Dibrugarh University Question Papers: Business Economics' May 2018

2018 (May)
Course: 202
(Business Economics)
Time: 3 hours
The figures in the margin indicate full marks for the questions
Full Marks: 80
Pass Marks: 24
1. Answer the following as directed:                                       1x8=8
a)         Business economics is best defined as the economic study of
1)      How maximum profit can be made in a business.
2)      How business can make maximum use of resources.
3)      How the problems of business can be solved.
4)      How most of the products can be sold. (Choose the correct answer)

b)         Price mechanism is based on supply and _____.  (Fill in the blank)
c)          Demand is called _____ where demand elasticity is infinity.              (Fill in the blank)
d)         Give an example of joint demand.
e)         “Isoproduct curve can never be a horizontal or vertical line along OX-axis.” (Write True or False)
f)          “When scale of production decreases with the expansion of scale of production cost, it is known as economies.”      (Write True or False)
g)         The classification of market depends mainly on two factors (1) number of firms and (2) _____. (Fill in the blank)
h)         In long-run equilibrium, the price in perfectly competitive market is equal to
1)      Short-rum marginal cost.
2)      Short-run average total cost.
3)      Marginal revenue.
4)      None of the above.  (Choose the correct answer)

2. Answer the following questions in brief:                                                          4x4=16
a)         Mention four chief characteristics of business economics.
b)         Write the importance of elasticity of demand in business management.
c)          Write short note on increasing retures to scale.
d)         Write a note on the short-run supply curve of a firm.

3. (a) Discuss the relationship between business economics and traditional economics and also distinguish between them.                                                 6+8=14
(b) Discuss the nature, scope and characteristics of business economics.

4. (a) What is price elasticity of demand? Explain perfectly elastic and perfectly inelastic demand with the help of diagrams.                                                 2+6+6=14
(b) What is law supply? What are the assumptions necessary for explanation of the law of supply? Explain the individual supply curve and the market supply curve with diagram.                   2+4+8=14

5. (a) Explain the law of variable proportions with diagram. In which stage of the law a rational producer will produce and why?                                                     10+4=14
(b) What is Isoproduct curve? Discuss the main characteristics of Isoproduct curve.          4+10=14

6. (a) Mention the characteristics of perfectly competitive market. Discuss how the price is determined under perfectly competitive market.                                                       8+6=14
(b) What is meant by equilibrium of firm? Explain how firm attains equilibrium with the help of total revenue and total cost approach.                                                                  4+10=14

Full Marks: 80
Pass Marks: 32
1. Answer the following as directed:                                       1x8=8
a)         Mention one characteristic of business economics.
b)         A perfectly elastic demand curve is parallel / perpendicular to the base.      (Choose the correct answer)
c)          Higher Isoproduct curve represents higher level of production.       (Write True or False)
d)         Mention one objective of a firm.
e)         Price of the substitute good is one of determinants of demand.      (Write True or False)
f)          Mention one basic problem of an economy.
g)         Free entry and _____ is one of the important characteristics of perfect competition.  (Fill in the blank)
h)         Very short-run price is known as normal price.  (Write True or False)

2. Answer the following questions in brief:                                                          4x4=16
a)         Highlight the relationship between business economics and traditional economics.
b)         Write the meaning and causes of internal economics.
c)          Discuss the law of supply.
d)         Mention four properties of Isoquants.
3. (a) What is business economics? Discuss the nature and scope of business economics.       2+12=14
(b) Discuss the role and responsibilities of a manager in business economics.                         14

4. (a) What is elasticity of demand? Explain the factors that determine the elasticity of demand.                                4+10=14
(b) Explain the following types of elasticity of demand:                                              7+7=14
1)         Price elasticity.
2)         Cross-elasticity.

5. (a) Explain the law of variable proportions with suitable diagram.                                         14
(b) Explain the characteristics of Isoquants.                                                     14

6. (a) What is perfect competition? Mention four characteristics of perfect competition. How is price determined in the long-term in this market?                                                             2+4+8=14
(b) Discuss the differences between perfect competition market and monopoly market.              14

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