BIYANI GIRLS COLLEGE

MODEL PAPER Business Economics B.Com Part 1

Time: 3 hrs. Short Answer type questions. Q.1 Q.2 Q.3 Q.4 Q.5 Q.6 Q.7 Q.8 Q.9 Q.10 Q.11 Q.12 Q.13 Q.14 Q.15 Q.16 Q.17 Q.18 Q.19 Q.20 Q.21 Q.22 Q.23 Q.24 Q.25

M.M. : 100

Differentiate between Business Economics & Traditional Economics. Explain Scarcity Definition of Economics. What is the scope of Macro Economics. Critically examine the law of diminishing marginal utility. How is Consumer s surplus is measured? Why is slope of indifference curve always downwards from left to right? Why does law of demand operates? Differentiate between extension & contraction in demand. Differentiate between Increase & Decrease in demand. What are the methods of measuring elasticity of demand? Discuss the various steps involved in Demand Forecasting? Write short note on Opportunity cost. What are the uses & importance of opportunity cost? What is the Law of Variable Proportion? Who does it apply? Define Iso-product curves. Discuss their characteristics. What are the assumptions of Law of Supply? Discuss the exceptions to the law of supply. Perfect competition is a myth Discuss statement. What are the controls of monopoly? Discuss the price and output determination under oligopoly. Why the demand curve kinked under oligopoly? Explain the methods of measuring national income. How are wages determined under the conditions of perfect competition? Critically examine the liquidity preference theory of interest. Discuss the modern theory of interest. Critically examine the marginal productivity theory of product. Discuss the modern theory of profit.

Long questions. Q.1 Q.2 Q.3 Q.4 Q.5 Define Business Economics. Describe the nature & scope of business economics. Discuss the scope of economics. Discuss the comparative study of deductive & inductive methods of economics. Distinguish between macro & micro economics. How do the macroeconomic and micro economics analysis help in formulating business policies. Write short notes on the following : a) Value-in-use and value-inexchange

b) Cardinal approach utility & ordinal approach utility

Q.6 Q.7 Q.8 Q.9 Q.10 Q.11 Q.12 Q.13 Q.14

Critical examine the concept of consumer surplus. Discuss the uses and importance, application of indifference curve analysis. Discuss the law of demand. What are the determinant of demand along with the exceptions of law of demand. What is elasticity of demand. Discuss the degrees of price elasticity of demand. Discuss the various methods of demand forecasting. Discuss the cost output relationship during short and long period. What are the stages of production or law of production. What are the causes of their operations. Explain the law of returns to scale with the help of diagram. Write short notes on the following : a) Scale line or expansion path b) Marginal rate of technical substitution c) Iso cost curves d) Varying returns to scale

Q.15 Q.16 Q.17 Q.18 Q.19 Q.20

Discuss the objectives of an enterprise. What are its constraints. Define perfect competition. How price and output are determined under it? Discuss the determination of price and output under monopoly. Define monopolistic competition. Discuss the price and output determination under it. Distinguish between ricardian theory and modern theory of rent. What is innovation theory of profit?