Business
Economics Important Questions
for
BCOM 3rd SEM NEP 2023 Syllabus
Unit 1: Nature and Scope of Business Economics, Micro and macro
economics
Part
A: Nature and Scope of Business Economics
Q. What is business economics? Discuss the nature (2012, 2014, 2016, 2018SN) and scope (2017SN) of business economics. 2015, 2018
Q. Discuss the role and responsibilities of a
business manager in business economics. 2016
Part B: Microeconomics and Macroeconomics
Q. What is
Macroeconomics? What are its features, Merits and demerits?
Q. What is
Microeconomics? What are its features, Merits and demerits?
Q. What is microeconomics and macroeconomics? Distinguish
between Microeconomics and Macroeconomics.
Q. What are various methods of microeconomics analysis? Explain Static and dynamic analysis in detail.
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Unit 2: Law of Demand and Law of Supply, Market Equilibrium
Unit 2: Law of Demand and Law of Supply, Market Equilibrium
Part A: Demand Theory
Q. Define demand for a commodity. Explain the
various factors which determine demand for a commodity.
Q. Explain the law of demand. What are its
assumptions? Explain the exception to the law of demand.
Q. What is Elasticity of Demand? What are various
types of elasticity of demand? Mention various degrees of elasticity with
diagram. 2013, 2017, 2018
Q. Explain any one method of measuring price
elasticity of demand with the help of numerical example.
2012, 2020
Q. What is price elasticity of demand? What are
its determinants (2013, 2016SN)? Explain the importance of price elasticity of
demand. 2012, 2014,
2015, 2016, 2019, 2021
Q. What is cross elasticity of demand (2015SN)?
Discuss the importance of cross elasticity of demand in business decision
making (2018SN). 2013, 2017
Q. What is Income elasticity of demand? Discuss
the importance of income elasticity of demand in business decision making. 2015
Part
B: supply theory and market equilibrium
Q. Define
supply of a commodity. What are the factors which determine supply of a
commodity?
Q. What is
Elasticity of Supply? Mention its determinants. 2014,
2016
Q. What is law supply? What are the assumptions
necessary for explanation of the law of supply? What are its exceptions?
Q. Explain
the individual supply curve and the market supply curve with diagram. 2018
Q. What is
Market Equilibrium? What are its determinants?
Q. Explain
the relationship price of a commodity and its quantity supplied. Discuss how
market equilibrium is determined at the intersection of market demand and
market supply curves. 2021
Unit 3: Theory of Consumption and Cost theories
Part
A: Theory of Consumption
Q. What is a
consumer preference? What are the assumptions about consumer preferences?
Q. What is consumer’s equilibrium? Explain with the indifference curve
and budget constraint how a consumer attains
equilibrium. 2021
Q. What is an indifference curve? Explain the main properties of an
indifference curve. What are the
assumptions on which indifference curve analysis of a demand is based? 2020
Q. Explain
why consumer’s difference curve have negative slope, do not intersect and are
convex to the origin.
Q. Define
income effect and substitution effect. Explain how price effect of a commodity
is decomposed into income effect and substitution effect. 2021, 2022
Q. What is
price consumption curve? What is the relationship between price consumption
curve and price elasticity of demand? Derive demand curve from price
consumption curve.
Q. Explain
the concept of revealed preference theory. 2022
Unit
3 Part B: Production and Cost
Q. Explain with diagram the law of variable
proportion. In which stage output is decided? 2012, 2015, 2018, 2020
Q. What is an isoquant? Explain its properties.
Identify the economic region of production with the help of isoquant
curve. 2012,
2013(SN), 2014, 2015(SN), 2016, 2018, 2019
Q. Write the
meaning of ‘optimal combination’ of factor of production. Explain the
equilibrium of a firm with the help of isoquant and isocost lines. (Write both
output maximization and cost minimization.) 2017, 2020, 2021, 2022
Q. Explain
marginal rate of technical substitution and the expansion path.
Q. What do
you mean by internal (2012SN) and external economies (2017SN)? Explain the
different factors responsible for internal and external economics. 2013, 2015, 2019
Q. What are
‘envelop curves’ and ‘learning curves’? Explain why a long-run average cost
(LAC) curve is flatter than the short-run average cost (SAC) curve. (Within 500
words) 2021, 2022
Unit 4: Market Structure
Part
A: Perfect Competition
Q. What is perfectly competitive market? What are its characteristics and Assumptions?
Q. Explain the process of price-output
determination, under perfect competition. 2012,
2014, 2015, 2017, 2018, 2021
Q. Analyse the short run and long run equilibrium
of a business firm and industry under perfect competition with the help of
suitable diagram. 2013, 2014, 2016,
2017, 2018, 2021
Q. Explain how a firm under perfect competition
attains equilibrium with normal profit, super-normal profit and loss in the
short run. 2021
Q. Define
normal price. Diagrammatically explain how normal price is determined. Why does
a firm under perfect competition make only normal profit in the long run?
Part
B: Monopoly
Q. What is monopoly market? What are its features?
Q. How does a monopolist determine the price of his commodity under condition of
price discrimination? Illustrate your answer with suitable diagram. 2020
Q. Describe
how a monopolist determines his profit-maximizing output and price in the
long-run. How can monopoly power be measured? 2019
Q. Explain
with diagram how price and output are determined under monopoly. 2020
Q. What is price discrimination? Discuss the types
of price discrimination with examples. Discuss the conditions of price
discrimination. 2019,
2021
Q. Under what
conditions price discrimination is profitable? Is price discrimination socially
justified?
Unit 5: Imperfect Competition
Part
A
Q. What is monopolistic Competition? What are its features?
Q. Discuss the price-output
determination under monopolistic competition both in short and long run. 2021
Q. Illustrate how a firm in monopolistic competition reaches its
equilibrium in the short-run. Can economic efficiency be attained in
monopolistic competition? Discuss. 2019
Q. What is meant by product differentiation? Explain with the help
of diagram the ‘individual equilibrium’ and ‘group equilibrium’ under
monopolistic competition. 2020
Q. Explain the concept of economic efficiency. Evaluate economic inefficiency
of firms operating under monopolistic competition.
Part
B
Q. What is Oligopoly?
Mention the main features of oligopoly. What factors cause the emergence of
oligopoly? 2021
Q. Q. What is collusive
oligopoly? Explain how a cartel determines price and output under collusive
oligopoly. 2020
Q. What is oligopoly? What
is ‘market cartel’ under oligopoly? Explain the price-output determination
process with the help of Cournot’s model. (Within 500 words) 2022
Q. Why does price leadership sometimes evolve in oligopolistic
markets? Explain how the price leader determines a profit-maximizing
price. 2019
Q. What is kinked demand curve? How does it help in explaining
price rigidity under oligopoly?
Q. What is break-even principle? Discuss critically the pricing
policy of public utility undertakings. (Within 500 words) 2022
Part C: Factor of production, factor pricing, National income
and International trade
Q. What is Factor of production? Explain the four
factors of production and their significance in the production process.
Q. Explain
the concept of factor pricing and its importance in economics.
Q. Discuss
the theories of factor pricing with reference to wages, rent, interest, and
profit.
Q. Explain the marginal productivity
theory of factor pricing.
Q. Define trade cycles and explain the different
phases of a trade cycle.
Q. Define national income and discuss the
different methods of measuring it.
Q. Discuss the significance of national income
statistics in economic planning and policy-making. What are the difficulties in
measuring national income in a developing country like India?
Q. What is International trade? What are its features? Mention various types of international trade.