technical Substitution?
Level 2 Understanding
3
List the determinants of Demand.
Level 3 Applying
FirstRanker.com - FirstRanker's Choice
(An
?
DEPARTMENT OF MANAGEMENT STUDIES
QUESTION BANK
I SEMESTER
1915101 ? ECONOMIC ANALYSIS FOR
Regulation ? 2019
Academic Year 2019 - 2020
Prepared by
Dr. K. Sentamilselvan ? Asst. Professor
Dr. L.Sujatha ? Asst. Professor
(An
? .
DEPARTMENT OFMANAGEMENT STUDIES
QUESTION BANK
SUBJECT: 1915101 ? ECONOMIC ANALYSIS FOR
SEM / YEAR: I Semester / I Year
UNIT ? I ? INTRODUCTION
SYLLABUS: Definition of Economics - Micro Vs. Macroeconomics ? Fundamental Economic
Problem ? Production Possibility Curve ? Assumptions and Criticism. Economic Systems and Types
? Social, Capital and Mixed Economies and its characteristics.
PART- A
S.NO QUESTIONS BT LEVEL COMPETENCE
1 How would you define Economics? Level 1 Remembering
2
Can you explain when scarcity arises?
Level 2 Understanding
3
State the importance of understanding Economic
Problem
Level 3 Applying
4
Can you outline difference between Micro and
Macro Economics?
Level 4 Analysing
5
What is your opinion of Production-possibility frontier
(PPF)?
Level 5 Evaluating
6
In your opinion what are the differences between
Productive and Economic Efficiency?
Level 6 Creating
7 How would you explain Economic Growth? Level 1 Remembering
8
What is meant by ?Efficiency??
Level 2 Understanding
9 Describe Economic Stability Level 3 Applying
10
Identify the role of Government in present Economic
Scenario
Level 4 Analysing
11 Explain Transformation Curve. Level 5 Evaluating
12 Write short note on Economic Stability. Level 6 Creating
13 What are the elements of Economic Growth? Level 1 Remembering
14
State the reasons for Economic Problem?
Level 2 Understanding
15 What is meant by Mixed Economy? Level 3 Applying
16
Identify the criticisms of Production Possibility Curve.
Level 4 Analysing
17
Outline the role of Markets in today?s economic scenario.
Level 1 Remembering
18
What are the various types of Economic Efficiency?
Level 2 Understanding
19
What are the assumptions of Production Possibility
Curve?
Level 1 Remembering
20
How would you explain Productive efficiency?
Level 1 Remembering
PART- B
S.NO QUESTIONS
BT
LEVEL
COMPETENCE
1
Write a detailed note on the nature of Macro Economics.
Level 1 Remembering
2
i) Explain Economic Efficiency. (5Marks)
ii) Explain the various types of Economic Efficiency. (8Marks)
Level 2 Understanding
3
How would you show your understanding of ?Scarcity and
Efficiency are the twin themes of Economics??
Level 3 Applying
4
i) What is Production Possibility Frontier? (7Marks)
ii) Explain the significance of PPF. (6Marks)
Level 4 Analysing
5
Explain the importance of Macroeconomics.
Level 5 Evaluating
6
Government plays a vital role in today?s economic scenario ?
Discuss
Level 6 Creating
7
?The markets and government play a significant role for the
economy development of a nation? - Examine
Level 1 Remembering
8
Outline a detailed role of Markets in today?s economy.
Level 2 Understanding
9
i) Explain the concept of Transformation Curve. (7Marks)
ii) State the assumptions of the transformation curve. (6Marks)
Level 3 Applying
10
i) Explain the themes of Economics (7Marks)
i) Explain how stability in leads to economic growth .
(6Marks)
Level 4 Analysing
11
Suggest measures to overcome fundamental economic problems.
Level 1 Remembering
12
Can you explain the fundamental economic problems?
Level 2 Understanding
13
Compare Productive Efficiency Vs Economic Efficiency.
Level 4 Analysing
14
Explain the significance of economic growth and stability and
discuss how to attain them.
Level 1 Remembering
PART - C
S.NO QUESTIONS
1
The Government suddenly made a ?U? turn in its economic policies in 1991, making a
fundamental departure from ?Nehruvian Policies of Socialism?, even without discussing the
issue in the Parliament. Even Communist and Socialist members of the Parliament, and also
pro-labor organizations kept quiet ? Discuss about these in groups, regarding the significance
and implications.
2
The City of Pune has a hundred petrol pumps selling identical products, but owned by
different owners. The total market demand is given by Q = 50000 ? 20000p. The total supply
function is given by: Q = 2500P. Cone of the Oil companies decided to take over all these
pumps. There is no apparent cost advantage because the cost function remains the same,
regardless of whether it is one large company or many small ones. The users of petrol are
disturbed and annoyed at this because they anticipate exploitation. You are required to
calculate the following:
i. The price prior to the merger.
Ii.The price post-merger.
Note that the supply function is nothing but the rising part of the relevant cost function.
Questions:
i. If the Government steps in and decides to regulate the price, would you recommend a
marginal cost pricing regulation? Why or why not? (8 Marks)
ii. Discuss the ideal market structure, given the nature of the commodity.(7 Marks)
3
Explain as to how the study of Economics helps you in better decision making in
scenario?
4
How is this going to help me?
Ms. X wants to be a manager. She enjoyed her accounting, finance and marketing courses.
Each of these provided her with some clear cut answer. Now the professor in her economics
course is telling her that needs and wants and unlimited and the resource are limited. She
comes to school to get an answer on how to be an effective manager, and meeting unlimited
needs with limited resource is found to be difficult for her to concentrate.
Questions:
i. How would you relieve Ms. X?s anxiety? How is the course in going to help her?
(8Marks)
ii. How does a course in economics differ from other fields? (7Marks)
UNIT ? II ? CONSUMER AND PRODUCER BEHAVIOUR
SYLLABUS: Law of Demand and Supply ? Assumptions ? Determinants ? Exceptions ? Elasticity
of Demand and supply and its types. Consumer Behaviour ? Approaches ? Law of Diminishing
Marginal Utility ? Law of Equi Marginal Utility ? Indifference Curve Analysis. Producer Behaviour
? Production Function ? Long run and Short run . Law of Diminishing Marginal returns ? Returns to
scale ? Marginal Rate of Technical Substitution ? Co Function ? Concepts ? Long and short run Cost
curves ? Economies and Diseconomies of Scale ? Concept of Consumer Surplus and Producer
Surplus.
PART- A
S.NO QUESTIONS BT LEVEL COMPETENCE
1
Define Law of Supply.
Level 1 Remembering
2
What is Marginal Rate of Technical Substitution?
Level 2 Understanding
3
List the determinants of Demand.
Level 3 Applying
4
Can you explain Demand Analysis?
Level 4 Analysing
5
List the various types of Demand.
Level 5 Evaluating
6
Interpret ?Law of Equi Marginal Utility??
Level 6 Creating
7
Explain consumer behaviour.
Level 1 Remembering
8 Why does the demand curve slopes downwards? Level 2 Understanding
9
What is elasticity of Demand?
Level 3 Applying
10
State the assumptions of Law of Demand.
Level 4 Analysing
11
Explain what is meant by Diseconomies of Scale?
Level 5 Evaluating
12
List the difference between Law of Demand and
Elasticity of Demand
Level 6 Creating
13
How would you define Consumer Surplus?
Level 1 Remembering
14
Differentiate between a Price Elasticity and Income
Elasticity of Demand.
Level 2 Understanding
15
Explain Law of Diminishing Marginal Utility.
Level 3 Applying
16
State the factors influencing Market Demand
Level 4 Analysing
17
What are Isoquant Curves?
Level 1 Remembering
18
Write a brief note on ?Market Equilibrium?.
Level 2 Understanding
19
What is meant by Indifference Curve? List the properties
of Indifference Curve.
Level 1 Remembering
20 Define Cost Function. Level 1 Remembering
PART- B
S.NO QUESTIONS
BT
LEVEL
COMPETENCE
1
How would you classify Demand and discuss the determinants of
demand?
Level 1 Remembering
2
i) Explain the Law of Demand and the assumptions.(7Marks)
Level 2 Understanding
ii) Explain why the demand curve slopes downwards?(6Marks)
3
Explain the different types of elasticity of demand and list out
the various factors determining the elasticity of demand.
Level 3 Applying
4 Explain the Law of Supply and state the assumptions of Law of
Supply.
Level 4 Analysing
5
i) What does consumer behaviour deal with? (7Marks)
Level 5 Evaluating
ii) Discuss the various approaches to Consumer Behaviour.
(6Marks)
6
i) What is Supply Elasticity and explain its types? (7Marks)
Level 6 Creating
ii) Explain the determinants of Elasticity of Supply. (6Marks)
i) Briefly explain Market Equilibrium. (5Marks)
FirstRanker.com - FirstRanker's Choice
(An
?
DEPARTMENT OF MANAGEMENT STUDIES
QUESTION BANK
I SEMESTER
1915101 ? ECONOMIC ANALYSIS FOR
Regulation ? 2019
Academic Year 2019 - 2020
Prepared by
Dr. K. Sentamilselvan ? Asst. Professor
Dr. L.Sujatha ? Asst. Professor
(An
? .
DEPARTMENT OFMANAGEMENT STUDIES
QUESTION BANK
SUBJECT: 1915101 ? ECONOMIC ANALYSIS FOR
SEM / YEAR: I Semester / I Year
UNIT ? I ? INTRODUCTION
SYLLABUS: Definition of Economics - Micro Vs. Macroeconomics ? Fundamental Economic
Problem ? Production Possibility Curve ? Assumptions and Criticism. Economic Systems and Types
? Social, Capital and Mixed Economies and its characteristics.
PART- A
S.NO QUESTIONS BT LEVEL COMPETENCE
1 How would you define Economics? Level 1 Remembering
2
Can you explain when scarcity arises?
Level 2 Understanding
3
State the importance of understanding Economic
Problem
Level 3 Applying
4
Can you outline difference between Micro and
Macro Economics?
Level 4 Analysing
5
What is your opinion of Production-possibility frontier
(PPF)?
Level 5 Evaluating
6
In your opinion what are the differences between
Productive and Economic Efficiency?
Level 6 Creating
7 How would you explain Economic Growth? Level 1 Remembering
8
What is meant by ?Efficiency??
Level 2 Understanding
9 Describe Economic Stability Level 3 Applying
10
Identify the role of Government in present Economic
Scenario
Level 4 Analysing
11 Explain Transformation Curve. Level 5 Evaluating
12 Write short note on Economic Stability. Level 6 Creating
13 What are the elements of Economic Growth? Level 1 Remembering
14
State the reasons for Economic Problem?
Level 2 Understanding
15 What is meant by Mixed Economy? Level 3 Applying
16
Identify the criticisms of Production Possibility Curve.
Level 4 Analysing
17
Outline the role of Markets in today?s economic scenario.
Level 1 Remembering
18
What are the various types of Economic Efficiency?
Level 2 Understanding
19
What are the assumptions of Production Possibility
Curve?
Level 1 Remembering
20
How would you explain Productive efficiency?
Level 1 Remembering
PART- B
S.NO QUESTIONS
BT
LEVEL
COMPETENCE
1
Write a detailed note on the nature of Macro Economics.
Level 1 Remembering
2
i) Explain Economic Efficiency. (5Marks)
ii) Explain the various types of Economic Efficiency. (8Marks)
Level 2 Understanding
3
How would you show your understanding of ?Scarcity and
Efficiency are the twin themes of Economics??
Level 3 Applying
4
i) What is Production Possibility Frontier? (7Marks)
ii) Explain the significance of PPF. (6Marks)
Level 4 Analysing
5
Explain the importance of Macroeconomics.
Level 5 Evaluating
6
Government plays a vital role in today?s economic scenario ?
Discuss
Level 6 Creating
7
?The markets and government play a significant role for the
economy development of a nation? - Examine
Level 1 Remembering
8
Outline a detailed role of Markets in today?s economy.
Level 2 Understanding
9
i) Explain the concept of Transformation Curve. (7Marks)
ii) State the assumptions of the transformation curve. (6Marks)
Level 3 Applying
10
i) Explain the themes of Economics (7Marks)
i) Explain how stability in leads to economic growth .
(6Marks)
Level 4 Analysing
11
Suggest measures to overcome fundamental economic problems.
Level 1 Remembering
12
Can you explain the fundamental economic problems?
Level 2 Understanding
13
Compare Productive Efficiency Vs Economic Efficiency.
Level 4 Analysing
14
Explain the significance of economic growth and stability and
discuss how to attain them.
Level 1 Remembering
PART - C
S.NO QUESTIONS
1
The Government suddenly made a ?U? turn in its economic policies in 1991, making a
fundamental departure from ?Nehruvian Policies of Socialism?, even without discussing the
issue in the Parliament. Even Communist and Socialist members of the Parliament, and also
pro-labor organizations kept quiet ? Discuss about these in groups, regarding the significance
and implications.
2
The City of Pune has a hundred petrol pumps selling identical products, but owned by
different owners. The total market demand is given by Q = 50000 ? 20000p. The total supply
function is given by: Q = 2500P. Cone of the Oil companies decided to take over all these
pumps. There is no apparent cost advantage because the cost function remains the same,
regardless of whether it is one large company or many small ones. The users of petrol are
disturbed and annoyed at this because they anticipate exploitation. You are required to
calculate the following:
i. The price prior to the merger.
Ii.The price post-merger.
Note that the supply function is nothing but the rising part of the relevant cost function.
Questions:
i. If the Government steps in and decides to regulate the price, would you recommend a
marginal cost pricing regulation? Why or why not? (8 Marks)
ii. Discuss the ideal market structure, given the nature of the commodity.(7 Marks)
3
Explain as to how the study of Economics helps you in better decision making in
scenario?
4
How is this going to help me?
Ms. X wants to be a manager. She enjoyed her accounting, finance and marketing courses.
Each of these provided her with some clear cut answer. Now the professor in her economics
course is telling her that needs and wants and unlimited and the resource are limited. She
comes to school to get an answer on how to be an effective manager, and meeting unlimited
needs with limited resource is found to be difficult for her to concentrate.
Questions:
i. How would you relieve Ms. X?s anxiety? How is the course in going to help her?
(8Marks)
ii. How does a course in economics differ from other fields? (7Marks)
UNIT ? II ? CONSUMER AND PRODUCER BEHAVIOUR
SYLLABUS: Law of Demand and Supply ? Assumptions ? Determinants ? Exceptions ? Elasticity
of Demand and supply and its types. Consumer Behaviour ? Approaches ? Law of Diminishing
Marginal Utility ? Law of Equi Marginal Utility ? Indifference Curve Analysis. Producer Behaviour
? Production Function ? Long run and Short run . Law of Diminishing Marginal returns ? Returns to
scale ? Marginal Rate of Technical Substitution ? Co Function ? Concepts ? Long and short run Cost
curves ? Economies and Diseconomies of Scale ? Concept of Consumer Surplus and Producer
Surplus.
PART- A
S.NO QUESTIONS BT LEVEL COMPETENCE
1
Define Law of Supply.
Level 1 Remembering
2
What is Marginal Rate of Technical Substitution?
Level 2 Understanding
3
List the determinants of Demand.
Level 3 Applying
4
Can you explain Demand Analysis?
Level 4 Analysing
5
List the various types of Demand.
Level 5 Evaluating
6
Interpret ?Law of Equi Marginal Utility??
Level 6 Creating
7
Explain consumer behaviour.
Level 1 Remembering
8 Why does the demand curve slopes downwards? Level 2 Understanding
9
What is elasticity of Demand?
Level 3 Applying
10
State the assumptions of Law of Demand.
Level 4 Analysing
11
Explain what is meant by Diseconomies of Scale?
Level 5 Evaluating
12
List the difference between Law of Demand and
Elasticity of Demand
Level 6 Creating
13
How would you define Consumer Surplus?
Level 1 Remembering
14
Differentiate between a Price Elasticity and Income
Elasticity of Demand.
Level 2 Understanding
15
Explain Law of Diminishing Marginal Utility.
Level 3 Applying
16
State the factors influencing Market Demand
Level 4 Analysing
17
What are Isoquant Curves?
Level 1 Remembering
18
Write a brief note on ?Market Equilibrium?.
Level 2 Understanding
19
What is meant by Indifference Curve? List the properties
of Indifference Curve.
Level 1 Remembering
20 Define Cost Function. Level 1 Remembering
PART- B
S.NO QUESTIONS
BT
LEVEL
COMPETENCE
1
How would you classify Demand and discuss the determinants of
demand?
Level 1 Remembering
2
i) Explain the Law of Demand and the assumptions.(7Marks)
Level 2 Understanding
ii) Explain why the demand curve slopes downwards?(6Marks)
3
Explain the different types of elasticity of demand and list out
the various factors determining the elasticity of demand.
Level 3 Applying
4 Explain the Law of Supply and state the assumptions of Law of
Supply.
Level 4 Analysing
5
i) What does consumer behaviour deal with? (7Marks)
Level 5 Evaluating
ii) Discuss the various approaches to Consumer Behaviour.
(6Marks)
6
i) What is Supply Elasticity and explain its types? (7Marks)
Level 6 Creating
ii) Explain the determinants of Elasticity of Supply. (6Marks)
i) Briefly explain Market Equilibrium. (5Marks)
7
ii) Explain the types of Equilibrium. (8Marks)
Level 1 Remembering
8
Compile the assumptions and properties of Indifference Curve.
Level 2 Understanding
9
i) Describe Marginal Analysis and list its assumptions. (7Marks)
Level 3 Applying
ii) Outline the approaches to Marginal Analysis. (6Marks)
10
Describe the relations between production and costs in the short run
and long run.
Level 4 Analysing
11
Explain Production Function and the applications of Production
Function in Managerial decisions.
Level 1 Remembering
12
What are economies and diseconomies of scale? Explain in detail
with suitable examples.
Level 2 Understanding
13
i) What are Isoquant Curves? State its assumptions. (5 Marks)
Level 4 Analysing
ii) State the various properties of Isoquants. (8 Marks)
14
i) Discuss the nature of Short-Run and Long- Run Average cost
curves. (7Marks)
Level 1 Remembering
ii) Why is the Long-Run cost curve flatter than Short-Run cost
curve? (6Marks)
PART - C
S.NO QUESTIONS
1
Which of the following commodities have most inelastic demand? Give reasons
for your answer:
i. Soap (5Marks)
ii. Salt (5Marks)
iii. Penicillin (5Marks)
3.
2
Suppose you are a sales manager of an organization. Explain how the analysis of demand
contributes to decision making in the light of the responsibilities of a sales
manager.
3
How to determine the demand for FMCG products? Explain your answer with suitable
illustration.
4
A controlled economy has a market clearance equations built over years. The policy makers
looked at the domestic markets and found that product marketers are almost perfect and that
technical rate of substitution has been advantageous. The economic fundamentals were strong
enough to open up the economy. There was opposition attributing to inconsistency from
outside. The debates were on the following questions:
i. What is macro - economic fundamentals? (5Marks)
ii. Write short notes on each factor. (5Marks)
iii. What if the economy is closed for some time? (5Marks)
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?
DEPARTMENT OF MANAGEMENT STUDIES
QUESTION BANK
I SEMESTER
1915101 ? ECONOMIC ANALYSIS FOR
Regulation ? 2019
Academic Year 2019 - 2020
Prepared by
Dr. K. Sentamilselvan ? Asst. Professor
Dr. L.Sujatha ? Asst. Professor
(An
? .
DEPARTMENT OFMANAGEMENT STUDIES
QUESTION BANK
SUBJECT: 1915101 ? ECONOMIC ANALYSIS FOR
SEM / YEAR: I Semester / I Year
UNIT ? I ? INTRODUCTION
SYLLABUS: Definition of Economics - Micro Vs. Macroeconomics ? Fundamental Economic
Problem ? Production Possibility Curve ? Assumptions and Criticism. Economic Systems and Types
? Social, Capital and Mixed Economies and its characteristics.
PART- A
S.NO QUESTIONS BT LEVEL COMPETENCE
1 How would you define Economics? Level 1 Remembering
2
Can you explain when scarcity arises?
Level 2 Understanding
3
State the importance of understanding Economic
Problem
Level 3 Applying
4
Can you outline difference between Micro and
Macro Economics?
Level 4 Analysing
5
What is your opinion of Production-possibility frontier
(PPF)?
Level 5 Evaluating
6
In your opinion what are the differences between
Productive and Economic Efficiency?
Level 6 Creating
7 How would you explain Economic Growth? Level 1 Remembering
8
What is meant by ?Efficiency??
Level 2 Understanding
9 Describe Economic Stability Level 3 Applying
10
Identify the role of Government in present Economic
Scenario
Level 4 Analysing
11 Explain Transformation Curve. Level 5 Evaluating
12 Write short note on Economic Stability. Level 6 Creating
13 What are the elements of Economic Growth? Level 1 Remembering
14
State the reasons for Economic Problem?
Level 2 Understanding
15 What is meant by Mixed Economy? Level 3 Applying
16
Identify the criticisms of Production Possibility Curve.
Level 4 Analysing
17
Outline the role of Markets in today?s economic scenario.
Level 1 Remembering
18
What are the various types of Economic Efficiency?
Level 2 Understanding
19
What are the assumptions of Production Possibility
Curve?
Level 1 Remembering
20
How would you explain Productive efficiency?
Level 1 Remembering
PART- B
S.NO QUESTIONS
BT
LEVEL
COMPETENCE
1
Write a detailed note on the nature of Macro Economics.
Level 1 Remembering
2
i) Explain Economic Efficiency. (5Marks)
ii) Explain the various types of Economic Efficiency. (8Marks)
Level 2 Understanding
3
How would you show your understanding of ?Scarcity and
Efficiency are the twin themes of Economics??
Level 3 Applying
4
i) What is Production Possibility Frontier? (7Marks)
ii) Explain the significance of PPF. (6Marks)
Level 4 Analysing
5
Explain the importance of Macroeconomics.
Level 5 Evaluating
6
Government plays a vital role in today?s economic scenario ?
Discuss
Level 6 Creating
7
?The markets and government play a significant role for the
economy development of a nation? - Examine
Level 1 Remembering
8
Outline a detailed role of Markets in today?s economy.
Level 2 Understanding
9
i) Explain the concept of Transformation Curve. (7Marks)
ii) State the assumptions of the transformation curve. (6Marks)
Level 3 Applying
10
i) Explain the themes of Economics (7Marks)
i) Explain how stability in leads to economic growth .
(6Marks)
Level 4 Analysing
11
Suggest measures to overcome fundamental economic problems.
Level 1 Remembering
12
Can you explain the fundamental economic problems?
Level 2 Understanding
13
Compare Productive Efficiency Vs Economic Efficiency.
Level 4 Analysing
14
Explain the significance of economic growth and stability and
discuss how to attain them.
Level 1 Remembering
PART - C
S.NO QUESTIONS
1
The Government suddenly made a ?U? turn in its economic policies in 1991, making a
fundamental departure from ?Nehruvian Policies of Socialism?, even without discussing the
issue in the Parliament. Even Communist and Socialist members of the Parliament, and also
pro-labor organizations kept quiet ? Discuss about these in groups, regarding the significance
and implications.
2
The City of Pune has a hundred petrol pumps selling identical products, but owned by
different owners. The total market demand is given by Q = 50000 ? 20000p. The total supply
function is given by: Q = 2500P. Cone of the Oil companies decided to take over all these
pumps. There is no apparent cost advantage because the cost function remains the same,
regardless of whether it is one large company or many small ones. The users of petrol are
disturbed and annoyed at this because they anticipate exploitation. You are required to
calculate the following:
i. The price prior to the merger.
Ii.The price post-merger.
Note that the supply function is nothing but the rising part of the relevant cost function.
Questions:
i. If the Government steps in and decides to regulate the price, would you recommend a
marginal cost pricing regulation? Why or why not? (8 Marks)
ii. Discuss the ideal market structure, given the nature of the commodity.(7 Marks)
3
Explain as to how the study of Economics helps you in better decision making in
scenario?
4
How is this going to help me?
Ms. X wants to be a manager. She enjoyed her accounting, finance and marketing courses.
Each of these provided her with some clear cut answer. Now the professor in her economics
course is telling her that needs and wants and unlimited and the resource are limited. She
comes to school to get an answer on how to be an effective manager, and meeting unlimited
needs with limited resource is found to be difficult for her to concentrate.
Questions:
i. How would you relieve Ms. X?s anxiety? How is the course in going to help her?
(8Marks)
ii. How does a course in economics differ from other fields? (7Marks)
UNIT ? II ? CONSUMER AND PRODUCER BEHAVIOUR
SYLLABUS: Law of Demand and Supply ? Assumptions ? Determinants ? Exceptions ? Elasticity
of Demand and supply and its types. Consumer Behaviour ? Approaches ? Law of Diminishing
Marginal Utility ? Law of Equi Marginal Utility ? Indifference Curve Analysis. Producer Behaviour
? Production Function ? Long run and Short run . Law of Diminishing Marginal returns ? Returns to
scale ? Marginal Rate of Technical Substitution ? Co Function ? Concepts ? Long and short run Cost
curves ? Economies and Diseconomies of Scale ? Concept of Consumer Surplus and Producer
Surplus.
PART- A
S.NO QUESTIONS BT LEVEL COMPETENCE
1
Define Law of Supply.
Level 1 Remembering
2
What is Marginal Rate of Technical Substitution?
Level 2 Understanding
3
List the determinants of Demand.
Level 3 Applying
4
Can you explain Demand Analysis?
Level 4 Analysing
5
List the various types of Demand.
Level 5 Evaluating
6
Interpret ?Law of Equi Marginal Utility??
Level 6 Creating
7
Explain consumer behaviour.
Level 1 Remembering
8 Why does the demand curve slopes downwards? Level 2 Understanding
9
What is elasticity of Demand?
Level 3 Applying
10
State the assumptions of Law of Demand.
Level 4 Analysing
11
Explain what is meant by Diseconomies of Scale?
Level 5 Evaluating
12
List the difference between Law of Demand and
Elasticity of Demand
Level 6 Creating
13
How would you define Consumer Surplus?
Level 1 Remembering
14
Differentiate between a Price Elasticity and Income
Elasticity of Demand.
Level 2 Understanding
15
Explain Law of Diminishing Marginal Utility.
Level 3 Applying
16
State the factors influencing Market Demand
Level 4 Analysing
17
What are Isoquant Curves?
Level 1 Remembering
18
Write a brief note on ?Market Equilibrium?.
Level 2 Understanding
19
What is meant by Indifference Curve? List the properties
of Indifference Curve.
Level 1 Remembering
20 Define Cost Function. Level 1 Remembering
PART- B
S.NO QUESTIONS
BT
LEVEL
COMPETENCE
1
How would you classify Demand and discuss the determinants of
demand?
Level 1 Remembering
2
i) Explain the Law of Demand and the assumptions.(7Marks)
Level 2 Understanding
ii) Explain why the demand curve slopes downwards?(6Marks)
3
Explain the different types of elasticity of demand and list out
the various factors determining the elasticity of demand.
Level 3 Applying
4 Explain the Law of Supply and state the assumptions of Law of
Supply.
Level 4 Analysing
5
i) What does consumer behaviour deal with? (7Marks)
Level 5 Evaluating
ii) Discuss the various approaches to Consumer Behaviour.
(6Marks)
6
i) What is Supply Elasticity and explain its types? (7Marks)
Level 6 Creating
ii) Explain the determinants of Elasticity of Supply. (6Marks)
i) Briefly explain Market Equilibrium. (5Marks)
7
ii) Explain the types of Equilibrium. (8Marks)
Level 1 Remembering
8
Compile the assumptions and properties of Indifference Curve.
Level 2 Understanding
9
i) Describe Marginal Analysis and list its assumptions. (7Marks)
Level 3 Applying
ii) Outline the approaches to Marginal Analysis. (6Marks)
10
Describe the relations between production and costs in the short run
and long run.
Level 4 Analysing
11
Explain Production Function and the applications of Production
Function in Managerial decisions.
Level 1 Remembering
12
What are economies and diseconomies of scale? Explain in detail
with suitable examples.
Level 2 Understanding
13
i) What are Isoquant Curves? State its assumptions. (5 Marks)
Level 4 Analysing
ii) State the various properties of Isoquants. (8 Marks)
14
i) Discuss the nature of Short-Run and Long- Run Average cost
curves. (7Marks)
Level 1 Remembering
ii) Why is the Long-Run cost curve flatter than Short-Run cost
curve? (6Marks)
PART - C
S.NO QUESTIONS
1
Which of the following commodities have most inelastic demand? Give reasons
for your answer:
i. Soap (5Marks)
ii. Salt (5Marks)
iii. Penicillin (5Marks)
3.
2
Suppose you are a sales manager of an organization. Explain how the analysis of demand
contributes to decision making in the light of the responsibilities of a sales
manager.
3
How to determine the demand for FMCG products? Explain your answer with suitable
illustration.
4
A controlled economy has a market clearance equations built over years. The policy makers
looked at the domestic markets and found that product marketers are almost perfect and that
technical rate of substitution has been advantageous. The economic fundamentals were strong
enough to open up the economy. There was opposition attributing to inconsistency from
outside. The debates were on the following questions:
i. What is macro - economic fundamentals? (5Marks)
ii. Write short notes on each factor. (5Marks)
iii. What if the economy is closed for some time? (5Marks)
UNIT ? III ? PRODUCT AND FACTOR MARKET
SYLLABUS: Markets ? Definition, types and the role of markets, Market Structure ? Characteristics
? Perfect and Imperfect Competition ? Monopoly ? Monopolistic and Oligopoly Markets ? Price
Fixation. Factor Markets ? Factors of Production ? Characteristics ? Factor market Equilibrium ?
Determination of Factor price ? Theory of Marginal Productivity.
PART- A
S.NO QUESTIONS BT LEVEL COMPETENCE
1
Define labor.
Level 1 Remembering
2
What are the different types of markets?
Level 2 Understanding
3
Explain the term Market Structure.
Level 3 Applying
4
List the difference between Perfect Competition and
Monopolistic Competition
Level 4 Analysing
5
Can you assess the significance of market efficiency?
Level 5 Evaluating
6
Differentiate between Monopolistic Competition and
Monopoly
Level 6 Creating
7
What is meant by Factor Market?
Level 1 Remembering
8 How would you explain Factors of Production? Level 2 Understanding
9
Explain the Competitive Market
Level 3 Applying
10
How do you define Market?
Level 4 Analysing
11
Outline the concept of Competitive Equilibrium
Level 5 Evaluating
12
How is the demand for Factors of Production
determined?
Level 6 Creating
13
What are the determinants of Supply of Factors
of Production?
Level 1 Remembering
14
What are the features of a Monopolistic Competition?
Level 2 Understanding
15
How would you show your understanding of firm?s
equilibrium?
Level 3 Applying
16
What are the factors of market?
Level 4 Analysing
17
How would you explain Marginal Productivity Theory?
Level 1 Remembering
18
Explain Consumer Equilibrium and Producer Equilibrium
Level 2 Understanding
19
How would you explain Market Failure?
Level 1 Remembering
20
What do you mean by Price Leadership?
Level 1 Remembering
PART- B
S.NO QUESTIONS
BT
LEVEL
COMPETENCE
1
What are the various methods of improving the efficiency of
Competitive market?
Level 1 Remembering
2
i) Differentiate perfect & imperfect market. (6marks)
Level 2 Understanding
FirstRanker.com - FirstRanker's Choice
(An
?
DEPARTMENT OF MANAGEMENT STUDIES
QUESTION BANK
I SEMESTER
1915101 ? ECONOMIC ANALYSIS FOR
Regulation ? 2019
Academic Year 2019 - 2020
Prepared by
Dr. K. Sentamilselvan ? Asst. Professor
Dr. L.Sujatha ? Asst. Professor
(An
? .
DEPARTMENT OFMANAGEMENT STUDIES
QUESTION BANK
SUBJECT: 1915101 ? ECONOMIC ANALYSIS FOR
SEM / YEAR: I Semester / I Year
UNIT ? I ? INTRODUCTION
SYLLABUS: Definition of Economics - Micro Vs. Macroeconomics ? Fundamental Economic
Problem ? Production Possibility Curve ? Assumptions and Criticism. Economic Systems and Types
? Social, Capital and Mixed Economies and its characteristics.
PART- A
S.NO QUESTIONS BT LEVEL COMPETENCE
1 How would you define Economics? Level 1 Remembering
2
Can you explain when scarcity arises?
Level 2 Understanding
3
State the importance of understanding Economic
Problem
Level 3 Applying
4
Can you outline difference between Micro and
Macro Economics?
Level 4 Analysing
5
What is your opinion of Production-possibility frontier
(PPF)?
Level 5 Evaluating
6
In your opinion what are the differences between
Productive and Economic Efficiency?
Level 6 Creating
7 How would you explain Economic Growth? Level 1 Remembering
8
What is meant by ?Efficiency??
Level 2 Understanding
9 Describe Economic Stability Level 3 Applying
10
Identify the role of Government in present Economic
Scenario
Level 4 Analysing
11 Explain Transformation Curve. Level 5 Evaluating
12 Write short note on Economic Stability. Level 6 Creating
13 What are the elements of Economic Growth? Level 1 Remembering
14
State the reasons for Economic Problem?
Level 2 Understanding
15 What is meant by Mixed Economy? Level 3 Applying
16
Identify the criticisms of Production Possibility Curve.
Level 4 Analysing
17
Outline the role of Markets in today?s economic scenario.
Level 1 Remembering
18
What are the various types of Economic Efficiency?
Level 2 Understanding
19
What are the assumptions of Production Possibility
Curve?
Level 1 Remembering
20
How would you explain Productive efficiency?
Level 1 Remembering
PART- B
S.NO QUESTIONS
BT
LEVEL
COMPETENCE
1
Write a detailed note on the nature of Macro Economics.
Level 1 Remembering
2
i) Explain Economic Efficiency. (5Marks)
ii) Explain the various types of Economic Efficiency. (8Marks)
Level 2 Understanding
3
How would you show your understanding of ?Scarcity and
Efficiency are the twin themes of Economics??
Level 3 Applying
4
i) What is Production Possibility Frontier? (7Marks)
ii) Explain the significance of PPF. (6Marks)
Level 4 Analysing
5
Explain the importance of Macroeconomics.
Level 5 Evaluating
6
Government plays a vital role in today?s economic scenario ?
Discuss
Level 6 Creating
7
?The markets and government play a significant role for the
economy development of a nation? - Examine
Level 1 Remembering
8
Outline a detailed role of Markets in today?s economy.
Level 2 Understanding
9
i) Explain the concept of Transformation Curve. (7Marks)
ii) State the assumptions of the transformation curve. (6Marks)
Level 3 Applying
10
i) Explain the themes of Economics (7Marks)
i) Explain how stability in leads to economic growth .
(6Marks)
Level 4 Analysing
11
Suggest measures to overcome fundamental economic problems.
Level 1 Remembering
12
Can you explain the fundamental economic problems?
Level 2 Understanding
13
Compare Productive Efficiency Vs Economic Efficiency.
Level 4 Analysing
14
Explain the significance of economic growth and stability and
discuss how to attain them.
Level 1 Remembering
PART - C
S.NO QUESTIONS
1
The Government suddenly made a ?U? turn in its economic policies in 1991, making a
fundamental departure from ?Nehruvian Policies of Socialism?, even without discussing the
issue in the Parliament. Even Communist and Socialist members of the Parliament, and also
pro-labor organizations kept quiet ? Discuss about these in groups, regarding the significance
and implications.
2
The City of Pune has a hundred petrol pumps selling identical products, but owned by
different owners. The total market demand is given by Q = 50000 ? 20000p. The total supply
function is given by: Q = 2500P. Cone of the Oil companies decided to take over all these
pumps. There is no apparent cost advantage because the cost function remains the same,
regardless of whether it is one large company or many small ones. The users of petrol are
disturbed and annoyed at this because they anticipate exploitation. You are required to
calculate the following:
i. The price prior to the merger.
Ii.The price post-merger.
Note that the supply function is nothing but the rising part of the relevant cost function.
Questions:
i. If the Government steps in and decides to regulate the price, would you recommend a
marginal cost pricing regulation? Why or why not? (8 Marks)
ii. Discuss the ideal market structure, given the nature of the commodity.(7 Marks)
3
Explain as to how the study of Economics helps you in better decision making in
scenario?
4
How is this going to help me?
Ms. X wants to be a manager. She enjoyed her accounting, finance and marketing courses.
Each of these provided her with some clear cut answer. Now the professor in her economics
course is telling her that needs and wants and unlimited and the resource are limited. She
comes to school to get an answer on how to be an effective manager, and meeting unlimited
needs with limited resource is found to be difficult for her to concentrate.
Questions:
i. How would you relieve Ms. X?s anxiety? How is the course in going to help her?
(8Marks)
ii. How does a course in economics differ from other fields? (7Marks)
UNIT ? II ? CONSUMER AND PRODUCER BEHAVIOUR
SYLLABUS: Law of Demand and Supply ? Assumptions ? Determinants ? Exceptions ? Elasticity
of Demand and supply and its types. Consumer Behaviour ? Approaches ? Law of Diminishing
Marginal Utility ? Law of Equi Marginal Utility ? Indifference Curve Analysis. Producer Behaviour
? Production Function ? Long run and Short run . Law of Diminishing Marginal returns ? Returns to
scale ? Marginal Rate of Technical Substitution ? Co Function ? Concepts ? Long and short run Cost
curves ? Economies and Diseconomies of Scale ? Concept of Consumer Surplus and Producer
Surplus.
PART- A
S.NO QUESTIONS BT LEVEL COMPETENCE
1
Define Law of Supply.
Level 1 Remembering
2
What is Marginal Rate of Technical Substitution?
Level 2 Understanding
3
List the determinants of Demand.
Level 3 Applying
4
Can you explain Demand Analysis?
Level 4 Analysing
5
List the various types of Demand.
Level 5 Evaluating
6
Interpret ?Law of Equi Marginal Utility??
Level 6 Creating
7
Explain consumer behaviour.
Level 1 Remembering
8 Why does the demand curve slopes downwards? Level 2 Understanding
9
What is elasticity of Demand?
Level 3 Applying
10
State the assumptions of Law of Demand.
Level 4 Analysing
11
Explain what is meant by Diseconomies of Scale?
Level 5 Evaluating
12
List the difference between Law of Demand and
Elasticity of Demand
Level 6 Creating
13
How would you define Consumer Surplus?
Level 1 Remembering
14
Differentiate between a Price Elasticity and Income
Elasticity of Demand.
Level 2 Understanding
15
Explain Law of Diminishing Marginal Utility.
Level 3 Applying
16
State the factors influencing Market Demand
Level 4 Analysing
17
What are Isoquant Curves?
Level 1 Remembering
18
Write a brief note on ?Market Equilibrium?.
Level 2 Understanding
19
What is meant by Indifference Curve? List the properties
of Indifference Curve.
Level 1 Remembering
20 Define Cost Function. Level 1 Remembering
PART- B
S.NO QUESTIONS
BT
LEVEL
COMPETENCE
1
How would you classify Demand and discuss the determinants of
demand?
Level 1 Remembering
2
i) Explain the Law of Demand and the assumptions.(7Marks)
Level 2 Understanding
ii) Explain why the demand curve slopes downwards?(6Marks)
3
Explain the different types of elasticity of demand and list out
the various factors determining the elasticity of demand.
Level 3 Applying
4 Explain the Law of Supply and state the assumptions of Law of
Supply.
Level 4 Analysing
5
i) What does consumer behaviour deal with? (7Marks)
Level 5 Evaluating
ii) Discuss the various approaches to Consumer Behaviour.
(6Marks)
6
i) What is Supply Elasticity and explain its types? (7Marks)
Level 6 Creating
ii) Explain the determinants of Elasticity of Supply. (6Marks)
i) Briefly explain Market Equilibrium. (5Marks)
7
ii) Explain the types of Equilibrium. (8Marks)
Level 1 Remembering
8
Compile the assumptions and properties of Indifference Curve.
Level 2 Understanding
9
i) Describe Marginal Analysis and list its assumptions. (7Marks)
Level 3 Applying
ii) Outline the approaches to Marginal Analysis. (6Marks)
10
Describe the relations between production and costs in the short run
and long run.
Level 4 Analysing
11
Explain Production Function and the applications of Production
Function in Managerial decisions.
Level 1 Remembering
12
What are economies and diseconomies of scale? Explain in detail
with suitable examples.
Level 2 Understanding
13
i) What are Isoquant Curves? State its assumptions. (5 Marks)
Level 4 Analysing
ii) State the various properties of Isoquants. (8 Marks)
14
i) Discuss the nature of Short-Run and Long- Run Average cost
curves. (7Marks)
Level 1 Remembering
ii) Why is the Long-Run cost curve flatter than Short-Run cost
curve? (6Marks)
PART - C
S.NO QUESTIONS
1
Which of the following commodities have most inelastic demand? Give reasons
for your answer:
i. Soap (5Marks)
ii. Salt (5Marks)
iii. Penicillin (5Marks)
3.
2
Suppose you are a sales manager of an organization. Explain how the analysis of demand
contributes to decision making in the light of the responsibilities of a sales
manager.
3
How to determine the demand for FMCG products? Explain your answer with suitable
illustration.
4
A controlled economy has a market clearance equations built over years. The policy makers
looked at the domestic markets and found that product marketers are almost perfect and that
technical rate of substitution has been advantageous. The economic fundamentals were strong
enough to open up the economy. There was opposition attributing to inconsistency from
outside. The debates were on the following questions:
i. What is macro - economic fundamentals? (5Marks)
ii. Write short notes on each factor. (5Marks)
iii. What if the economy is closed for some time? (5Marks)
UNIT ? III ? PRODUCT AND FACTOR MARKET
SYLLABUS: Markets ? Definition, types and the role of markets, Market Structure ? Characteristics
? Perfect and Imperfect Competition ? Monopoly ? Monopolistic and Oligopoly Markets ? Price
Fixation. Factor Markets ? Factors of Production ? Characteristics ? Factor market Equilibrium ?
Determination of Factor price ? Theory of Marginal Productivity.
PART- A
S.NO QUESTIONS BT LEVEL COMPETENCE
1
Define labor.
Level 1 Remembering
2
What are the different types of markets?
Level 2 Understanding
3
Explain the term Market Structure.
Level 3 Applying
4
List the difference between Perfect Competition and
Monopolistic Competition
Level 4 Analysing
5
Can you assess the significance of market efficiency?
Level 5 Evaluating
6
Differentiate between Monopolistic Competition and
Monopoly
Level 6 Creating
7
What is meant by Factor Market?
Level 1 Remembering
8 How would you explain Factors of Production? Level 2 Understanding
9
Explain the Competitive Market
Level 3 Applying
10
How do you define Market?
Level 4 Analysing
11
Outline the concept of Competitive Equilibrium
Level 5 Evaluating
12
How is the demand for Factors of Production
determined?
Level 6 Creating
13
What are the determinants of Supply of Factors
of Production?
Level 1 Remembering
14
What are the features of a Monopolistic Competition?
Level 2 Understanding
15
How would you show your understanding of firm?s
equilibrium?
Level 3 Applying
16
What are the factors of market?
Level 4 Analysing
17
How would you explain Marginal Productivity Theory?
Level 1 Remembering
18
Explain Consumer Equilibrium and Producer Equilibrium
Level 2 Understanding
19
How would you explain Market Failure?
Level 1 Remembering
20
What do you mean by Price Leadership?
Level 1 Remembering
PART- B
S.NO QUESTIONS
BT
LEVEL
COMPETENCE
1
What are the various methods of improving the efficiency of
Competitive market?
Level 1 Remembering
2
i) Differentiate perfect & imperfect market. (6marks)
Level 2 Understanding
ii) Explain the technique of maintaining the market & firm?s
equilibrium. (7marks)
3
How would you show your understanding of the different types of
Market Structure?
Level 3 Applying
4
?Market Structures depends on relative cost and demand factors?.
Comment. Substantiate your view with valid reasons.
Level 4 Analysing
5
i) Discuss about the interaction of product and market factor?
(7marks)
Level 5 Evaluating
ii) Explain about the producer who will be determining the
pricing factors (6marks)
6 What is your opinion of General equilibrium? Explain in detail. Level 6 Creating
7
i) Discuss about the factors influencing the price in a perfect
market. (6marks)
Level 1 Remembering
ii) Discuss about the efficiency of competitive market. (7marks)
8
How would you summarize the essential characteristics of
competitive market? Explain how to make such market more
efficient.
Level 2 Understanding
9
i) Discuss the determinants of factor price. (7marks)
Level 3 Applying
ii) Explain characteristics of Monopolistic & Oligopolistic
Competition. (6marks)
10
Narrate how the market and product factor is synchronized to
maintain the economic efficiency?
Level 4 Analysing
11
Explain the kinked demand curve. What are the assumptions and
criticism of kinked demand curve?
Level 1 Remembering
12
What is imperfect competition? Examine the costs and consequences
of it.
Level 2 Understanding
13
i) Define oligopoly. Explain how price & output decisions are taken
under oligopoly. (7marks)
Level 4 Analysing
ii) Compare price and output equilibrium under monopolistic
competition with that under perfect competition. (6marks)
14
Briefly explain the marginal productivity theory of factor pricing.
What are its main short comings?
Level 1 Remembering
PART - C
S.NO QUESTIONS
1
Perfect competition, monopoly, monopolistic competition and oligopoly are the
types of market structures considered in economic analysis. Which of these types
would you relate to the following markets?
i. Food grains: Rice and Wheat (3Marks)
ii. Stock market (3Marks)
iii. Market for bus transport in New Delhi (3Marks)
iv. Passenger cars (3Marks)
v. Confectionary (3Marks)
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?
DEPARTMENT OF MANAGEMENT STUDIES
QUESTION BANK
I SEMESTER
1915101 ? ECONOMIC ANALYSIS FOR
Regulation ? 2019
Academic Year 2019 - 2020
Prepared by
Dr. K. Sentamilselvan ? Asst. Professor
Dr. L.Sujatha ? Asst. Professor
(An
? .
DEPARTMENT OFMANAGEMENT STUDIES
QUESTION BANK
SUBJECT: 1915101 ? ECONOMIC ANALYSIS FOR
SEM / YEAR: I Semester / I Year
UNIT ? I ? INTRODUCTION
SYLLABUS: Definition of Economics - Micro Vs. Macroeconomics ? Fundamental Economic
Problem ? Production Possibility Curve ? Assumptions and Criticism. Economic Systems and Types
? Social, Capital and Mixed Economies and its characteristics.
PART- A
S.NO QUESTIONS BT LEVEL COMPETENCE
1 How would you define Economics? Level 1 Remembering
2
Can you explain when scarcity arises?
Level 2 Understanding
3
State the importance of understanding Economic
Problem
Level 3 Applying
4
Can you outline difference between Micro and
Macro Economics?
Level 4 Analysing
5
What is your opinion of Production-possibility frontier
(PPF)?
Level 5 Evaluating
6
In your opinion what are the differences between
Productive and Economic Efficiency?
Level 6 Creating
7 How would you explain Economic Growth? Level 1 Remembering
8
What is meant by ?Efficiency??
Level 2 Understanding
9 Describe Economic Stability Level 3 Applying
10
Identify the role of Government in present Economic
Scenario
Level 4 Analysing
11 Explain Transformation Curve. Level 5 Evaluating
12 Write short note on Economic Stability. Level 6 Creating
13 What are the elements of Economic Growth? Level 1 Remembering
14
State the reasons for Economic Problem?
Level 2 Understanding
15 What is meant by Mixed Economy? Level 3 Applying
16
Identify the criticisms of Production Possibility Curve.
Level 4 Analysing
17
Outline the role of Markets in today?s economic scenario.
Level 1 Remembering
18
What are the various types of Economic Efficiency?
Level 2 Understanding
19
What are the assumptions of Production Possibility
Curve?
Level 1 Remembering
20
How would you explain Productive efficiency?
Level 1 Remembering
PART- B
S.NO QUESTIONS
BT
LEVEL
COMPETENCE
1
Write a detailed note on the nature of Macro Economics.
Level 1 Remembering
2
i) Explain Economic Efficiency. (5Marks)
ii) Explain the various types of Economic Efficiency. (8Marks)
Level 2 Understanding
3
How would you show your understanding of ?Scarcity and
Efficiency are the twin themes of Economics??
Level 3 Applying
4
i) What is Production Possibility Frontier? (7Marks)
ii) Explain the significance of PPF. (6Marks)
Level 4 Analysing
5
Explain the importance of Macroeconomics.
Level 5 Evaluating
6
Government plays a vital role in today?s economic scenario ?
Discuss
Level 6 Creating
7
?The markets and government play a significant role for the
economy development of a nation? - Examine
Level 1 Remembering
8
Outline a detailed role of Markets in today?s economy.
Level 2 Understanding
9
i) Explain the concept of Transformation Curve. (7Marks)
ii) State the assumptions of the transformation curve. (6Marks)
Level 3 Applying
10
i) Explain the themes of Economics (7Marks)
i) Explain how stability in leads to economic growth .
(6Marks)
Level 4 Analysing
11
Suggest measures to overcome fundamental economic problems.
Level 1 Remembering
12
Can you explain the fundamental economic problems?
Level 2 Understanding
13
Compare Productive Efficiency Vs Economic Efficiency.
Level 4 Analysing
14
Explain the significance of economic growth and stability and
discuss how to attain them.
Level 1 Remembering
PART - C
S.NO QUESTIONS
1
The Government suddenly made a ?U? turn in its economic policies in 1991, making a
fundamental departure from ?Nehruvian Policies of Socialism?, even without discussing the
issue in the Parliament. Even Communist and Socialist members of the Parliament, and also
pro-labor organizations kept quiet ? Discuss about these in groups, regarding the significance
and implications.
2
The City of Pune has a hundred petrol pumps selling identical products, but owned by
different owners. The total market demand is given by Q = 50000 ? 20000p. The total supply
function is given by: Q = 2500P. Cone of the Oil companies decided to take over all these
pumps. There is no apparent cost advantage because the cost function remains the same,
regardless of whether it is one large company or many small ones. The users of petrol are
disturbed and annoyed at this because they anticipate exploitation. You are required to
calculate the following:
i. The price prior to the merger.
Ii.The price post-merger.
Note that the supply function is nothing but the rising part of the relevant cost function.
Questions:
i. If the Government steps in and decides to regulate the price, would you recommend a
marginal cost pricing regulation? Why or why not? (8 Marks)
ii. Discuss the ideal market structure, given the nature of the commodity.(7 Marks)
3
Explain as to how the study of Economics helps you in better decision making in
scenario?
4
How is this going to help me?
Ms. X wants to be a manager. She enjoyed her accounting, finance and marketing courses.
Each of these provided her with some clear cut answer. Now the professor in her economics
course is telling her that needs and wants and unlimited and the resource are limited. She
comes to school to get an answer on how to be an effective manager, and meeting unlimited
needs with limited resource is found to be difficult for her to concentrate.
Questions:
i. How would you relieve Ms. X?s anxiety? How is the course in going to help her?
(8Marks)
ii. How does a course in economics differ from other fields? (7Marks)
UNIT ? II ? CONSUMER AND PRODUCER BEHAVIOUR
SYLLABUS: Law of Demand and Supply ? Assumptions ? Determinants ? Exceptions ? Elasticity
of Demand and supply and its types. Consumer Behaviour ? Approaches ? Law of Diminishing
Marginal Utility ? Law of Equi Marginal Utility ? Indifference Curve Analysis. Producer Behaviour
? Production Function ? Long run and Short run . Law of Diminishing Marginal returns ? Returns to
scale ? Marginal Rate of Technical Substitution ? Co Function ? Concepts ? Long and short run Cost
curves ? Economies and Diseconomies of Scale ? Concept of Consumer Surplus and Producer
Surplus.
PART- A
S.NO QUESTIONS BT LEVEL COMPETENCE
1
Define Law of Supply.
Level 1 Remembering
2
What is Marginal Rate of Technical Substitution?
Level 2 Understanding
3
List the determinants of Demand.
Level 3 Applying
4
Can you explain Demand Analysis?
Level 4 Analysing
5
List the various types of Demand.
Level 5 Evaluating
6
Interpret ?Law of Equi Marginal Utility??
Level 6 Creating
7
Explain consumer behaviour.
Level 1 Remembering
8 Why does the demand curve slopes downwards? Level 2 Understanding
9
What is elasticity of Demand?
Level 3 Applying
10
State the assumptions of Law of Demand.
Level 4 Analysing
11
Explain what is meant by Diseconomies of Scale?
Level 5 Evaluating
12
List the difference between Law of Demand and
Elasticity of Demand
Level 6 Creating
13
How would you define Consumer Surplus?
Level 1 Remembering
14
Differentiate between a Price Elasticity and Income
Elasticity of Demand.
Level 2 Understanding
15
Explain Law of Diminishing Marginal Utility.
Level 3 Applying
16
State the factors influencing Market Demand
Level 4 Analysing
17
What are Isoquant Curves?
Level 1 Remembering
18
Write a brief note on ?Market Equilibrium?.
Level 2 Understanding
19
What is meant by Indifference Curve? List the properties
of Indifference Curve.
Level 1 Remembering
20 Define Cost Function. Level 1 Remembering
PART- B
S.NO QUESTIONS
BT
LEVEL
COMPETENCE
1
How would you classify Demand and discuss the determinants of
demand?
Level 1 Remembering
2
i) Explain the Law of Demand and the assumptions.(7Marks)
Level 2 Understanding
ii) Explain why the demand curve slopes downwards?(6Marks)
3
Explain the different types of elasticity of demand and list out
the various factors determining the elasticity of demand.
Level 3 Applying
4 Explain the Law of Supply and state the assumptions of Law of
Supply.
Level 4 Analysing
5
i) What does consumer behaviour deal with? (7Marks)
Level 5 Evaluating
ii) Discuss the various approaches to Consumer Behaviour.
(6Marks)
6
i) What is Supply Elasticity and explain its types? (7Marks)
Level 6 Creating
ii) Explain the determinants of Elasticity of Supply. (6Marks)
i) Briefly explain Market Equilibrium. (5Marks)
7
ii) Explain the types of Equilibrium. (8Marks)
Level 1 Remembering
8
Compile the assumptions and properties of Indifference Curve.
Level 2 Understanding
9
i) Describe Marginal Analysis and list its assumptions. (7Marks)
Level 3 Applying
ii) Outline the approaches to Marginal Analysis. (6Marks)
10
Describe the relations between production and costs in the short run
and long run.
Level 4 Analysing
11
Explain Production Function and the applications of Production
Function in Managerial decisions.
Level 1 Remembering
12
What are economies and diseconomies of scale? Explain in detail
with suitable examples.
Level 2 Understanding
13
i) What are Isoquant Curves? State its assumptions. (5 Marks)
Level 4 Analysing
ii) State the various properties of Isoquants. (8 Marks)
14
i) Discuss the nature of Short-Run and Long- Run Average cost
curves. (7Marks)
Level 1 Remembering
ii) Why is the Long-Run cost curve flatter than Short-Run cost
curve? (6Marks)
PART - C
S.NO QUESTIONS
1
Which of the following commodities have most inelastic demand? Give reasons
for your answer:
i. Soap (5Marks)
ii. Salt (5Marks)
iii. Penicillin (5Marks)
3.
2
Suppose you are a sales manager of an organization. Explain how the analysis of demand
contributes to decision making in the light of the responsibilities of a sales
manager.
3
How to determine the demand for FMCG products? Explain your answer with suitable
illustration.
4
A controlled economy has a market clearance equations built over years. The policy makers
looked at the domestic markets and found that product marketers are almost perfect and that
technical rate of substitution has been advantageous. The economic fundamentals were strong
enough to open up the economy. There was opposition attributing to inconsistency from
outside. The debates were on the following questions:
i. What is macro - economic fundamentals? (5Marks)
ii. Write short notes on each factor. (5Marks)
iii. What if the economy is closed for some time? (5Marks)
UNIT ? III ? PRODUCT AND FACTOR MARKET
SYLLABUS: Markets ? Definition, types and the role of markets, Market Structure ? Characteristics
? Perfect and Imperfect Competition ? Monopoly ? Monopolistic and Oligopoly Markets ? Price
Fixation. Factor Markets ? Factors of Production ? Characteristics ? Factor market Equilibrium ?
Determination of Factor price ? Theory of Marginal Productivity.
PART- A
S.NO QUESTIONS BT LEVEL COMPETENCE
1
Define labor.
Level 1 Remembering
2
What are the different types of markets?
Level 2 Understanding
3
Explain the term Market Structure.
Level 3 Applying
4
List the difference between Perfect Competition and
Monopolistic Competition
Level 4 Analysing
5
Can you assess the significance of market efficiency?
Level 5 Evaluating
6
Differentiate between Monopolistic Competition and
Monopoly
Level 6 Creating
7
What is meant by Factor Market?
Level 1 Remembering
8 How would you explain Factors of Production? Level 2 Understanding
9
Explain the Competitive Market
Level 3 Applying
10
How do you define Market?
Level 4 Analysing
11
Outline the concept of Competitive Equilibrium
Level 5 Evaluating
12
How is the demand for Factors of Production
determined?
Level 6 Creating
13
What are the determinants of Supply of Factors
of Production?
Level 1 Remembering
14
What are the features of a Monopolistic Competition?
Level 2 Understanding
15
How would you show your understanding of firm?s
equilibrium?
Level 3 Applying
16
What are the factors of market?
Level 4 Analysing
17
How would you explain Marginal Productivity Theory?
Level 1 Remembering
18
Explain Consumer Equilibrium and Producer Equilibrium
Level 2 Understanding
19
How would you explain Market Failure?
Level 1 Remembering
20
What do you mean by Price Leadership?
Level 1 Remembering
PART- B
S.NO QUESTIONS
BT
LEVEL
COMPETENCE
1
What are the various methods of improving the efficiency of
Competitive market?
Level 1 Remembering
2
i) Differentiate perfect & imperfect market. (6marks)
Level 2 Understanding
ii) Explain the technique of maintaining the market & firm?s
equilibrium. (7marks)
3
How would you show your understanding of the different types of
Market Structure?
Level 3 Applying
4
?Market Structures depends on relative cost and demand factors?.
Comment. Substantiate your view with valid reasons.
Level 4 Analysing
5
i) Discuss about the interaction of product and market factor?
(7marks)
Level 5 Evaluating
ii) Explain about the producer who will be determining the
pricing factors (6marks)
6 What is your opinion of General equilibrium? Explain in detail. Level 6 Creating
7
i) Discuss about the factors influencing the price in a perfect
market. (6marks)
Level 1 Remembering
ii) Discuss about the efficiency of competitive market. (7marks)
8
How would you summarize the essential characteristics of
competitive market? Explain how to make such market more
efficient.
Level 2 Understanding
9
i) Discuss the determinants of factor price. (7marks)
Level 3 Applying
ii) Explain characteristics of Monopolistic & Oligopolistic
Competition. (6marks)
10
Narrate how the market and product factor is synchronized to
maintain the economic efficiency?
Level 4 Analysing
11
Explain the kinked demand curve. What are the assumptions and
criticism of kinked demand curve?
Level 1 Remembering
12
What is imperfect competition? Examine the costs and consequences
of it.
Level 2 Understanding
13
i) Define oligopoly. Explain how price & output decisions are taken
under oligopoly. (7marks)
Level 4 Analysing
ii) Compare price and output equilibrium under monopolistic
competition with that under perfect competition. (6marks)
14
Briefly explain the marginal productivity theory of factor pricing.
What are its main short comings?
Level 1 Remembering
PART - C
S.NO QUESTIONS
1
Perfect competition, monopoly, monopolistic competition and oligopoly are the
types of market structures considered in economic analysis. Which of these types
would you relate to the following markets?
i. Food grains: Rice and Wheat (3Marks)
ii. Stock market (3Marks)
iii. Market for bus transport in New Delhi (3Marks)
iv. Passenger cars (3Marks)
v. Confectionary (3Marks)
2
Consider your two favorite soft drinks. Suppose the price of a two-liter bottle of your second
choice falls. How much of a price decrease would it take to induce you to substitute the second
for your first choice? Estimate the cross elasticity of demand for the drinks. Are they part of
the same market?
3
Retail sales at the airports had been growing fast and the sales touched $27.1 billion in 2007.
Such impressive growth made the airport the fastest growing retail channel behind the
internet. The increased passenger traffic growth along with the soaring tourists' movements
among countries was fueling the growth of airport retailing. But the global economic
downturn with increasing oil prices etc. resulted in a rise in air fares, adversely affecting air
travel and retail spending at the airports. Whether the airports retailing remain a prominent
source of revenue in the global economic downturn remains to be seen.
Pedagogical Objectives:
To the dynamics of airport revenues (aeronautical vs. non- aeronautical).
To CSFs (critical success factor) of airport retailing.
To impacts of the global economic downturn on airport retailing.
Questions:
i. What is airport retailing? (8Marks)
ii. Discuss the impact of global economic downturn on airport retailing.(7Marks)
4
What is the solution to avoid black marketing of essential goods in short supply?
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(An
?
DEPARTMENT OF MANAGEMENT STUDIES
QUESTION BANK
I SEMESTER
1915101 ? ECONOMIC ANALYSIS FOR
Regulation ? 2019
Academic Year 2019 - 2020
Prepared by
Dr. K. Sentamilselvan ? Asst. Professor
Dr. L.Sujatha ? Asst. Professor
(An
? .
DEPARTMENT OFMANAGEMENT STUDIES
QUESTION BANK
SUBJECT: 1915101 ? ECONOMIC ANALYSIS FOR
SEM / YEAR: I Semester / I Year
UNIT ? I ? INTRODUCTION
SYLLABUS: Definition of Economics - Micro Vs. Macroeconomics ? Fundamental Economic
Problem ? Production Possibility Curve ? Assumptions and Criticism. Economic Systems and Types
? Social, Capital and Mixed Economies and its characteristics.
PART- A
S.NO QUESTIONS BT LEVEL COMPETENCE
1 How would you define Economics? Level 1 Remembering
2
Can you explain when scarcity arises?
Level 2 Understanding
3
State the importance of understanding Economic
Problem
Level 3 Applying
4
Can you outline difference between Micro and
Macro Economics?
Level 4 Analysing
5
What is your opinion of Production-possibility frontier
(PPF)?
Level 5 Evaluating
6
In your opinion what are the differences between
Productive and Economic Efficiency?
Level 6 Creating
7 How would you explain Economic Growth? Level 1 Remembering
8
What is meant by ?Efficiency??
Level 2 Understanding
9 Describe Economic Stability Level 3 Applying
10
Identify the role of Government in present Economic
Scenario
Level 4 Analysing
11 Explain Transformation Curve. Level 5 Evaluating
12 Write short note on Economic Stability. Level 6 Creating
13 What are the elements of Economic Growth? Level 1 Remembering
14
State the reasons for Economic Problem?
Level 2 Understanding
15 What is meant by Mixed Economy? Level 3 Applying
16
Identify the criticisms of Production Possibility Curve.
Level 4 Analysing
17
Outline the role of Markets in today?s economic scenario.
Level 1 Remembering
18
What are the various types of Economic Efficiency?
Level 2 Understanding
19
What are the assumptions of Production Possibility
Curve?
Level 1 Remembering
20
How would you explain Productive efficiency?
Level 1 Remembering
PART- B
S.NO QUESTIONS
BT
LEVEL
COMPETENCE
1
Write a detailed note on the nature of Macro Economics.
Level 1 Remembering
2
i) Explain Economic Efficiency. (5Marks)
ii) Explain the various types of Economic Efficiency. (8Marks)
Level 2 Understanding
3
How would you show your understanding of ?Scarcity and
Efficiency are the twin themes of Economics??
Level 3 Applying
4
i) What is Production Possibility Frontier? (7Marks)
ii) Explain the significance of PPF. (6Marks)
Level 4 Analysing
5
Explain the importance of Macroeconomics.
Level 5 Evaluating
6
Government plays a vital role in today?s economic scenario ?
Discuss
Level 6 Creating
7
?The markets and government play a significant role for the
economy development of a nation? - Examine
Level 1 Remembering
8
Outline a detailed role of Markets in today?s economy.
Level 2 Understanding
9
i) Explain the concept of Transformation Curve. (7Marks)
ii) State the assumptions of the transformation curve. (6Marks)
Level 3 Applying
10
i) Explain the themes of Economics (7Marks)
i) Explain how stability in leads to economic growth .
(6Marks)
Level 4 Analysing
11
Suggest measures to overcome fundamental economic problems.
Level 1 Remembering
12
Can you explain the fundamental economic problems?
Level 2 Understanding
13
Compare Productive Efficiency Vs Economic Efficiency.
Level 4 Analysing
14
Explain the significance of economic growth and stability and
discuss how to attain them.
Level 1 Remembering
PART - C
S.NO QUESTIONS
1
The Government suddenly made a ?U? turn in its economic policies in 1991, making a
fundamental departure from ?Nehruvian Policies of Socialism?, even without discussing the
issue in the Parliament. Even Communist and Socialist members of the Parliament, and also
pro-labor organizations kept quiet ? Discuss about these in groups, regarding the significance
and implications.
2
The City of Pune has a hundred petrol pumps selling identical products, but owned by
different owners. The total market demand is given by Q = 50000 ? 20000p. The total supply
function is given by: Q = 2500P. Cone of the Oil companies decided to take over all these
pumps. There is no apparent cost advantage because the cost function remains the same,
regardless of whether it is one large company or many small ones. The users of petrol are
disturbed and annoyed at this because they anticipate exploitation. You are required to
calculate the following:
i. The price prior to the merger.
Ii.The price post-merger.
Note that the supply function is nothing but the rising part of the relevant cost function.
Questions:
i. If the Government steps in and decides to regulate the price, would you recommend a
marginal cost pricing regulation? Why or why not? (8 Marks)
ii. Discuss the ideal market structure, given the nature of the commodity.(7 Marks)
3
Explain as to how the study of Economics helps you in better decision making in
scenario?
4
How is this going to help me?
Ms. X wants to be a manager. She enjoyed her accounting, finance and marketing courses.
Each of these provided her with some clear cut answer. Now the professor in her economics
course is telling her that needs and wants and unlimited and the resource are limited. She
comes to school to get an answer on how to be an effective manager, and meeting unlimited
needs with limited resource is found to be difficult for her to concentrate.
Questions:
i. How would you relieve Ms. X?s anxiety? How is the course in going to help her?
(8Marks)
ii. How does a course in economics differ from other fields? (7Marks)
UNIT ? II ? CONSUMER AND PRODUCER BEHAVIOUR
SYLLABUS: Law of Demand and Supply ? Assumptions ? Determinants ? Exceptions ? Elasticity
of Demand and supply and its types. Consumer Behaviour ? Approaches ? Law of Diminishing
Marginal Utility ? Law of Equi Marginal Utility ? Indifference Curve Analysis. Producer Behaviour
? Production Function ? Long run and Short run . Law of Diminishing Marginal returns ? Returns to
scale ? Marginal Rate of Technical Substitution ? Co Function ? Concepts ? Long and short run Cost
curves ? Economies and Diseconomies of Scale ? Concept of Consumer Surplus and Producer
Surplus.
PART- A
S.NO QUESTIONS BT LEVEL COMPETENCE
1
Define Law of Supply.
Level 1 Remembering
2
What is Marginal Rate of Technical Substitution?
Level 2 Understanding
3
List the determinants of Demand.
Level 3 Applying
4
Can you explain Demand Analysis?
Level 4 Analysing
5
List the various types of Demand.
Level 5 Evaluating
6
Interpret ?Law of Equi Marginal Utility??
Level 6 Creating
7
Explain consumer behaviour.
Level 1 Remembering
8 Why does the demand curve slopes downwards? Level 2 Understanding
9
What is elasticity of Demand?
Level 3 Applying
10
State the assumptions of Law of Demand.
Level 4 Analysing
11
Explain what is meant by Diseconomies of Scale?
Level 5 Evaluating
12
List the difference between Law of Demand and
Elasticity of Demand
Level 6 Creating
13
How would you define Consumer Surplus?
Level 1 Remembering
14
Differentiate between a Price Elasticity and Income
Elasticity of Demand.
Level 2 Understanding
15
Explain Law of Diminishing Marginal Utility.
Level 3 Applying
16
State the factors influencing Market Demand
Level 4 Analysing
17
What are Isoquant Curves?
Level 1 Remembering
18
Write a brief note on ?Market Equilibrium?.
Level 2 Understanding
19
What is meant by Indifference Curve? List the properties
of Indifference Curve.
Level 1 Remembering
20 Define Cost Function. Level 1 Remembering
PART- B
S.NO QUESTIONS
BT
LEVEL
COMPETENCE
1
How would you classify Demand and discuss the determinants of
demand?
Level 1 Remembering
2
i) Explain the Law of Demand and the assumptions.(7Marks)
Level 2 Understanding
ii) Explain why the demand curve slopes downwards?(6Marks)
3
Explain the different types of elasticity of demand and list out
the various factors determining the elasticity of demand.
Level 3 Applying
4 Explain the Law of Supply and state the assumptions of Law of
Supply.
Level 4 Analysing
5
i) What does consumer behaviour deal with? (7Marks)
Level 5 Evaluating
ii) Discuss the various approaches to Consumer Behaviour.
(6Marks)
6
i) What is Supply Elasticity and explain its types? (7Marks)
Level 6 Creating
ii) Explain the determinants of Elasticity of Supply. (6Marks)
i) Briefly explain Market Equilibrium. (5Marks)
7
ii) Explain the types of Equilibrium. (8Marks)
Level 1 Remembering
8
Compile the assumptions and properties of Indifference Curve.
Level 2 Understanding
9
i) Describe Marginal Analysis and list its assumptions. (7Marks)
Level 3 Applying
ii) Outline the approaches to Marginal Analysis. (6Marks)
10
Describe the relations between production and costs in the short run
and long run.
Level 4 Analysing
11
Explain Production Function and the applications of Production
Function in Managerial decisions.
Level 1 Remembering
12
What are economies and diseconomies of scale? Explain in detail
with suitable examples.
Level 2 Understanding
13
i) What are Isoquant Curves? State its assumptions. (5 Marks)
Level 4 Analysing
ii) State the various properties of Isoquants. (8 Marks)
14
i) Discuss the nature of Short-Run and Long- Run Average cost
curves. (7Marks)
Level 1 Remembering
ii) Why is the Long-Run cost curve flatter than Short-Run cost
curve? (6Marks)
PART - C
S.NO QUESTIONS
1
Which of the following commodities have most inelastic demand? Give reasons
for your answer:
i. Soap (5Marks)
ii. Salt (5Marks)
iii. Penicillin (5Marks)
3.
2
Suppose you are a sales manager of an organization. Explain how the analysis of demand
contributes to decision making in the light of the responsibilities of a sales
manager.
3
How to determine the demand for FMCG products? Explain your answer with suitable
illustration.
4
A controlled economy has a market clearance equations built over years. The policy makers
looked at the domestic markets and found that product marketers are almost perfect and that
technical rate of substitution has been advantageous. The economic fundamentals were strong
enough to open up the economy. There was opposition attributing to inconsistency from
outside. The debates were on the following questions:
i. What is macro - economic fundamentals? (5Marks)
ii. Write short notes on each factor. (5Marks)
iii. What if the economy is closed for some time? (5Marks)
UNIT ? III ? PRODUCT AND FACTOR MARKET
SYLLABUS: Markets ? Definition, types and the role of markets, Market Structure ? Characteristics
? Perfect and Imperfect Competition ? Monopoly ? Monopolistic and Oligopoly Markets ? Price
Fixation. Factor Markets ? Factors of Production ? Characteristics ? Factor market Equilibrium ?
Determination of Factor price ? Theory of Marginal Productivity.
PART- A
S.NO QUESTIONS BT LEVEL COMPETENCE
1
Define labor.
Level 1 Remembering
2
What are the different types of markets?
Level 2 Understanding
3
Explain the term Market Structure.
Level 3 Applying
4
List the difference between Perfect Competition and
Monopolistic Competition
Level 4 Analysing
5
Can you assess the significance of market efficiency?
Level 5 Evaluating
6
Differentiate between Monopolistic Competition and
Monopoly
Level 6 Creating
7
What is meant by Factor Market?
Level 1 Remembering
8 How would you explain Factors of Production? Level 2 Understanding
9
Explain the Competitive Market
Level 3 Applying
10
How do you define Market?
Level 4 Analysing
11
Outline the concept of Competitive Equilibrium
Level 5 Evaluating
12
How is the demand for Factors of Production
determined?
Level 6 Creating
13
What are the determinants of Supply of Factors
of Production?
Level 1 Remembering
14
What are the features of a Monopolistic Competition?
Level 2 Understanding
15
How would you show your understanding of firm?s
equilibrium?
Level 3 Applying
16
What are the factors of market?
Level 4 Analysing
17
How would you explain Marginal Productivity Theory?
Level 1 Remembering
18
Explain Consumer Equilibrium and Producer Equilibrium
Level 2 Understanding
19
How would you explain Market Failure?
Level 1 Remembering
20
What do you mean by Price Leadership?
Level 1 Remembering
PART- B
S.NO QUESTIONS
BT
LEVEL
COMPETENCE
1
What are the various methods of improving the efficiency of
Competitive market?
Level 1 Remembering
2
i) Differentiate perfect & imperfect market. (6marks)
Level 2 Understanding
ii) Explain the technique of maintaining the market & firm?s
equilibrium. (7marks)
3
How would you show your understanding of the different types of
Market Structure?
Level 3 Applying
4
?Market Structures depends on relative cost and demand factors?.
Comment. Substantiate your view with valid reasons.
Level 4 Analysing
5
i) Discuss about the interaction of product and market factor?
(7marks)
Level 5 Evaluating
ii) Explain about the producer who will be determining the
pricing factors (6marks)
6 What is your opinion of General equilibrium? Explain in detail. Level 6 Creating
7
i) Discuss about the factors influencing the price in a perfect
market. (6marks)
Level 1 Remembering
ii) Discuss about the efficiency of competitive market. (7marks)
8
How would you summarize the essential characteristics of
competitive market? Explain how to make such market more
efficient.
Level 2 Understanding
9
i) Discuss the determinants of factor price. (7marks)
Level 3 Applying
ii) Explain characteristics of Monopolistic & Oligopolistic
Competition. (6marks)
10
Narrate how the market and product factor is synchronized to
maintain the economic efficiency?
Level 4 Analysing
11
Explain the kinked demand curve. What are the assumptions and
criticism of kinked demand curve?
Level 1 Remembering
12
What is imperfect competition? Examine the costs and consequences
of it.
Level 2 Understanding
13
i) Define oligopoly. Explain how price & output decisions are taken
under oligopoly. (7marks)
Level 4 Analysing
ii) Compare price and output equilibrium under monopolistic
competition with that under perfect competition. (6marks)
14
Briefly explain the marginal productivity theory of factor pricing.
What are its main short comings?
Level 1 Remembering
PART - C
S.NO QUESTIONS
1
Perfect competition, monopoly, monopolistic competition and oligopoly are the
types of market structures considered in economic analysis. Which of these types
would you relate to the following markets?
i. Food grains: Rice and Wheat (3Marks)
ii. Stock market (3Marks)
iii. Market for bus transport in New Delhi (3Marks)
iv. Passenger cars (3Marks)
v. Confectionary (3Marks)
2
Consider your two favorite soft drinks. Suppose the price of a two-liter bottle of your second
choice falls. How much of a price decrease would it take to induce you to substitute the second
for your first choice? Estimate the cross elasticity of demand for the drinks. Are they part of
the same market?
3
Retail sales at the airports had been growing fast and the sales touched $27.1 billion in 2007.
Such impressive growth made the airport the fastest growing retail channel behind the
internet. The increased passenger traffic growth along with the soaring tourists' movements
among countries was fueling the growth of airport retailing. But the global economic
downturn with increasing oil prices etc. resulted in a rise in air fares, adversely affecting air
travel and retail spending at the airports. Whether the airports retailing remain a prominent
source of revenue in the global economic downturn remains to be seen.
Pedagogical Objectives:
To the dynamics of airport revenues (aeronautical vs. non- aeronautical).
To CSFs (critical success factor) of airport retailing.
To impacts of the global economic downturn on airport retailing.
Questions:
i. What is airport retailing? (8Marks)
ii. Discuss the impact of global economic downturn on airport retailing.(7Marks)
4
What is the solution to avoid black marketing of essential goods in short supply?
UNIT ? IV ? PERFORMANCE OF AN ECONOMY ? MACRO ECONOMICS
SYLLABUS: Macro-Economic Components ? Household ? Firms ? Government ? Circular Flow of
Money in economy. Concept of Macroeconomic Equilibrium. Aggregate Demand and Supply ?
National Income ? Components ? Determination and Methods of computing National Income ?
Multiplier Effect ? Fiscal Policy ? Role of Government in Macro Economic Equilibrium.
PART- A
S.NO QUESTIONS BT LEVEL COMPETENCE
1
What is Gross National Income?
Level 1 Remembering
2
Explain circular flow of income.
Level 2 Understanding
3
Identify the various components of Aggregate Demand.
Level 3 Applying
4
Differentiate between GNP and GDP
Level 4 Analysing
5
State the components of National Income
Level 5 Evaluating
6
Give an account of Multiplier Effect.
Level 6 Creating
7
Define Aggregate Demand.
Level 1 Remembering
8 What are the components of GDP? Level 2 Understanding
9
How is Fiscal policy effectiveness measured?
Level 3 Applying
10
Classify the various approaches to National Income?
Level 4 Analysing
11
Outline the concept of aggregate supply.
Level 5 Evaluating
12 Explain the term fiscal policy? Level 6 Creating
13 What does multiplier refer to? Level 1 Remembering
14
What do you mean by accelerator?
Level 2 Understanding
15
How would you define Effective Demand?
Level 3 Applying
16
Can you explain about the circular flow of economic
activity?
Level 4 Analysing
17 Define National income. Level 1 Remembering
18 What is meant by derived demand? Level 2 Understanding
19
What is Pump Priming?
Level 1 Remembering
20 Explain Compensatory Spending. Level 1 Remembering
PART- B
S.NO QUESTIONS
BT
LEVEL
COMPETENCE
1
Discuss the theories of Fiscal Policy.
Level 1 Remembering
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?
DEPARTMENT OF MANAGEMENT STUDIES
QUESTION BANK
I SEMESTER
1915101 ? ECONOMIC ANALYSIS FOR
Regulation ? 2019
Academic Year 2019 - 2020
Prepared by
Dr. K. Sentamilselvan ? Asst. Professor
Dr. L.Sujatha ? Asst. Professor
(An
? .
DEPARTMENT OFMANAGEMENT STUDIES
QUESTION BANK
SUBJECT: 1915101 ? ECONOMIC ANALYSIS FOR
SEM / YEAR: I Semester / I Year
UNIT ? I ? INTRODUCTION
SYLLABUS: Definition of Economics - Micro Vs. Macroeconomics ? Fundamental Economic
Problem ? Production Possibility Curve ? Assumptions and Criticism. Economic Systems and Types
? Social, Capital and Mixed Economies and its characteristics.
PART- A
S.NO QUESTIONS BT LEVEL COMPETENCE
1 How would you define Economics? Level 1 Remembering
2
Can you explain when scarcity arises?
Level 2 Understanding
3
State the importance of understanding Economic
Problem
Level 3 Applying
4
Can you outline difference between Micro and
Macro Economics?
Level 4 Analysing
5
What is your opinion of Production-possibility frontier
(PPF)?
Level 5 Evaluating
6
In your opinion what are the differences between
Productive and Economic Efficiency?
Level 6 Creating
7 How would you explain Economic Growth? Level 1 Remembering
8
What is meant by ?Efficiency??
Level 2 Understanding
9 Describe Economic Stability Level 3 Applying
10
Identify the role of Government in present Economic
Scenario
Level 4 Analysing
11 Explain Transformation Curve. Level 5 Evaluating
12 Write short note on Economic Stability. Level 6 Creating
13 What are the elements of Economic Growth? Level 1 Remembering
14
State the reasons for Economic Problem?
Level 2 Understanding
15 What is meant by Mixed Economy? Level 3 Applying
16
Identify the criticisms of Production Possibility Curve.
Level 4 Analysing
17
Outline the role of Markets in today?s economic scenario.
Level 1 Remembering
18
What are the various types of Economic Efficiency?
Level 2 Understanding
19
What are the assumptions of Production Possibility
Curve?
Level 1 Remembering
20
How would you explain Productive efficiency?
Level 1 Remembering
PART- B
S.NO QUESTIONS
BT
LEVEL
COMPETENCE
1
Write a detailed note on the nature of Macro Economics.
Level 1 Remembering
2
i) Explain Economic Efficiency. (5Marks)
ii) Explain the various types of Economic Efficiency. (8Marks)
Level 2 Understanding
3
How would you show your understanding of ?Scarcity and
Efficiency are the twin themes of Economics??
Level 3 Applying
4
i) What is Production Possibility Frontier? (7Marks)
ii) Explain the significance of PPF. (6Marks)
Level 4 Analysing
5
Explain the importance of Macroeconomics.
Level 5 Evaluating
6
Government plays a vital role in today?s economic scenario ?
Discuss
Level 6 Creating
7
?The markets and government play a significant role for the
economy development of a nation? - Examine
Level 1 Remembering
8
Outline a detailed role of Markets in today?s economy.
Level 2 Understanding
9
i) Explain the concept of Transformation Curve. (7Marks)
ii) State the assumptions of the transformation curve. (6Marks)
Level 3 Applying
10
i) Explain the themes of Economics (7Marks)
i) Explain how stability in leads to economic growth .
(6Marks)
Level 4 Analysing
11
Suggest measures to overcome fundamental economic problems.
Level 1 Remembering
12
Can you explain the fundamental economic problems?
Level 2 Understanding
13
Compare Productive Efficiency Vs Economic Efficiency.
Level 4 Analysing
14
Explain the significance of economic growth and stability and
discuss how to attain them.
Level 1 Remembering
PART - C
S.NO QUESTIONS
1
The Government suddenly made a ?U? turn in its economic policies in 1991, making a
fundamental departure from ?Nehruvian Policies of Socialism?, even without discussing the
issue in the Parliament. Even Communist and Socialist members of the Parliament, and also
pro-labor organizations kept quiet ? Discuss about these in groups, regarding the significance
and implications.
2
The City of Pune has a hundred petrol pumps selling identical products, but owned by
different owners. The total market demand is given by Q = 50000 ? 20000p. The total supply
function is given by: Q = 2500P. Cone of the Oil companies decided to take over all these
pumps. There is no apparent cost advantage because the cost function remains the same,
regardless of whether it is one large company or many small ones. The users of petrol are
disturbed and annoyed at this because they anticipate exploitation. You are required to
calculate the following:
i. The price prior to the merger.
Ii.The price post-merger.
Note that the supply function is nothing but the rising part of the relevant cost function.
Questions:
i. If the Government steps in and decides to regulate the price, would you recommend a
marginal cost pricing regulation? Why or why not? (8 Marks)
ii. Discuss the ideal market structure, given the nature of the commodity.(7 Marks)
3
Explain as to how the study of Economics helps you in better decision making in
scenario?
4
How is this going to help me?
Ms. X wants to be a manager. She enjoyed her accounting, finance and marketing courses.
Each of these provided her with some clear cut answer. Now the professor in her economics
course is telling her that needs and wants and unlimited and the resource are limited. She
comes to school to get an answer on how to be an effective manager, and meeting unlimited
needs with limited resource is found to be difficult for her to concentrate.
Questions:
i. How would you relieve Ms. X?s anxiety? How is the course in going to help her?
(8Marks)
ii. How does a course in economics differ from other fields? (7Marks)
UNIT ? II ? CONSUMER AND PRODUCER BEHAVIOUR
SYLLABUS: Law of Demand and Supply ? Assumptions ? Determinants ? Exceptions ? Elasticity
of Demand and supply and its types. Consumer Behaviour ? Approaches ? Law of Diminishing
Marginal Utility ? Law of Equi Marginal Utility ? Indifference Curve Analysis. Producer Behaviour
? Production Function ? Long run and Short run . Law of Diminishing Marginal returns ? Returns to
scale ? Marginal Rate of Technical Substitution ? Co Function ? Concepts ? Long and short run Cost
curves ? Economies and Diseconomies of Scale ? Concept of Consumer Surplus and Producer
Surplus.
PART- A
S.NO QUESTIONS BT LEVEL COMPETENCE
1
Define Law of Supply.
Level 1 Remembering
2
What is Marginal Rate of Technical Substitution?
Level 2 Understanding
3
List the determinants of Demand.
Level 3 Applying
4
Can you explain Demand Analysis?
Level 4 Analysing
5
List the various types of Demand.
Level 5 Evaluating
6
Interpret ?Law of Equi Marginal Utility??
Level 6 Creating
7
Explain consumer behaviour.
Level 1 Remembering
8 Why does the demand curve slopes downwards? Level 2 Understanding
9
What is elasticity of Demand?
Level 3 Applying
10
State the assumptions of Law of Demand.
Level 4 Analysing
11
Explain what is meant by Diseconomies of Scale?
Level 5 Evaluating
12
List the difference between Law of Demand and
Elasticity of Demand
Level 6 Creating
13
How would you define Consumer Surplus?
Level 1 Remembering
14
Differentiate between a Price Elasticity and Income
Elasticity of Demand.
Level 2 Understanding
15
Explain Law of Diminishing Marginal Utility.
Level 3 Applying
16
State the factors influencing Market Demand
Level 4 Analysing
17
What are Isoquant Curves?
Level 1 Remembering
18
Write a brief note on ?Market Equilibrium?.
Level 2 Understanding
19
What is meant by Indifference Curve? List the properties
of Indifference Curve.
Level 1 Remembering
20 Define Cost Function. Level 1 Remembering
PART- B
S.NO QUESTIONS
BT
LEVEL
COMPETENCE
1
How would you classify Demand and discuss the determinants of
demand?
Level 1 Remembering
2
i) Explain the Law of Demand and the assumptions.(7Marks)
Level 2 Understanding
ii) Explain why the demand curve slopes downwards?(6Marks)
3
Explain the different types of elasticity of demand and list out
the various factors determining the elasticity of demand.
Level 3 Applying
4 Explain the Law of Supply and state the assumptions of Law of
Supply.
Level 4 Analysing
5
i) What does consumer behaviour deal with? (7Marks)
Level 5 Evaluating
ii) Discuss the various approaches to Consumer Behaviour.
(6Marks)
6
i) What is Supply Elasticity and explain its types? (7Marks)
Level 6 Creating
ii) Explain the determinants of Elasticity of Supply. (6Marks)
i) Briefly explain Market Equilibrium. (5Marks)
7
ii) Explain the types of Equilibrium. (8Marks)
Level 1 Remembering
8
Compile the assumptions and properties of Indifference Curve.
Level 2 Understanding
9
i) Describe Marginal Analysis and list its assumptions. (7Marks)
Level 3 Applying
ii) Outline the approaches to Marginal Analysis. (6Marks)
10
Describe the relations between production and costs in the short run
and long run.
Level 4 Analysing
11
Explain Production Function and the applications of Production
Function in Managerial decisions.
Level 1 Remembering
12
What are economies and diseconomies of scale? Explain in detail
with suitable examples.
Level 2 Understanding
13
i) What are Isoquant Curves? State its assumptions. (5 Marks)
Level 4 Analysing
ii) State the various properties of Isoquants. (8 Marks)
14
i) Discuss the nature of Short-Run and Long- Run Average cost
curves. (7Marks)
Level 1 Remembering
ii) Why is the Long-Run cost curve flatter than Short-Run cost
curve? (6Marks)
PART - C
S.NO QUESTIONS
1
Which of the following commodities have most inelastic demand? Give reasons
for your answer:
i. Soap (5Marks)
ii. Salt (5Marks)
iii. Penicillin (5Marks)
3.
2
Suppose you are a sales manager of an organization. Explain how the analysis of demand
contributes to decision making in the light of the responsibilities of a sales
manager.
3
How to determine the demand for FMCG products? Explain your answer with suitable
illustration.
4
A controlled economy has a market clearance equations built over years. The policy makers
looked at the domestic markets and found that product marketers are almost perfect and that
technical rate of substitution has been advantageous. The economic fundamentals were strong
enough to open up the economy. There was opposition attributing to inconsistency from
outside. The debates were on the following questions:
i. What is macro - economic fundamentals? (5Marks)
ii. Write short notes on each factor. (5Marks)
iii. What if the economy is closed for some time? (5Marks)
UNIT ? III ? PRODUCT AND FACTOR MARKET
SYLLABUS: Markets ? Definition, types and the role of markets, Market Structure ? Characteristics
? Perfect and Imperfect Competition ? Monopoly ? Monopolistic and Oligopoly Markets ? Price
Fixation. Factor Markets ? Factors of Production ? Characteristics ? Factor market Equilibrium ?
Determination of Factor price ? Theory of Marginal Productivity.
PART- A
S.NO QUESTIONS BT LEVEL COMPETENCE
1
Define labor.
Level 1 Remembering
2
What are the different types of markets?
Level 2 Understanding
3
Explain the term Market Structure.
Level 3 Applying
4
List the difference between Perfect Competition and
Monopolistic Competition
Level 4 Analysing
5
Can you assess the significance of market efficiency?
Level 5 Evaluating
6
Differentiate between Monopolistic Competition and
Monopoly
Level 6 Creating
7
What is meant by Factor Market?
Level 1 Remembering
8 How would you explain Factors of Production? Level 2 Understanding
9
Explain the Competitive Market
Level 3 Applying
10
How do you define Market?
Level 4 Analysing
11
Outline the concept of Competitive Equilibrium
Level 5 Evaluating
12
How is the demand for Factors of Production
determined?
Level 6 Creating
13
What are the determinants of Supply of Factors
of Production?
Level 1 Remembering
14
What are the features of a Monopolistic Competition?
Level 2 Understanding
15
How would you show your understanding of firm?s
equilibrium?
Level 3 Applying
16
What are the factors of market?
Level 4 Analysing
17
How would you explain Marginal Productivity Theory?
Level 1 Remembering
18
Explain Consumer Equilibrium and Producer Equilibrium
Level 2 Understanding
19
How would you explain Market Failure?
Level 1 Remembering
20
What do you mean by Price Leadership?
Level 1 Remembering
PART- B
S.NO QUESTIONS
BT
LEVEL
COMPETENCE
1
What are the various methods of improving the efficiency of
Competitive market?
Level 1 Remembering
2
i) Differentiate perfect & imperfect market. (6marks)
Level 2 Understanding
ii) Explain the technique of maintaining the market & firm?s
equilibrium. (7marks)
3
How would you show your understanding of the different types of
Market Structure?
Level 3 Applying
4
?Market Structures depends on relative cost and demand factors?.
Comment. Substantiate your view with valid reasons.
Level 4 Analysing
5
i) Discuss about the interaction of product and market factor?
(7marks)
Level 5 Evaluating
ii) Explain about the producer who will be determining the
pricing factors (6marks)
6 What is your opinion of General equilibrium? Explain in detail. Level 6 Creating
7
i) Discuss about the factors influencing the price in a perfect
market. (6marks)
Level 1 Remembering
ii) Discuss about the efficiency of competitive market. (7marks)
8
How would you summarize the essential characteristics of
competitive market? Explain how to make such market more
efficient.
Level 2 Understanding
9
i) Discuss the determinants of factor price. (7marks)
Level 3 Applying
ii) Explain characteristics of Monopolistic & Oligopolistic
Competition. (6marks)
10
Narrate how the market and product factor is synchronized to
maintain the economic efficiency?
Level 4 Analysing
11
Explain the kinked demand curve. What are the assumptions and
criticism of kinked demand curve?
Level 1 Remembering
12
What is imperfect competition? Examine the costs and consequences
of it.
Level 2 Understanding
13
i) Define oligopoly. Explain how price & output decisions are taken
under oligopoly. (7marks)
Level 4 Analysing
ii) Compare price and output equilibrium under monopolistic
competition with that under perfect competition. (6marks)
14
Briefly explain the marginal productivity theory of factor pricing.
What are its main short comings?
Level 1 Remembering
PART - C
S.NO QUESTIONS
1
Perfect competition, monopoly, monopolistic competition and oligopoly are the
types of market structures considered in economic analysis. Which of these types
would you relate to the following markets?
i. Food grains: Rice and Wheat (3Marks)
ii. Stock market (3Marks)
iii. Market for bus transport in New Delhi (3Marks)
iv. Passenger cars (3Marks)
v. Confectionary (3Marks)
2
Consider your two favorite soft drinks. Suppose the price of a two-liter bottle of your second
choice falls. How much of a price decrease would it take to induce you to substitute the second
for your first choice? Estimate the cross elasticity of demand for the drinks. Are they part of
the same market?
3
Retail sales at the airports had been growing fast and the sales touched $27.1 billion in 2007.
Such impressive growth made the airport the fastest growing retail channel behind the
internet. The increased passenger traffic growth along with the soaring tourists' movements
among countries was fueling the growth of airport retailing. But the global economic
downturn with increasing oil prices etc. resulted in a rise in air fares, adversely affecting air
travel and retail spending at the airports. Whether the airports retailing remain a prominent
source of revenue in the global economic downturn remains to be seen.
Pedagogical Objectives:
To the dynamics of airport revenues (aeronautical vs. non- aeronautical).
To CSFs (critical success factor) of airport retailing.
To impacts of the global economic downturn on airport retailing.
Questions:
i. What is airport retailing? (8Marks)
ii. Discuss the impact of global economic downturn on airport retailing.(7Marks)
4
What is the solution to avoid black marketing of essential goods in short supply?
UNIT ? IV ? PERFORMANCE OF AN ECONOMY ? MACRO ECONOMICS
SYLLABUS: Macro-Economic Components ? Household ? Firms ? Government ? Circular Flow of
Money in economy. Concept of Macroeconomic Equilibrium. Aggregate Demand and Supply ?
National Income ? Components ? Determination and Methods of computing National Income ?
Multiplier Effect ? Fiscal Policy ? Role of Government in Macro Economic Equilibrium.
PART- A
S.NO QUESTIONS BT LEVEL COMPETENCE
1
What is Gross National Income?
Level 1 Remembering
2
Explain circular flow of income.
Level 2 Understanding
3
Identify the various components of Aggregate Demand.
Level 3 Applying
4
Differentiate between GNP and GDP
Level 4 Analysing
5
State the components of National Income
Level 5 Evaluating
6
Give an account of Multiplier Effect.
Level 6 Creating
7
Define Aggregate Demand.
Level 1 Remembering
8 What are the components of GDP? Level 2 Understanding
9
How is Fiscal policy effectiveness measured?
Level 3 Applying
10
Classify the various approaches to National Income?
Level 4 Analysing
11
Outline the concept of aggregate supply.
Level 5 Evaluating
12 Explain the term fiscal policy? Level 6 Creating
13 What does multiplier refer to? Level 1 Remembering
14
What do you mean by accelerator?
Level 2 Understanding
15
How would you define Effective Demand?
Level 3 Applying
16
Can you explain about the circular flow of economic
activity?
Level 4 Analysing
17 Define National income. Level 1 Remembering
18 What is meant by derived demand? Level 2 Understanding
19
What is Pump Priming?
Level 1 Remembering
20 Explain Compensatory Spending. Level 1 Remembering
PART- B
S.NO QUESTIONS
BT
LEVEL
COMPETENCE
1
Discuss the theories of Fiscal Policy.
Level 1 Remembering
2
Discuss the methods, factors influencing and components of
national income.
Level 2 Understanding
3
What facts would you select to show the causes of unemployment?
Discuss the policy measures to solve the unemployment problem.
Level 3 Applying
4
How do different forces interact to determine over all
macroeconomics activity? Illustrate.
Level 4 Analysing
5
i) What is expenditure multiplier? (6Marks)
ii) What is the role of budget in National Income? (7Marks)
Level 5 Evaluating
6
i) Narrate in detail about macro-economic aggregate and the
performance of economy. (6Marks)
ii) How do different forces interact to determine over all macro-
economic activity? (7Marks)
Level 6 Creating
7
Discuss the compensatory fiscal policy as a device for controlling
cyclical fluctuation.
Level 1 Remembering
8
?Decline in aggregate demand leads to an economic downturn??
Explain.
Level 2 Understanding
9
i) Give an account of Fiscal Policy. (6marks)
ii) Examine its impact on . (7marks)
Level 3 Applying
10
In developing countries like India there are peculiar difficulties
involved in the estimation of National Income- Elaborate.
Level 4 Analysing
11
Explain the various macro-economic factors influencing the
performance of an economy.
Level 1 Remembering
12
Demonstrate with suitable illustrations how the national income is
determined?
Level 2 Understanding
13
Explain the various macro-economic factors influencing the
performance of an economy.
Level 4 Analysing
14
Demonstrate with suitable illustrations how the national income is
determined?
Level 1 Remembering
PART - C
S.NO QUESTIONS
1
Why do national income accountants include only final goods in measuring GDP for a
particular year? Why don?t they include the value of stocks and bonds sold? Why don?t they
include the value of used furniture bought and sold? What are government?s fiscal policy
options for ending severe demand-pull inflation? Use the aggregate demand- aggregate
supply model to show the impact of these policies on the price level. Which of these fiscal
policy options do you think a ?conservative? economist might favor?
2
?A strong Fiscal Policy is very important for the economy of a nation.?
i. State and evaluate the problem of time lags in enacting and applying fiscal policy.(5marks)
ii. Explain the notion of a political cycle. (5Marks)
iii. What is the crowding-out effect & why is it relevant to fiscal policy? (5Marks)
3
Banks are required to maintain reserves. In this context, answer the following questions:
i. Why are commercial banks required to have reserves? (3Marks)
ii. Explain why reserves are an asset to commercial banks but liabilities to the Federal
FirstRanker.com - FirstRanker's Choice
(An
?
DEPARTMENT OF MANAGEMENT STUDIES
QUESTION BANK
I SEMESTER
1915101 ? ECONOMIC ANALYSIS FOR
Regulation ? 2019
Academic Year 2019 - 2020
Prepared by
Dr. K. Sentamilselvan ? Asst. Professor
Dr. L.Sujatha ? Asst. Professor
(An
? .
DEPARTMENT OFMANAGEMENT STUDIES
QUESTION BANK
SUBJECT: 1915101 ? ECONOMIC ANALYSIS FOR
SEM / YEAR: I Semester / I Year
UNIT ? I ? INTRODUCTION
SYLLABUS: Definition of Economics - Micro Vs. Macroeconomics ? Fundamental Economic
Problem ? Production Possibility Curve ? Assumptions and Criticism. Economic Systems and Types
? Social, Capital and Mixed Economies and its characteristics.
PART- A
S.NO QUESTIONS BT LEVEL COMPETENCE
1 How would you define Economics? Level 1 Remembering
2
Can you explain when scarcity arises?
Level 2 Understanding
3
State the importance of understanding Economic
Problem
Level 3 Applying
4
Can you outline difference between Micro and
Macro Economics?
Level 4 Analysing
5
What is your opinion of Production-possibility frontier
(PPF)?
Level 5 Evaluating
6
In your opinion what are the differences between
Productive and Economic Efficiency?
Level 6 Creating
7 How would you explain Economic Growth? Level 1 Remembering
8
What is meant by ?Efficiency??
Level 2 Understanding
9 Describe Economic Stability Level 3 Applying
10
Identify the role of Government in present Economic
Scenario
Level 4 Analysing
11 Explain Transformation Curve. Level 5 Evaluating
12 Write short note on Economic Stability. Level 6 Creating
13 What are the elements of Economic Growth? Level 1 Remembering
14
State the reasons for Economic Problem?
Level 2 Understanding
15 What is meant by Mixed Economy? Level 3 Applying
16
Identify the criticisms of Production Possibility Curve.
Level 4 Analysing
17
Outline the role of Markets in today?s economic scenario.
Level 1 Remembering
18
What are the various types of Economic Efficiency?
Level 2 Understanding
19
What are the assumptions of Production Possibility
Curve?
Level 1 Remembering
20
How would you explain Productive efficiency?
Level 1 Remembering
PART- B
S.NO QUESTIONS
BT
LEVEL
COMPETENCE
1
Write a detailed note on the nature of Macro Economics.
Level 1 Remembering
2
i) Explain Economic Efficiency. (5Marks)
ii) Explain the various types of Economic Efficiency. (8Marks)
Level 2 Understanding
3
How would you show your understanding of ?Scarcity and
Efficiency are the twin themes of Economics??
Level 3 Applying
4
i) What is Production Possibility Frontier? (7Marks)
ii) Explain the significance of PPF. (6Marks)
Level 4 Analysing
5
Explain the importance of Macroeconomics.
Level 5 Evaluating
6
Government plays a vital role in today?s economic scenario ?
Discuss
Level 6 Creating
7
?The markets and government play a significant role for the
economy development of a nation? - Examine
Level 1 Remembering
8
Outline a detailed role of Markets in today?s economy.
Level 2 Understanding
9
i) Explain the concept of Transformation Curve. (7Marks)
ii) State the assumptions of the transformation curve. (6Marks)
Level 3 Applying
10
i) Explain the themes of Economics (7Marks)
i) Explain how stability in leads to economic growth .
(6Marks)
Level 4 Analysing
11
Suggest measures to overcome fundamental economic problems.
Level 1 Remembering
12
Can you explain the fundamental economic problems?
Level 2 Understanding
13
Compare Productive Efficiency Vs Economic Efficiency.
Level 4 Analysing
14
Explain the significance of economic growth and stability and
discuss how to attain them.
Level 1 Remembering
PART - C
S.NO QUESTIONS
1
The Government suddenly made a ?U? turn in its economic policies in 1991, making a
fundamental departure from ?Nehruvian Policies of Socialism?, even without discussing the
issue in the Parliament. Even Communist and Socialist members of the Parliament, and also
pro-labor organizations kept quiet ? Discuss about these in groups, regarding the significance
and implications.
2
The City of Pune has a hundred petrol pumps selling identical products, but owned by
different owners. The total market demand is given by Q = 50000 ? 20000p. The total supply
function is given by: Q = 2500P. Cone of the Oil companies decided to take over all these
pumps. There is no apparent cost advantage because the cost function remains the same,
regardless of whether it is one large company or many small ones. The users of petrol are
disturbed and annoyed at this because they anticipate exploitation. You are required to
calculate the following:
i. The price prior to the merger.
Ii.The price post-merger.
Note that the supply function is nothing but the rising part of the relevant cost function.
Questions:
i. If the Government steps in and decides to regulate the price, would you recommend a
marginal cost pricing regulation? Why or why not? (8 Marks)
ii. Discuss the ideal market structure, given the nature of the commodity.(7 Marks)
3
Explain as to how the study of Economics helps you in better decision making in
scenario?
4
How is this going to help me?
Ms. X wants to be a manager. She enjoyed her accounting, finance and marketing courses.
Each of these provided her with some clear cut answer. Now the professor in her economics
course is telling her that needs and wants and unlimited and the resource are limited. She
comes to school to get an answer on how to be an effective manager, and meeting unlimited
needs with limited resource is found to be difficult for her to concentrate.
Questions:
i. How would you relieve Ms. X?s anxiety? How is the course in going to help her?
(8Marks)
ii. How does a course in economics differ from other fields? (7Marks)
UNIT ? II ? CONSUMER AND PRODUCER BEHAVIOUR
SYLLABUS: Law of Demand and Supply ? Assumptions ? Determinants ? Exceptions ? Elasticity
of Demand and supply and its types. Consumer Behaviour ? Approaches ? Law of Diminishing
Marginal Utility ? Law of Equi Marginal Utility ? Indifference Curve Analysis. Producer Behaviour
? Production Function ? Long run and Short run . Law of Diminishing Marginal returns ? Returns to
scale ? Marginal Rate of Technical Substitution ? Co Function ? Concepts ? Long and short run Cost
curves ? Economies and Diseconomies of Scale ? Concept of Consumer Surplus and Producer
Surplus.
PART- A
S.NO QUESTIONS BT LEVEL COMPETENCE
1
Define Law of Supply.
Level 1 Remembering
2
What is Marginal Rate of Technical Substitution?
Level 2 Understanding
3
List the determinants of Demand.
Level 3 Applying
4
Can you explain Demand Analysis?
Level 4 Analysing
5
List the various types of Demand.
Level 5 Evaluating
6
Interpret ?Law of Equi Marginal Utility??
Level 6 Creating
7
Explain consumer behaviour.
Level 1 Remembering
8 Why does the demand curve slopes downwards? Level 2 Understanding
9
What is elasticity of Demand?
Level 3 Applying
10
State the assumptions of Law of Demand.
Level 4 Analysing
11
Explain what is meant by Diseconomies of Scale?
Level 5 Evaluating
12
List the difference between Law of Demand and
Elasticity of Demand
Level 6 Creating
13
How would you define Consumer Surplus?
Level 1 Remembering
14
Differentiate between a Price Elasticity and Income
Elasticity of Demand.
Level 2 Understanding
15
Explain Law of Diminishing Marginal Utility.
Level 3 Applying
16
State the factors influencing Market Demand
Level 4 Analysing
17
What are Isoquant Curves?
Level 1 Remembering
18
Write a brief note on ?Market Equilibrium?.
Level 2 Understanding
19
What is meant by Indifference Curve? List the properties
of Indifference Curve.
Level 1 Remembering
20 Define Cost Function. Level 1 Remembering
PART- B
S.NO QUESTIONS
BT
LEVEL
COMPETENCE
1
How would you classify Demand and discuss the determinants of
demand?
Level 1 Remembering
2
i) Explain the Law of Demand and the assumptions.(7Marks)
Level 2 Understanding
ii) Explain why the demand curve slopes downwards?(6Marks)
3
Explain the different types of elasticity of demand and list out
the various factors determining the elasticity of demand.
Level 3 Applying
4 Explain the Law of Supply and state the assumptions of Law of
Supply.
Level 4 Analysing
5
i) What does consumer behaviour deal with? (7Marks)
Level 5 Evaluating
ii) Discuss the various approaches to Consumer Behaviour.
(6Marks)
6
i) What is Supply Elasticity and explain its types? (7Marks)
Level 6 Creating
ii) Explain the determinants of Elasticity of Supply. (6Marks)
i) Briefly explain Market Equilibrium. (5Marks)
7
ii) Explain the types of Equilibrium. (8Marks)
Level 1 Remembering
8
Compile the assumptions and properties of Indifference Curve.
Level 2 Understanding
9
i) Describe Marginal Analysis and list its assumptions. (7Marks)
Level 3 Applying
ii) Outline the approaches to Marginal Analysis. (6Marks)
10
Describe the relations between production and costs in the short run
and long run.
Level 4 Analysing
11
Explain Production Function and the applications of Production
Function in Managerial decisions.
Level 1 Remembering
12
What are economies and diseconomies of scale? Explain in detail
with suitable examples.
Level 2 Understanding
13
i) What are Isoquant Curves? State its assumptions. (5 Marks)
Level 4 Analysing
ii) State the various properties of Isoquants. (8 Marks)
14
i) Discuss the nature of Short-Run and Long- Run Average cost
curves. (7Marks)
Level 1 Remembering
ii) Why is the Long-Run cost curve flatter than Short-Run cost
curve? (6Marks)
PART - C
S.NO QUESTIONS
1
Which of the following commodities have most inelastic demand? Give reasons
for your answer:
i. Soap (5Marks)
ii. Salt (5Marks)
iii. Penicillin (5Marks)
3.
2
Suppose you are a sales manager of an organization. Explain how the analysis of demand
contributes to decision making in the light of the responsibilities of a sales
manager.
3
How to determine the demand for FMCG products? Explain your answer with suitable
illustration.
4
A controlled economy has a market clearance equations built over years. The policy makers
looked at the domestic markets and found that product marketers are almost perfect and that
technical rate of substitution has been advantageous. The economic fundamentals were strong
enough to open up the economy. There was opposition attributing to inconsistency from
outside. The debates were on the following questions:
i. What is macro - economic fundamentals? (5Marks)
ii. Write short notes on each factor. (5Marks)
iii. What if the economy is closed for some time? (5Marks)
UNIT ? III ? PRODUCT AND FACTOR MARKET
SYLLABUS: Markets ? Definition, types and the role of markets, Market Structure ? Characteristics
? Perfect and Imperfect Competition ? Monopoly ? Monopolistic and Oligopoly Markets ? Price
Fixation. Factor Markets ? Factors of Production ? Characteristics ? Factor market Equilibrium ?
Determination of Factor price ? Theory of Marginal Productivity.
PART- A
S.NO QUESTIONS BT LEVEL COMPETENCE
1
Define labor.
Level 1 Remembering
2
What are the different types of markets?
Level 2 Understanding
3
Explain the term Market Structure.
Level 3 Applying
4
List the difference between Perfect Competition and
Monopolistic Competition
Level 4 Analysing
5
Can you assess the significance of market efficiency?
Level 5 Evaluating
6
Differentiate between Monopolistic Competition and
Monopoly
Level 6 Creating
7
What is meant by Factor Market?
Level 1 Remembering
8 How would you explain Factors of Production? Level 2 Understanding
9
Explain the Competitive Market
Level 3 Applying
10
How do you define Market?
Level 4 Analysing
11
Outline the concept of Competitive Equilibrium
Level 5 Evaluating
12
How is the demand for Factors of Production
determined?
Level 6 Creating
13
What are the determinants of Supply of Factors
of Production?
Level 1 Remembering
14
What are the features of a Monopolistic Competition?
Level 2 Understanding
15
How would you show your understanding of firm?s
equilibrium?
Level 3 Applying
16
What are the factors of market?
Level 4 Analysing
17
How would you explain Marginal Productivity Theory?
Level 1 Remembering
18
Explain Consumer Equilibrium and Producer Equilibrium
Level 2 Understanding
19
How would you explain Market Failure?
Level 1 Remembering
20
What do you mean by Price Leadership?
Level 1 Remembering
PART- B
S.NO QUESTIONS
BT
LEVEL
COMPETENCE
1
What are the various methods of improving the efficiency of
Competitive market?
Level 1 Remembering
2
i) Differentiate perfect & imperfect market. (6marks)
Level 2 Understanding
ii) Explain the technique of maintaining the market & firm?s
equilibrium. (7marks)
3
How would you show your understanding of the different types of
Market Structure?
Level 3 Applying
4
?Market Structures depends on relative cost and demand factors?.
Comment. Substantiate your view with valid reasons.
Level 4 Analysing
5
i) Discuss about the interaction of product and market factor?
(7marks)
Level 5 Evaluating
ii) Explain about the producer who will be determining the
pricing factors (6marks)
6 What is your opinion of General equilibrium? Explain in detail. Level 6 Creating
7
i) Discuss about the factors influencing the price in a perfect
market. (6marks)
Level 1 Remembering
ii) Discuss about the efficiency of competitive market. (7marks)
8
How would you summarize the essential characteristics of
competitive market? Explain how to make such market more
efficient.
Level 2 Understanding
9
i) Discuss the determinants of factor price. (7marks)
Level 3 Applying
ii) Explain characteristics of Monopolistic & Oligopolistic
Competition. (6marks)
10
Narrate how the market and product factor is synchronized to
maintain the economic efficiency?
Level 4 Analysing
11
Explain the kinked demand curve. What are the assumptions and
criticism of kinked demand curve?
Level 1 Remembering
12
What is imperfect competition? Examine the costs and consequences
of it.
Level 2 Understanding
13
i) Define oligopoly. Explain how price & output decisions are taken
under oligopoly. (7marks)
Level 4 Analysing
ii) Compare price and output equilibrium under monopolistic
competition with that under perfect competition. (6marks)
14
Briefly explain the marginal productivity theory of factor pricing.
What are its main short comings?
Level 1 Remembering
PART - C
S.NO QUESTIONS
1
Perfect competition, monopoly, monopolistic competition and oligopoly are the
types of market structures considered in economic analysis. Which of these types
would you relate to the following markets?
i. Food grains: Rice and Wheat (3Marks)
ii. Stock market (3Marks)
iii. Market for bus transport in New Delhi (3Marks)
iv. Passenger cars (3Marks)
v. Confectionary (3Marks)
2
Consider your two favorite soft drinks. Suppose the price of a two-liter bottle of your second
choice falls. How much of a price decrease would it take to induce you to substitute the second
for your first choice? Estimate the cross elasticity of demand for the drinks. Are they part of
the same market?
3
Retail sales at the airports had been growing fast and the sales touched $27.1 billion in 2007.
Such impressive growth made the airport the fastest growing retail channel behind the
internet. The increased passenger traffic growth along with the soaring tourists' movements
among countries was fueling the growth of airport retailing. But the global economic
downturn with increasing oil prices etc. resulted in a rise in air fares, adversely affecting air
travel and retail spending at the airports. Whether the airports retailing remain a prominent
source of revenue in the global economic downturn remains to be seen.
Pedagogical Objectives:
To the dynamics of airport revenues (aeronautical vs. non- aeronautical).
To CSFs (critical success factor) of airport retailing.
To impacts of the global economic downturn on airport retailing.
Questions:
i. What is airport retailing? (8Marks)
ii. Discuss the impact of global economic downturn on airport retailing.(7Marks)
4
What is the solution to avoid black marketing of essential goods in short supply?
UNIT ? IV ? PERFORMANCE OF AN ECONOMY ? MACRO ECONOMICS
SYLLABUS: Macro-Economic Components ? Household ? Firms ? Government ? Circular Flow of
Money in economy. Concept of Macroeconomic Equilibrium. Aggregate Demand and Supply ?
National Income ? Components ? Determination and Methods of computing National Income ?
Multiplier Effect ? Fiscal Policy ? Role of Government in Macro Economic Equilibrium.
PART- A
S.NO QUESTIONS BT LEVEL COMPETENCE
1
What is Gross National Income?
Level 1 Remembering
2
Explain circular flow of income.
Level 2 Understanding
3
Identify the various components of Aggregate Demand.
Level 3 Applying
4
Differentiate between GNP and GDP
Level 4 Analysing
5
State the components of National Income
Level 5 Evaluating
6
Give an account of Multiplier Effect.
Level 6 Creating
7
Define Aggregate Demand.
Level 1 Remembering
8 What are the components of GDP? Level 2 Understanding
9
How is Fiscal policy effectiveness measured?
Level 3 Applying
10
Classify the various approaches to National Income?
Level 4 Analysing
11
Outline the concept of aggregate supply.
Level 5 Evaluating
12 Explain the term fiscal policy? Level 6 Creating
13 What does multiplier refer to? Level 1 Remembering
14
What do you mean by accelerator?
Level 2 Understanding
15
How would you define Effective Demand?
Level 3 Applying
16
Can you explain about the circular flow of economic
activity?
Level 4 Analysing
17 Define National income. Level 1 Remembering
18 What is meant by derived demand? Level 2 Understanding
19
What is Pump Priming?
Level 1 Remembering
20 Explain Compensatory Spending. Level 1 Remembering
PART- B
S.NO QUESTIONS
BT
LEVEL
COMPETENCE
1
Discuss the theories of Fiscal Policy.
Level 1 Remembering
2
Discuss the methods, factors influencing and components of
national income.
Level 2 Understanding
3
What facts would you select to show the causes of unemployment?
Discuss the policy measures to solve the unemployment problem.
Level 3 Applying
4
How do different forces interact to determine over all
macroeconomics activity? Illustrate.
Level 4 Analysing
5
i) What is expenditure multiplier? (6Marks)
ii) What is the role of budget in National Income? (7Marks)
Level 5 Evaluating
6
i) Narrate in detail about macro-economic aggregate and the
performance of economy. (6Marks)
ii) How do different forces interact to determine over all macro-
economic activity? (7Marks)
Level 6 Creating
7
Discuss the compensatory fiscal policy as a device for controlling
cyclical fluctuation.
Level 1 Remembering
8
?Decline in aggregate demand leads to an economic downturn??
Explain.
Level 2 Understanding
9
i) Give an account of Fiscal Policy. (6marks)
ii) Examine its impact on . (7marks)
Level 3 Applying
10
In developing countries like India there are peculiar difficulties
involved in the estimation of National Income- Elaborate.
Level 4 Analysing
11
Explain the various macro-economic factors influencing the
performance of an economy.
Level 1 Remembering
12
Demonstrate with suitable illustrations how the national income is
determined?
Level 2 Understanding
13
Explain the various macro-economic factors influencing the
performance of an economy.
Level 4 Analysing
14
Demonstrate with suitable illustrations how the national income is
determined?
Level 1 Remembering
PART - C
S.NO QUESTIONS
1
Why do national income accountants include only final goods in measuring GDP for a
particular year? Why don?t they include the value of stocks and bonds sold? Why don?t they
include the value of used furniture bought and sold? What are government?s fiscal policy
options for ending severe demand-pull inflation? Use the aggregate demand- aggregate
supply model to show the impact of these policies on the price level. Which of these fiscal
policy options do you think a ?conservative? economist might favor?
2
?A strong Fiscal Policy is very important for the economy of a nation.?
i. State and evaluate the problem of time lags in enacting and applying fiscal policy.(5marks)
ii. Explain the notion of a political cycle. (5Marks)
iii. What is the crowding-out effect & why is it relevant to fiscal policy? (5Marks)
3
Banks are required to maintain reserves. In this context, answer the following questions:
i. Why are commercial banks required to have reserves? (3Marks)
ii. Explain why reserves are an asset to commercial banks but liabilities to the Federal
Reserve Banks. (3Marks)
iii. What are excess reserves? (3Marks)
iv. How do you calculate the amount of excess reserves held by a bank? (3Marks)
v. What is their significance? (3Marks)
4
The Government influences investment, employment, output and income through monetary
policy. With this respect answer the following:
i. What is the basic objective of monetary policy? (5Marks)
ii. State the cause-effect chain through which monetary policy is made effective.(5Marks)
iii. What are the major strengths and weaknesses of monetary policy? ( 5 M a r k s )
UNIT ? V ? AGGREGATE SUPPLY AND THE ROLE OF MONEY
SYLLABUS: Macro ? Economic Variables ? Unemployment and its impact ? Okun?s Law ?
Inflation and Deflation ? Philips Curve ? short run and Long run ? Recent Government programs
towards employment ? RBI and Monetary policy to control inflation.
PART- A
S.NO QUESTIONS BT LEVEL COMPETENCE
1
What is Inflation Rate?
Level 1 Remembering
2
Can you explain what does Okun?s law convey?
Level 2 Understanding
3
What is money market?
Level 3 Applying
4 Examine unemployment tradeoff? Level 4 Analysing
5 What is meant by Supply curve of money? Level 5 Evaluating
6
What facts can you compile to explain the term frictional
unemployment?
Level 6 Creating
7
Define unemployment.
Level 1 Remembering
8 List the causes of Unemployment Level 2 Understanding
9
What are the measures for reducing inflation?
Level 3 Applying
10
Define Monetary Policy.
Level 4 Analysing
11
State the objectives of Monetary Policy
Level 5 Evaluating
12 What do you mean by Commercial Papers? Level 6 Creating
13
Discuss the role of Central Bank.
Level 1 Remembering
14
Differentiate inflation and deflation.
Level 2 Understanding
15
State the functions of Money Market
Level 3 Applying
FirstRanker.com - FirstRanker's Choice
(An
?
DEPARTMENT OF MANAGEMENT STUDIES
QUESTION BANK
I SEMESTER
1915101 ? ECONOMIC ANALYSIS FOR
Regulation ? 2019
Academic Year 2019 - 2020
Prepared by
Dr. K. Sentamilselvan ? Asst. Professor
Dr. L.Sujatha ? Asst. Professor
(An
? .
DEPARTMENT OFMANAGEMENT STUDIES
QUESTION BANK
SUBJECT: 1915101 ? ECONOMIC ANALYSIS FOR
SEM / YEAR: I Semester / I Year
UNIT ? I ? INTRODUCTION
SYLLABUS: Definition of Economics - Micro Vs. Macroeconomics ? Fundamental Economic
Problem ? Production Possibility Curve ? Assumptions and Criticism. Economic Systems and Types
? Social, Capital and Mixed Economies and its characteristics.
PART- A
S.NO QUESTIONS BT LEVEL COMPETENCE
1 How would you define Economics? Level 1 Remembering
2
Can you explain when scarcity arises?
Level 2 Understanding
3
State the importance of understanding Economic
Problem
Level 3 Applying
4
Can you outline difference between Micro and
Macro Economics?
Level 4 Analysing
5
What is your opinion of Production-possibility frontier
(PPF)?
Level 5 Evaluating
6
In your opinion what are the differences between
Productive and Economic Efficiency?
Level 6 Creating
7 How would you explain Economic Growth? Level 1 Remembering
8
What is meant by ?Efficiency??
Level 2 Understanding
9 Describe Economic Stability Level 3 Applying
10
Identify the role of Government in present Economic
Scenario
Level 4 Analysing
11 Explain Transformation Curve. Level 5 Evaluating
12 Write short note on Economic Stability. Level 6 Creating
13 What are the elements of Economic Growth? Level 1 Remembering
14
State the reasons for Economic Problem?
Level 2 Understanding
15 What is meant by Mixed Economy? Level 3 Applying
16
Identify the criticisms of Production Possibility Curve.
Level 4 Analysing
17
Outline the role of Markets in today?s economic scenario.
Level 1 Remembering
18
What are the various types of Economic Efficiency?
Level 2 Understanding
19
What are the assumptions of Production Possibility
Curve?
Level 1 Remembering
20
How would you explain Productive efficiency?
Level 1 Remembering
PART- B
S.NO QUESTIONS
BT
LEVEL
COMPETENCE
1
Write a detailed note on the nature of Macro Economics.
Level 1 Remembering
2
i) Explain Economic Efficiency. (5Marks)
ii) Explain the various types of Economic Efficiency. (8Marks)
Level 2 Understanding
3
How would you show your understanding of ?Scarcity and
Efficiency are the twin themes of Economics??
Level 3 Applying
4
i) What is Production Possibility Frontier? (7Marks)
ii) Explain the significance of PPF. (6Marks)
Level 4 Analysing
5
Explain the importance of Macroeconomics.
Level 5 Evaluating
6
Government plays a vital role in today?s economic scenario ?
Discuss
Level 6 Creating
7
?The markets and government play a significant role for the
economy development of a nation? - Examine
Level 1 Remembering
8
Outline a detailed role of Markets in today?s economy.
Level 2 Understanding
9
i) Explain the concept of Transformation Curve. (7Marks)
ii) State the assumptions of the transformation curve. (6Marks)
Level 3 Applying
10
i) Explain the themes of Economics (7Marks)
i) Explain how stability in leads to economic growth .
(6Marks)
Level 4 Analysing
11
Suggest measures to overcome fundamental economic problems.
Level 1 Remembering
12
Can you explain the fundamental economic problems?
Level 2 Understanding
13
Compare Productive Efficiency Vs Economic Efficiency.
Level 4 Analysing
14
Explain the significance of economic growth and stability and
discuss how to attain them.
Level 1 Remembering
PART - C
S.NO QUESTIONS
1
The Government suddenly made a ?U? turn in its economic policies in 1991, making a
fundamental departure from ?Nehruvian Policies of Socialism?, even without discussing the
issue in the Parliament. Even Communist and Socialist members of the Parliament, and also
pro-labor organizations kept quiet ? Discuss about these in groups, regarding the significance
and implications.
2
The City of Pune has a hundred petrol pumps selling identical products, but owned by
different owners. The total market demand is given by Q = 50000 ? 20000p. The total supply
function is given by: Q = 2500P. Cone of the Oil companies decided to take over all these
pumps. There is no apparent cost advantage because the cost function remains the same,
regardless of whether it is one large company or many small ones. The users of petrol are
disturbed and annoyed at this because they anticipate exploitation. You are required to
calculate the following:
i. The price prior to the merger.
Ii.The price post-merger.
Note that the supply function is nothing but the rising part of the relevant cost function.
Questions:
i. If the Government steps in and decides to regulate the price, would you recommend a
marginal cost pricing regulation? Why or why not? (8 Marks)
ii. Discuss the ideal market structure, given the nature of the commodity.(7 Marks)
3
Explain as to how the study of Economics helps you in better decision making in
scenario?
4
How is this going to help me?
Ms. X wants to be a manager. She enjoyed her accounting, finance and marketing courses.
Each of these provided her with some clear cut answer. Now the professor in her economics
course is telling her that needs and wants and unlimited and the resource are limited. She
comes to school to get an answer on how to be an effective manager, and meeting unlimited
needs with limited resource is found to be difficult for her to concentrate.
Questions:
i. How would you relieve Ms. X?s anxiety? How is the course in going to help her?
(8Marks)
ii. How does a course in economics differ from other fields? (7Marks)
UNIT ? II ? CONSUMER AND PRODUCER BEHAVIOUR
SYLLABUS: Law of Demand and Supply ? Assumptions ? Determinants ? Exceptions ? Elasticity
of Demand and supply and its types. Consumer Behaviour ? Approaches ? Law of Diminishing
Marginal Utility ? Law of Equi Marginal Utility ? Indifference Curve Analysis. Producer Behaviour
? Production Function ? Long run and Short run . Law of Diminishing Marginal returns ? Returns to
scale ? Marginal Rate of Technical Substitution ? Co Function ? Concepts ? Long and short run Cost
curves ? Economies and Diseconomies of Scale ? Concept of Consumer Surplus and Producer
Surplus.
PART- A
S.NO QUESTIONS BT LEVEL COMPETENCE
1
Define Law of Supply.
Level 1 Remembering
2
What is Marginal Rate of Technical Substitution?
Level 2 Understanding
3
List the determinants of Demand.
Level 3 Applying
4
Can you explain Demand Analysis?
Level 4 Analysing
5
List the various types of Demand.
Level 5 Evaluating
6
Interpret ?Law of Equi Marginal Utility??
Level 6 Creating
7
Explain consumer behaviour.
Level 1 Remembering
8 Why does the demand curve slopes downwards? Level 2 Understanding
9
What is elasticity of Demand?
Level 3 Applying
10
State the assumptions of Law of Demand.
Level 4 Analysing
11
Explain what is meant by Diseconomies of Scale?
Level 5 Evaluating
12
List the difference between Law of Demand and
Elasticity of Demand
Level 6 Creating
13
How would you define Consumer Surplus?
Level 1 Remembering
14
Differentiate between a Price Elasticity and Income
Elasticity of Demand.
Level 2 Understanding
15
Explain Law of Diminishing Marginal Utility.
Level 3 Applying
16
State the factors influencing Market Demand
Level 4 Analysing
17
What are Isoquant Curves?
Level 1 Remembering
18
Write a brief note on ?Market Equilibrium?.
Level 2 Understanding
19
What is meant by Indifference Curve? List the properties
of Indifference Curve.
Level 1 Remembering
20 Define Cost Function. Level 1 Remembering
PART- B
S.NO QUESTIONS
BT
LEVEL
COMPETENCE
1
How would you classify Demand and discuss the determinants of
demand?
Level 1 Remembering
2
i) Explain the Law of Demand and the assumptions.(7Marks)
Level 2 Understanding
ii) Explain why the demand curve slopes downwards?(6Marks)
3
Explain the different types of elasticity of demand and list out
the various factors determining the elasticity of demand.
Level 3 Applying
4 Explain the Law of Supply and state the assumptions of Law of
Supply.
Level 4 Analysing
5
i) What does consumer behaviour deal with? (7Marks)
Level 5 Evaluating
ii) Discuss the various approaches to Consumer Behaviour.
(6Marks)
6
i) What is Supply Elasticity and explain its types? (7Marks)
Level 6 Creating
ii) Explain the determinants of Elasticity of Supply. (6Marks)
i) Briefly explain Market Equilibrium. (5Marks)
7
ii) Explain the types of Equilibrium. (8Marks)
Level 1 Remembering
8
Compile the assumptions and properties of Indifference Curve.
Level 2 Understanding
9
i) Describe Marginal Analysis and list its assumptions. (7Marks)
Level 3 Applying
ii) Outline the approaches to Marginal Analysis. (6Marks)
10
Describe the relations between production and costs in the short run
and long run.
Level 4 Analysing
11
Explain Production Function and the applications of Production
Function in Managerial decisions.
Level 1 Remembering
12
What are economies and diseconomies of scale? Explain in detail
with suitable examples.
Level 2 Understanding
13
i) What are Isoquant Curves? State its assumptions. (5 Marks)
Level 4 Analysing
ii) State the various properties of Isoquants. (8 Marks)
14
i) Discuss the nature of Short-Run and Long- Run Average cost
curves. (7Marks)
Level 1 Remembering
ii) Why is the Long-Run cost curve flatter than Short-Run cost
curve? (6Marks)
PART - C
S.NO QUESTIONS
1
Which of the following commodities have most inelastic demand? Give reasons
for your answer:
i. Soap (5Marks)
ii. Salt (5Marks)
iii. Penicillin (5Marks)
3.
2
Suppose you are a sales manager of an organization. Explain how the analysis of demand
contributes to decision making in the light of the responsibilities of a sales
manager.
3
How to determine the demand for FMCG products? Explain your answer with suitable
illustration.
4
A controlled economy has a market clearance equations built over years. The policy makers
looked at the domestic markets and found that product marketers are almost perfect and that
technical rate of substitution has been advantageous. The economic fundamentals were strong
enough to open up the economy. There was opposition attributing to inconsistency from
outside. The debates were on the following questions:
i. What is macro - economic fundamentals? (5Marks)
ii. Write short notes on each factor. (5Marks)
iii. What if the economy is closed for some time? (5Marks)
UNIT ? III ? PRODUCT AND FACTOR MARKET
SYLLABUS: Markets ? Definition, types and the role of markets, Market Structure ? Characteristics
? Perfect and Imperfect Competition ? Monopoly ? Monopolistic and Oligopoly Markets ? Price
Fixation. Factor Markets ? Factors of Production ? Characteristics ? Factor market Equilibrium ?
Determination of Factor price ? Theory of Marginal Productivity.
PART- A
S.NO QUESTIONS BT LEVEL COMPETENCE
1
Define labor.
Level 1 Remembering
2
What are the different types of markets?
Level 2 Understanding
3
Explain the term Market Structure.
Level 3 Applying
4
List the difference between Perfect Competition and
Monopolistic Competition
Level 4 Analysing
5
Can you assess the significance of market efficiency?
Level 5 Evaluating
6
Differentiate between Monopolistic Competition and
Monopoly
Level 6 Creating
7
What is meant by Factor Market?
Level 1 Remembering
8 How would you explain Factors of Production? Level 2 Understanding
9
Explain the Competitive Market
Level 3 Applying
10
How do you define Market?
Level 4 Analysing
11
Outline the concept of Competitive Equilibrium
Level 5 Evaluating
12
How is the demand for Factors of Production
determined?
Level 6 Creating
13
What are the determinants of Supply of Factors
of Production?
Level 1 Remembering
14
What are the features of a Monopolistic Competition?
Level 2 Understanding
15
How would you show your understanding of firm?s
equilibrium?
Level 3 Applying
16
What are the factors of market?
Level 4 Analysing
17
How would you explain Marginal Productivity Theory?
Level 1 Remembering
18
Explain Consumer Equilibrium and Producer Equilibrium
Level 2 Understanding
19
How would you explain Market Failure?
Level 1 Remembering
20
What do you mean by Price Leadership?
Level 1 Remembering
PART- B
S.NO QUESTIONS
BT
LEVEL
COMPETENCE
1
What are the various methods of improving the efficiency of
Competitive market?
Level 1 Remembering
2
i) Differentiate perfect & imperfect market. (6marks)
Level 2 Understanding
ii) Explain the technique of maintaining the market & firm?s
equilibrium. (7marks)
3
How would you show your understanding of the different types of
Market Structure?
Level 3 Applying
4
?Market Structures depends on relative cost and demand factors?.
Comment. Substantiate your view with valid reasons.
Level 4 Analysing
5
i) Discuss about the interaction of product and market factor?
(7marks)
Level 5 Evaluating
ii) Explain about the producer who will be determining the
pricing factors (6marks)
6 What is your opinion of General equilibrium? Explain in detail. Level 6 Creating
7
i) Discuss about the factors influencing the price in a perfect
market. (6marks)
Level 1 Remembering
ii) Discuss about the efficiency of competitive market. (7marks)
8
How would you summarize the essential characteristics of
competitive market? Explain how to make such market more
efficient.
Level 2 Understanding
9
i) Discuss the determinants of factor price. (7marks)
Level 3 Applying
ii) Explain characteristics of Monopolistic & Oligopolistic
Competition. (6marks)
10
Narrate how the market and product factor is synchronized to
maintain the economic efficiency?
Level 4 Analysing
11
Explain the kinked demand curve. What are the assumptions and
criticism of kinked demand curve?
Level 1 Remembering
12
What is imperfect competition? Examine the costs and consequences
of it.
Level 2 Understanding
13
i) Define oligopoly. Explain how price & output decisions are taken
under oligopoly. (7marks)
Level 4 Analysing
ii) Compare price and output equilibrium under monopolistic
competition with that under perfect competition. (6marks)
14
Briefly explain the marginal productivity theory of factor pricing.
What are its main short comings?
Level 1 Remembering
PART - C
S.NO QUESTIONS
1
Perfect competition, monopoly, monopolistic competition and oligopoly are the
types of market structures considered in economic analysis. Which of these types
would you relate to the following markets?
i. Food grains: Rice and Wheat (3Marks)
ii. Stock market (3Marks)
iii. Market for bus transport in New Delhi (3Marks)
iv. Passenger cars (3Marks)
v. Confectionary (3Marks)
2
Consider your two favorite soft drinks. Suppose the price of a two-liter bottle of your second
choice falls. How much of a price decrease would it take to induce you to substitute the second
for your first choice? Estimate the cross elasticity of demand for the drinks. Are they part of
the same market?
3
Retail sales at the airports had been growing fast and the sales touched $27.1 billion in 2007.
Such impressive growth made the airport the fastest growing retail channel behind the
internet. The increased passenger traffic growth along with the soaring tourists' movements
among countries was fueling the growth of airport retailing. But the global economic
downturn with increasing oil prices etc. resulted in a rise in air fares, adversely affecting air
travel and retail spending at the airports. Whether the airports retailing remain a prominent
source of revenue in the global economic downturn remains to be seen.
Pedagogical Objectives:
To the dynamics of airport revenues (aeronautical vs. non- aeronautical).
To CSFs (critical success factor) of airport retailing.
To impacts of the global economic downturn on airport retailing.
Questions:
i. What is airport retailing? (8Marks)
ii. Discuss the impact of global economic downturn on airport retailing.(7Marks)
4
What is the solution to avoid black marketing of essential goods in short supply?
UNIT ? IV ? PERFORMANCE OF AN ECONOMY ? MACRO ECONOMICS
SYLLABUS: Macro-Economic Components ? Household ? Firms ? Government ? Circular Flow of
Money in economy. Concept of Macroeconomic Equilibrium. Aggregate Demand and Supply ?
National Income ? Components ? Determination and Methods of computing National Income ?
Multiplier Effect ? Fiscal Policy ? Role of Government in Macro Economic Equilibrium.
PART- A
S.NO QUESTIONS BT LEVEL COMPETENCE
1
What is Gross National Income?
Level 1 Remembering
2
Explain circular flow of income.
Level 2 Understanding
3
Identify the various components of Aggregate Demand.
Level 3 Applying
4
Differentiate between GNP and GDP
Level 4 Analysing
5
State the components of National Income
Level 5 Evaluating
6
Give an account of Multiplier Effect.
Level 6 Creating
7
Define Aggregate Demand.
Level 1 Remembering
8 What are the components of GDP? Level 2 Understanding
9
How is Fiscal policy effectiveness measured?
Level 3 Applying
10
Classify the various approaches to National Income?
Level 4 Analysing
11
Outline the concept of aggregate supply.
Level 5 Evaluating
12 Explain the term fiscal policy? Level 6 Creating
13 What does multiplier refer to? Level 1 Remembering
14
What do you mean by accelerator?
Level 2 Understanding
15
How would you define Effective Demand?
Level 3 Applying
16
Can you explain about the circular flow of economic
activity?
Level 4 Analysing
17 Define National income. Level 1 Remembering
18 What is meant by derived demand? Level 2 Understanding
19
What is Pump Priming?
Level 1 Remembering
20 Explain Compensatory Spending. Level 1 Remembering
PART- B
S.NO QUESTIONS
BT
LEVEL
COMPETENCE
1
Discuss the theories of Fiscal Policy.
Level 1 Remembering
2
Discuss the methods, factors influencing and components of
national income.
Level 2 Understanding
3
What facts would you select to show the causes of unemployment?
Discuss the policy measures to solve the unemployment problem.
Level 3 Applying
4
How do different forces interact to determine over all
macroeconomics activity? Illustrate.
Level 4 Analysing
5
i) What is expenditure multiplier? (6Marks)
ii) What is the role of budget in National Income? (7Marks)
Level 5 Evaluating
6
i) Narrate in detail about macro-economic aggregate and the
performance of economy. (6Marks)
ii) How do different forces interact to determine over all macro-
economic activity? (7Marks)
Level 6 Creating
7
Discuss the compensatory fiscal policy as a device for controlling
cyclical fluctuation.
Level 1 Remembering
8
?Decline in aggregate demand leads to an economic downturn??
Explain.
Level 2 Understanding
9
i) Give an account of Fiscal Policy. (6marks)
ii) Examine its impact on . (7marks)
Level 3 Applying
10
In developing countries like India there are peculiar difficulties
involved in the estimation of National Income- Elaborate.
Level 4 Analysing
11
Explain the various macro-economic factors influencing the
performance of an economy.
Level 1 Remembering
12
Demonstrate with suitable illustrations how the national income is
determined?
Level 2 Understanding
13
Explain the various macro-economic factors influencing the
performance of an economy.
Level 4 Analysing
14
Demonstrate with suitable illustrations how the national income is
determined?
Level 1 Remembering
PART - C
S.NO QUESTIONS
1
Why do national income accountants include only final goods in measuring GDP for a
particular year? Why don?t they include the value of stocks and bonds sold? Why don?t they
include the value of used furniture bought and sold? What are government?s fiscal policy
options for ending severe demand-pull inflation? Use the aggregate demand- aggregate
supply model to show the impact of these policies on the price level. Which of these fiscal
policy options do you think a ?conservative? economist might favor?
2
?A strong Fiscal Policy is very important for the economy of a nation.?
i. State and evaluate the problem of time lags in enacting and applying fiscal policy.(5marks)
ii. Explain the notion of a political cycle. (5Marks)
iii. What is the crowding-out effect & why is it relevant to fiscal policy? (5Marks)
3
Banks are required to maintain reserves. In this context, answer the following questions:
i. Why are commercial banks required to have reserves? (3Marks)
ii. Explain why reserves are an asset to commercial banks but liabilities to the Federal
Reserve Banks. (3Marks)
iii. What are excess reserves? (3Marks)
iv. How do you calculate the amount of excess reserves held by a bank? (3Marks)
v. What is their significance? (3Marks)
4
The Government influences investment, employment, output and income through monetary
policy. With this respect answer the following:
i. What is the basic objective of monetary policy? (5Marks)
ii. State the cause-effect chain through which monetary policy is made effective.(5Marks)
iii. What are the major strengths and weaknesses of monetary policy? ( 5 M a r k s )
UNIT ? V ? AGGREGATE SUPPLY AND THE ROLE OF MONEY
SYLLABUS: Macro ? Economic Variables ? Unemployment and its impact ? Okun?s Law ?
Inflation and Deflation ? Philips Curve ? short run and Long run ? Recent Government programs
towards employment ? RBI and Monetary policy to control inflation.
PART- A
S.NO QUESTIONS BT LEVEL COMPETENCE
1
What is Inflation Rate?
Level 1 Remembering
2
Can you explain what does Okun?s law convey?
Level 2 Understanding
3
What is money market?
Level 3 Applying
4 Examine unemployment tradeoff? Level 4 Analysing
5 What is meant by Supply curve of money? Level 5 Evaluating
6
What facts can you compile to explain the term frictional
unemployment?
Level 6 Creating
7
Define unemployment.
Level 1 Remembering
8 List the causes of Unemployment Level 2 Understanding
9
What are the measures for reducing inflation?
Level 3 Applying
10
Define Monetary Policy.
Level 4 Analysing
11
State the objectives of Monetary Policy
Level 5 Evaluating
12 What do you mean by Commercial Papers? Level 6 Creating
13
Discuss the role of Central Bank.
Level 1 Remembering
14
Differentiate inflation and deflation.
Level 2 Understanding
15
State the functions of Money Market
Level 3 Applying
16
Write short note on Commercial Bills
Level 4 Analysing
17
Explain Philip?s curve?
Level 1 Remembering
18
State the meaning of cost push inflation?
Level 2 Understanding
19
Discuss demand pull inflation?
Level 1 Remembering
20
Explain Cyclical Unemployment
Level 1 Remembering
PART- B
S.NO QUESTIONS
BT
LEVEL
COMPETENCE
1
Discuss the causes of unemployment in India.
Level 1 Remembering
2
Explain the impact of unemployment.
Level 2 Understanding
3
What do you understand by inflation?
Level 3 Applying
4
Describe the impact of Unemployment and offer suitable measures
to reduce unemployment.
Level 4 Analysing
5
How do different forces interact to determine overall macro-
economic activity? ?Illustrate
Level 5 Evaluating
6
(i) Explain the concept of Philips Curve.(5 marks)
(ii) Discuss Long run and Short run Philip Curve. (8 marks)
Level 6 Creating
7
Discuss the government policies for removing unemployment in
India.
Level 1 Remembering
8
Summarize the reasons for inflation and analyze their impact on
supply of money.
Level 2 Understanding
9
i) What are the objectives of a Monetary Policy? (7Marks)
ii) Examine the limitations of Monetary Policy. (6Marks)
Level 3 Applying
10 What is meant by Supply Side Policy and explain its implications? Level 4 Analysing
11
How would you explain the impact of monetary policy on the
development of a nation?s economy?
Level 1 Remembering
12
Discuss the various remedies to check inflation.
Level 2 Understanding
13
i) Explain the various causes of inflation. (7Marks)
ii) Explain the effects of inflation on Multidimensional Public.
(6Marks)
Level 4 Analysing
14
How would you define Inflation and explain its various types?
Level 1 Remembering
PART - C
S.NO QUESTIONS
1
Suppose the government misjudges the natural rate of unemployment to be much lower than
it actually is, and thus undertakes expansionary fiscal and monetary policy to try to achieve
the lower rate. In the short-run there is probably a tradeoff between unemployment and
inflation. The government?s expansionary policy should reduce unemployment as aggregate
FirstRanker.com - FirstRanker's Choice
(An
?
DEPARTMENT OF MANAGEMENT STUDIES
QUESTION BANK
I SEMESTER
1915101 ? ECONOMIC ANALYSIS FOR
Regulation ? 2019
Academic Year 2019 - 2020
Prepared by
Dr. K. Sentamilselvan ? Asst. Professor
Dr. L.Sujatha ? Asst. Professor
(An
? .
DEPARTMENT OFMANAGEMENT STUDIES
QUESTION BANK
SUBJECT: 1915101 ? ECONOMIC ANALYSIS FOR
SEM / YEAR: I Semester / I Year
UNIT ? I ? INTRODUCTION
SYLLABUS: Definition of Economics - Micro Vs. Macroeconomics ? Fundamental Economic
Problem ? Production Possibility Curve ? Assumptions and Criticism. Economic Systems and Types
? Social, Capital and Mixed Economies and its characteristics.
PART- A
S.NO QUESTIONS BT LEVEL COMPETENCE
1 How would you define Economics? Level 1 Remembering
2
Can you explain when scarcity arises?
Level 2 Understanding
3
State the importance of understanding Economic
Problem
Level 3 Applying
4
Can you outline difference between Micro and
Macro Economics?
Level 4 Analysing
5
What is your opinion of Production-possibility frontier
(PPF)?
Level 5 Evaluating
6
In your opinion what are the differences between
Productive and Economic Efficiency?
Level 6 Creating
7 How would you explain Economic Growth? Level 1 Remembering
8
What is meant by ?Efficiency??
Level 2 Understanding
9 Describe Economic Stability Level 3 Applying
10
Identify the role of Government in present Economic
Scenario
Level 4 Analysing
11 Explain Transformation Curve. Level 5 Evaluating
12 Write short note on Economic Stability. Level 6 Creating
13 What are the elements of Economic Growth? Level 1 Remembering
14
State the reasons for Economic Problem?
Level 2 Understanding
15 What is meant by Mixed Economy? Level 3 Applying
16
Identify the criticisms of Production Possibility Curve.
Level 4 Analysing
17
Outline the role of Markets in today?s economic scenario.
Level 1 Remembering
18
What are the various types of Economic Efficiency?
Level 2 Understanding
19
What are the assumptions of Production Possibility
Curve?
Level 1 Remembering
20
How would you explain Productive efficiency?
Level 1 Remembering
PART- B
S.NO QUESTIONS
BT
LEVEL
COMPETENCE
1
Write a detailed note on the nature of Macro Economics.
Level 1 Remembering
2
i) Explain Economic Efficiency. (5Marks)
ii) Explain the various types of Economic Efficiency. (8Marks)
Level 2 Understanding
3
How would you show your understanding of ?Scarcity and
Efficiency are the twin themes of Economics??
Level 3 Applying
4
i) What is Production Possibility Frontier? (7Marks)
ii) Explain the significance of PPF. (6Marks)
Level 4 Analysing
5
Explain the importance of Macroeconomics.
Level 5 Evaluating
6
Government plays a vital role in today?s economic scenario ?
Discuss
Level 6 Creating
7
?The markets and government play a significant role for the
economy development of a nation? - Examine
Level 1 Remembering
8
Outline a detailed role of Markets in today?s economy.
Level 2 Understanding
9
i) Explain the concept of Transformation Curve. (7Marks)
ii) State the assumptions of the transformation curve. (6Marks)
Level 3 Applying
10
i) Explain the themes of Economics (7Marks)
i) Explain how stability in leads to economic growth .
(6Marks)
Level 4 Analysing
11
Suggest measures to overcome fundamental economic problems.
Level 1 Remembering
12
Can you explain the fundamental economic problems?
Level 2 Understanding
13
Compare Productive Efficiency Vs Economic Efficiency.
Level 4 Analysing
14
Explain the significance of economic growth and stability and
discuss how to attain them.
Level 1 Remembering
PART - C
S.NO QUESTIONS
1
The Government suddenly made a ?U? turn in its economic policies in 1991, making a
fundamental departure from ?Nehruvian Policies of Socialism?, even without discussing the
issue in the Parliament. Even Communist and Socialist members of the Parliament, and also
pro-labor organizations kept quiet ? Discuss about these in groups, regarding the significance
and implications.
2
The City of Pune has a hundred petrol pumps selling identical products, but owned by
different owners. The total market demand is given by Q = 50000 ? 20000p. The total supply
function is given by: Q = 2500P. Cone of the Oil companies decided to take over all these
pumps. There is no apparent cost advantage because the cost function remains the same,
regardless of whether it is one large company or many small ones. The users of petrol are
disturbed and annoyed at this because they anticipate exploitation. You are required to
calculate the following:
i. The price prior to the merger.
Ii.The price post-merger.
Note that the supply function is nothing but the rising part of the relevant cost function.
Questions:
i. If the Government steps in and decides to regulate the price, would you recommend a
marginal cost pricing regulation? Why or why not? (8 Marks)
ii. Discuss the ideal market structure, given the nature of the commodity.(7 Marks)
3
Explain as to how the study of Economics helps you in better decision making in
scenario?
4
How is this going to help me?
Ms. X wants to be a manager. She enjoyed her accounting, finance and marketing courses.
Each of these provided her with some clear cut answer. Now the professor in her economics
course is telling her that needs and wants and unlimited and the resource are limited. She
comes to school to get an answer on how to be an effective manager, and meeting unlimited
needs with limited resource is found to be difficult for her to concentrate.
Questions:
i. How would you relieve Ms. X?s anxiety? How is the course in going to help her?
(8Marks)
ii. How does a course in economics differ from other fields? (7Marks)
UNIT ? II ? CONSUMER AND PRODUCER BEHAVIOUR
SYLLABUS: Law of Demand and Supply ? Assumptions ? Determinants ? Exceptions ? Elasticity
of Demand and supply and its types. Consumer Behaviour ? Approaches ? Law of Diminishing
Marginal Utility ? Law of Equi Marginal Utility ? Indifference Curve Analysis. Producer Behaviour
? Production Function ? Long run and Short run . Law of Diminishing Marginal returns ? Returns to
scale ? Marginal Rate of Technical Substitution ? Co Function ? Concepts ? Long and short run Cost
curves ? Economies and Diseconomies of Scale ? Concept of Consumer Surplus and Producer
Surplus.
PART- A
S.NO QUESTIONS BT LEVEL COMPETENCE
1
Define Law of Supply.
Level 1 Remembering
2
What is Marginal Rate of Technical Substitution?
Level 2 Understanding
3
List the determinants of Demand.
Level 3 Applying
4
Can you explain Demand Analysis?
Level 4 Analysing
5
List the various types of Demand.
Level 5 Evaluating
6
Interpret ?Law of Equi Marginal Utility??
Level 6 Creating
7
Explain consumer behaviour.
Level 1 Remembering
8 Why does the demand curve slopes downwards? Level 2 Understanding
9
What is elasticity of Demand?
Level 3 Applying
10
State the assumptions of Law of Demand.
Level 4 Analysing
11
Explain what is meant by Diseconomies of Scale?
Level 5 Evaluating
12
List the difference between Law of Demand and
Elasticity of Demand
Level 6 Creating
13
How would you define Consumer Surplus?
Level 1 Remembering
14
Differentiate between a Price Elasticity and Income
Elasticity of Demand.
Level 2 Understanding
15
Explain Law of Diminishing Marginal Utility.
Level 3 Applying
16
State the factors influencing Market Demand
Level 4 Analysing
17
What are Isoquant Curves?
Level 1 Remembering
18
Write a brief note on ?Market Equilibrium?.
Level 2 Understanding
19
What is meant by Indifference Curve? List the properties
of Indifference Curve.
Level 1 Remembering
20 Define Cost Function. Level 1 Remembering
PART- B
S.NO QUESTIONS
BT
LEVEL
COMPETENCE
1
How would you classify Demand and discuss the determinants of
demand?
Level 1 Remembering
2
i) Explain the Law of Demand and the assumptions.(7Marks)
Level 2 Understanding
ii) Explain why the demand curve slopes downwards?(6Marks)
3
Explain the different types of elasticity of demand and list out
the various factors determining the elasticity of demand.
Level 3 Applying
4 Explain the Law of Supply and state the assumptions of Law of
Supply.
Level 4 Analysing
5
i) What does consumer behaviour deal with? (7Marks)
Level 5 Evaluating
ii) Discuss the various approaches to Consumer Behaviour.
(6Marks)
6
i) What is Supply Elasticity and explain its types? (7Marks)
Level 6 Creating
ii) Explain the determinants of Elasticity of Supply. (6Marks)
i) Briefly explain Market Equilibrium. (5Marks)
7
ii) Explain the types of Equilibrium. (8Marks)
Level 1 Remembering
8
Compile the assumptions and properties of Indifference Curve.
Level 2 Understanding
9
i) Describe Marginal Analysis and list its assumptions. (7Marks)
Level 3 Applying
ii) Outline the approaches to Marginal Analysis. (6Marks)
10
Describe the relations between production and costs in the short run
and long run.
Level 4 Analysing
11
Explain Production Function and the applications of Production
Function in Managerial decisions.
Level 1 Remembering
12
What are economies and diseconomies of scale? Explain in detail
with suitable examples.
Level 2 Understanding
13
i) What are Isoquant Curves? State its assumptions. (5 Marks)
Level 4 Analysing
ii) State the various properties of Isoquants. (8 Marks)
14
i) Discuss the nature of Short-Run and Long- Run Average cost
curves. (7Marks)
Level 1 Remembering
ii) Why is the Long-Run cost curve flatter than Short-Run cost
curve? (6Marks)
PART - C
S.NO QUESTIONS
1
Which of the following commodities have most inelastic demand? Give reasons
for your answer:
i. Soap (5Marks)
ii. Salt (5Marks)
iii. Penicillin (5Marks)
3.
2
Suppose you are a sales manager of an organization. Explain how the analysis of demand
contributes to decision making in the light of the responsibilities of a sales
manager.
3
How to determine the demand for FMCG products? Explain your answer with suitable
illustration.
4
A controlled economy has a market clearance equations built over years. The policy makers
looked at the domestic markets and found that product marketers are almost perfect and that
technical rate of substitution has been advantageous. The economic fundamentals were strong
enough to open up the economy. There was opposition attributing to inconsistency from
outside. The debates were on the following questions:
i. What is macro - economic fundamentals? (5Marks)
ii. Write short notes on each factor. (5Marks)
iii. What if the economy is closed for some time? (5Marks)
UNIT ? III ? PRODUCT AND FACTOR MARKET
SYLLABUS: Markets ? Definition, types and the role of markets, Market Structure ? Characteristics
? Perfect and Imperfect Competition ? Monopoly ? Monopolistic and Oligopoly Markets ? Price
Fixation. Factor Markets ? Factors of Production ? Characteristics ? Factor market Equilibrium ?
Determination of Factor price ? Theory of Marginal Productivity.
PART- A
S.NO QUESTIONS BT LEVEL COMPETENCE
1
Define labor.
Level 1 Remembering
2
What are the different types of markets?
Level 2 Understanding
3
Explain the term Market Structure.
Level 3 Applying
4
List the difference between Perfect Competition and
Monopolistic Competition
Level 4 Analysing
5
Can you assess the significance of market efficiency?
Level 5 Evaluating
6
Differentiate between Monopolistic Competition and
Monopoly
Level 6 Creating
7
What is meant by Factor Market?
Level 1 Remembering
8 How would you explain Factors of Production? Level 2 Understanding
9
Explain the Competitive Market
Level 3 Applying
10
How do you define Market?
Level 4 Analysing
11
Outline the concept of Competitive Equilibrium
Level 5 Evaluating
12
How is the demand for Factors of Production
determined?
Level 6 Creating
13
What are the determinants of Supply of Factors
of Production?
Level 1 Remembering
14
What are the features of a Monopolistic Competition?
Level 2 Understanding
15
How would you show your understanding of firm?s
equilibrium?
Level 3 Applying
16
What are the factors of market?
Level 4 Analysing
17
How would you explain Marginal Productivity Theory?
Level 1 Remembering
18
Explain Consumer Equilibrium and Producer Equilibrium
Level 2 Understanding
19
How would you explain Market Failure?
Level 1 Remembering
20
What do you mean by Price Leadership?
Level 1 Remembering
PART- B
S.NO QUESTIONS
BT
LEVEL
COMPETENCE
1
What are the various methods of improving the efficiency of
Competitive market?
Level 1 Remembering
2
i) Differentiate perfect & imperfect market. (6marks)
Level 2 Understanding
ii) Explain the technique of maintaining the market & firm?s
equilibrium. (7marks)
3
How would you show your understanding of the different types of
Market Structure?
Level 3 Applying
4
?Market Structures depends on relative cost and demand factors?.
Comment. Substantiate your view with valid reasons.
Level 4 Analysing
5
i) Discuss about the interaction of product and market factor?
(7marks)
Level 5 Evaluating
ii) Explain about the producer who will be determining the
pricing factors (6marks)
6 What is your opinion of General equilibrium? Explain in detail. Level 6 Creating
7
i) Discuss about the factors influencing the price in a perfect
market. (6marks)
Level 1 Remembering
ii) Discuss about the efficiency of competitive market. (7marks)
8
How would you summarize the essential characteristics of
competitive market? Explain how to make such market more
efficient.
Level 2 Understanding
9
i) Discuss the determinants of factor price. (7marks)
Level 3 Applying
ii) Explain characteristics of Monopolistic & Oligopolistic
Competition. (6marks)
10
Narrate how the market and product factor is synchronized to
maintain the economic efficiency?
Level 4 Analysing
11
Explain the kinked demand curve. What are the assumptions and
criticism of kinked demand curve?
Level 1 Remembering
12
What is imperfect competition? Examine the costs and consequences
of it.
Level 2 Understanding
13
i) Define oligopoly. Explain how price & output decisions are taken
under oligopoly. (7marks)
Level 4 Analysing
ii) Compare price and output equilibrium under monopolistic
competition with that under perfect competition. (6marks)
14
Briefly explain the marginal productivity theory of factor pricing.
What are its main short comings?
Level 1 Remembering
PART - C
S.NO QUESTIONS
1
Perfect competition, monopoly, monopolistic competition and oligopoly are the
types of market structures considered in economic analysis. Which of these types
would you relate to the following markets?
i. Food grains: Rice and Wheat (3Marks)
ii. Stock market (3Marks)
iii. Market for bus transport in New Delhi (3Marks)
iv. Passenger cars (3Marks)
v. Confectionary (3Marks)
2
Consider your two favorite soft drinks. Suppose the price of a two-liter bottle of your second
choice falls. How much of a price decrease would it take to induce you to substitute the second
for your first choice? Estimate the cross elasticity of demand for the drinks. Are they part of
the same market?
3
Retail sales at the airports had been growing fast and the sales touched $27.1 billion in 2007.
Such impressive growth made the airport the fastest growing retail channel behind the
internet. The increased passenger traffic growth along with the soaring tourists' movements
among countries was fueling the growth of airport retailing. But the global economic
downturn with increasing oil prices etc. resulted in a rise in air fares, adversely affecting air
travel and retail spending at the airports. Whether the airports retailing remain a prominent
source of revenue in the global economic downturn remains to be seen.
Pedagogical Objectives:
To the dynamics of airport revenues (aeronautical vs. non- aeronautical).
To CSFs (critical success factor) of airport retailing.
To impacts of the global economic downturn on airport retailing.
Questions:
i. What is airport retailing? (8Marks)
ii. Discuss the impact of global economic downturn on airport retailing.(7Marks)
4
What is the solution to avoid black marketing of essential goods in short supply?
UNIT ? IV ? PERFORMANCE OF AN ECONOMY ? MACRO ECONOMICS
SYLLABUS: Macro-Economic Components ? Household ? Firms ? Government ? Circular Flow of
Money in economy. Concept of Macroeconomic Equilibrium. Aggregate Demand and Supply ?
National Income ? Components ? Determination and Methods of computing National Income ?
Multiplier Effect ? Fiscal Policy ? Role of Government in Macro Economic Equilibrium.
PART- A
S.NO QUESTIONS BT LEVEL COMPETENCE
1
What is Gross National Income?
Level 1 Remembering
2
Explain circular flow of income.
Level 2 Understanding
3
Identify the various components of Aggregate Demand.
Level 3 Applying
4
Differentiate between GNP and GDP
Level 4 Analysing
5
State the components of National Income
Level 5 Evaluating
6
Give an account of Multiplier Effect.
Level 6 Creating
7
Define Aggregate Demand.
Level 1 Remembering
8 What are the components of GDP? Level 2 Understanding
9
How is Fiscal policy effectiveness measured?
Level 3 Applying
10
Classify the various approaches to National Income?
Level 4 Analysing
11
Outline the concept of aggregate supply.
Level 5 Evaluating
12 Explain the term fiscal policy? Level 6 Creating
13 What does multiplier refer to? Level 1 Remembering
14
What do you mean by accelerator?
Level 2 Understanding
15
How would you define Effective Demand?
Level 3 Applying
16
Can you explain about the circular flow of economic
activity?
Level 4 Analysing
17 Define National income. Level 1 Remembering
18 What is meant by derived demand? Level 2 Understanding
19
What is Pump Priming?
Level 1 Remembering
20 Explain Compensatory Spending. Level 1 Remembering
PART- B
S.NO QUESTIONS
BT
LEVEL
COMPETENCE
1
Discuss the theories of Fiscal Policy.
Level 1 Remembering
2
Discuss the methods, factors influencing and components of
national income.
Level 2 Understanding
3
What facts would you select to show the causes of unemployment?
Discuss the policy measures to solve the unemployment problem.
Level 3 Applying
4
How do different forces interact to determine over all
macroeconomics activity? Illustrate.
Level 4 Analysing
5
i) What is expenditure multiplier? (6Marks)
ii) What is the role of budget in National Income? (7Marks)
Level 5 Evaluating
6
i) Narrate in detail about macro-economic aggregate and the
performance of economy. (6Marks)
ii) How do different forces interact to determine over all macro-
economic activity? (7Marks)
Level 6 Creating
7
Discuss the compensatory fiscal policy as a device for controlling
cyclical fluctuation.
Level 1 Remembering
8
?Decline in aggregate demand leads to an economic downturn??
Explain.
Level 2 Understanding
9
i) Give an account of Fiscal Policy. (6marks)
ii) Examine its impact on . (7marks)
Level 3 Applying
10
In developing countries like India there are peculiar difficulties
involved in the estimation of National Income- Elaborate.
Level 4 Analysing
11
Explain the various macro-economic factors influencing the
performance of an economy.
Level 1 Remembering
12
Demonstrate with suitable illustrations how the national income is
determined?
Level 2 Understanding
13
Explain the various macro-economic factors influencing the
performance of an economy.
Level 4 Analysing
14
Demonstrate with suitable illustrations how the national income is
determined?
Level 1 Remembering
PART - C
S.NO QUESTIONS
1
Why do national income accountants include only final goods in measuring GDP for a
particular year? Why don?t they include the value of stocks and bonds sold? Why don?t they
include the value of used furniture bought and sold? What are government?s fiscal policy
options for ending severe demand-pull inflation? Use the aggregate demand- aggregate
supply model to show the impact of these policies on the price level. Which of these fiscal
policy options do you think a ?conservative? economist might favor?
2
?A strong Fiscal Policy is very important for the economy of a nation.?
i. State and evaluate the problem of time lags in enacting and applying fiscal policy.(5marks)
ii. Explain the notion of a political cycle. (5Marks)
iii. What is the crowding-out effect & why is it relevant to fiscal policy? (5Marks)
3
Banks are required to maintain reserves. In this context, answer the following questions:
i. Why are commercial banks required to have reserves? (3Marks)
ii. Explain why reserves are an asset to commercial banks but liabilities to the Federal
Reserve Banks. (3Marks)
iii. What are excess reserves? (3Marks)
iv. How do you calculate the amount of excess reserves held by a bank? (3Marks)
v. What is their significance? (3Marks)
4
The Government influences investment, employment, output and income through monetary
policy. With this respect answer the following:
i. What is the basic objective of monetary policy? (5Marks)
ii. State the cause-effect chain through which monetary policy is made effective.(5Marks)
iii. What are the major strengths and weaknesses of monetary policy? ( 5 M a r k s )
UNIT ? V ? AGGREGATE SUPPLY AND THE ROLE OF MONEY
SYLLABUS: Macro ? Economic Variables ? Unemployment and its impact ? Okun?s Law ?
Inflation and Deflation ? Philips Curve ? short run and Long run ? Recent Government programs
towards employment ? RBI and Monetary policy to control inflation.
PART- A
S.NO QUESTIONS BT LEVEL COMPETENCE
1
What is Inflation Rate?
Level 1 Remembering
2
Can you explain what does Okun?s law convey?
Level 2 Understanding
3
What is money market?
Level 3 Applying
4 Examine unemployment tradeoff? Level 4 Analysing
5 What is meant by Supply curve of money? Level 5 Evaluating
6
What facts can you compile to explain the term frictional
unemployment?
Level 6 Creating
7
Define unemployment.
Level 1 Remembering
8 List the causes of Unemployment Level 2 Understanding
9
What are the measures for reducing inflation?
Level 3 Applying
10
Define Monetary Policy.
Level 4 Analysing
11
State the objectives of Monetary Policy
Level 5 Evaluating
12 What do you mean by Commercial Papers? Level 6 Creating
13
Discuss the role of Central Bank.
Level 1 Remembering
14
Differentiate inflation and deflation.
Level 2 Understanding
15
State the functions of Money Market
Level 3 Applying
16
Write short note on Commercial Bills
Level 4 Analysing
17
Explain Philip?s curve?
Level 1 Remembering
18
State the meaning of cost push inflation?
Level 2 Understanding
19
Discuss demand pull inflation?
Level 1 Remembering
20
Explain Cyclical Unemployment
Level 1 Remembering
PART- B
S.NO QUESTIONS
BT
LEVEL
COMPETENCE
1
Discuss the causes of unemployment in India.
Level 1 Remembering
2
Explain the impact of unemployment.
Level 2 Understanding
3
What do you understand by inflation?
Level 3 Applying
4
Describe the impact of Unemployment and offer suitable measures
to reduce unemployment.
Level 4 Analysing
5
How do different forces interact to determine overall macro-
economic activity? ?Illustrate
Level 5 Evaluating
6
(i) Explain the concept of Philips Curve.(5 marks)
(ii) Discuss Long run and Short run Philip Curve. (8 marks)
Level 6 Creating
7
Discuss the government policies for removing unemployment in
India.
Level 1 Remembering
8
Summarize the reasons for inflation and analyze their impact on
supply of money.
Level 2 Understanding
9
i) What are the objectives of a Monetary Policy? (7Marks)
ii) Examine the limitations of Monetary Policy. (6Marks)
Level 3 Applying
10 What is meant by Supply Side Policy and explain its implications? Level 4 Analysing
11
How would you explain the impact of monetary policy on the
development of a nation?s economy?
Level 1 Remembering
12
Discuss the various remedies to check inflation.
Level 2 Understanding
13
i) Explain the various causes of inflation. (7Marks)
ii) Explain the effects of inflation on Multidimensional Public.
(6Marks)
Level 4 Analysing
14
How would you define Inflation and explain its various types?
Level 1 Remembering
PART - C
S.NO QUESTIONS
1
Suppose the government misjudges the natural rate of unemployment to be much lower than
it actually is, and thus undertakes expansionary fiscal and monetary policy to try to achieve
the lower rate. In the short-run there is probably a tradeoff between unemployment and
inflation. The government?s expansionary policy should reduce unemployment as aggregate
demand increases. However, the government has misjudged the natural rate and will
continue its expansionary policy beyond the point of the natural level of unemployment. As
aggregate demand continues to rise, prices begin to rise. In the long-run, workers demand
higher wages to compensate for these higher prices. Aggregate supply will decrease (shift
leftward) toward the natural rate of unemployment. In other words, any reduction of
unemployment below the natural rate is only temporary and involves a short-run rise in
inflation. This, in turn, causes long-run costs to rise and a decrease in aggregate supply. The
end result should be equilibrium at the natural rate of unemployment and a higher price level
than the beginning level. The long-run Phillips curve is thus a vertical line connecting the
price levels possible at the natural rate of unemployment found on the horizontal axis.
Questions: Use the concept of:
i) Short-run Phillips Curve to explain why these policies at first succeed. (8Marks)
ii) Long-run Phillips Curve to explain the long-run outcome of these policies. (7Marks)
2
In the context of Public Debt policy, answer the following questions:
i) What are the two main ways the size of the public debt is measured? (5Marks)
ii) Distinguish between refinancing and retiring the debt. How does and internally held
debt differ from an externally held public debt. (5Marks)
iii) Contrast the effects of retiring internally held debt from externally held debt (5Marks)
3
How can government fiscal policy be used to offset fluctuations in the level of
income in the country?
4
?The budget is an instrument for attaining and maintaining full employment with stability?
? Elucidate
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This post was last modified on 29 February 2020