# Managerial Economics Past Papers

[OBJECTIVE]

Subject: Managerial Economics

Time Allowed: 15 Min

Total Marks: 10

NOTE: ATTEMPT THIS PAPER ON THIS QUESTION SHEET ONLY. Division of marks is given in front of each question. This Paper will be collected back after expiry of time limit mentioned above.

Part-I Encircle the correct option, each question carries equal marks. (10)

1. Which of the following is the best definition of managerial economics? Managerial economics is
a. a distinct field of economic theory.
b. a field that applies economic theory and the tools of decision sciences.
c. afield that combines economic theory and mathematics.
d. none of the above.

2. If Z= 2X3 + 5XY, then the second order direct partial derivative Zxx would be

a. 5Y

b. 6x2

c. 5XY

d. 12X

3. If a rise in supply exceeds a -ise in demand, then we should expect
a. the equilibrium price and quantity levels will rise.
b. the equilibrium price will rise while the equilibrium quantity will decline.
c. The equilibrium price will fall while the equilibrium quantity will rise.
d. the equilibrium price and quantity levels will decline.
4. If both income elasticity of demand and price elasticity of demand are negative, the good is
a. A normal good
b. An inferior good
c. A Giffen Good
d. None of the above
5. lsoquant for two substitutable goods is .
a. Concave
b. Convex
c. Straight Line
d. L-shaped
6. In perfectly competitive markets
a. Firms can individually set the price
b. There are few sellers
c. Firms can enter and exit the market freely
d. All of the above
7. The current worth of a sum of money to be received at a future date is called:
a. real value
b. future value
c. present value
d. salvage value
8. Following is a relation of Marginal Revenue (MR), Price (P) and Price Elasticity of demand ( E )
a. MR = P(i+1/E)
b. MR = P(1-1/E)
c. MR = E(1-1/P)
d. MR = E(1+ 1/P}
9. If w = 1000, r= 2000,and C= 10000, where w = wages, r=rate of interest and C = Cost, then the absolute value of the slope of the isocost may be
a. 0S
b. 200¢
c. 10
d. 2.5
10. A Market with large number of setlers and differentiated products is called
a. Monopoly
b. Monopolistic Competition
c. Perfect Competition
d. Monopsony

[SUBJECTIVE]

Subject: Managerial Economics

Time Allowed: 2 Hour 45 Min

Total Marks: 50

NOTE: ATTEMPT THIS (SUBJECTIVE) ON THE SEPARATE ANSWER SHEET PROVIDED

Part-II Give short answers, each question carries equal marks. (20)

Q#1: Discuss what Managerial Economics is about.

Q#2: Why is the demand curve downward sloping?

Q#3: Describe the concept of cross price elasticity of demand using an example.

Q#4: Which is the planning curve of the firm? Explain it.

Q#5: Find Q where MC is minimum if Cost C = Q3 — 8 Q2 +57Q +2

Q#6: Differentiate between Risk Averter and Risk Seeker Managers.

Q#8: What is an ISOCOST line? What happens to it is the wage rate decreases?

Q#9: Explain any two characteristics of Monopolistic Competition.

Q#10: Explain what is Marginal Rate of Technical Substitution?

Part-III Give detailed answers, each question carries equal marks. (30)

Q#1: What is the purpose of Managerial Economics as a subject? What other subjects are related to Managerial Economics?

Q#2: What is Monopoly? Discuss the short run equilibrium of the firm under Monopoly.

Q#3: Describe various types of Elasticity of Demand.