Mba HR Economic Analysis
Mba HR Economic Analysis
Mba HR Economic Analysis
1. The decision making problem faced by business firms is one of constrained optimization. Discuss.
2. Why does a firm keep profit maximization as its objective? What conditions need to be satisfied by the firm
to achieve profit maximization?
3. Explain the concept of cross elasticity of demand. Using the concept of cross elasticity, define substitutes
and complimentary products.
4. Explain the concept of Law of Variable proportions. Analyze the three stages of this law with the help of a
diagram.
5. What is a cost function? If ATC curve is U shaped, prove that MC shall always intersect ATC curve from
below at its minimum point.
6. Write short notes on:
a) GNP Factor cost and GNP Market price
b) Call Money market
c) Investment multiplier
7. What is meant by demand forecasting? Critically examine Delphi and survey of sales force as methods of
demand forecasting. What are their advantages and disadvantages?
Or
Explain Sweezs model of kinked demand curve under oligopoly.
8. Explain fiscal policy measures that should be adopted for cutting recession and reviving economy. How does
an expansionary fiscal policy work? Explain in Indian context.
9. In a 4 sector open economy, explain with a circular income flow model that sum of investment, govt.
expenditure and net exports must equal to savings and taxes.
Questions:
i) Discuss determinants of demand for passenger cars in India.
ii) What role does non-urban India play in forming demand in auto-market?
iii) What role do you think govt. plays as far as non-urban demand is concerned?
iv) What is implication of having buyers market?
v) Do you agree that law of demand cannot work in an auto market? Justify.
vi) Explain significance of market segmentation.
vii) Imagine you are new global auto maker planning to enter Indian market. List the various demand aspects
you think are important. Prioritize them and explain prioritization plan you wish to follow.