Question Bank of Managerial Economics
Unit 1: Introduction to Managerial Economics
Q1. Very Short Answer type questions (4-5 lines/ up to 30 words) (8 Questions of 2
marks each. 2 questions from each unit)
1. Define Economics.
2. Define Managerial Economics.
3. Define Capitalist Economy.
4. Define Socialist Economy.
5. Define Mixed Economy.
6. Define Utility.
7. Define Time Utility.
8. Define Total utility.
9. Define Marginal utility.
[Link] Indifference Curve.
Q2. Short Answer type questions (6-8 lines/ up to 50 words). 8 Questions of 3 marks
each. 2 questions from each unit
1. Explain the concept of economics.
2. Explain the concept of indifference curve analysis.
3. Explain the concept of total utility and marginal utility.
4. Explain the consumer choice theory.
Q3. Long Answer type question (up to 300 words for 5 marks question and up to 500
words for 10 marks question).
1. What is managerial economics? State the nature of managerial economics.
2. Explain the types of economy with its advantages and disadvantages.
3. State the scope of managerial economics.
4. Explain the types of utility with suitable examples.
5. Explain the law of diminishing marginal utility with its assumptions and exceptions.
6. Explain Indifference Curve Analysis and also state its properties.
Unit 2: Demand Analysis
Q1. Very Short Answer type questions (4-5 lines/ up to 30 words) (8 Questions of 2
marks each. 2 questions from each unit)
1. Define Demand.
2. Define Elasticity of Demand.
3. Define Demand forecasting.
4. Define Perfectly Elastic Demand.
5. Define Perfectly Inelastic Demand.
6. Define Giffen Goods.
7. Define cross elasticity of demand.
8. Define advertisement elasticity of demand.
9. Define qualitative demand forecasting.
[Link] Demand curve and Demand Schedule.
Q2. Short Answer type questions (6-8 lines/ up to 50 words). 8 Questions of 3 marks
each. 2 questions from each unit
1. State the features of demand.
2. Explain the individual and market demand.
3. Explain the income elasticity of demand.
4. Explain the concept of demand forecasting.
Q3. Long Answer type question (up to 300 words for 5 marks question and up to 500
words for 10 marks question).
1. Explain the Law of demand with its assumptions and exceptions.
2. Explain the elasticity of demand and state its types.
3. State the determinants of demand.
4. Explain the factors affecting the elasticity of demand.
5. State the role of elasticity of demand in managerial decision-making.
6. Explain techniques of measurement of demand forecasting.
Unit 3: Theory of Production and Analysis of Cost
Q1. Very Short Answer type questions (4-5 lines/ up to 30 words) (8 Questions of 2
marks each. 2 questions from each unit)
1. Define fixed factors and variable factors.
2. Define isoquant.
3. Define economies of scale.
4. Define diseconomies of scale.
5. Define production function.
6. Define isocost line.
7. Define explicit cost.
8. Define implicit cost.
9. Define opportunity cost.
[Link] accounting cost and historical cost.
[Link] cost function.
Q2. Short Answer type questions (6-8 lines/ up to 50 words). 8 Questions of 3 marks
each. 2 questions from each unit
1. Explain the concept of elasticity of substitution.
2. Explain the concept of total cost.
3. Explain the concept of variable cost.
4. State the concept of total product, Average Product, and Marginal Product.
5. Explain the short-run production function.
6. Explain the Long-run production function.
Q3. Long Answer type question (up to 300 words for 5 marks question and up to 500
words for 10 marks question).
1. Explain the Law of Variable Proportion with its assumptions and exceptions.
2. Explain the return to scale.
3. Explain economies and diseconomies of scale with suitable example.
4. Explain the concept of elasticity of substitution.
5. State the difference between short-run production and long-run production.
6. Explain the different short-run costs (TC, AC, and MC).
7. Explain Isoquant and also state its properties.
Unit 4: Determination of Price and Output
Q1. Very Short Answer type questions (4-5 lines/ up to 30 words) (8 Questions of 2
marks each. 2 questions from each unit)
1. Define market equilibrium.
2. Define market.
3. Define perfect competition.
4. Define price discrimination.
5. Define monopoly.
6. Define cost-based pricing.
7. Define revenue.
8. Define penetration pricing.
9. Define monopoly.
[Link] psychological pricing.
[Link] oligopoly.
Q2. Short Answer type questions (6-8 lines/ up to 50 words). 8 Questions of 3 marks
each. 2 questions from each unit
1. Explain the concept of market equilibrium.
2. Explain the concept of consumer-based pricing.
3. Explain the concept of total, average, and marginal revenue.
4. Explain monopolistic competition with example.
Q3. Long Answer type question (up to 300 words for 5 marks question and up to 500
words for 10 marks question).
1. State the classification of the market.
2. State the classification of market structure.
3. Explain the features of perfect competition with its advantages and disadvantages.
4. Explain the concept of price discrimination and its types.
5. State the price determination and firm equilibrium under perfect competition.
6. State the difference between monopolistic and oligopoly competition.
7. Explain pricing method in detail.