1. JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)

END SEMESTER EXAMINATION – OCTOBER 2014

BCOM– I SEMESTER

 BUSINESS ECONOMICS – I

Duration: 3 Hours                                                                                       Max. Marks: 100

 

SECTION – A

 

1. Answer ALL the questions. Each carries 2 marks.                                        (10 x2 =20)

 

1. Differentiate between Micro and Macro Economics.
2. What is Veblen Effect?
3. Show the relationship between total utility and marginal utility with the help of a figure.
4. Explain the concept of Elasticity of supply.
5. Mention any two limitations of Consumers Surplus.
6. Define opportunity cost.
7. Give any four determinants of supply.
8. What do you mean by a budget line?
9. Write the formula for cross elasticity of demand.
10. What are giffin goods? Give an example.

 

SECTION – B

1. Answer any FOUR Each carries 5 marks.                                (4×5=20)                          

 

11. Who is a business economist? Discuss the role of a Business economist in a firm.

 

12. Based on the following examples, identify the economic concept and state the concept:
13. A consumer is willing to pay a higher price for a good
14. A family allocates equal weightage to different requirements.
15. We tend to copy our affluent neighbors.
16. After a certain time, without any change, land yields lesser returns.
17. We decide to build a school instead of a shopping mall.

 

13. Define Indifference Curves. Explain how the consumer reaches equilibrium with the help of Indifference Curves.
14. Define Price Elasticity of Demand. Calculate and diagrammatically represent Price Elasticity of Demand by total outlay method with the help of the following data.

Situation	Price per unit (in Rs)	Quantity Demanded (in units)
a	18.00	500
	16.00	650
	14.00	850
b	12.00	650
	10.00	750
	8.00	900
c	6.00	1200
	4.00	1800
	2.00	3600

 

 

15. Explain the Law of Variable Proportions. Do you think it is applicable in real life?

 

16. Suppose, if there is a labour problem in a garment factory, the supply of garments in the market will be reduced. If this happens during the festive season, there will be a simultaneous increase in demand and decrease in supply. How will this affect the readymade garments market? Analyze this situation.

 

SECTION – C

III)      Answer any THREE questions.    Each carries 15 marks.                    (3×15=45)

 

17. Define demand forecasting. Discuss various methods of demand forecasting.

 

18. Explain the Law of Equi-Marginal Utility with the help of suitable table and diagram. Also state its importance and limitations.

 

19. Discuss the various economies and diseconomies of scale that a large scale business experiences.

 

20. Describe the behavior of cost curves in the short run. Use tables and diagrams to explain your answer.

 

21. What are indifference curves? Discuss the properties of indifference curves with the help of examples.

 

SECTION – D

1. IV) Case study- Compulsory question. (15 marks)

 

22. Using the following data calculate TFC, TVC, AFC, AVC, AC and marginal cost. Also plot the values that you have calculated.

Output in units	0	10	20	30	40	50	60
Total Cost (in Rs)	400	480	550	590	620	650	730

 

 

 

                               

 

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