MANAGERIAL ECONOMICS: SECTION A: PART ONE: MULTIPLE CHOICES:
1. A-MACRO ECONOMICS
2. C-DEMAND FUNCTION
3. B-ARC ELASTICITY
4. B-CONSUMER GOODS
5. C-THE INDIFFERENCE CURVE
6. A-FUTURE COSTS
7. C-EQUILIBRIUM
8. B-GROSS NATIONAL PRODUCT
9. B-PRODUCT APPROACH
10. C-GDP
PART-TWO:
1. Concept of Demand Schedule: The inverse relationship between the price and the quantity demanded for the commodity per time period is called as the demand schedule for the commodity.
3. Various forms of Market Structure: The various forms of market structure are: Perfect Competition, Imperfect Competition and Monopoly
4. METHODS OF MEASURING NATIONAL INCOME:
We can measure national income either at the production stage by measuring the value of output or the income accrual stage by measuring the amount of factor income earned or at the expenditure stage by measuring the size of total expenditure incurred in the economy. The following are the three methods of measuring national income.
1. Product Approach
2. Income Approach
3. Expenditure Approach
SECTION C: APPLIED THEORY:
1. MONETARY POLICY: The monetary policy can be said to be controlled expansion of bank credit and money supply, with special attention to seasonal requirement for credit. The RBI regards money supply and the volume of bank credits as the two major intermediate variables, but it seeks to control the former through the latter. It is said that money supply doesn’t change on its own; it changes because of certain underlying development with regard to bank credit.
Instruments of monetary policy:
The instrument of monetary policy i.e methods of credit control may be broadly divided in to the following parts:
1. Open Market Operations: Open market operations involve the sale and purchase of government securities by the RBI to influence the volume of cash reserve with commercial banks and thus influence the