F B4F008 Pages: 2

Reg. No. Name:
APJ ABDUL KALAM TECHNOLOGICAL UNIVERSITY
FOURTH SEMESTER B.TECH DEGREE EXAMINATIONS, MAY 2017

HS200: BUSINESS ECONOMICS

Max. Marks: 100 Time: 3 Hours

PARTA
Answer any 3 Questions. Each carries 10 Marks.

1. Define marginal utility. Explain the Law of diminishing marginal utility with
diagram.
2. Explain Production possibility frontier with diagram. Also write a note on opportunity

cost.
3. a. Explain the concept of equilibrium. (4)
b. Write notes about the following
i) Elasticity of Demand. (3)
ii) Factors affecting demand. (3)
4. 2. Diagrammatically explain the Law of Variable Proportions. (5)
b. Assume the production function Q = 21%“ (5)

i) IfL=100, K=200, what is the maximum quantity that can be produced?
ii) Ifthe firm changes the amount of labour and capital by 10 times what will
happen to the output? Why?

PART B
Answer any 3 Questions. Each carries 10 Marks.

5. Compare the market situation of perfect competition with monopoly
6. a. Explain break even analysis with diagram. (4)
b. Ifacompany has the following details
Fixed cost = Rs. 40,00,000
Variable cost per unit = Rs 100
Selling price per unit = Rs 200

Calculate i) Break even quantity. (2)
ii) If the actual production quantity is 1,20,000, what will be the profit?
(4)
7. Discuss Circular flow of income in a two sector economy with diagram.
8. a) Explain the methods of national income calculation. (8)
b) What is the implication of the following statement? (2)

GNP is Rs. 58, 33,558 crore and NNP is Rs. 55, 01,067 crore.

PART C
Answer any 4 Questions. Each carries 10 Marks.

9. a) From the following data choose the best project based on payback period. (6)

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