2018
BUSINESS ECONOMICS
Paper: 401
Full Marks – 80
Time – Three Hours
The figures in the
margin indicate full marks for the questions
1. Answer
the following questions: 1x10=10
a)
Define free market economy.
b)
Mention the basic economic problem faced by an
economy.
c)
Draw a production possibility curve.
d)
What is production function?
e)
What is marginal productivity (MP) when total
productivity (TP) is maximum?
f)
Mention one important assumption of the laws of
returns to scale.
g)
What is the shape of total fixed cost curve
(TFC)?
h)
Define average variable cost of a product.
i)
Draw a short run average cost curve (AC).
j)
Draw an average revenue curve under perfect
competition.
2.
Answer in brief within 30 words each: 2x5=10
a)
What do you mean by resource allocation problem
of a business firm?
b)
Mention two causes of increasing return to
scale.
c)
What do you mean by economic costs?
d)
Briefly explain the role of selling costs in
monopolistic competitive market.
e)
Mention two important characteristics of
monopoly market.
3.
Answer any four of the following within 200 words each: 5x4=20
a)
What is the relation between business economics
and micro economics?
b)
Distinguish between micro and macro economics.
c)
Explain the point elasticity method of measuring
price elasticity of demand.
d)
Show the relationship between marginal cost (MC)
and average cost (AC).
e)
Differentiate between market price and normal
price.
f)
Briefly explain the concept of Discriminating
Monopoly.
4.
What is elasticity of demand? Explain various types of elasticity of demand. 2+8=10
Or
Write short notes on: 5+5=10
a)
Income elasticity of demand.
b)
Cross elasticity of demand.
5.
Explain the law of variable proportion with a suitable diagram. 10
Or
What is an iso-quant curve? Explain its various properties
with appropriate diagram. 2+8=10
6.
Define monopolistic competition. What are its basic features? Explain how price
and output are determined under such market. 1+4+5=10
Or
What do you mean by oligopoly market? Discuss various
features of oligopoly market. 3+7=10
7.
Critically discuss Knight’s uncertainty bearing theory of profit. 10
Or
Explain
the dynamic theory of profit. 10
***
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