BCom FY BCom Sem 1 Bccom Sem 1 2017 To 2018 March 2018 BUS. ECONOMICS Question Paper - Mumbai University | munotes

Questions asked in this paper

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1. Q2 All questions have internal choice
2. Q4 Use of simple calculators is permitted
3. Q5 Figures to the right indicate full marks
4. Q1 A) Select the best answer from the given options and rewrite the statement. (Any Ten) 10 marks
   • i) The slope of a straight line is
   • a) Increasing
   • b) Decreasing
   • c) Constant
   • d) None of the above
   • ii) The downward sloping demand curve states that
   • a) As price increases, quantity demanded increases
   • b) As price decreases, quantity demanded increases
   • c) As price decreases, quantity demanded decreases
   • d) None of the above
   • iii) If we were to sum the quantity demanded by every consumer in the market at every price and plot those sums against the relevant price, we would obtain the
   • a) Supply curve
   • iv) When the price of a product is increased by 10% and the quantity demanded decreases by 15% we say
   • a) Relatively elastic
   • b) Relatively inelastic
   • d) None of the above
   • a) Trends
   • b) Cyclical and seasonal fluctuations
   • d) the above
   • vi) _Demand forecasting is always
   • a) Unreliable
   • b) Accurate
   • c) Conditional
   • d) None of the above
   • vii) We get fewer and fewer additional units as we add more and more units of inputs to the production process. We call this fact the
   • a) Law of diminishing marginal utility
   • b) of diminishing returns
   • c) of supply
   • d) Law of demand
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   • viii) Economies of scale exist when
   • b) Increasing returns applies in the short term
   • d) Greater experience in producing the product reduces average cost
   • ix) MRTS stands for
   • a) Marginal rate of technical structure
   • b) Marginal rate of technical substitution
   • c) Both (a) and (b)
   • d) None of the above
   • x) Health insurance premiums paid for employees by the firm are an example of
   • a) Variable costs
   • b) Fixed costs
   • c) Both (a) and (b)
   • d) None of the above
   • xi) The cost of producing 5 units is Rs.567 and 6 units is Rs.768. The MC of producing the sixth unit is
   • a) Fixed cost divided by output
   • b) Change in fixed cost divided by total output
   • c) Total cost divided by fixed. cost
5. Q1 B) Match the concepts and their definitions. Write the concept with its appropriate definition. (Any Ten) 10 marks
6. Q1 curve a, Measures the change in quantity demanded of a good given in the price of that good Functions b. Locus of points of tangency between the
7. Q4 Price elasticity — of d. responsiveness of quantity demanded of demand a good to a change in its advertising expenditure Rectangular f. graphical representation of hyperbola relationship between price and quantity
8. Q8 Economies of scope h. Reduction of cost by producing two or more goods or services jointly
9. Q9 i. Shows the number of units that producers are willing to sell at each price
10. Q11 Total profit k. When firms are able to change all of the factors of
11. Q12 Accounting cost |. Shows the relationship between two or more
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12. Q2 Attempt A and B OR C and D
    • A) What is the scope of business economics? 8
    • B) What is opportunity cost? Explain its significance in business economics. 7
    • C) With the help of a diagram explain the determination of equilibrium market price and quantity. 8
    • D) Using diagrams explain changes in market equilibrium due to changes in demand. 7
13. Q3 Attempt A and B OR C and D
    • A) Write on the significance of the concept of price elasticity of demand. 8
    • B) What is the difference between price elasticity, income elasticity and cross elasticity of demand? Is the demand for Angel chocolates price elastic or inelastic if it is = -0.2? 7
    • C) What is demand forecasting? Explain any two of the following methods of demand forecasting. 8
    • i. Delphi method
    • D) Given the following demand function Qpx=100-0.45P, what is your forecast for Qox when Px is 20,30,40? 7
14. Q4 Attempt A and B OR C and D
    • A) Explain producer’s equilibrium as the least cost combination. 8
    • B) Explain the law of variable proportions. 7
    • C) Explain the various external economies of scale. 8
    • D) Using diagrams explain the law of scale. 7
15. Q5 Attempt A and and D
    • A) Define and illustrate with a diagram 8
    • C) Derive the LAC curve using the short term average cost curves of a firm. 8
    • D) isthe learning curve? Explain with a diagram. 7
16. Q6 Attempt A.and B OR write short notes on any four
    • A) Explain the nature of demand curves in different markets. 10
    • B) What is the breakeven point? Using diagrams explain how the breakeven point changes when there are changes in price and fixed cost 10
17. Q6 Write short notes. Any four. 20 marks
    • i) . Slope of straight lines
    • ii) Importance of demand forecasting
    • iv) External economies of scale
    • v) Fixed and variable cost
    • vi). Limitations of breakeven analysis
    • Q.P. Code :00488 Please check whether you have got the right question paper
18. Q31 ash
    • Q.P. Code :00488
19. Q31 TEA HHT Marginal Rate of Technical structure Marginal Rate of Technical substitution
20. Q3 Ba (CHOICE BASE) (R 2016) SEMESTER I/ C0534 BUSINESS ECONOMICS IT
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21. Q2 — Ash TT
    • Q.P. Code :00488 AScd FASS AT,
    • S) HAT
22. Q2 Meh Get
    • Q.P. Code :00488
    • H) ATT As HIT
    • S) FAT iii) iv)
    • v) Ga vi)

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