wk12

APRIL 2016 77355/PMD1E

Time : Three hours Maximum : 75 marks

PART A — (10  1 = 10 marks)

Answer any TEN questions.

Write short notes on :

1. Opportunity cost

2. Production possibility curve

3. Determinants of demand

4. Law of supply

5. Income elasticity of demand

6. Characteristics of isoquants

7. Replacement costs

8. Features of monopoly

9. Gross national product

10. Features of business cycles

11. FII

12. Types of inflation

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PART B — (5  5 = 25 marks)

Answer any FIVE questions from the following.

13. Examine the various other disciplines contributing

the Managerial Economics and state their
importance.

14. What is Income Elasticity of Demand? Explain

types of income elasticity.

15. Explain the need for Demand Forecasting. List out

the characteristics of good Demand Forecasting.

16. Write a brief note on law of variable proportions.

17. Examine the output and pricing decisions in

Monopolistic Competition.

18. What do you mean by National Income? Explain

the difficulties in measuring the National Income.

19. Write about the recent updates in Government

Policy regarding FDI.

PART C — (4  10 = 40 marks)

Q. 20 is compulsory.

Answer any THREE from Q. 21 to 24.

20. Kirloskar Ltd. is in the business of producing

batteries. Fixed costs is Rs. 20,00,000. If they
incur Rs. 68 to produce one battery, they want to
sell each battery at Rs. 100 find out the Break
Even point.

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 wk12

21. Write about the shape of demand curve. Explain

why demand curve will be always downward
sloping.

22. Write about different types of costs in the

business.

23. Write a brief note on fiscal policy of India.

24. Examine the role of New Economic Policy of India

in the economic development.

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