# Download GTU MBA 2018 Summer 1st Sem 2810002 Economics For Managers Efm Question Paper

Page 1 of 4

Seat No.: ________ Enrolment No.___________

GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER 01? ? EXAMINATION ? SUMMER-2018

Subject Code: 2810002 Date:01/05/2018
Subject Name: Economics for Managers (EFM)
Time: 10:30AM To 1:30 PM Total Marks: 70

Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.

1. What is dead weight loss?
2. Differentiate the expansion and increase in supply.
4. Differentiate real and nominal national income?
5. What is GDP Deflater?
6. What is Iso- quant curve?
7. What is Say?s Law of market?
Q.2.a. What is elasticity of demand? Explain the various methods of calculating the price elasticity
of demand. 7
Q.2.b. What do you understand by economies and diseconomies of scale? Explain with some
relevant examples. 7
OR
Q.2.b. What is demand function? Explain the determinants of demand with suitable examples. 7

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Page 1 of 4

Seat No.: ________ Enrolment No.___________

GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER 01? ? EXAMINATION ? SUMMER-2018

Subject Code: 2810002 Date:01/05/2018
Subject Name: Economics for Managers (EFM)
Time: 10:30AM To 1:30 PM Total Marks: 70

Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.

1. What is dead weight loss?
2. Differentiate the expansion and increase in supply.
4. Differentiate real and nominal national income?
5. What is GDP Deflater?
6. What is Iso- quant curve?
7. What is Say?s Law of market?
Q.2.a. What is elasticity of demand? Explain the various methods of calculating the price elasticity
of demand. 7
Q.2.b. What do you understand by economies and diseconomies of scale? Explain with some
relevant examples. 7
OR
Q.2.b. What is demand function? Explain the determinants of demand with suitable examples. 7

Page 2 of 4

Q.3.a. Price discrimination is possible is possible under monopoly. Explain the concept with
reference to the contemporary examples. 7

Q.3.b. Following is the cost function of Fresh and Fresh juices. Calculate the TFC, TVC, AFC,
AVC, ATC and MC from the following data: 7
Output 0 1 2 3 4 5 6 7
Total
cost
500 550 580 605 629 650 680 725

OR
Q.3.a. What happens to the Aggregate demand curve and equilibrium if government increases the
expenditure? 7

Q.3.b. Consider two goods X and Y. there was no change in price of X, but its demand was seen
to fall from 6000 units to 5500 units. On analysis, it was found that price of another commodity Y
has increased from 225 to 250. Find out the cross elasticity between X and Y and the relationship
between the two goods. 7

Q.4.a. What is international trade? What is the trend of India?s global trade? 7

Q.4.b. What are the methods of measuring National Income Data? Explain the uses of National
Income Data with suitable examples. 7
OR
Q.4.a. explain the concept of diminishing returns to a factor. Analyze that where the rational
producer takes the decision to produce. 7
Q.4.b. What is consumption function? Explain Keyne?s psychological law of consumption. 7

FirstRanker.com - FirstRanker's Choice
Page 1 of 4

Seat No.: ________ Enrolment No.___________

GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER 01? ? EXAMINATION ? SUMMER-2018

Subject Code: 2810002 Date:01/05/2018
Subject Name: Economics for Managers (EFM)
Time: 10:30AM To 1:30 PM Total Marks: 70

Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.

1. What is dead weight loss?
2. Differentiate the expansion and increase in supply.
4. Differentiate real and nominal national income?
5. What is GDP Deflater?
6. What is Iso- quant curve?
7. What is Say?s Law of market?
Q.2.a. What is elasticity of demand? Explain the various methods of calculating the price elasticity
of demand. 7
Q.2.b. What do you understand by economies and diseconomies of scale? Explain with some
relevant examples. 7
OR
Q.2.b. What is demand function? Explain the determinants of demand with suitable examples. 7

Page 2 of 4

Q.3.a. Price discrimination is possible is possible under monopoly. Explain the concept with
reference to the contemporary examples. 7

Q.3.b. Following is the cost function of Fresh and Fresh juices. Calculate the TFC, TVC, AFC,
AVC, ATC and MC from the following data: 7
Output 0 1 2 3 4 5 6 7
Total
cost
500 550 580 605 629 650 680 725

OR
Q.3.a. What happens to the Aggregate demand curve and equilibrium if government increases the
expenditure? 7

Q.3.b. Consider two goods X and Y. there was no change in price of X, but its demand was seen
to fall from 6000 units to 5500 units. On analysis, it was found that price of another commodity Y
has increased from 225 to 250. Find out the cross elasticity between X and Y and the relationship
between the two goods. 7

Q.4.a. What is international trade? What is the trend of India?s global trade? 7

Q.4.b. What are the methods of measuring National Income Data? Explain the uses of National
Income Data with suitable examples. 7
OR
Q.4.a. explain the concept of diminishing returns to a factor. Analyze that where the rational
producer takes the decision to produce. 7
Q.4.b. What is consumption function? Explain Keyne?s psychological law of consumption. 7

Page 3 of 4

Q.5. Case Study: 14
Expanding the Volvo Way
Indian automobile industry is coming of age as the luxury car market is recovering gradually,
thanks to steady economic growth and infrastructure support. In fact, the market has seen total
sales of 36,000 units in 2016. The market for luxury cars in India is dominated by Germany
companies, with Mercedes Benz as the dominant player, while Audi and BMW have also emerged
as strong rivals, along with Tata?s Jaguar Land Rover.
Volvo the Swedish car maker owned by China?s Geely, inspite of its presence in the country for
more than a decade, has been on the peripheries of the luxury car maker, and could manage to sell
around 1,600 units in last year. The company aims to achieve 10 percent share in the premium
luxury cars segment by 2020 from current 5 percent through new launches, dealership expansion
and local assembly facilities. All its major rivals have their facilities in the country; while Mercedes
assembles cars from a factory in Pune, BMW has a facility in Chennai and Audi assembles its cars
in Aurangabad which is shared with its group company Skoda. Volvo auto India is the only
mainstream luxury car market which does not have a local manufacturing, or assembly base, here,
on account of which, the company is losing heavily of hefty import duties, running up to a
staggering 100-180 percent for importing its vehicles as fully ? built units.
Volvo Auto India currently has 9 products on offer in India, and despite bringing them as CBU
units, it manages to keep their pricing aggressive. Volvo?s product portfolio in India is priced
between Rs 26 lakh for the V40 premium hatchback and Rs 1.25 crore for the hybrid version of
the XC90 SUV (prices ex- showroom Delhi). The company has launched the all- new S60 Polestar
in the country and later this in plans to brings in the V90 Cross Country, which is a crossover mix
between estate and SUV sporting same ground clearance of the brand?s flagship SUV XC90.
After the launch of the V90 Cross Country in end of Q2 2017, Volvo also aims to launch XC60 in
the domestic market, which would arrive sometime later this year or in early 2018. Also on the
cards is the XC90 Cross Country. Overall, the Swedish brand targets to cater several segments in
the country with its offerings like small sedans, sedans, small SUVs and big SUVs. With an eye
on expansion in india, Volvo is planning to set up localized assembly operations so that it can have
price competitive products to counter its major rivals and take opportunity of the emerging market
for luxury cars.
Tom von Bonsdorff, Managing Director of Volvo Auto India, says, ?Our volumes may be low in
India, but we have been growing. An assembly operation is being worked upon and may happen
soon, once a final decision is taken by the headquarter?. For the local assembly unit it is exploring
for an Indian partner, though Volvo is unwilling to reveal any details. Assembly operations would
not only reduce the cost of production, but also help the company in expansion by producing
larger volumes and increased sales in India.
FirstRanker.com - FirstRanker's Choice
Page 1 of 4

Seat No.: ________ Enrolment No.___________

GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER 01? ? EXAMINATION ? SUMMER-2018

Subject Code: 2810002 Date:01/05/2018
Subject Name: Economics for Managers (EFM)
Time: 10:30AM To 1:30 PM Total Marks: 70

Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.

1. What is dead weight loss?
2. Differentiate the expansion and increase in supply.
4. Differentiate real and nominal national income?
5. What is GDP Deflater?
6. What is Iso- quant curve?
7. What is Say?s Law of market?
Q.2.a. What is elasticity of demand? Explain the various methods of calculating the price elasticity
of demand. 7
Q.2.b. What do you understand by economies and diseconomies of scale? Explain with some
relevant examples. 7
OR
Q.2.b. What is demand function? Explain the determinants of demand with suitable examples. 7

Page 2 of 4

Q.3.a. Price discrimination is possible is possible under monopoly. Explain the concept with
reference to the contemporary examples. 7

Q.3.b. Following is the cost function of Fresh and Fresh juices. Calculate the TFC, TVC, AFC,
AVC, ATC and MC from the following data: 7
Output 0 1 2 3 4 5 6 7
Total
cost
500 550 580 605 629 650 680 725

OR
Q.3.a. What happens to the Aggregate demand curve and equilibrium if government increases the
expenditure? 7

Q.3.b. Consider two goods X and Y. there was no change in price of X, but its demand was seen
to fall from 6000 units to 5500 units. On analysis, it was found that price of another commodity Y
has increased from 225 to 250. Find out the cross elasticity between X and Y and the relationship
between the two goods. 7

Q.4.a. What is international trade? What is the trend of India?s global trade? 7

Q.4.b. What are the methods of measuring National Income Data? Explain the uses of National
Income Data with suitable examples. 7
OR
Q.4.a. explain the concept of diminishing returns to a factor. Analyze that where the rational
producer takes the decision to produce. 7
Q.4.b. What is consumption function? Explain Keyne?s psychological law of consumption. 7

Page 3 of 4

Q.5. Case Study: 14
Expanding the Volvo Way
Indian automobile industry is coming of age as the luxury car market is recovering gradually,
thanks to steady economic growth and infrastructure support. In fact, the market has seen total
sales of 36,000 units in 2016. The market for luxury cars in India is dominated by Germany
companies, with Mercedes Benz as the dominant player, while Audi and BMW have also emerged
as strong rivals, along with Tata?s Jaguar Land Rover.
Volvo the Swedish car maker owned by China?s Geely, inspite of its presence in the country for
more than a decade, has been on the peripheries of the luxury car maker, and could manage to sell
around 1,600 units in last year. The company aims to achieve 10 percent share in the premium
luxury cars segment by 2020 from current 5 percent through new launches, dealership expansion
and local assembly facilities. All its major rivals have their facilities in the country; while Mercedes
assembles cars from a factory in Pune, BMW has a facility in Chennai and Audi assembles its cars
in Aurangabad which is shared with its group company Skoda. Volvo auto India is the only
mainstream luxury car market which does not have a local manufacturing, or assembly base, here,
on account of which, the company is losing heavily of hefty import duties, running up to a
staggering 100-180 percent for importing its vehicles as fully ? built units.
Volvo Auto India currently has 9 products on offer in India, and despite bringing them as CBU
units, it manages to keep their pricing aggressive. Volvo?s product portfolio in India is priced
between Rs 26 lakh for the V40 premium hatchback and Rs 1.25 crore for the hybrid version of
the XC90 SUV (prices ex- showroom Delhi). The company has launched the all- new S60 Polestar
in the country and later this in plans to brings in the V90 Cross Country, which is a crossover mix
between estate and SUV sporting same ground clearance of the brand?s flagship SUV XC90.
After the launch of the V90 Cross Country in end of Q2 2017, Volvo also aims to launch XC60 in
the domestic market, which would arrive sometime later this year or in early 2018. Also on the
cards is the XC90 Cross Country. Overall, the Swedish brand targets to cater several segments in
the country with its offerings like small sedans, sedans, small SUVs and big SUVs. With an eye
on expansion in india, Volvo is planning to set up localized assembly operations so that it can have
price competitive products to counter its major rivals and take opportunity of the emerging market
for luxury cars.
Tom von Bonsdorff, Managing Director of Volvo Auto India, says, ?Our volumes may be low in
India, but we have been growing. An assembly operation is being worked upon and may happen
soon, once a final decision is taken by the headquarter?. For the local assembly unit it is exploring
for an Indian partner, though Volvo is unwilling to reveal any details. Assembly operations would
not only reduce the cost of production, but also help the company in expansion by producing
larger volumes and increased sales in India.
Page 4 of 4

Q.5. (a). Discuss expansion plans of Volvo with respect to advantages of localized operations.
Q.5. (b).Is Volvo looking at increasing returns to scale? Would it eventually face diminishing
returns or can it avoid diminishing returns to scale?
OR
Q.5. (a). Explain the characteristics of the Indian automobile Industry with reference to oligopoly
market.
Q.5.(b). What are the Strategy of Managing Director of Volvo India?

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