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Total Pages: 2
Reg No.: Name:
APJ ABDUL KALAM TECHNOLOGICAL UNIVERSITY
THIRD SEMESTER B.TECH DEGREE EXAMINATION, DECEMBER 2017
Course Code: HS200
Course Name: BUSINESS ECONOMICS
Max. Marks: 100 Duration: 3 Hours
PARTA
Answer any three questions, each carries 10 marks.
1 a) What is a PPC? Explain opportunity cost concept using Production Possibility (6)

Curve.
b) What is Price Elasticity of demand? (4)
2 9) Explain the market equilibrium concept using a schedule and diagram. (6)
b) Calculate marginal utility from the following data. (4)

xX 1 2 3 4 5 | 6 | 7 | 6 |
3 2) Give examples of any three business decisions which can be taken effectively (6)
using the concepts in business economics.

b) Comment on the nature of elasticity from the following data (4)
i) Ep=1 ii) Ep=0 111) Ep=2 iv) Ep=.85
4 2) Given below are the production function of Firm A (4)

Q= 100 KL" ,
The firm use 20 units of Labour (L) and 10 units of Capital (K).
Calculate the output

b) State and explain the Law of variable proportions (6)
PART B
Answer any three questions, each carries 10 marks.
5 2) Elucidate the features of a perfect market structure 6)
b) What will happen if a firm cut price in an oligopoly market (4)
6 2) (i)Calculate Break Even Quantity from the following data (6)

Fixed Cost:Rs. 25,000 ; Average Variable Cost : Rs. 12; Selling Price Rs. 17
(ii) What will be the Break-Even Quantity, if selling price increases by Rs.3?

b) What are the limitations of Break-even analysis? (4)
7 a) Describe the Circular Flow Concept using a three-sector model. (6)
b) Differentiate between GDP and GNP. (4)

8 a) What is inflation? What adjustments can be made in CRR and SLR to bring (5)
down the level of inflation?

b) Describe the different phases of Trade Cycle (5)
PART C
Answer any four questions, each carries 10 marks.
9 a) What are the advantages of NPV method (4)

b) Mr. Keynes, an investor is evaluating two projects with an objective of selecting (6)

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