All India Management Association (AIMA) 2007 M.B.A Marketing Management Business Economics – I - Question Paper
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1
ques. Paper
Business Economics – I (MB1B3): October 2007
ans all 70 ques..
Marks are indicated against every ques..
Total Marks : 100
1. Which of the subsequent are not the assumptions made in constructing a Production Possibility Curve
(PPC)?
I. The economic resources available for use in the year are variable.
II. The economic resources can be used to produce 2 broad classes of goods.
III. a few inputs are better used in producing 1 of these classes of goods, rather than other.
IV. Technology modifications during the year.
(a) Both (I) and (II) above
(b) Both (I) and (III) above
(c) Both (I) and (IV) above
(d) Both (II) and (III) above
(e) Both (III) and (IV) above. (1 mark)
2. According to general equilibrium analysis, who among the subsequent is/are considered as decision
making agent(s)?
I. Consumers.
II. Producers.
III. Resource owners.
(a) Only (I) above
(b) Only (II) above
(c) Only (III) above
(d) Both (II) and (III) above
(e) All (I), (II) and (III) above. (1 mark)
3. An educational institution is considering an increase in course fees of a particular course to enhance its
revenue. If the institute expects that raising course fees would enhance revenue, then
(a) It is ignoring the legal regulations of demand
(b) It is assuming that the demand for the course is elastic
(c) It is assuming that the supply of the course is elastic
(d) It is assuming that the demand for the course is inelastic
(e) It is assuming that the supply of the course is inelastic. (1 mark)
4. Which of the subsequent statements is false?
(a) A change in demand, due to factors other than price is defined as shift in demand curve
(b) Demand tends to be more inelastic for those products that account for a small proportion of
consumer’s total spending
(c) Demand is more elastic in the long run than in the short run
(d) Inferior goods have negative income elasticity
(e) The value of cross-price elasticity for 2 complementary products is positive. (1 mark)
5. When the value of elasticity of supply is less than 1 but greater than zero, it is known as
| Earning: Approval pending. |
