Sikkim-Manipal University of Health Medical and Technological Sciences (SMUHMTS) 2007 M.B.A MODEL MB0026 ECONOMICS SMU - Question Paper

a. Controlling cost.
b. Curbing inflation.
c. Curbing unnecessary expansion of production.
d. Increasing production and sale of goods.

18. The prices statutorily determined by the government for certain important goods like steel, cement, etc., is called
a. Mark-up pricing.
b. Customary pricing.
c. Full cost pricing.
d. Administered prices.

19. The firms join together to strengthen their bargaining position against the consumer in the determination of price it is called
a. Acceptance pricing.
b. Price leadership.
c. Callusive oligopoly.
d. Independent pricing.

20. The government has to tax on consumers when
a. MSB < MPB of an activity
b. MSB > MPB of an activity
c. MSB = MPB of an activity
d. MPB < MSB of an activity


Group C

1. Managerial Economics
a. Fills up the gap ranging from abstract theory and managerial practice
b. Lies mid way ranging from economic theory and business management
c. Deals with formulation and understanding of different economic theories and principles
d. Integrates economic theories with business management decisions and practices

2. The subsequent is the market demand schedule for product X. Out of four options identify the wrong ans.
Price is Rs. A B C Total
20-00 200 300 250 750
15-00 250 400 300 950
10-00 300 500 450 1250
8-00 400 600 500 1500
5-00 600 800 700 2100
a. A steady fall in price has no impact on the demand for the product
b. Helps in estimating expected profit percentage of sellers
c. Helps in predicting modifications in expected sales
d. Helps a producer to plan his production schedule.

3. Mr. Kiran is the owner of an Ice-cream parlor. When he would take a decision to increase the price of his Ice-cream?
a. Price of sugar rises but demand for Ice-Cream falls
b. Demand for Ice-Cream rises but unemployment level in the city increases
c. A new brand of Ice-Cream enters in to market but its quality is low when compared to the Ice-cream sold by Mr. Kiran
d. Demand for other brands of Ice-cream falls.

4. The legal regulations of supply is not in operation when the supply curve
a. Slopes backward
b. Slopes forward
c. Assumes a negative shape
d. Is a vertical straight line.

5. The short run, as economists use the phrase is characterized by
a. At lowest 1 fixed input and firms neither leaving nor entering the industry
b. A period where the legal regulations of diminishing returns does not hold good
c. All factor inputs are fixed
d. All factor inputs are variable

6. The II phase of the legal regulations of variable proportion is defined as the most economic region
because of the subsequent reasons other than
a. The producer is employing the most ideal factor combinations.
b. Total output is highest when marginal product zero
c. Total output is highest even before the marginal product is zero
d. Represents the range of rational production decision

7 Out of the 4 statements which 1 is the incorrect according to Boumal,
Increase in expenses sales promotion would lead to
a. Forward shift in the demand curve to the right
b. Backward shift in the demand curve to the left
c. Neither forward nor backward shift in demand curve
d. Backward bending in the demand curve

8 Under oligopoly and monopolistic conditions it is convenient to follow
a. Marginal cost pricing.
b. Full cost pricing.
c. Customary pricing.
d. Rate of return pricing.

9. A firm operating under conditions of perfect competitions can
a. Determine the price of its product.
b. Determine only the size of its output.
c. Promote the sales through effective advertisement.
d. Capture the market by cutting down the price.

10. To check cyclical fluctuations, smoothen production and distribution, prevent artificial scarcity and to check inflated rise in prices what should be the objective of monetary policy
.
a. Monetary equilibrium.
b. Debt management
c. Control credit expansion.
d. Price stability.

11. During deflation when the community is in the grip of pessimism, to encourage
investment and expand production
a. Interest rates are to be decreased.
b. different types of incentives to investment may be given.
c. Government has to enter the market with a number of public works programs.
d. Liberalization policy has to be adopted
.

12. Dislocation and disturbances in the normal working of the economy caused by low prices, low profits, low output and unemployment can be cured by
a. Increase in government expenditure.
b. Increase in private investment.
c. reduce in the rate of interest.
d. Expansion in the supply of money.
.

13. According to Hawtrey a rise in the bank rate leading to a rise in the lending rates of the banks discouraging investment leads to
a. Fall in prices.
b. Shrinkages of market
c. Depression.
d. Fall in output.

14 Demand pull inflation is the outcome of
a. Increase in production.
b. Increase in the supply of goods.
c. Increase in money supply.
d. Increase in the cost of production.

15. More than the monetary measures fiscal measures like public works programs may be more efficient in improving the situation when there is.
a. Stagflation.
b. Inflationary gap.
c. Deflation.
d. Disinflation

16. Optimum economic efficiently in resource allocation to produce various goods and services is possible when
a. MPB + MEB = MPC + MEC
b. MPB + MPC = MEB+ MEC
c. MPB + MEC = MEB + MPC
d. MPC + MEC = MPB + MEB

Earning:   Approval pending.