| st. joseph’s college of commerce (autonomous) | ||
| END SEMESTER EXAMINATION – MARCH /APRIL 2015 | ||
| BCom – II SEMESTER | ||
| C1 11 204: BUSINESS ECONOMICS – II | ||
| Duration: 3 Hours Max. Marks: 100 | ||
| SECTION – A | ||
| I) | Answer ALL the questions. Each carries 2 marks. (10×2=20) | |
| 1. | State any two examples of industries where Oligopoly is predominant. | |
| 2. | Explain the term Dual Pricing. | |
| 3. | Through a diagram, explain equilibrium of a Monopoly firm. | |
| 4. | Explain two conditions for firms to be in equilibrium in the long run period. | |
| 5. | What is meant by Dumping? State its significance in International Trade. | |
| 6. | State the difference between BOP and BOT. | |
| 7. | Name any four Indian Multinational Companies. | |
| 8. | What is meant by Tied aid? | |
| 9. | State any two factors that influence pricing with an example. | |
| 10. | Differentiate between monopoly and monopolistic competition.
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| SECTION – B | ||
| II) | Answer any FOUR questions. Each carries 5 marks. (4×5=20) | |
| 11. | State the difference between Devaluation and Exchange Depreciation. | |
| 12. | Explain the features of Perfect Competition. | |
| 13. | Explain Demand Pull Inflation with the help of a figure. | |
| 14. | Differentiate Direct taxes and Indirect taxes. | |
| 15. | What is a Budget? When is a deficit budget followed by a Country? | |
| 16. | Explain the merits and demerits of Foreign Direct investment. | |
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SECTION – C |
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| III) | Answer any THREE questions. Each carries 15 marks (3 X 15=45) | |
| 17. | Explain any FIVE pricing methods with suitable examples. | |
| 18. | Determine the price and output of a Discriminatory Monopolist. | |
| 19. | What is Monetary policy? Explain the various quantitative instruments of the monetary policy. | |
| 20. | Is Disequilibrium an emergency problem of a Country? What are the measures practiced to solve the disequilibrium in the Balance of Payments? | |
| 21. | Explain how time as an element influences the price and output of a firm under Perfect Competition. | |
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SECTION – D |
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| IV) | Case Study (1×15=15) | |
| 22. | Cartel in the Global Economy:
In 2004 the OPEC comprised 11 countries namely Algeria, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria Qatar, s Arabia, UAE and Venezuela. The OPEC acquired a high degree of monopoly power through cartel-an official agreement among the oil producing member countries, thereby to restrict the output. Historically the OPEC did not make any direct attempt to raise the overall level of global prices. 1970 onwards the OPEC realized the strength of their cartel in collective deliberations and coordinated actions to raise the oil prices. Through output quotas and supply restrictions of the OPEC, oil prices increased from $1.10 to $11.50 per barrel and it became $ 34.00 by late 1970s. since then there has been a rising trend of oil prices attributed to OPEC. Control over the supply against the rising demand for oil from time to time. The OPEC cartel has thus succeeded in pushing up the world oil prices above $199 per barrel in recent years. The members meet regularly to deal with the problem of excess capacity as growing of supply against the falling demand. Despite the emerging difficulties such as new entry of producers, like Russia and Norway, deviations in quota reinforcements, the OPEC has succeeded in its operations by and large in managing to reinforce its market positions in the global oil sector.
The OPEC through its increased profit shares has been able to manage and survive in retaining its dominance as the price leader in the global market against all odds. The OPECs success lies in its natural advantage of dominant ownership of huge oil reserves, high productive capacity and low cost of production and rising profit shares of its members in the global markets.
a. Name the different types of price leadership? Who is called a dominant price leader? Is OPEC a dominant leader? b. Has the cartel of OPEC been successful? If yes, state the various reasons. c. Are cartels necessary between traders? if yes why?
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