Download GTU MBA 2016 Summer 1st Sem 810002 Economics For Managers Efm Question Paper

Download GTU (Gujarat Technological University) MBA (Master of Business Administration) 2016 Summer 1st Sem 810002 Economics For Managers Efm Previous Question Paper

1
Seat No.: ________ Enrolment No.___________

GUJARAT TECHNOLOGICAL UNIVERSITY
MBA - SEMESTER?1 ? EXAMINATION ? SUMMER 2016
Subject Code: 810002 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) Explain the components of GDP. Give one example of each 07
(b) Simply draw the table and graph with statistics indicating TFC, TVC, AFC,
AVC, ATC Total cost and Quantity of production.
07

Q.2 (a) Differentiate between Income effect and substitution effect caused by change in
price of a commodity?
07
(b) List and explain the three theories for why the short run aggregate supply curve
is upward sloping
07
OR
(b) Use a production possibility frontier to describe the idea of ?Efficiency?? 07

Q.3 (a) Ink pens and pencil are substitutes. When the prices of an ink pen falls, What
happens to the supply, demand, quantity supplied, and price in the market for
pencils?
07
(b) State the demand of following to be elastic or inelastic? Why?
1. Painting of Picasso
2. Medicines in U.K
3. Milk
4. BMW
07
OR
Q.3 (a) Explain the economic logic behind purchasing power parity. 07
(b) What is liquidity preference? How does it helps to explain downward slope of
demand curve.
07

Q.4 (a) What do you understand with prisoner?s dilemma? How can you relate it to
oligopoly market.
07
(b) What is a government budget deficit? ? How does it affect interest rates,
investment, and economic growth?
07
OR
Q.4 (a) Why don?t banks hold 100 percent inventives? How is the amount of reserves
banks hold related to the amount of money the banking system creates?
07
(b) What are the costs of Inflation? Explain any two costs of inflation 07

Q.5 (a) Explain the difference between nominal and real variables and give two
examples of each. According to the principle of Monetary Neutrality, Which
variable are affected by changes in the quantity of money?
07
(b) How might Advertising reduce economic wellbeing? How might advertising
increase economic well being?
07
OR

Q.5 (a) Draw the long run trade ?off between inflation and unemployment. Explain
how short run and long run trade off are interrelated
07
(b) List and explain the three theories for why the short run aggregate supply curve
is Downward sloping
07

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