We Also Provide SYNOPSIS AND PROJECT. Contact www.kimsharma.co.in for best and lowest cost solution or Email: solvedstudymaterial@gmail.com Call: +91 82907-72200 (Call/WhatsApp) or +91 88003-52777 (WhatsApp Only) Economics for Managers (VV2) 1 . Discuss the fundamental nature of Management Economies with respect to the three choice problems of the economy. 2 . The demand function of a product is given as Q = 500-5P. Find out the point price elasticity demand when a) P = Rs. 15 and Q = 200 a) P = Rs. 50 and Q = 200 What inferences do you draw from the results when the price of a commodity increases from Rs. 15 to Rs. 50, the quantity demanded remaining constant? 3 . Distinguish between accounting costs and Economics costs. Explain giving suitable examples. 4 . Explain the functional forms of cost function giving illustration. 5 . "It is believed that a firm under a perfect competition is a price-taker and not a price-maker." Explain giving examples. 6 . What are the various factors which may influence the demand for intermediate goods like cables? Explain the most appropriate method of forecasting the demand for such an item. 7 . State the assumption underlying the economists' theory of firm. Develop a critique of the theory and suggest the need for alternative models. 8 . 'Price leadership is an alternative cooperative method used to avoid tough competition'. Case Detail : In early 1991, there was a sharp increase in the price of newsprint, the paper used by the newspapers. Since newsprint is the largest expense for India newspapers (after salaries) publishers were concerned about the price hike. Suppose that the demand for newsprint can be represented as follows: Qi = 17-3 -- 0-0092 p +0-0067 Where Q. equals the quantity demanded (in kilograms per capital), P is the price of newsprint (in Rs. per metric ton) and I is the income per capita (in Rs.), 1. If there are 1 million people in the market, and if per capita income equals Rs. 10,000 what is the demand curve for newsprint? 2. Under these circumstances, what is the price elasticity of demand if the price of newsprint equals Rs. 400 per metric ton? 3. According to a study, the demand curve for newsprint in India is: Q2 = 2672 -- 0-51 p Where, Q2 is the number of metrix tons of newsprint demanded (in thousand). What is the price elasticity of demand for newsprint in India if price equals Rs. 500 per metric ton? 1. Economics is the study of production technology consumption decisions how society decides what, how, and for whom to produce the best way to run society 2. The opportunity cost of a good is the time lost in finding it the quantity of other goods sacrificed to get another unit of that good the expenditure on the good the loss of interest in using savings 3. A market can accurately be described as a place to buy things a place to sell things the process by which prices adjust to reconcile the allocation of resources a place where buyers and sellers meet 4. In a free market __________ ___________ governments intervene governments plan production governments interfere prices adjust to reconcile scarcity and desires 5. In the mixed economy economic problems are solved by the government and market economic decisions are made by the private sector and free market economic allocation is achieved by the invisible hand economic questions are solved by government departments 6. Normative economics forms ___________ based on _____________ positive statements, facts opinions, personal values positive statements, values opinions, facts 7. Microeconomics is concerned with the economy as a whole the electronics industry the study of individual economic behaviour the interactions within the entire economy 8. Macroeconomics is the study of ___________________ individual building blocks in the economy the relationship between different sectors of the economy household purchase decisions the economy as a whole 9. Data are important in economics because __________ and __________ they suggest relationships for explanation, allow testing of hypotheses they can be used for tables, they can be graphed they can be used in computers, governments use them they provide interesting information, can be summarised 10. Time series data show information about the same point in time over different places about different points in time over the same variable about different variables over different places about different points in time over different places 11. The retail price index is used to ______________ construct price lists compare shop prices measure changes in the cost of living none of the above 12. A real value can be derived from a nominal value by adjusting for changes over time adjusting for data collection errors adjusting for population changes adjusting for changes in prices 13. If your income during one year is £10,000 and the following year it is £12,000, then it has grown by 20% 2% 12% 16% 14. A straight-line diagram can be drawn knowing the ______ and _________ ertical axis and horizontal axis intercept and slope scale and slope intercept and scale 15. On a graph, a positive linear relationship moves down to the right moves up to the left moves up to the right moves down to the left 16. If the diagram of a line shows that lower values on the vertical scale are associated with higher values on the horizontal scale, this is an example of _____________ a nonlinear relationship a positive linear relationship a scatter diagram a negative linear relationship 17. When we know the quantity of a product that buyers wish to purchase at each possible price, we know Demand Supply Excess demand Excess supply 18. The equilibrium price clears the market; it is the price at which ________ _________ Everything is sold Quantity demanded equals quantity supplied Excess demand is zero b & c 19. When a market is in equilibrium Quantity demanded equals quantity supplied Excess demand and excess supply are zero The market is cleared by the equilibrium price All of the above 20. ________ and ________ do not directly affect the demand curve the price of related goods, consumer incomes consumer incomes, tastes the costs of production, bank opening hours the price of related goods, preferences 21. A demand curve can shift because of changing incomes prices of related goods tastes all of the above 22. A supply curve is directly affected by technology input costs government regulation all of the above 23. If a price increase of good A increases the quantity demanded of good B, then good B is a substitute good complementary good bargain inferior good 24. An increase in consumer income will increase demand for a _______ but decrease demand for a _________ substitute good, inferior good normal good, inferior good inferior good, normal good normal good, complementary good 25. The price elasticity of demand measures ________________ the responsiveness of quantity demanded to a change in price how far a demand curve shifts a change in price a change in quantity demanded 26. If demand is ___________ then price cuts will __________ spending inelastic, increase elastic, increase elastic, decrease none of the above 27. Positive cross-elasticities suggest that goods are _________ and negative cross-elasticities that goods are __________ substitutes, inferior normal, complements substitutes, complements normal, inferior 28. A measurement showing how quantity demanded varies with income is the price elasticity of demand cross-price elasticity of demand budget elasticity of demand income elasticity of demand 29. Inferior goods have ___________ and luxury goods have ____________ negative income elasticities, income elasticities greater than 1 income elasticities greater than 1, negative income elasticities positive income elasticities, negative income elasticities none of the above 30. If your income doubles and the prices of the goods you buy double, then your demand for these goods will likely ________ increase not change decrease shift 31. The income effect of a price increase of a normal good is to __________ of that good and the substitution effect is to _______ of that good increase quantity demanded, reduce quantity demanded increase quantity demanded, increase quantity demanded reduce quantity demanded, reduce quantity demanded reduce quantity demanded, increase quantity demanded 32. The opportunity cost of a student is Course fees and rent A loan from the bank What the student could have earned in the best job available by not studying What the student will earn after graduation 33. Economics assumes that people consume goods and services to achieve Status Prestige Utility Self-esteem 34. The extra utility from consuming one more unit of a good is called Marginal utility Additional utility Surplus utility Bonus utility 35. Adding up the quantities demanded of a good by different people facing the same price gives us the Supply curve Market demand curve Demand curve Market supply curve 36. Firms are assumed to _________ costs and to _________ profits incur, desire pay, make charge, earn minimize, maximize 37. The increase in total cost when one more unit is produced is known as marginal cost opportunity cost limited cost average cost 38. Marginal revenue is the _________ when output is ____________ change in average revenue, increased change in total revenue, increased by one unit change in average revenue, increased by one unit change in total revenue, increased 39. Profits are maximized when _________________ costs are minimized revenue is maximized average cost is less than average revenue marginal cost equals marginal revenue 40. If a firm's wage costs increase this will cause __________ and ________ marginal cost to increase, output to fall marginal revenue to increase, output to fall opportunity cost to increase, the firm will close average cost will rise, output will increase We Also Provide SYNOPSIS AND PROJECT. Contact www.kimsharma.co.in for best and lowest cost solution or Email: solvedstudymaterial@gmail.com Call: +91 82907-72200 (Call/WhatsApp) or +91 88003-52777 (WhatsApp Only)