Dibrugarh University Question Papers: Business Economics' 2017 (May)

2017 (May)
Course: 202
(Business Economics)
1. Answer the following as directed:                                                       1x8=8
a)      Mention one difference between business economics and traditional economics.
b)      In a planned economy, all the economic decisions are made by:
Ø  The Government.
Ø  The individuals.
Ø  The elders of the society.
Ø  The labours.                               (Choose the correct answer)
c)       Price of the substitute goods is one of the determinants of the demand.      (Write True or False)
d)      No change of income of the consumer is an assumption of law of demand explanation. (Write True or False)
e)      Higher iso-product curve represents ____ level of production.  (Fill in the blank)
f)       The rate of change in production is same with the rate of change in inputs is known as ____ returns to scale.                                                 (Fill in the blank)

g)      Mention one difference between market price and normal price.
h)      The classification of market depends upon the nature of the produced goods. (Write True or False)
2. Answer the following questions in brief:                                          4x4=16
a)      Mention the scope of business economics.
b)      Draw a demand curve with the help of a imaginary individual demand schedule.
c)       Write a short note on expansion path.
d)      Discuss briefly about the external economies of a business firm.
3. (a) What is price mechanism? Discuss the importance of price mechanism in business economics.        4+10=14
(b) What are the central economic problems? How does the free market economy solve these problems?   7+7=14

4. (a) What is cross-elasticity of demand? Discuss the importance of cross-elasticity of demand in business decision-making process.                                               6+8=14
(b) What do you mean by elasticity of demand? Discuss about the different types of elasticity of demand. 2+12=14
5. (a) What do you mean by economies and diseconomies of large-scale production? Discuss the different factors influencing economies and diseconomies of large-scale production.                                                                        4+10=14
(b) Discuss about optimum factor combination of a business firm with the help of diagram.                          14
6. (a) Discuss how firms determine price and output under perfect competition in the short-run and long-run. 7+7=14
(b) Explain the equilibrium of a firm with the help of marginal revenue and marginal cost.                             14
Full Marks: 80
Pass Marks: 32
1. Answer the following as directed:                                       1x8=8
a)      Business economics is microeconomics/macroeconomics in nature.                 (Choose the correct answer)
b)      Business economics specially associated with the business firms.      (Write True or False)
c)       Give an example of joint demand.
d)      Income of the people is one of the factors determining market demand.      (Write True or False)
e)      When marginal product is zero, what will be the total product?
f)       Isoquant curves do not slope downward from left to right like indifference curves. (Write True or False)
g)      What rules of revenue and cost follow by the monopolist to earn maximum profit?
h)      Which feature of monopolistic competition is monopolistic in nature?
2. Answer the following questions in brief:                                          4x4=16
a)      Mention four chief phases or steps for business decision-making process.
b)      What is demand? Mention the assumptions which are necessary for explanation of law of demand.
c)       Explain in brief four characteristics of Isoquant curve.
d)      State the barriers to entry into monopoly market.
3. (a) Explain how economic theories are applied to business economics.                              14
(b) Discuss in detail the characteristics of business economics.                                                    14
4. (a) Discuss price elasticity of demand. Explain perfectly elastic and perfectly inelastic demand with the help of diagrams.                                                                 4+10=14
(b) In general, what kinds of commodities create cross-elasticity of demand? Discuss the importance of cross-elasticity of demand for business decision-making process.                                                                 6+8=14
5. (a) Discuss the causes of increasing returns to scale and decreasing returns to scale.                                   7+7=14
(b) Mention the characteristics of perfect competition. How is price determined under perfectly competitive market?                                                   8+6=14
6. (a) Discuss the necessary and sufficient conditions for price discrimination. Explain how a discriminating monopolist decides his output and price.                                                      7+7=14
(b) What is meant by price leadership? Discuss how the oligopolists determine price with the help of price leadership.                                                   4+10=14