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

Questions asked in this paper

• Please check whether you have got the right question paper

1. Q2 All questions have internal choice
2. Q4 Use of simple calculator is permitted
3. Q5 Figures to the right indicate full marks
   • A) Select the best answer from the given options and rewrite the statement. (Any Ten) 10
4. Q1 Opportunity Cost is the
   • a) Price of a good or service
   • b) All costs
   • c) Value of the best alternative sacrificed
   • d) Price that exceeds market price
   • ii) If Kommoner’s lowers the price of its pizzas,
   • a) Demand for Queen’s pizzas increases
   • b) Demand for pizzas increases
   • c) Demand for Queen’s pizzas decreases
   • d) Both b and c ili) The supply curve illustrates how
   • a) Quantity supplied increases as price decreases
   • b) Quantity supplied increases as price increases
   • c) Quantity supplied increases as technology improves
   • d) Quantity supplied increases as resource price decreases Iv) Demand is relatively inelastic when
   • d) Ea=0
   • v) When a 1% change in price leads to more than 1% change in quantity demanded, we
   • a) Relatively elastic
   • b) Relatively inelastic
   • c) Unit elastic
   • d). None of the above
   • Q.P. Code :19575
   • vi) Delphi method is a
   • a) Survey method
   • b) Statistical method
   • d) None of the above
   • vii) For Ford Motor Company, all of the following are sources of economies of scale
   • a) Mass production techniques used in the manufacturing of autos
   • b) Bureaucracy and red tape encountered as the firm becomes larger
   • c) Learning by doing which allows workers to become more productive
   • d) Additional specialisation made possible by large scale production
   • viii) |The negative slope of the iso-quant is due to
   • a) Diminishing marginal rate of technical substitution
   • b) Zero marginal rate of technical substitution
   • c) Marginal rate of technical substitution is greater than one
   • d) None of the above
   • ix) When a firm experiences economies of scale,
   • a) The long run average cost curve slopes downward
   • b) The long run average cost curve is vertical
   • c) The long run average cost curve slopes upward
   • d) The long run average cost curve is horizontal An economist would argue that accountants tend to
   • a) Understate costs and overstate profits Understate costs and understate profits
   • c) Overstate costs and understate profits
   • d) Overstate costs and overstate profits
   • a) Cost that is recovered Cost of foregone alternatives
   • d) nor b
   • xii) Breakeven point is reached when a firm
   • c) variable cost
   • d) All of the above
   • Q.P. Code :19575
   • B) Match the concept with its appropriate definition/explanation/description. Any Ten. 10
   • vi) Promotional elasticity of demand f] Price and quantity supplied are
   • vii) line g] Impact of change in advertising
   • xi) Incremental cost k] An increase in the scale of production of the firm results in rise in cost per xli) Breakeven analysis 1] Diagrammatic representation of a
5. Q2 Attempt A and BOR C and D
   • A) What is business economics? Discuss the relationship between economic concepts and 08
   • B) Given the following data. Calculate TR, AR, and MR. Explain the relationship between 07
   • a) TR and and b) AR and MR
   • C) The following table describes the market for floppy discs before pen drives were 08 Price (Rs) Quantity Demanded of floppy Quantity Supplied of floppy
   • i) Plot the demand and supply curves from the table given above li) What is the equilibrium price and equilibrium quantity?
   • Q.P. Code :19575 ili) At the price of Rs. 200 what is the equilibrium quantity demanded and quantity
   • iv) When pen drives were introduced the demand for floppy discs decreased. Does the new demand curve shift to the left or right of the original demand curve?
   • D) Using diagrams explain the causes of changes in demand in terms of movement along and shifts in the demand curve
6. Q3 Attempt A and B OR C and D
   • A) What are the determinants of demand? 08
   • B) Given the following data, calculate price elasticity of demand for wheat when price 07 increases and when price decreases. State whether the demand for wheat is elastic or Market demand for wheat
   • C) What is demand forecasting? Explain the various types of demand forecasting. 08
   • D) Explain the least squares method of demand forecasting. 07
7. Q4 Attempt A and B OR C and D
   • A) What are isoquants? Explain the properties of isoquants. 08
   • B) Explain the law of variable proportions. 07
   • C) Explain the least cost combination as producer’s equilibrium. 08
   • D) Explain external economies and diseconomies of scale. 07
8. Q5 Attempt A and B OR
   • A) Distinguish between short run and long run costs. 08
   • B) Given TFC as 55 and the following data, calculate TVC, MC, AFC, AVC and AC 07
   • Q.P. Code :19575
   • C) Derive the LAC curve using the short run average cost curves of a firm. Why is it called 08
   • D) What is the learning curve? Explain with a diagram. 07
9. Q6 Attempt A and B OR Write short notes on any four
   • A) Explain changes in equilibrium due to: 10
   • a) Changes in demand and
   • b) Changes in supply
   • B) What is the breakeven point? Using diagrams explain how the breakeven point changes when there are changes in price and variable cost
10. Q6 Write Short Notes. Any Four 20 marks
11. Q1 Functions and equations li) Steps of demand forecasting ili) Types of isoquants
    • iv) Internal economies of scale
    • v) Fixed and variable cost
    • vi) Limitations of breakeven analysis
    • Q.P. Code :19575 Please check whether you have got the right question paper
    • a) Ed=l
    • c) Ed<1
    • d) Ed=0
    • Q.P. Code :19575
    • b) ta
12. Q9 ad Ela
    • d) amp saat
    • a) Hat
    • c) Hat
    • Q.P. Code :19575
    • b) ad
    • d) ad
    • Q.P. Code :19575
    • a) TR MR,
    • b) AR MR
13. Q8 sie?
    • Q.P. Code :19575
    • B) HIST
    • C) Sars
    • A) HIT?
    • C) Udren (LAC)
    • Q.P. Code :19575 ii) iii) iv)
    • v) fer sift vi)

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