Reg. No. :... Sub. Code : GACO 11 B.Com.(CBCS) DEGREE EXAMINATION, NOVEMBER 2014. First Semester Commerce Allied BUSINESS ECONOMICS (For those who joined in July 2012 onwards) Time : Three hours Maximum : 75 marks PART A (10 1 = 10 marks) Answer ALL questions. Choose the correct answer. 1. ö\àá C»UPnzvß B] º (A) BÀL μm õºåà (B) C» ÚÀ μõ ßì (C) Bh ìªz (D) \õ ÁÀ\ß The author of wealth definition is (a) Alfred Marshall (b) Lionel Robbins (c) Adam smith (d) Samuelson
2. ~Pº Áõº Ga\ Gß x (A) usâø» Esø Âø» (B) MV n TVn TVn 1 (C) uøá = AÎ (D) ØTÔ GxĪÀø» Consumer surplus is (a) Potential price Actual price (b) MV n TVn TVn 1 (c) Demand = supply (d) None 3. Esø ö\»ä Gß x (A) xß ØÖ v õp (B) EÒÐnºÄ (C) Ø]² v õp (D) ØTÔ AøÚzx Real cost is (a) pain and sacrifice (b) subjective concept (c) efforts and foregoing leisure (d) all the above Page 2
4. ÂÍ μa ö\»ä Gß x (A) õö k ö\»ä (B) {ø»a ö\»ä (C) ]» \ [PÎÀ {ø»a ö\»ä ØÓ \ [PÎÀ õö k ö\»ä (D) ØTÔ GxĪÀø» Advertisement cost is a (a) (b) (c) (d) variable cost fixed cost fixed cost in certain cases and variable costs in some other cases none of the above 5. õøöa ö\»øá CÆÁõÖ AøÇUP»õ (A) \ uº ö\»ä (B) na ö\»ä (C) \μõ\ ö\»ä (D) CÖv {ø»a ö\»ä Alternative costs are also known as (a) oppurtunity cost (b) money cost (c) average cost (d) marginal cost Page 3
6. {øóä õmi {ÖÁÚ[PÒ Gß x (A) Âø» uk káºpò (B) Âø» E ÁõUS ÁºPÒ (C) (D) Âø» u Âø» ØöPõÒ ÁºPÒ Perfect competitive firms are (a) (b) (c) (d) price searchers price makers price discriminators price takers 7. i õ õ¼ Gß x (A) J ÂØ øú õíº (B) C ÂØ øú õíºpò (C) (D) AvP ÂØ øú õíºpò SøÓÁõÚ ÂØ øú õíºpò Duopoly means (a) single seller (b) two sellers (c) many sellers (d) a few sellers Page 4
8. ö AÍÂØPõÚ EØ zv Gß x CuøÚ öáî kzx (A) EØ zv ]UPÚ (B) öuõè»õíº vóø (C) (D) Põμo AÎ AvUP kzxáx {»zvóø Large scale production is the result of (a) economics of production (b) efficiency of labour (c) increase in factor supply (d) efficiency of land 9. \μõ\ AhUPU Põk Gß x (A) kuøp PõhõS (B) Szx PõhõS (C) U ÁiÁ (D) }sh \xμ øí º õ»õ Average cost curve is a (a) Horizontal straight line (b) Vertical straight line (c) U shaped (d) Rectangular hyperbola Page 5
10. ÁõhøP, T¼ ØÖ Ámi öpõkzu ÓS öuõèà øú Áõ US Gg_Áx (A) C»õ (B) {Pμ C»õ (C) ö õzu C»õ (D) TkuÀ C»õ After paying the rent, wage and interest, what remains with the entrepreneur is (a) profit (b) net profit (c) gross profit (d) total profit PART B (5 5 = 25 marks) Answer ALL questions, choosing either (a) or (b). Answer should not exceed 250 words. 11. (A) Ûu uøápîß ]Ó À PøÍ ÂÍUSP. Explain the characteristics of human wants. (B) ~Pº Áõº E Áøμ Ö. Define Consumer surplus. 12. (A) uøá AmhÁøÚ ØÔ }º AÔÁx õx? What do you mean by Demand schedule? Page 6
(B) uøá Âv ß Âv »USPÒ õøá? What are the exceptions to the law of demand? 13. (A) \ {ø» EØ zv PõkPÒ Gß øá õøá? What are Isoquants? (B) õóõu ö\à EØ zv ÂøÍÄ ØÔ }º AÔÁx õx? What is meant by constant returns to scale? 14. (A) \ºÁõwÚ õmi ß ßø PøÍ mi À CkP. List down the merits of monopoly competition. (B) ]À»õº õmi ß ]Ó À PÒ õøá? What are the features of Oligopoly? 15. (A) \ {ø» S õ Âß ß õkpò õøá? What are the uses of Break even analysis? Page 7
(B) ö õzu C»õ ØÖ {Pμ C»õ GßÓ u[pøí ÂÍUSP. Explain the terms Gross profit and Net profit. PART C (5 8 = 40 marks) Answer ALL questions, choosing either (a) or (b). Answer should not exceed 600 words. 16. (A) Áõo ö õ Íõuõμzvß À ÁÖ P zxpøí TÖP. Enumerate the various concepts of Business Economics. (B) ~Pº Áõº E ß UQ zxázøuz öu Â. State the importance of Consumer s surplus. 17. (A) uøá ö QÌÄ Âø»ø AÎUS À ÁÖ øópøí ÂÍUSP. Explain the methods of measurement of price elasticity of demand. Page 8
(B) TÖ GkzuÀ øó ß ßø PÒ ØÖ wø PøÍ ÂÁ. Explain the merits and demerits of sampling method. 18. (A) E º u ö\à EØ zv ÂøÍøÁ õvus PõμoPøÍ ÂÍUSP. Explain the factors that cause increasing returns to scale. (B) }sh Põ» \μõ\ ö\»ä GÆÁõÖ SÖQ Põ» \μõ\ ö\»ähß GÆÁõÖ EÓÄ kzu kqóx? How long run average cost related with short run average cost? 19. (A) ØÖ ø õmi À Âø» GÆÁõÖ wº õûup kqóx? How is price determined under Monopolistic competition? (B) v ö õ mpøí Âø» hà SÔzx _ UP õp GÊxP. Write a brief note on pricing of new products. Page 9
20. (A) \ {ø» S õ Âß ßø PÒ ØÖ wø PøÍ mi ¼kP. List out the merits and demerits of Break even analysis. (B) C»õ zvß À ÁÖ P zxpøíu TÖP. Enumerate the various concepts of profits. Page 10