Dibrugarh University B.Com 2nd Sem: Business Economics Question Papers (May'2019)

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 specially associated with the business firms. (Write True or False)
b)      The main problems faced by the business managers can be divided into two parts, (1) ______ and (2) forward planning. (Fill in the blank)
c)       Price elasticity of demand can be defined as (Choose the correct answer)
1) Changes in quantity demanded/Changes in prices
2) Changes in quantity demanded/changes in the price
3) Percentage change in the price/ Percentage change in quantity demanded
4) Percentage change in quantity demanded/ Percentage change in the price
d)      Elasticity of demand at the midpoint of a straight line demand curve is > 1 / 1 / < 1. (Choose the correct answer)
e)      Higher Isoproduct curve represents _______ levels of production. (Fill in the blank)
f)       If factors would have been perfectly divisible, increasing returns to scale would have occurred. (Write True or False)
g)      The short-run supply curve of firm under perfect competition always slopes downward/upward. (Choose the correct answer).
h)      Under perfectly competitive market, AR is not equal to MR (Write True or False)
2. Answer the following questions in brief:                          4x4=16
a)         What are the basic problems of an economic system?
b)         Write a short note on price elasticity of demand.
c)          What are the properties of Isoquants?
d)         “ A firm is a price-taker in perfect competition.” Write briefly.
3. (a) What do you mean by business decision-making process? Discuss the various phases or steps of business decision-making process.           2+12=14
(b) What is price mechanism? Discuss the importance of price mechanism in business economics.      4+10=14
4. (a) What are the different types of elasticity of demand? Discuss the importance of elasticity of demand in business decision-making.          6+8=14
(b) Give the definition of elasticity of supply. What is the practical importance of elasticity of supply in business decision-making process? Discuss the factors determining the elasticity of supply.                                                              4+3+7=14
5. (a) Discuss about internal and external economies of a business firm. How does it affect production function?                8+6=14
(b) Discuss the optimum factor combination of a firm with the help of suitable diagram.    14
6. (a) What is a firm? Explain how a firm maximizes its profit under perfect competition with the help of suitable diagram.                2+12=14
(b) State the features of a perfectly competitive market. Explain how a firm attains equilibrium in short run under perfect competition.                  6+8=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 is also called _______ economics. (Fill in the blank)
c)          Give an example of joint demand.
d)         What will be the marginal product when total product is maximum?
e)         Draw a perfectly inelastic demand curve.
f)          Isoproduct curve can never be horizontal or vertical along base or OX-axis. (Write True or False)
g)         Write one characteristic of the perfectly competitive market.
h)         Under which market condition a firm is a price-taker?
2. Answer the following questions in brief:                     4x4=16
(a) Write in brief about business decision-making process.
(b) Explain four factors affecting price elasticity of demand.
(c) (1) Write a short note on internal economies of business firm.
(2) Write a short note on perfectly competitive market.
(d) Write short note on:
1)         Price leadership.
2)         Price discrimination.
3. (a) Discuss the various problems of business economics.       14
(b) Explain how economic theories are applied to business economics.              14
4. (a) What is the difference between individual demand and market demand? How is the market demand curve derived from the individual demand curve?             5+9=14
(b) What is price elasticity of demand? How is the price elasticity of demand measured on linear demand curve? What are the factors that affect price elasticity of demand?  3+8+3=14
5. (a) Explain the law of variable proportions with the help of suitable diagram. In which stage of the law, a rational producer will produce and why?     9+5=14
(b) Discuss the external economies and diseconomies of a business firm.     14
6. (a) What are the features of perfectly competitive market? Explain the process of price output determination in short-run under such market.      5+9=14
(b) What do you mean by oligopoly market? Discuss how the oligopolists determine price with the help of price leadership.        3+11=14


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