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C192067

curves under monopoly and monopolistic competition.

What is a kinked demand curve?

Pages: 2

(4)

Suppose the gross value ofoutput at market price of a firm is Rs.50000. If the (6)

annual depreciation is Rs.2000 and indirect tax is Rs.500, estimate net value of

output at market price and at factor cost. Also estimate the net value added at

factor cost if the firm used intermediate goods for Rs.7500.

Explain the circular flow in a simple two sector model

Draw diagrams and explain demand pull and cost push inflation

What are the four phases of a business cycles?

PART C

Answer any four questions, each carries10 marks.

(4)
(6)
(4)

The initial investment on a project is Rs.50000 and the cost of borrowing is 10%. (6)

If the cash flows after tax from year | to 3 are Rs.40000, 30000 and 20000

respectively. Estimate BCR or profitability index.

Give any two merits and demerits of BCR method

What is payback method? What are its merits and demerits?

How is decision taken under a situation of risk?

(4)
(6)
(4)

What is savage principle? A pay off matrix is given below. Which alternative (10)

will be selected according to the savage principle or minimax regret?(estimate

regrets)

Possible future demand
Alternatives Low Medium High
Small facility 20 20 20
Medium facility 19 22 22
Large facility 13 14 24

Explain assets and liabilities in a balance sheet? Give 2 examples each

What are the uses and limitations of a balance sheet?

(6)
(4)

Forecast the sales for the year 2018 for the time series data given below by least (10)

square method.

Year 2013 2014 2015 2016 2017
Sales(in lakhs) 50 70 60 80 100
Distinguish between foreign direct investment and foreign portfolio investment. (6)

Give any four advantages and disadvantages of direct tax

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(4)

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