Assam University 2007 B.Com Business Economics Fundamentals - Question Paper

B.Com. Examination, May 2007
COMMERCE
Business Economics Fundamentals

Time : three Hours Max. Marks : 90

part - A

ans any ten sub-questions from the subsequent. every sub-question carries 2 marks : (10x2=20)

1. a) What do you mean by Business Economics ?
b) What is Consumer Surplus ?
c) Differentiate Cardinal and Ordinal Utility.
d) What is Veblen effect ?
e) What is producer’s equilibrium ?
f) What do you mean by Delphi Method ?
g) What do you mean by money cost and real cost ?
h) What is cross elasticity of demand ?
i) provide the meaning of price line.
j) elaborate internal economics of sale ?
k) What is meant by opportunity cost ?
l) provide the meaning of increase in supply and contraction of supply.

part - B

ans any 5 ques.. every ques. carries 5 marks : (5x5=25)

2. discuss the different kinds of price elasticity of demand.

3. With the help of the subsequent data, adopting total outlay method, obtain out the price elasticity of demand. Show the graphic representation.

Price per unit (in Rs.) volume demanded (in units)

a) 10.00 1,000
9.00 2,000
8.00 3,000

b) 10.00 900
9.00 1,000
8.00 1,125

c) 10.00 1,000
9.00 1,050
8.00 1,000

4. Write a note on consumer surplus.

5. Who is a Business Economist ? explain the role of Business Economist in a firm.

6. A cement factory reports the subsequent sales of cement as shown against different years. Estimate the sales for the next 2 years i.e. for 2007 and 2008 with the help of lowest Square Method.

Year : 2002 2003 2004 2005 2006
Sales : 90 80 70 80 60
(in tones)
(in 000’s)

7. elaborate the determinants of demand ?

8. What is consumer sovereignty ? Write its limitations.

9. With the help of the data provided below, compute TFC, TVC, AC, AVC and MC.

Output (in units) 0 one two three four five six seven 8
Total Cost (in Rs) 500 580 650 690 750 720 830 920 1,150

part - C

ans any 3 ques. from the subsequent. every ques. carries fifteen marks : (3x15=45)

10. discuss the legal regulations of Equi-Marginal Utility with the help of table and diagram along with its limitations.

11. elaborate economies of scale ? discuss internal and external economies of large scale production.

12. describe indifference curves. discuss how the consumer reaches equilibrium with the help of indifference curves.

13. What is an elasticity of demand ? discuss the different factors that determine the elasticity of demand.

14. discuss the scope of Business Economics.

Earning:   Approval pending.