Assignments

OMBC104_ME Assignment Submission Last Date Time: Jan 31 2023 11:55PM

Assignment: 1

Instructions:

 Number of Questions: 30
 Maximum Marks: 30
 Each question carries 1 Mark.
 All questions are compulsory.
 Attempts: 1

1
What type of techniques are used to produce handicraft goods?
Labour Intensive
Production Intensive
Capital Intensive
Employee Intensive
2
Which of the following is not a method of income measurement?
Production method
Income Method
Expenditure Method
Consumption method
3
What do you mean by the supply of goods?
 Stock available for sale
Total stock in the warehouse
The actual production of the good
Quantity of the good offered for sale at a particular price per unit of time
4
What do you mean by demand of a commodity?
A desire for the commodity
Need for the commodity
Quantity demanded of that commodity
Quantity of the commodity demanded at a certain price during any particular period of time
5
Which of the following features define human needs?
are not concurrent
do not disappear momentarily if they are satisfied
are unlimited in capacity;
are unlimited in number
6
What is the difference between monopolistic and perfect competition regarding?
market entry
the number of sellers and buyers
the market power of competitors
homogeneity of products
7
Which of the following statements about monopoly is true?
there are several companies producing a specific product
there is only one producing company, but the product has close substitutes
there are no competitors on the relevant market
 input barriers are low
8
When does total utility coincides with the marginal utility?
for the first unit consumed
only for the irrational consumer
at the level of the last unit consumed
at the saturation point
9
What can be said about the demand if the price of the product A was reduced from 100 to 90 lei and, as a result, the quantity demanded has
increased from 70 to 75 units
inelastic
elastic
unit elastic
can not be determined from the given information
10
Choose the correct alternative with regards to the subject Economics
Economics is the study of Production technology
Economics is the study of Consumption decisions
Economics is the study of How society decides what, how, and for whom to produce
Economics is the study of The best way to run society
11
What is opportunity cost of a good?
The time lost in finding it
The quantity of other goods sacrificed to get another unit of that good
The expenditure on the good
The loss of interest in using savings
12
Which of the following is not the basic economic problem?
 What to produce
How to produce
For whom to produce
Where will they be produced
13
Which two variables are depicted in supply curve?
Price and demand
Price and supply
Factors of production and price
None of the above
14
What can be said about elasticity of demand If percentage increase in demand is less than percentage increase in price?
Less than 1
Equal to 1
Greater than 1
Equal to 0
15
Fountain pen and ink are Substitute goods
True
False
16
Diamond is a veblen good
True
False
17
Substitute goods Compete with each other
True
False
18
A beggar who has a desire to eat but has no money is not a demand.
True
False
19
Vertical demand curve is perfectly elastic demand curve
True
False
20
Demand curve can be derived from marginal utility curve
True
False
21
Once the market equilibrium attained it never deviate from that position.
True
False
22
A beggar who can't afford a four squared meal may be seen drinking alcohol due to the principle of equimarginal utility.
True
False
23
GDP less ___________________ is NDP
Interest
Depreciation
Indirect Tax
Direct Tax
24
Law of returns to scale is a _________________ phenomenon
short
 intermediate
Long
immediate
25
When a firm’s average revenue is equal to its average cost, it gets_____________
Supernormal Profit
Normal profit
Loss
Abnormal loss
26
___________ is a product that people consume more of as the price rises and vice versa—violating the basic law of demand in microeconomics
Veblen
Velvet
Giffen
Inferio
r
27
________ is one of the greatest monopolies in Indian railroad transportation.
Air Asia
Air India
Indian Railways
ASTC
28
______ is calculated as the ratio of total revenue and quantity sold.
CR
TR
MR
AR
29
Under __________ market structure,the demand curve perceived by firms is horizontal
Monopoly
Oligopoly
Perfect Competition
Monopolistic
30
________ costs is the benefit forgone by not choosing the next best alternative forgone
Accounting
Explicit
Opportunity
Marginal

Assignment: 2

Instructions:

 Assignment 2 is based on the following text/paragraph of case study/situational exercise etc. You first need to
read this text and then answer the following MCMR i.e. Multiple choice multiple response questions.
 Number of Questions: 5
 Each question carries 2 Mark
 All Five Questions are Mandatory.
 Attempts: 1

In a passage of Adam Smith's An Inquiry into the nature and causes of wealth of Nations, he discusses the concepts of value in use and value in 1
exchange, and notices how they tend to differ: What are the rules which men naturally observe in exchanging them [goods] for money or for one
another, I shall now proceed to examine. These rules determine what may be called the relative or exchangeable value of goods. The word
VALUE, it is to be observed, has two different meanings, and sometimes expresses the utility of some particular object, and sometimes the power
of purchasing other goods which the possession of that object conveys. The one may be called “value in use” the other, “Value in exchange”. The
things which have the greatest value in use have frequently little or no value in exchange; on the contrary, those which have the greatest value in
exchange have frequently little or no value in use. Nothing is more useful than water: but it will purchase scarcely anything; scarcely anything
can be had in exchange for it. A diamond, on the contrary, has scarcely any use-value; but a very great quantity of other goods may frequently
be had in exchange for it.

2  In the above paragraph which of the following is explicitly mentioned about diamonds.

They have high value in use but low value in exchange.

They are very useful for economic growth of the country.
They are equally valuable as water.
They have low value in use but high value in exchange.

3  What is the term used by economists to mention above contradiction.

Giffen paradox.
Paradox of prosperity
Paradox of thrift.
Paradox of value.

4  What do you think could be the reason behind the paradox?

Water table is continuously decreasing.

Diamonds can be manufactured artificially by applying high pressure on carbon.
Water is more frequently purchased by people than diamonds
Water is abundantly available whereas diamonds are scarce.
5  According to your understanding of concepts of Managerial Economics what could be the underlying principle behind the paradox mentioned above which
Adam Smith could not notice?

Marginal Utility of water is higher than that of Diamonds because water is abundantly available.
Total utility of water is higher than that of Diamonds.
Total Utility of Diamonds is higher than that of water.
Marginal utility of Diamonds is higher than that of water because diamonds are scarce.

6  If someone who purchases both diamonds and water which of the following must be true so as to maximize his satisfaction by consuming both of these
commodities.

MU(D)/PD > MU(W)/PW

MU(D)/PD < MU(W)/PW
MU(D)/PD = MU(W)/PW
MU(D)/PD ≤ MU(W)/PW

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