Q.1. Answer the following as directed: (1 × 8 = 8 marks)

1. Which branch of Economics studies about the application of economic theories into business decision-making?
2. Factor pricing is a subject matter of ______________. (Choose the correct answer: Microeconomics / Macroeconomics)
3. Mention one factor causing increase or decrease in demand.
4. Define indifference curve.
5. Other things remaining the same, an increase in consumer’s income leads to:
   • (i) Rightward shift in the budget line
   • (ii) Leftward shift in the budget line
   • (iii) Budget line will remain unaffected
   • (iv) None of the above (Choose the correct answer)
6. What is the condition of consumer’s equilibrium according to indifference curve analysis?
   • (i) Slope of the indifference curve = Slope of the budget line
   • (ii) Marginal rate of substitution = Px/Py
   • (iii) Indifference curve tangents the budget line
   • (iv) All of the above (Choose the correct answer)
7. TC = TFC + ___________ (Fill in the blank)
8. Price discrimination is practised in:
   • (i) Perfect competition
   • (ii) Monopolistic competition
   • (iii) Monopoly
   • (iv) All of the above (Choose the correct answer)

Q.2. Write short notes on (any three): (4 × 3 = 12 marks)

1. Nature and scope of business economics
2. Law of diminishing marginal utility
3. Properties of indifference curve
4. Factors of production

Q.3. a) What is business economics? Discuss the role and responsibility of a business economist. (3+7 = 10)

Or

b) Write notes on the following:

• (i) Microeconomics vs. Macroeconomics
• (ii) Utility analysis (5+5 = 10)

Q.4. a) State and explain the law of demand. Discuss various determinants of law of demand. (5+5 = 10)

Or

b) What is meant by supply? Prepare an individual supply schedule based on the law of supply and draw the supply curve. (3+7 = 10)

Q.5. a) What is production function? Explain with the help of appropriate example, the relation amongst total product, average product and marginal product. (2+8 = 10)

Or

b) What do you mean by cost of production? Discuss about different cost concepts.

Q.6. a) What do you mean by market in economics? Discuss the main classification of markets. (3+7 = 10)

Or

b) What is factor pricing? Discuss the marginal productivity theory of factor pricing.