Download GTU (Gujarat Technological University) MBA (Master of Business Administration) 2017 Winter 1st Sem 810002 Economics For Managers Efm Previous Question Paper
Page 1 of 2
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA - SEMESTER - (1)? ? EXAMINATION ? WINTER 2017
Subject Code: 810002 Date: 30/DEC/2017
Subject Name: Economics for Managers (EFM)
Time: 10.30 AM TO 01.30 PM Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Q.1 (a) To maintain price stability and to create employment opportunities are two key
macro-economic objectives of any country. Can both of these objectives be
achieved simultaneously? Is there any trade off between the two in the short run
or long run? Elaborate.
07
(b) The following table shows the demand curve facing a monopolist who produces
at a constant marginal cost of 10 units.
Price 27 24 21 18 15 12 9 6 3 0
Quantity 0 2 4 6 8 10 12 14 16 18
(1) What are firm?s profit maximizing output and price? What is its profit?
(2) What would the equilibrium price and quantity be in a competitive
industry?
(3) What would the social gain be if this monopolist were forced to produce
and price at the competitive equilibrium?
07
Q.2 (a) India Sports is a retailer of a wide variety of sports goods and recreational
products. Although the market response to the company?s spring catalogue was
generally good, sales of India Sports Rs 140 deluxe bag declined from 10, 000
to 4,800 units. During this period a competitor offered a Rs. 52 off on their
regular Rs 137 price on deluxe bags.
(1) Calculate the arc cross-price elasticity of demand for India Sports
deluxe bag.
(2) India Sports deluxe bag sales recovered from 4800 units to 6000 units
following a price reduction to Rs. 130 per unit. Calculate India sports
deluxe bag arc price elasticity of demand.
(3) Assuming the same arc price elasticity of demand calculated in part (2),
determine further price reduction necessary for India Sports to fully
recover the lost sales (i.e. regain a volume of 10,000 units).
07
(b) Explain the circular flow of income model and explain why an economy?s
income must be equal to its expenditure.
07
OR
www.FirstRanker.com www.FirstRanker.com
www.FirstRanker.com
FirstRanker.com - FirstRanker's Choice
www.FirstRanker.com
Page 1 of 2
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA - SEMESTER - (1)? ? EXAMINATION ? WINTER 2017
Subject Code: 810002 Date: 30/DEC/2017
Subject Name: Economics for Managers (EFM)
Time: 10.30 AM TO 01.30 PM Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Q.1 (a) To maintain price stability and to create employment opportunities are two key
macro-economic objectives of any country. Can both of these objectives be
achieved simultaneously? Is there any trade off between the two in the short run
or long run? Elaborate.
07
(b) The following table shows the demand curve facing a monopolist who produces
at a constant marginal cost of 10 units.
Price 27 24 21 18 15 12 9 6 3 0
Quantity 0 2 4 6 8 10 12 14 16 18
(1) What are firm?s profit maximizing output and price? What is its profit?
(2) What would the equilibrium price and quantity be in a competitive
industry?
(3) What would the social gain be if this monopolist were forced to produce
and price at the competitive equilibrium?
07
Q.2 (a) India Sports is a retailer of a wide variety of sports goods and recreational
products. Although the market response to the company?s spring catalogue was
generally good, sales of India Sports Rs 140 deluxe bag declined from 10, 000
to 4,800 units. During this period a competitor offered a Rs. 52 off on their
regular Rs 137 price on deluxe bags.
(1) Calculate the arc cross-price elasticity of demand for India Sports
deluxe bag.
(2) India Sports deluxe bag sales recovered from 4800 units to 6000 units
following a price reduction to Rs. 130 per unit. Calculate India sports
deluxe bag arc price elasticity of demand.
(3) Assuming the same arc price elasticity of demand calculated in part (2),
determine further price reduction necessary for India Sports to fully
recover the lost sales (i.e. regain a volume of 10,000 units).
07
(b) Explain the circular flow of income model and explain why an economy?s
income must be equal to its expenditure.
07
OR
www.FirstRanker.com www.FirstRanker.com
www.FirstRanker.com
www.FirstRanker.com
Page 2 of 2
(b) What is production possibility curve and explain the concepts of choice,
opportunity cost with the help of a PPC.
07
Q.3 (a) How CPI is calculated? State the differences between WPI and CPI. Also
explain GDP deflator.
07
(b) Explain the concepts of (1) Purchasing Power Parity, (2) Real Exchange Rate &
Nominal Exchange Rate.
07
OR
Q.3 (a) What are the various ways of measuring national income? Explain their
equivalence.
07
(b) What are the difficulties associated with measurement of national income. State
the difference between Real and Nominal GDP.
07
Q.4 (a) What is Prisoner?s Dilemma? Explain how oligopoly firms find themselves in a
prisoner?s dilemma situation.
07
(b) What do you understand by consumer surplus & producer surplus? What are the
costs associated with Monopoly?
07
OR
Q.4 (a) What do you understand by equity and efficiency? Is there a tradeoff between
equity and efficiency? Explain.
07
(b) Explain Shut-down point. Draw the short run supply curve of a firm in perfectly
competitive market.
07
Q.5 (a) What is fiscal- policy multiplier, money multiplier? How do they work on an
economy?
07
(b) What do you understand by growth and what are the factors underlying growth
of an economy, Explain?
07
OR
Q.5 (a) Define and draw Average Cost, Marginal Cost curves for a typical firm and
explain the reason for their shape.
07
(b) Explain how monetary policy works in stabilizing an economy going through a
recession.
07
*************
www.FirstRanker.com www.FirstRanker.com
www.FirstRanker.com
FirstRanker.com - FirstRanker's Choice
This post was last modified on 19 February 2020