Download GTU MBA 2015 Winter 1st Sem 810002 Economics For Managers Question Paper

Download GTU (Gujarat Technological University) MBA (Master of Business Administration) 2015 Winter 1st Sem 810002 Economics For Managers Previous Question Paper

1

Seat No.: _____ Enrolment No.______

GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER 01? ? EXAMINATION ? WINTER 2015

Subject Code: 810002 Date: 19/12/2015
Subject Name: Economics For Managers
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)
Define the price elasticity of demand. Explain important determinant of price
elasticity of demand. If demand is unit elastic, how will a decline in price affect
total revenue?
07
(b)
Draw a production function that exhibits diminishing marginal product of
labour. Draw the associated total-cost curve. Explain the shapes of the two
curves you have drawn
07
Q.2 (a) Explain the circular flow of income model with diagram 07
(b) What are the determinants of an individual demand and an individual?s
supply of a commodity?
07
OR
(b)
Draw the marginal cost and average total cost curves for a typical firm. Explain
why the curves have the shapes that they do and why they cross where they do.
07

Q.3 (a) What is prisoner?s dilemma and what does it have to do with Oligopoly? 07
(b) Explain how the higher rate of savings, investment and policy of open
economy influence the GDP growth?
07
OR
Q.3 (a) What are Shut Down point and Exit Point? Explain with diagram in case
of firm under perfect competition.
07
(b) Describe the four components of GDP, giving example of each. 07
Q.4 (a) Explain the following concepts:
i. Stagflation
ii. Crowding out
07
(b) Explain the difference between nominal and real variables and give two
example of each. According to the principle of monetary neutrality,
which variables are affected by changes in the quantity of money?
07
OR

Q.4 (a) Define money. Discuss the role of money in a modern capitalist
economy.
07
Q.4 (b) Describe the economic logic behind the theory of purchasing ?power
parity.
07
Q.5 (a) Explain the short run trade-off between inflation and unemployment. 07
(b) What is government budget deficit? How does it affect interest rate,
investment and economic growth?
07
OR

Q.5 (a) Why are some economists against a target of zero inflation? 07
(b) Explain why the long ? run aggregate supply curve is vertical? 07

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