Download GTU (Gujarat Technological University) MBA (Master of Business Administration) 2019 Summer 1st Sem 4519202 Economics For Managers Efm Previous Question Paper
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER -1 ? EXAMINATION ? SUMMER 2019
Subject Code: 4519202 Date:16/05/2019
Subject Name: Economics for Managers (EFM)
Time: 02:30 PM TO 05:30 PM Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Q. No. Marks
Q.1 Explain following
(a) Price elasticity of demand
(b) Relationship between MR and ATC
(c) Sunk cost
(d) Opportunity cost
(e) Natural Monopoly
(f) Economic Profit
(g) Deadweight Loss
14
Q.2 (a) Trade can make everyone better off. Explain in detail 07
(b)
What is monopoly? Which are the reasons for arising of monopoly situation?
07
OR
(b) Describe the three attributes of monopolistic competition. How is
monopolistic competition like monopoly? How is it like perfect
competition?
07
Q.3 (a) Why do economists use real GDP rather than nominal GDP to gauge
economic well-being?
07
(b) Describe the economic logic behind the theory of purchasing-power
parity.
07
OR
Q.3 (a) Describe the three problems that make the consumers price index and
imperfect measure of the cost of living.
07
(b) How fiscal and monetary policy influences aggregate demand 07
Q.4 (a) Explain the three reasons for the aggregate demand curve is downward
sloping.
07
(b) Draw the short run trade - off between inflation and unemployment.
Explain how the short ? run and long ? run trade-offs are related.
07
OR
Q.4 (a) Explain in detail how monetary and fiscal policy can stabilize the
economy? Give appropriate example.
07
(b) Explain four components of GDP with example. 07
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Page 1 of 2
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER -1 ? EXAMINATION ? SUMMER 2019
Subject Code: 4519202 Date:16/05/2019
Subject Name: Economics for Managers (EFM)
Time: 02:30 PM TO 05:30 PM Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Q. No. Marks
Q.1 Explain following
(a) Price elasticity of demand
(b) Relationship between MR and ATC
(c) Sunk cost
(d) Opportunity cost
(e) Natural Monopoly
(f) Economic Profit
(g) Deadweight Loss
14
Q.2 (a) Trade can make everyone better off. Explain in detail 07
(b)
What is monopoly? Which are the reasons for arising of monopoly situation?
07
OR
(b) Describe the three attributes of monopolistic competition. How is
monopolistic competition like monopoly? How is it like perfect
competition?
07
Q.3 (a) Why do economists use real GDP rather than nominal GDP to gauge
economic well-being?
07
(b) Describe the economic logic behind the theory of purchasing-power
parity.
07
OR
Q.3 (a) Describe the three problems that make the consumers price index and
imperfect measure of the cost of living.
07
(b) How fiscal and monetary policy influences aggregate demand 07
Q.4 (a) Explain the three reasons for the aggregate demand curve is downward
sloping.
07
(b) Draw the short run trade - off between inflation and unemployment.
Explain how the short ? run and long ? run trade-offs are related.
07
OR
Q.4 (a) Explain in detail how monetary and fiscal policy can stabilize the
economy? Give appropriate example.
07
(b) Explain four components of GDP with example. 07
Page 2 of 2
Q.5
CASE STUDY:
THE DEBEERS DIAMOND MONOPOLY
A classic example of monopoly that arises from the ownership of a key
resource is De beers, the South African diamond company. The
company was founded in 1888 by Cecil Rhodes, an English business
man (and benefactor for the Rhodes scholarship), when he merged two
of the biggest mines in the country. Rhodes then proceeded to use his
profits to continue buying mines, consolidating his market power.
Today, De Beers controls about 80% of the world?s production of
diamonds. Although the firms share of the market is not 100%,it is large
enough to exert substantial influence over the market price of diamonds.
How much market power does De Beers have? The answer depends in
part on whether there are close substitutes for its products. If peoples
view Emeralds, rubies and sapphires as good substitutes for diamond,
then De Beers have relatively little market power. In this case, any
attempt by De Beers to raise the price of diamonds would cause people
to switch to other Gemstones. But people view this others stones as very
different from diamonds. Then De Bees can exert substantial influence
over the price of its product.
De Beers pay for large amount of advertising. At first this decision
might seem surprising. If a monopoly is the sole seller of its product,
why does it need to advertise? One goal of the De Beers ads is to
differentiate diamonds from other gems in the minds of consumer.
When their slogan tells you that? A diamond is forever?, you are meant
to think that the same is not true of emeralds, rubies and sapphires.(And
the notice that the slogan is applied to all diamonds, not just de Beers
diamonds-a sign of De Beers monopoly position.)If the ads are
successful consumer will view diamonds as unique, rather than as one
among many Gemstones, and this perception will give De Beers greater
market power.
(a) How did De Beers dominate the diamond industry? 07
(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
Q.5 (a)
As more businesses and nations enter the diamond industry, why does
De Beers retain such a significant share of the market?
07
(b)
What is the role of advertisement for De Beers? 07
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This post was last modified on 19 February 2020