Download GTU (Gujarat Technological University) MBA (Master of Business Administration) 2016 Winter 1st Sem 2810002 Economics For Managers Previous Question Paper
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER 1 ? EXAMINATION ? WINTER 2016
Subject Code: 2810002 Date: 31/12/2016
Subject Name: Economics for Managers
Time: 10.30 a.m. to 01.30 p.m. 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)
Attempt the following multiple choice questions
1) Which of the following principles of Mankiw explains ?inflation?
a
People face trade-offs
b Rational people think at the
margin
c Price rise when the government prints too
much money
d The cost of something is what
you give up to get it
2) An increase in the demand for a good will cause_______
a
An increase in equilibrium price and
quantity
b A decrease in equilibrium
price and quantity
c A decrease in equilibrium price and an
increase in equilibrium quantity
d None of them
3) Real GDP is measured in _________prices, while Nominal GDP is measure in
______prices.
a
Foreign; domestic
b Current year; base year
c Base year; current year d Intermediate; final
4) The Long run Phillips curve is ____________________
a
Upward sloping
b Downward sloping
c Vertical d None of these
5) An Oligopoly market has______________________
a
One Seller many buyers
b Many sellers many buyers
c Few Sellers many buyers d One Seller few buyers
6) Just like Federal Reserve of the USA, in India monetary policies are governed
by_________________
a
State Bank of India
b Bank of Baroda
c South Indian Bank d Reserve Bank of India
06
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Page 1 of 4
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER 1 ? EXAMINATION ? WINTER 2016
Subject Code: 2810002 Date: 31/12/2016
Subject Name: Economics for Managers
Time: 10.30 a.m. to 01.30 p.m. 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)
Attempt the following multiple choice questions
1) Which of the following principles of Mankiw explains ?inflation?
a
People face trade-offs
b Rational people think at the
margin
c Price rise when the government prints too
much money
d The cost of something is what
you give up to get it
2) An increase in the demand for a good will cause_______
a
An increase in equilibrium price and
quantity
b A decrease in equilibrium
price and quantity
c A decrease in equilibrium price and an
increase in equilibrium quantity
d None of them
3) Real GDP is measured in _________prices, while Nominal GDP is measure in
______prices.
a
Foreign; domestic
b Current year; base year
c Base year; current year d Intermediate; final
4) The Long run Phillips curve is ____________________
a
Upward sloping
b Downward sloping
c Vertical d None of these
5) An Oligopoly market has______________________
a
One Seller many buyers
b Many sellers many buyers
c Few Sellers many buyers d One Seller few buyers
6) Just like Federal Reserve of the USA, in India monetary policies are governed
by_________________
a
State Bank of India
b Bank of Baroda
c South Indian Bank d Reserve Bank of India
06
Page 2 of 4
Q.1 (b) Do as directed.
04 1. Give one point of differentiation between Macro and Micro Economics
2. Give two examples Of firms observing Monopolistic competition in India
3. Define Income Elasticity of demand
4. One point of differentiation between Inferior and Normal goods
Q.1 (c) Explain the law of demand with a suitable diagram 04
Q.2 (a) What is the law of Supply? What are the determinants of Supply? 07
(b) Explain the role of Prisoners? Dilemma in understanding an Oligopoly market. What does
the Nash?s equilibrium indicate?
07
OR
Q.3 (a) List and explain the four components of GDP. Why are shares and stocks not included in
GDP calculations?
07
(b) What is CPI? What are the steps involved in calculating CPI. 07
OR
Q.3 (a) ?Baker?s Island? an imaginary country produces only two items as mentioned below
Year Price per
Packet of
Bread
(in Rs.)
Quantity of
Bread Packets
produced
Price per
Packet of
Biscuits
(in Rs.)
Quantity of
Biscuit
packets
produced
2013 10 120 12 200
2014 12 200 15 300
2015 14 180 18 275
Based on the above information:-
Calculate nominal GDP, real GDP and the GDP deflator for the each year
using 2013 as the base year
07
(b) I) Parthivi spends 30% of her income on branded footwear. Find out her income elasticity
of demand.
02
II) As per available statistics, demands of airline tickets made by business travellers and
vacationers to Goa are as per table mentioned below.
Price of Airline tickets
from Mumbai to Goa
(Rs.)
Quantity of tickets
demanded
(business travelers)
Quantity of tickets
demanded
(Vacationers)
1500 2100 1000
2000 2000 800
2500 1900 600
3000 1800 400
When the price rises from Rs.2,000 to Rs.2,500 , what is the price elasticity of demand for
(a) Business travellers (b) Vacationers
( Use midpoint method to calculate)
05
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Page 1 of 4
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER 1 ? EXAMINATION ? WINTER 2016
Subject Code: 2810002 Date: 31/12/2016
Subject Name: Economics for Managers
Time: 10.30 a.m. to 01.30 p.m. 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)
Attempt the following multiple choice questions
1) Which of the following principles of Mankiw explains ?inflation?
a
People face trade-offs
b Rational people think at the
margin
c Price rise when the government prints too
much money
d The cost of something is what
you give up to get it
2) An increase in the demand for a good will cause_______
a
An increase in equilibrium price and
quantity
b A decrease in equilibrium
price and quantity
c A decrease in equilibrium price and an
increase in equilibrium quantity
d None of them
3) Real GDP is measured in _________prices, while Nominal GDP is measure in
______prices.
a
Foreign; domestic
b Current year; base year
c Base year; current year d Intermediate; final
4) The Long run Phillips curve is ____________________
a
Upward sloping
b Downward sloping
c Vertical d None of these
5) An Oligopoly market has______________________
a
One Seller many buyers
b Many sellers many buyers
c Few Sellers many buyers d One Seller few buyers
6) Just like Federal Reserve of the USA, in India monetary policies are governed
by_________________
a
State Bank of India
b Bank of Baroda
c South Indian Bank d Reserve Bank of India
06
Page 2 of 4
Q.1 (b) Do as directed.
04 1. Give one point of differentiation between Macro and Micro Economics
2. Give two examples Of firms observing Monopolistic competition in India
3. Define Income Elasticity of demand
4. One point of differentiation between Inferior and Normal goods
Q.1 (c) Explain the law of demand with a suitable diagram 04
Q.2 (a) What is the law of Supply? What are the determinants of Supply? 07
(b) Explain the role of Prisoners? Dilemma in understanding an Oligopoly market. What does
the Nash?s equilibrium indicate?
07
OR
Q.3 (a) List and explain the four components of GDP. Why are shares and stocks not included in
GDP calculations?
07
(b) What is CPI? What are the steps involved in calculating CPI. 07
OR
Q.3 (a) ?Baker?s Island? an imaginary country produces only two items as mentioned below
Year Price per
Packet of
Bread
(in Rs.)
Quantity of
Bread Packets
produced
Price per
Packet of
Biscuits
(in Rs.)
Quantity of
Biscuit
packets
produced
2013 10 120 12 200
2014 12 200 15 300
2015 14 180 18 275
Based on the above information:-
Calculate nominal GDP, real GDP and the GDP deflator for the each year
using 2013 as the base year
07
(b) I) Parthivi spends 30% of her income on branded footwear. Find out her income elasticity
of demand.
02
II) As per available statistics, demands of airline tickets made by business travellers and
vacationers to Goa are as per table mentioned below.
Price of Airline tickets
from Mumbai to Goa
(Rs.)
Quantity of tickets
demanded
(business travelers)
Quantity of tickets
demanded
(Vacationers)
1500 2100 1000
2000 2000 800
2500 1900 600
3000 1800 400
When the price rises from Rs.2,000 to Rs.2,500 , what is the price elasticity of demand for
(a) Business travellers (b) Vacationers
( Use midpoint method to calculate)
05
Page 3 of 4
(b) What are the features of firms in a competitive market? Under what conditions will the
firms (1) Shut down temporarily and (2) Exit the market
07
Q.4 (a) Explain three reasons behind Aggregate Supply?s upward sloping curve
07
(b) What is money? What are the functions of money? How does a Central bank control
money supply in the economy ?
OR
07
Q.4 (a) Explain the short run trade-off between inflation and unemployment using the Phillips
curve. When does the Phillips curve become vertical?
07
(b) List and describe four determinants of productivity 07
Q5 (a) Fill in the blanks in the following table
Quantity TFC TVC TC MC AFC AVC ATC
1 100 50
2 50
3 40
4 270
5 70
07
(b) Explain Nominal and Real Exchange Rates and the concept of Purchasing Power parity
with suitable example.
07
OR
Q.5 Read the following Case and answer the questions given at the end
BRIGHT FUTURE OF LED
The LED lighting market in India is still not matured. In 2013, the Indian LED market generated
revenue of about Rs 20 billion, according to Indian lighting association ELCOMA. It has been
predicted that the Indian LED lighting market will grow at a rate of 53% per annum by year ending
2015-16.
Government projects: Currently, the demand for LED lights in India is coming
from government projects like street lights that many of the Indian states have undertaken. About
27.5 million streetlights across the country are being replaced with LED lights.
Another major government project that will distribute retrofit LED lamps among BPL households
will majorly boost demand for LED lights in India. LED lamps will be distributed under several
government schemes, and it will generate a demand for 300 million retrofit LED lamps over the
next three years.
About 770 million incandescent bulbs (normal bulbs that we have been using for years) are sold
every year in India and replacing them with LED lights will result in saving 25 billion units of
power, annually in India.
Through these projects, the government has ensure that the domestic manufacturers benefit the
most, hence, it has mandated that only manufacturers in India who meet the Indian standards
14
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Page 1 of 4
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER 1 ? EXAMINATION ? WINTER 2016
Subject Code: 2810002 Date: 31/12/2016
Subject Name: Economics for Managers
Time: 10.30 a.m. to 01.30 p.m. 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)
Attempt the following multiple choice questions
1) Which of the following principles of Mankiw explains ?inflation?
a
People face trade-offs
b Rational people think at the
margin
c Price rise when the government prints too
much money
d The cost of something is what
you give up to get it
2) An increase in the demand for a good will cause_______
a
An increase in equilibrium price and
quantity
b A decrease in equilibrium
price and quantity
c A decrease in equilibrium price and an
increase in equilibrium quantity
d None of them
3) Real GDP is measured in _________prices, while Nominal GDP is measure in
______prices.
a
Foreign; domestic
b Current year; base year
c Base year; current year d Intermediate; final
4) The Long run Phillips curve is ____________________
a
Upward sloping
b Downward sloping
c Vertical d None of these
5) An Oligopoly market has______________________
a
One Seller many buyers
b Many sellers many buyers
c Few Sellers many buyers d One Seller few buyers
6) Just like Federal Reserve of the USA, in India monetary policies are governed
by_________________
a
State Bank of India
b Bank of Baroda
c South Indian Bank d Reserve Bank of India
06
Page 2 of 4
Q.1 (b) Do as directed.
04 1. Give one point of differentiation between Macro and Micro Economics
2. Give two examples Of firms observing Monopolistic competition in India
3. Define Income Elasticity of demand
4. One point of differentiation between Inferior and Normal goods
Q.1 (c) Explain the law of demand with a suitable diagram 04
Q.2 (a) What is the law of Supply? What are the determinants of Supply? 07
(b) Explain the role of Prisoners? Dilemma in understanding an Oligopoly market. What does
the Nash?s equilibrium indicate?
07
OR
Q.3 (a) List and explain the four components of GDP. Why are shares and stocks not included in
GDP calculations?
07
(b) What is CPI? What are the steps involved in calculating CPI. 07
OR
Q.3 (a) ?Baker?s Island? an imaginary country produces only two items as mentioned below
Year Price per
Packet of
Bread
(in Rs.)
Quantity of
Bread Packets
produced
Price per
Packet of
Biscuits
(in Rs.)
Quantity of
Biscuit
packets
produced
2013 10 120 12 200
2014 12 200 15 300
2015 14 180 18 275
Based on the above information:-
Calculate nominal GDP, real GDP and the GDP deflator for the each year
using 2013 as the base year
07
(b) I) Parthivi spends 30% of her income on branded footwear. Find out her income elasticity
of demand.
02
II) As per available statistics, demands of airline tickets made by business travellers and
vacationers to Goa are as per table mentioned below.
Price of Airline tickets
from Mumbai to Goa
(Rs.)
Quantity of tickets
demanded
(business travelers)
Quantity of tickets
demanded
(Vacationers)
1500 2100 1000
2000 2000 800
2500 1900 600
3000 1800 400
When the price rises from Rs.2,000 to Rs.2,500 , what is the price elasticity of demand for
(a) Business travellers (b) Vacationers
( Use midpoint method to calculate)
05
Page 3 of 4
(b) What are the features of firms in a competitive market? Under what conditions will the
firms (1) Shut down temporarily and (2) Exit the market
07
Q.4 (a) Explain three reasons behind Aggregate Supply?s upward sloping curve
07
(b) What is money? What are the functions of money? How does a Central bank control
money supply in the economy ?
OR
07
Q.4 (a) Explain the short run trade-off between inflation and unemployment using the Phillips
curve. When does the Phillips curve become vertical?
07
(b) List and describe four determinants of productivity 07
Q5 (a) Fill in the blanks in the following table
Quantity TFC TVC TC MC AFC AVC ATC
1 100 50
2 50
3 40
4 270
5 70
07
(b) Explain Nominal and Real Exchange Rates and the concept of Purchasing Power parity
with suitable example.
07
OR
Q.5 Read the following Case and answer the questions given at the end
BRIGHT FUTURE OF LED
The LED lighting market in India is still not matured. In 2013, the Indian LED market generated
revenue of about Rs 20 billion, according to Indian lighting association ELCOMA. It has been
predicted that the Indian LED lighting market will grow at a rate of 53% per annum by year ending
2015-16.
Government projects: Currently, the demand for LED lights in India is coming
from government projects like street lights that many of the Indian states have undertaken. About
27.5 million streetlights across the country are being replaced with LED lights.
Another major government project that will distribute retrofit LED lamps among BPL households
will majorly boost demand for LED lights in India. LED lamps will be distributed under several
government schemes, and it will generate a demand for 300 million retrofit LED lamps over the
next three years.
About 770 million incandescent bulbs (normal bulbs that we have been using for years) are sold
every year in India and replacing them with LED lights will result in saving 25 billion units of
power, annually in India.
Through these projects, the government has ensure that the domestic manufacturers benefit the
most, hence, it has mandated that only manufacturers in India who meet the Indian standards
14
Page 4 of 4
would be considered to supply these street lights. Indian standards for LED lights have been
formulated keeping in mind the hot, humid, dusty and polluting conditions. Thus, it has been
mandated that these LED lights should be made in India to suit the Indian conditions.
Currently, the Indian LED market is flooded with cheap imports as the Indian standards have not
yet been made mandatory due to lack of adequate testing laboratories in the country. However, the
industry feels that in a year or two, the Indian standards will become mandatory and then the
Indian lighting industry will become self-reliant and more lighting manufacturers will start
manufacturing LED lights. Industry experts also believe that the CFL market in India has fully
matured and, hence, the CFL manufacturing facilities in India have to be utilized for other
purposes. So it is all the more possibility for LED lights to be manufactured in these facilities in
the coming years. This will give a big push to the demand for LED lights.
Answer the following questions
1) What are the reasons behind success of LED bulbs in India?
2) Draw a demand curve for CFL bulbs. If you consider LED bulbs as a substitute, what will
happen to demand of CFL bulbs in the future? Whether demand curve of CFL shift to left
or right hand side in the future?
3) Explain the market structure in which LED bulbs fall? State whether it is Monopoly,
oligopoly or monopolistic competition.
4) What are the challenges associated with success of LED in India? What should
manufacturers do to raise consumer awareness?
****************
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This post was last modified on 19 February 2020