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Amity School of Communication

Course – MBA (Media Management)

Subject – Economic Analysis ( Ist Semester )
Max Time: 3 Hrs Max Marks: 70
Section – A
Attempts any five questions. Each Question carries equal marks. (5 * 6 =30)

Q1 Discuss various causes of trade cycle.

Q2 what is circular flow of income? What are the methods of National Income
Q3 what is price discrimination? When is it possible and profitable?
Q4. What do you understand by Advertising Elasticity of sales? Explain the important
determinants of Advertising – Elasticity.
Q5. Discuss the practical importance of various trends of elasticity of demand
Q6 Explain the various method of demand forecasting.

Section – B
Attempts any two questions. Each Question carries marks. (2*10 =20)

Q1 Explain the short run equilibrium determination under different cost condition under
Q2 Evaluate various causes of inflation, and how we can control inflation.
Q3 Write short notes on the following.
(a) Law of diminishing marginal utility.
(b) Cross elasticity of demand.
Section – C
Tick mark the correct option (Attempt any ten) (2 x 10 = 20)

(i)The quantity that a consumer is planning to buy depends on all the following EXCEPT.
(a) Income of consumer of consumer (b) Price of product (c) Future expectation of price
(d) Technology.
(ii) In case the length of an arc on demand curve is infinitesimal, then arc elasticity
coincides with;
(a) Unit elasticity (b) Point elasticity (c) Zero elasticity (d) Negative elasticity.

(iii) Elasticity of demand is determine by all the following EXCEPT

(a)Nature of commodity (b) Proximity of substitute (c) Time (d) Government policy.

(iv) When AC=MC, then AC is

(a) Maximum (b) minimum (c) constant (d) none of these

(v) Tenure of SEBI chairmen is

(a) 1 yr (b) 2yr (c) 3 yr (d) 4 yr

(vi) Profit is maximum when

(a) MR > MC (b) MR < MC (c) MR = MC (d) None of these

(vii) Which of the following statement is true if Q = 0

(a) TC = TVC (b) TC > TVC (c) TC < TVC (d) none of these
(viii) Demand of a product depend on
(a) price (b) Advertising (c) Income (d) all of the above.

(ix) A monopoly can earn abnormal profit in short run and in long run period.
(a) True (b) False

(x) For essential goods, the elasticity of demand is

(a) Less then 1 (b) more than 1 (c) equal to 1 (d) equal to 0

(xi) In perfect competition

(a) AR > MR (b) AR = MR (c) AR < MR (d) none of these

(xii) When MP = 0, then TP is

(a) Maximum (b) minimum (c) zero (d) none of these.