ENGINEERING ECONOMICS AND FINANCIAL ACCOUNTING IMPORTANT QUESTIONS

UNIT 1 PART A 1. Define Economics. 2. What is managerial economics? 3. Define the concept of firm. 4. Explain engineering economics 5. How does managerial economics help in business decision making? 6. State and brief any two objectives of business firms.

7. Explain the Profit Maximization theory of the firm. 8. What is decision making? State its importance. 9. Explain the objectives of managerial economics 10.What is decision under certainty?

PART B 11.Explain the relationship of managerial economics with other disciplines 12.Discuss in detail the nature and scope of managerial economics 13.Managerial economics is economics applied in decision making Discuss. 14.Explain the various types of managerial decisions. 15.Explain the types of business organizations (firms).

UNIT 2 PART A

1. Define Demand and state the Law of Demand. 2. Define price elasticity and demand. 3. Define supply and discuss the law of supply. 4. What is meant by Demand Forecasting? 5. What is cross elasticity of demand? 6. What is income elasticity of demand? 7. Define Delphi method in demand forecasting. 8. What is meant by Giffen Paradox and Veblen Effect?

PART B

9. Why does demand curve slopes downward? Explain the important determinants of demand. 10.Explain the types of elasticity of demand. 11.Define price elasticity of demand. Describe the various types of price elasticity. 12.Describe supply and explain the various types of elasticity of supply. 13.Explain the methods used in Demand Forecasting. 14.Define law of demand and explain types of demand. 15.What are exceptions in law of demand?

UNIT 3 PART A

1. What do you mean by Money cost and Real cost? 2. Give two examples for implicit cost and explicit cost. 3. Define MRTS (Marginal Rate of Technical Substitution).

4. Define Production Function. 5. Explain Cobb-Douglas Production function. 6. What is Break Even Point (BEP)? 7. Define Law of diminishing returns. 8. Explain Returns to Scale. 9. Write a short note on Iso-quant. 10.Define cost function and state how you would estimate cost. 11.State the managerial uses of production function. 12.Explain Production optimization (Producers Equilibrium).

PART B

13.Define cost and discuss the types of costs with example. 14.Explain Iso-quant, features and its types. 15.Explain the production function in short run and long run. 16.Describe cost of production in short run and long run. 17.What are the factors affecting production function? Explain. 18.Discuss the various types of economies and dis-economies of scale in detail.

UNIT 4 PART A 1. Define Pricing. 2. When do firms adopt marginal cost pricing? 3. Mention any two advantages of Cost Plus pricing. 4. What is meant by penetration pricing and skimming pricing? 5. Define Oligopoly a. monopoly b. Monopolistic competition c.

d. Duopoly 6. What is Mark up pricing? 7. Define Price Discrimination.

e. Perfect Competition

8. What is the role of government in pricing control.

PART B 9. Explain Pricing methods under different objectives in detail. 10.Discuss the price output determination under perfect competition and state the features of it. 11.Discuss the price output determination under monopoly and state the features of it. 12.Discuss the price output determination under monopolistic competition and state the features of it. 13.Explain Kinked Demand Curve under Oligopoly market structure in detail with the diagram. 14.Explain different market structure and the features of each market structure in detail. 15.Explain price discrimination under different market situations.

UNIT 5 (Theory Questions) PART A 1. State capital budgeting and investment with example. 2. Explain Internal Rate of Return (IRR). 3. Explain Net Present Value (NPV). 4. Define Pay Back (or) Pay Off Period. 5. Define Average Rate of Return (ARR). 6. What is ratio analysis?

7. What is meant by cash flow and fund flow analysis? 8. What is working capital? 9. Define liquidity, profitability and solvency. 10.What is the information needed for the evaluation of capital budgeting decisions? 11.What is Balance sheet?

PART B
12.Describe the various methods of capital budgeting. 13.Write briefly on the limitations of financial statements. 14.Give the meaning of Ratio analysis and its significance. 15.What are the steps involved in Net Present Value method? 16.Explain Pay back method in detail. 17.Discuss the various types of ratios with suitable illustrations. 18.Discuss the essential aspects of fund flow and cash flow analysis.

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