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Economics For Managers (VV2)
- 1. We AlsoProvide SYNOPSISANDPROJECT. Contactwww.kimsharma.co.inforbestandlowestcostsolutionor Email:amitymbaassignment@gmail.com Call:9971223030 Economics for Managers (VV2) 1 . Discussthe fundamental nature of ManagementEconomieswith respecttothe three choice problemsof the economy. 2 . The demandfunctionof a productis givenasQ = 500-5P. Findoutthe pointprice elasticity demandwhen a) P = Rs. 15 and Q = 200 a) P = Rs. 50 and Q = 200 What inferencesdoyoudrawfromthe resultswhenthe price of a commodityincreasesfromRs.15 to Rs. 50, the quantitydemandedremainingconstant? 3 . DistinguishbetweenaccountingcostsandEconomicscosts.Explaingivingsuitable examples. 4 . Explainthe functional formsof costfunction givingillustration. 5 . "It isbelievedthatafirmundera perfectcompetitionisaprice-takerandnota price-maker." Explaingivingexamples. 6 . What are the variousfactorswhichmay influence the demandforintermediate goodslike cables?Explainthe mostappropriate methodof forecastingthe demandforsuchanitem. 7 . State the assumptionunderlyingthe economists'theoryof firm.Developacritique of the theory and suggestthe needforalternative models. 8 . 'Price leadershipisanalternativecooperative methodusedtoavoidtoughcompetition'. Case Detail : In early1991, there wasa sharpincrease inthe price of newsprint,the paperusedbythe newspapers. Since newsprintisthe largestexpense forIndianewspapers(aftersalaries) publisherswere concerned aboutthe price hike.Suppose thatthe demandfornewsprintcanbe representedasfollows: Qi = 17-3 -- 0-0092 p +0-0067
- 2. Where Q. equalsthequantitydemanded(inkilogramspercapital),Pisthe price of newsprint(inRs.per metricton) and I isthe income percapita(inRs.), 1. If there are 1 millionpeople inthe market,andif percapitaincome equalsRs.10,000 whatis the demandcurve for newsprint? 2. Under these circumstances,whatisthe price elasticityof demandif the price of newsprint equalsRs.400 permetricton? 3. Accordingto a study,the demandcurve fornewsprintinIndiais: Q2 = 2672 -- 0-51 p Where,Q2 is the numberof metrix tonsof newsprintdemanded(inthousand).Whatisthe price elasticityof demandfornewsprintinIndiaif price equalsRs.500 per metricton? 1. Economicsis the studyof productiontechnology consumptiondecisions howsocietydecideswhat,how,andforwhomtoproduce the bestwayto run society 2. The opportunitycost of a good is the time lostinfindingit the quantityof othergoodssacrificedtogetanotherunitof that good the expenditureonthe good the lossof interestinusingsavings 3. A marketcan accuratelybe describedas a place to buythings a place to sell things the processbywhichpricesadjustto reconcile the allocationof resources a place where buyersandsellersmeet 4. In a free market__________ ___________
- 3. governmentsintervene governmentsplanproduction governmentsinterfere pricesadjustto reconcile scarcityanddesires 5.In the mixedeconomy economicproblemsare solvedbythe governmentandmarket economicdecisionsare made bythe private sectorandfree market economicallocationisachievedbythe invisiblehand economicquestionsare solvedbygovernmentdepartments 6. Normative economicsforms___________ basedon_____________ positive statements,facts opinions,personalvalues positive statements,values opinions,facts 7. Microeconomicsis concernedwith the economyasa whole the electronicsindustry the studyof individualeconomicbehaviour the interactionswithinthe entire economy 8. Macroeconomicsis the studyof ___________________ individual buildingblocksinthe economy the relationshipbetweendifferentsectorsof the economy householdpurchase decisions the economyasa whole 9. Data are importantineconomicsbecause __________ and __________
- 4. theysuggestrelationshipsforexplanation,allowtestingof hypotheses theycan beusedfor tables,theycanbe graphed theycan be usedincomputers,governmentsuse them theyprovide interestinginformation,canbe summarised 10. Time seriesdatashowinformation about the same pointintime overdifferentplaces aboutdifferentpointsintime overthe same variable about differentvariablesoverdifferentplaces about differentpointsintime overdifferentplaces 11. The retail price index isusedto______________ construct price lists compare shop prices measure changesinthe cost of living none of the above 12. A real value canbe derivedfromanominal value by adjustingforchangesovertime adjustingfordata collectionerrors adjustingforpopulationchanges adjustingforchangesinprices 13. If your income duringone yearis£10,000 andthe followingyearitis£12,000, thenithas grownby 20% 2% 12% 16% 14. A straight-line diagramcanbe drawnknowingthe ______ and _________
- 5. ertical axisand horizontalaxis interceptandslope scale and slope interceptandscale 15. On a graph,a positive linearrelationship movesdownto the right movesupto the left movesupto the right movesdownto the left 16. If the diagramof a line showsthatlower valuesonthe vertical scale are associatedwithhigher valuesonthe horizontal scale,thisisanexample of _____________ a nonlinearrelationship a positive linearrelationship a scatterdiagram a negative linearrelationship 17. Whenwe knowthe quantityof a product that buyerswishtopurchase at each possible price,we know Demand Supply Excessdemand Excesssupply 18. The equilibriumprice clearsthe market;itisthe price at which________ _________ Everythingissold Quantity demandedequalsquantitysupplied Excessdemandiszero b & c
- 6. 19. Whena marketisinequilibrium Quantitydemandedequalsquantitysupplied Excessdemandandexcesssupplyare zero The marketisclearedbythe equilibriumprice All of the above 20. ________ and________ do not directlyaffectthe demandcurve the price of relatedgoods,consumerincomes consumerincomes,tastes the costsof production,bankopeninghours the price of relatedgoods,preferences 21. A demandcurve can shiftbecause of changing incomes pricesof relatedgoods tastes all of the above 22. A supplycurve isdirectlyaffectedby technology inputcosts governmentregulation all of the above 23. If a price increase of goodA increasesthe quantitydemandedof goodB,thengood B isa substitute good complementarygood bargain inferiorgood
- 7. 24. Anincrease inconsumerincomewill increase demandfora_______ butdecrease demandfora _________ substitute good,inferiorgood normal good,inferiorgood inferiorgood,normal good normal good,complementarygood 25. The price elasticityof demandmeasures________________ the responsivenessof quantitydemandedtoachange inprice how far a demand curve shifts a change inprice a change inquantitydemanded 26. If demandis___________ thenprice cuts will __________ spending inelastic,increase elastic,increase elastic,decrease none of the above 27. Positive cross-elasticitiessuggestthatgoodsare _________ and negative cross-elasticitiesthat goodsare __________ substitutes,inferior normal,complements substitutes,complements normal,inferior 28. A measurementshowinghowquantitydemandedvarieswithincomeisthe price elasticityof demand cross-price elasticityof demand budgetelasticityof demand
- 8. income elasticityof demand 29.Inferiorgoodshave ___________ andluxurygoodshave ____________ negative income elasticities,income elasticitiesgreaterthan 1 income elasticitiesgreaterthan1, negative income elasticities positive income elasticities,negative incomeelasticities none of the above 30. If your income doublesandthe pricesof the goodsyoubuydouble,thenyourdemandforthese goodswill likely________ increase not change decrease shift 31. The income effectof a price increase of a normal goodisto __________ of that good andthe substitutioneffectisto_______ of that good increase quantitydemanded,reduce quantitydemanded increase quantitydemanded,increase quantitydemanded reduce quantitydemanded,reduce quantitydemanded reduce quantitydemanded,increase quantitydemanded 32. The opportunitycostof a studentis Course feesandrent A loanfrom the bank What the studentcouldhave earnedinthe bestjobavailablebynotstudying What the studentwill earnaftergraduation 33. Economicsassumesthatpeople consume goodsandservicestoachieve Status Prestige
- 9. Utility Self-esteem 34. The extrautilityfromconsumingonemore unitof a goodiscalled Marginal utility Additional utility Surplusutility Bonus utility 35. Addingupthe quantitiesdemandedof agoodby differentpeople facingthe same price givesusthe Supplycurve Market demandcurve Demandcurve Market supplycurve 36. Firmsare assumedto_________ costs andto _________ profits incur,desire pay,make charge,earn minimize,maximize 37. The increase intotal cost whenone more unitisproducedis knownas marginal cost opportunitycost limitedcost average cost 38. Marginal revenue isthe _________ whenoutputis____________ change in average revenue,increased change in total revenue,increasedbyone unit
- 10. change in averagerevenue,increasedbyone unit change in total revenue,increased 39. Profitsare maximizedwhen_________________ costs are minimized revenue ismaximized average cost islessthanaverage revenue marginal cost equalsmarginal revenue 40. If a firm'swage costsincrease thiswill cause __________ and ________ marginal cost to increase,outputtofall marginal revenue toincrease,outputtofall opportunitycostto increase,the firmwill close average cost will rise,outputwillincrease We AlsoProvide SYNOPSISANDPROJECT. Contact www.kimsharma.co.inforbestandlowestcostsolutionor Email:amitymbaassignment@gmail.com Call:9971223030