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NOVEMBER 2015 77355/PMD1E

Time : Three hours Maximum : 75 marks

PART A — (10  1 = 10 marks)

Answer any TEN questions.


Write short notes on:

1. Marginal analysis

2. Various departments related to managerial


economics

3. Demand schedule

4. Determinants of supply

5. Cross elasticity of demand

6. Factors of production

7. Direct and Indirect costs

8. Features of perfect competition

9. Phases of Business cycle

10. Fiscal policy

11. Globalization

12. Disinflation
PART B — (5  5 = 25 marks)

Answer any FIVE questions.

13. Explain the nature and scope of managerial


economics.

14. What do you mean by price elasticity of demand?


Explain various types of price elasticity of demand.

15. Define demand forecasting. Write about various


demand forecasting techniques in business.

16. Examine the output and pricing decisions in


monopoly along with neat graphs.

17. Explain the shapes of cost curves in short run and


long run.

18. What do you mean by a business cycle? Explain


the causes of Business cycle.

19. What is inflation? Write about the causes of


inflation. Explain how can we control the inflation.

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PART C — (4  10 = 40 marks)

Q. No. 20 is compulsory

Answer any THREE questions from 21 to ‘24’.

20. Suppose Lizzat Ltd makes 10,000 candies per


month, it has to pay Rs. 2,000 per month towards
rent of factory and Rs. 5,000 per month as
electricity. It incurs a cost of Rs. 1.5 to produce a
candy and wants to sell at Rs. 4 per candy. Find
BEP.

21. What is Law of Demand? Explain the exemptions


to law of demand with examples.

22. Write about various pricing methods available in


business with examples.

23. Define National Income. Explain the methods of


measuring national income.

24. Write about the impact of Globalization in the


Indian economy in the recent decades.

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