2016 (May)
COMMERCE
(General/Speciality)
Course: 202
(Business Economics)
Time: 3 hours
The figures in the margin indicate full marks for the questions
(NEW COURSE)
Full Marks: 80
Pass Marks: 24
1. Answer
the following as directed: 1x8=8
a)
The main problems faced by the Business
Managers can be divided into two parts (i) decision making and (ii) ____. (Fill
in the blank)
b)
Making successful business forecast is the
responsibility of a managerial economist. (State True or False)
c)
‘The price of the commodity’ is a factor of
demand function. (State True or False)
d)
If tea and coffee are substitute goods, then
the cross-price elasticity of demand will be
i.
Equal to zero.
ii.
Negative.
iii.
Positive.
iv.
None of the above.
(Choose
the correct answer)
e)
Other things remaining the same, the supply of
a commodity ____ with rise in its price and ____ fall with a fall in its price.
(Fill in the blanks)
f)
Define production function.
g)
In a perfectly competitive market, equilibrium
production and ____ are determined where marginal cost curve cuts marginal
revenue curve from below. (Fill in the blank)
h)
A firm makes maximum profit when it is in
equilibrium. (State True or False)
2. Write
on the following in brief: 4x4=16
a)
Four characteristics of business economics.
b)
Four factors affecting price elasticity of
demand.
c)
Increasing returns to scale.
d)
Internal economies of a business firm.
3. (a)
Discuss the role and responsibilities of a business manager in business
economics. 8+6=14
Or
(b)
Discuss the various problems of an economy. 14
4. (a)
Define price elasticity of demand. Discuss the importance of price elasticity
of demand. 4+10=14
Or
(b)
Explain the importance of elasticity of supply in business economics. Discuss
the factors determining elasticity of supply. 6+8=14
5. (a)
What is an iso-product curve? Explain the different properties of iso-product
curves. 2+12=14
Or
(b) Define
expansion path. Discuss how it can be derived with the help of budget line and
iso-product curve. 4+10=14
6. (a)
What are the basic objectives of a business firm? Discuss how a firm maximizes
its profit under perfect competition. 6+8=14
Or
(b)
Explain the characteristics of a perfectly competitive market. Why does a firm
under perfect competition make only normal profit in the long run? 10+4=14
(OLD
COURSE)
Full
Marks: 80
Pass
Marks: 24
1. Answer
the following as directed: 1x8=8
a)
Making successful business forecast is one of
the responsibilities of a managerial economist. (State True or False)
b)
Price mechanism is based on two strong
opposite forces. (State True or False)
c)
A perfectly elastic demand curve is
parallel/perpendicular to the base. (Choose the correct answer)
d)
Cross-elasticity of demand is applicable in
case of two categories of goods (i) substitute goods and (ii) ____. (Fill in
the blank)
e)
Internal economies are enjoyed by a business
firm due to a decrease/increase in its scale of operation. (Choose the correct
answer)
f)
An iso-product curve can never be horizontal
or vertical to the base. (State True or False)
g)
How many firms are there in a monopoly market?
h)
Under which market form, a firm is a price
taker?
2. Answer
the following questions in brief: 4x4=16
a)
Mention four problems of an economy.
b)
Discuss any four types of demand.
c)
Mention at least four elements of demand
forecasting.
d)
Mention four characteristics of iso-product
curve.
3. (a)
Discuss the role and responsibilities of a manager in business economics. 7+7=14
Or
(b)
Mention the characteristics of business economics. Discuss the different
problems of business economics. 7+7=14
4. (a)
What is price elasticity of demand? Explain the practical utility of price
elasticity. 4+10=14
Or
(b) What
do you mean by elasticity of demand? Explain different methods of measurement
of price elasticity of demand. 3+11=14
5. (a)
Discuss the law of variable proportions with the help of suitable diagram. 14
Or
(b) What
do you mean by economies and diseconomies of large-scale production? Discuss
the different factors influencing economies and diseconomies of large-scale
production. 6+8=14
6. (a)
State the features of a perfectly competitive market. Explain the conditions of
short-run equilibrium of a firm under perfect competition. 8+6=14
Or
(b) How
does a businessman fix his equilibrium price in monopoly market? Discuss the
factors influencing the fixation of this price. 5+9=14