Reg No.:

Max. Marks: 100

b)

b)
௦)
3 ஐ
b)
4 ஐ
0)
5 9७)
b)
6 9)
0)
7 2)
0)
8 9)

4860

Name:

APJ ABDUL KALAM TECHNOLOGICAL UNIVERSITY

THIRD/FOURTH SEMESTER B.TECH DEGREE EXAMINATION, APRIL 2018

Course Code: HS200
Course Name: BUSINESS ECONOMICS

PART A
Answer any three questions, each carries 10 marks.

Examine the meaning and scope of Business Economics

Suppose an economy’s production is at a point inside its PPC. What does it
mean? Draw a diagram and explain.

Define total utility and marginal utility. Suppose a boy consume more and more
ice creams Prepare a hypothetical total utility schedule and derive marginal
utilities from it.

What are the central problems of an economy?

What is opportunity cost?

How is equilibrium price of a commodity determined? Suppose the number
of buyers of a commodity increases. How does it affect market demand and
equilibrium price? Draw a diagram and explain.

Suppose the finance minister increases the tax on those commodities where
demand is highly elastic. What happens to total tax revenue? Why?

What is a production function? Distinguish between fixed proportion and
variable proportion.

Suppose the production function is given as Q = 3L’?K"?. Find average and
marginal product of labour when L(labour) equals 9 and K(capital) equals 4.

PART B
Answer any three questions, each carries 10 marks.

Complete the following short run cost schedule. Cost is given in rupees.

Output(units) TC TFC TVC MC
0 100 --- ----
1 ween ---- 50 ----
2 ---- ---- ---- 40

Derive the relation between MC and AVC in the short run with the help of a diagram.
What is perfect competition? Demand curve facing a firm under perfect competition is
perfectly elastic. Why?

Suppose the PV Ratio of a firm is given as 0.25 and its total fixed cost is Rs. 10,000/-.
What is the break-even sales of the firm? If the actual sales is Rs. 60,000/-, what is the
margin of safety?

What is inflation? What are the fiscal policy measures to control inflation?

What is repo rate? How does RBI use it as a measure to control inflation?

National income of a country is given as 2850. If the annual depreciation is 300, net
factor income from abroad -50 and net indirect tax 100, estimate GDPyp. (All figures are

Page 1 of 2

1೭310811

Pages: 2

Duration: 3 Hours

Marks

(6)
(4)

(5)
(3)
(2)
(6)
(4)
(6)

(4)

(6)

(4)
(6)

(4)
(6)

(4)
(6)