Download GTU (Gujarat Technological University) MBA (Master of Business Administration) 2016 Summer 1st Sem 2810002 Economics For Managers Efm Previous Question Paper
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER I ? ? EXAMINATION ? SUMMER 2016
Subject Code: 2810002 Date: 13/05/2016
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) Objective Questions 06
1. Economic is primarily the study of
A How to make money in the stock
market
B How to operate a business
successfully
C How individual/Society manages the
scare resources.
D Government Policies
2. For Competitive firm P=
A MR > AR B AR > MR
C AR = MR D MR < AR
3. Oligopoly means
A One seller many buyer B Few seller many buyer
C Few seller many buyers D Two seller many buyers
4. Phillips curve in long run is
A Vertical B Downward sloping
C Horizontal D Upward sloping
5. In long run supply curve becomes
A Vertical B Horizontal
C Upward sloping D Downward sloping
6. According to the Law of Demand, the demand curve for a good will
A Shift leftward when the price of the
good increases.
B Shift rightward when the price
of the good increases.
C Slope downward. D Slope upward.
Q.1 (b) 1. Law of Demand
2. Monopoly
3. Aggregate Demand
4. Price Elasticity of Supply
04
Q1. (C) Discuss any four principles of Economics 04
Q2. (a) What do you mean by a competitive firm? How it differ from Monopoly? 07
Q2. (b) What is prisoner?s dilemma and how it is related with oligopoly? 07
OR
Q2. (b) Define natural monopoly? How it is different from monopolistic? 07
Q3. (a) What is GDP? What does it indicate? 07
Q3. (b) What is CPI? How it can be calculated? 07
OR
Q3. (a) Explain various types of cost of inflation. 07
Q3. (b) Define ATC, AVC, AFC and MC. Discuss the relationship between MC and ATC. 07
Q4.(a) Explain the three reasons the aggregate demand curve is downward sloping. 07
Q4.(b) Describe the economic logic behind the theory of purchasing power parity. 07
OR
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Page 1 of 2
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER I ? ? EXAMINATION ? SUMMER 2016
Subject Code: 2810002 Date: 13/05/2016
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) Objective Questions 06
1. Economic is primarily the study of
A How to make money in the stock
market
B How to operate a business
successfully
C How individual/Society manages the
scare resources.
D Government Policies
2. For Competitive firm P=
A MR > AR B AR > MR
C AR = MR D MR < AR
3. Oligopoly means
A One seller many buyer B Few seller many buyer
C Few seller many buyers D Two seller many buyers
4. Phillips curve in long run is
A Vertical B Downward sloping
C Horizontal D Upward sloping
5. In long run supply curve becomes
A Vertical B Horizontal
C Upward sloping D Downward sloping
6. According to the Law of Demand, the demand curve for a good will
A Shift leftward when the price of the
good increases.
B Shift rightward when the price
of the good increases.
C Slope downward. D Slope upward.
Q.1 (b) 1. Law of Demand
2. Monopoly
3. Aggregate Demand
4. Price Elasticity of Supply
04
Q1. (C) Discuss any four principles of Economics 04
Q2. (a) What do you mean by a competitive firm? How it differ from Monopoly? 07
Q2. (b) What is prisoner?s dilemma and how it is related with oligopoly? 07
OR
Q2. (b) Define natural monopoly? How it is different from monopolistic? 07
Q3. (a) What is GDP? What does it indicate? 07
Q3. (b) What is CPI? How it can be calculated? 07
OR
Q3. (a) Explain various types of cost of inflation. 07
Q3. (b) Define ATC, AVC, AFC and MC. Discuss the relationship between MC and ATC. 07
Q4.(a) Explain the three reasons the aggregate demand curve is downward sloping. 07
Q4.(b) Describe the economic logic behind the theory of purchasing power parity. 07
OR
Page 2 of 2
Q4. (a) List and describe four determinants of productivity. 07
Q4. (b) Explain and describe Phillips curve. 07
Q5. CASE STUDY
In 1888 the two largest diamond-mining operations joined to create the De Beers
Consolidated Mines. This was the birth of South Africa's diamond industry. By
1902, De Beers controlled 90 percent of the world's diamond market. By 1939 De
Beers possessed 50 percent of the world's value of uncut diamonds. The company
also created the Central Selling Organization to buy and sell diamonds from other
regions. Through this organization, De Beers manipulated another 20 percent of the
world's value in diamonds. Today, the company still possesses about 50 percent of
the world diamond value. However, many nations have been reluctant to sell their
diamonds to the Central Selling Organization. This has prevented De Beers from
buying up the world's diamond reserves. De Beers now focuses on maintaining its
position in the market by promoting its name brand of diamonds.
For most of the 20th century, the diamond industry was an oligopolistic market.
Diamond mining in South Africa flourished because of the nation's geography. At
the turn of the 20th century, it appeared that the majority of the world's diamonds
were in South Africa. This nation also had the best access to waterways for
transporting the diamonds internationally. This geographical advantage allowed De
Beers to buy the diamond mines from other African nations. When nations from
other continents discovered their own diamond mines, De Beers responded. The
company began to establish brand difference. It bought diamonds in bulk from other
nations. Purchases were based on the premise that the De Beers brand identification
would ensure the best price possible.
For a time, it appeared that De Beers had a geographic monopoly. When other
nations began to mine for diamonds, the monopoly collapsed. Brand became very
important to success in the diamond industry. This industry was becoming a classic
model of oligopoly.
Several nations, including Canada and Russia, have opened successful diamond
mines. These mines have produced unique forms of diamonds. Yet the diamond
market is still far from perfect competition. Although De Beers has significantly
backed away from the uncut diamond market, it still possesses the advantage of
brand loyalty. De Beers has been involved with diamonds since the origin of the
industry. New companies may have difficulty competing with the trust that
consumers have in De Beers. Also, De Beers still owns at least 50 percent of the
world's value in diamonds, as well as several productive mines. This level of
resource domination provides a competitive edge in the market.
De Beers dominated the diamond industry by using the geographic advantage held
by South Africa and by instilling brand loyalty. The company bought up significant
portions of the world's uncut diamond supply. These actions convinced consumers
that diamonds were not only worthwhile investments but also stable ones. De Beers
limited the flow of diamonds during recessions and increased the flow during
economic upturns. This allowed the company to keep the market value of diamonds
at a relative equilibrium. De Beers used its competitive advantages and resources in
the most economically profitable ways. In fact, without De Beers there would be a
very small market for diamonds, since they are actually quite common.
Q5. (a) Between 1902 and 1939, did South Africa's diamond industry meet the definition of
a competitive monopoly? Did this change after 1939?
07
Q5 (b) Before other nations began mining for diamonds, did De Beers have a geographic
monopoly, or was it part of a monopolistic competition?
07
OR
Q5. (a) As more businesses and nations enter the diamond industry, why does De Beers
retain such a significant share of the market?
07
Q5. (b) How did De Beers dominate the diamond industry? 07
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This post was last modified on 19 February 2020