Seat No.:
Subject Code: 3519202
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Enrolment No.
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA - SEMESTER 1 - EXAMINATION - WINTER 2018
Subject Name: Economics For Manager (EFM)
Time: 10:30 am to 1: 30 pm
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Instructions:
- Attempt all questions.
- Make suitable assumptions wherever necessary.
- Figures to the right indicate full marks.
| Q. No. | Marks | |
|---|---|---|
| Q.1 |
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| Q.2 | List and explain the three reasons the aggregate demand curve slopes downwards. | 07 |
| Q.3 | Reliance Jio gave its WIFI router which allows only Jio sim to be operational. Is it an example of Tying? Justify your answer. OR Assuming a two-party electoral system, a lot of election expenses can be reduced if both the parties don’t opt-for advertising. Is this possible, explain with the concept of prisoner’s dilemma. | 07 |
| Q.3 | List four components of GDP. Give an example of each. | 07 |
| Q.4 | Indian banks offer an interest rate on the money deposited by the account holders to maintain the value of the money over time. Considering nominal and real exchange rate and current inflation, is the value of money maintained? Justify. OR --- Content provided by FirstRanker.com --- Explain the costs of inflation | 07 |
| Q.4 | If only pav bhaji and vadapav are available in the economy, mention the steps to calculate CPI with base year of 2016. Assume data where necessary. | 07 |
| Explain reasons for aggregate supply to slope upwards | 07 | |
| Mention the various tools of fiscal policy OR If unemployment is to be reduced, then inflation increases in short run. Explain with graph. | 07 | |
| RBI is reluctant to reduce the interest rates, despite the meeting with the Prime minister. Explain this in context to the monetary policy (Hint: CRR, SLR impact on loan rates and consumer spending) | 07 | |
| CASE STUDY : According to analysis, prices are determined quite differently in monopolized markets from the way they are in competitive markets. A natural place to test this theory is the market for pharmaceutical drugs because this market takes on both market structures. When a firm discovers a new drug, patent laws give the firm a monopoly on the sale of that drug. However, eventually the firm’s patent runs out, and any company can make and sell the drug. At that time, the market switches from being monopolist to being competitive. What should happen to the price of a drug when the patent runs out - During the life of the patent, the monopoly firm maximizes profit by producing the quantity at which marginal revenue equals marginal cost and charging a price well above marginal cost. Nevertheless, when the patent runs out, the profit from making the drug should encourage new firms to enter the market. As the market becomes more competitive, the price should fall to equal marginal cost. Experience is, in fact, consistent with the theory. When the patent on a drug expires, other companies quickly enter and begin selling so-called generic products that are chemically identical to the former monopolist’s brand-name product. Moreover, just as the analysis predicts, the price of the competitively produced generic drug is well below the price that the monopolist was charging. --- Content provided by FirstRanker.com --- The expiration of a patent, however, does not cause the monopolist to lose all its market power. Some consumers remain loyal to the brand-name drug, perhaps out of fear that the new generic drugs are not actually the same as the drug they have been using for years. As a result, the former monopolist can continue to charge a price at least somewhat above the price charged by its new competitors. | ||
| Q.5 |
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| 07 |
Date: 26/12/2018
Total Marks: 70
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This download link is referred from the post: GTU MBA Last 10 Years 2010-2020 Question Papers || Gujarat Technological University
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