ASSIGNMENTS

Subject code MB 0026/PB 0005/MH 0030

(3 credits)
Set 1
Marks 60
MANAGERIAL ECONOMICS

Note: Each Question carries 10 marks

1. What is Managerial Economics? What is its scope and importance to a corporate firm?
How would you explain the support a managerial economist can provide to the top
management of a consumer goods manufacturing company?

2. Describe the production function with one variable input. Explain the relationship
between TP, MP and AP curves and the three stages of production.

3. Explain the following statement with suitable examples: "A firm under a perfect
competition is a price-taker and not a price-maker."

4. What are the theories underlying the “objective of a firm”? Critically examine the “profit
maximization” theory in the light social responsibilities of business firms.

5. Write detailed notes on the following:

a. Accelerator

b. Multiplier

6. What is “Fiscal Policy”? Why some economists consider fiscal policy to be more reliable
than the monetary policy? Why is fiscal policy so important in a country like India?
 ASSIGNMENTS
Subject code: MB0026/PB 0005/MH 0030
(3 credits)
Set 2
Marks 60
MANAGERIAL ECONOMICS

Note: Each Question carries 10 marks

1. State the law of demand. What causes the demand curve for a commodity to shift
upwards and to shift downwards? Give suitable examples.

2. Compare and contrast perfect competition and oligopolistic competition. Give examples.

3. What is ‘Pricing Policy’? What are the objectives of pricing policy? Explain the utility of
Full cost pricing to Public works contracts in India.

4. Explain the consumption function. Describe briefly the Keynesian law of consumption
bringing out clearly the relationship between APC and MPC. Given the high level of
employment generated in the BPO industry, do you support the contention that increased
income in the hands of BPO and IT industry employees has affected the APC and MPC in
India?

5. Define ‘Monetary Policy’? Explain the objectives of Monetary Policy. In the recent past,
RBI had announced some significant changes in the Monetary Policy. In the light of these
changes, explain whether the policy changes have impacted significantly the following:

a. Price stability,
 b. Exchange rate stability and

c. Economic growth.

6. Explain the different phases of a Business Cycle. Critically examine the theories of
business cycles. Explain whether the theories of business cycles can be applied fully to
socialist democracies like India. Explain your argument with suitable examples, if any.