Business Economics Important Questions for BCOM 3rd SEM NEP 2023 Syllabus

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 relationship between Business Economics and Traditional Economics. Or Explain how economic theories applied in business economics.  2012, 2013, 2018

Q. What is Price Mechanism? Explain its importance and Limitations. How price mechanism helps in solving basic economic problem?        2014, 2015, 2017, 2019

Q. Explain the basic problems of an economic system.    2012, 2013(SN), 2014, 2015(SN), 2016, 2017, 2019SN

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

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. Discuss the laws of returns to scale. Discuss the causes of increasing return to scale (2016SN, 2018SN) and decreasing return to scale. How are laws of returns to scale different from laws of variable proportions? 2013, 2019

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 are various types of market? Distinguish between perfect competitions, monopoly and imperfect 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.