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D 13540 (Pages : 2) Name.........................................

Reg. No.....................................

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FIRST SEMESTER (CBCSS—UG) DEGREE EXAMINATION
NOVEMBER 2021

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[Link].

BCM 1C 01—MANAGERIAL ECONOMICS

(2019—2020 Admissions)

Time : Two Hours and a Half Maximum : 80 Marks

Part A

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Answer all questions.
Each question carries 2 marks.

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1. Why managerial economics is called a normative science ?

2. What is LERMS ?

2
3. What is Unemployment ?

4. Write the assumptions of law of demand.

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5. What is meant by perfect competition ?

6. What is the role of a managerial economist in a business ?

7. What are inferior goods ?

8. What do you know about product differentiation ?

9. What is Inflation ?

10. What do you mean by producers’ surplus ?

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11. What is kinked demand curve ?

12. What is meant by income elasticity ?

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13. What is forward planning ?

14. What is contraction of demand ?

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15. What is closed oligopoly ?

(15 × 2 = 30, Maximum ceiling 25 marks)

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Part B

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Answer all questions.
Each question carries 5 marks.

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16. State the causes of inequalities in the income distribution of India.

17. Explain the role of SSIs in the economic growth of Kerala.

18. Describe the determinants of supply.

19. Explain about the basic economic tools in managerial economics.

20. Explain the different forms of monopoly.

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21. Write up the causes of unemployment in India.

22. What are the disadvantages of FDI ?

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23. Explain the arguments against the concept of consumer surplus.

(8 × 5 = 40, Maximum ceiling 35 Marks)

Part C

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Answer any two questions.
Each question carries 10 marks.

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24. Discuss the features of Kerala economy.

25. What is black money ? Explain the measures taken by the government to curb black money.

26. Define indifference curve analysis. Explain the properties and assumptions of it.

27. What is monopolistic competition ? What are the features of it ? Illustrate the demand curve of a
firm under monopolistic competition.

(2 × 10 = 20 marks)

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D 13540-A (Pages : 4) Name........................................

Reg. No.....................................

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FIRST SEMESTER (CBCSS—UG) DEGREE EXAMINATION
NOVEMBER 2021

1
[Link].

BCM 1C 01—MANAGERIAL ECONOMICS

(2019—2020 Admissions)
(Multiple Choice Questions for SDE Candidates)

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Time : 15 Minutes Total No. of Questions : 20 Maximum : 20 Marks

1 2 2 1.

2.

3.

4.
INSTRUCTIONS TO THE CANDIDATE
This Question Paper carries Multiple Choice Questions from 1 to 20.

The candidate should check that the question paper supplied to him/her contains all the
20 questions in serial order.

Each question is provided with choices (A), (B), (C) and (D) having one correct answer.
Choose the correct answer and enter it in the main answer-book.

The MCQ question paper will be supplied after the completion of the descriptive
examination.

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BCM 1C 01—MANAGERIAL ECONOMICS

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(Multiple Choice Questions for SDE Candidates)
1. An indifference curve shows combinations of two goods that :

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(A) A consumer could buy with their given income.

(B) Could provide the consumer with similar levels of satisfaction.

(C) Would provide the consumer with the same level of satisfaction.

(D) Could be available to the consumer in a given time period.

2. Which of the following statements is NOT TRUE of indifference curves ?

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(A) They could intersect.

(B) They are convex to origin.

(C) They exhibit higher levels of utility.

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(D) As you move from the origin.

3. The rate at which a consumer is able to substitute one good for another is determined by

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the ————————.

(A) Consumers income. (B) Indifference map.

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(C) Ratio of the prices of the goods. (D) Marginal rate of substitution.

4. Which of the following is the measure to control inflation :

(A) Granting credit on liberal terms. (B) Raising bank rate.

(C) Demonetization. (D) None of these.

5. Employment of people who take jobs below their capacity is known as :

(A) Underemployment. (B) Disguised unemployment.

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(C) Cyclical unemployment. (D) None of these.

6. Indian economy growth is primarily driven by :

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(A) Industry. (B) Agriculture.

(C) Service. (D) None of these.

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7. The concept of consumer surplus was developed by :

(A) Marshal. (B) Bhentham.

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(C) H.H. Ghosen. (D) None of these.

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8. Macro economic theory is also known as :

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(A) Price theory. (B) Income theory.

(C) Demand theory. (D) None of these.

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9. The study of international trade and national income is part of :

(A) Global economics. (B) Macro economics.

(C) Positive economics. (D) Microeconomics.

10. What effect is working when the price of a good falls and consumers tend to buy it instead of other
goods :

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(A) Income effect. (B) Substitution effect.

(C) Price effect. (D) None of these.

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11. Demand curve slopes downwards because of :

(A) The law of diminishing marginal utility.

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(B) The income effect.

(C) Substitution effect.

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(D) All of the above.

12. Which of the following is a short run law ?

(A) Law of diminishing returns.

(B) Law of constant returns to scale.

(C) Law increasing returns to scale.

(D) None of these.

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13. Which cost are recorded in books of accounts ?

(A) Opportunity cost. (B) Implicit cost.

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(C) Social cost. (D) Explicit cost.

14. Variable cost per unit :

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(A) Remains fixed. (B) Varies with the volume of production.

(C) Varies with sales. (D) None of these.

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15. WTO aims at :

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(A) Establishing rules of domestic trade.

(B) Restricting trade practices.

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(C) Liberalizing international trade.

(D) None of these.

16. The most outstanding feature of the capitalist economic system is :

(A) Unemployment. (B) Poverty.

(C) Inequality of income. (D) Industrial backwardness.

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17. Which of the following is not a development issue in India ?

(A) Unemployment. (B) Population pressure.

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(C) Inflation. (D) Decreasing trend of foreign capital.

18. MNC :

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(A) Always produce primary goods. (B) Always produce manufactured goods.

(C) Always produce service. (D) May produce primary or manufactured goods.

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19. The portfolio investment by foreign institutional investor is :

(A) FDI. (B) FII.

(C) BOP. (D) SDR.

20. Cargil foods, an MNC has bought over which indigenous Indian company ?

(A) Amul. (B) Britannia.

(C) Parakh foods. (D) Dabur.

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