COM/III/09 Student's Copy
2 0 1 8
Pre-CBCS
3rd Semester
COMMERCE
Business Economics
Full Marks 75
Time 3 hours
PART A—OBJECTIVE
Marks 25
The figures in the margin indicate full marks for the questions
SECTION—A
Marks 10
Choose the correct answer and place its code in the brackets provided 1×10=10
1. Economics was brought to the status of a social science by
Adam Smith
Marshall
Robbins
None of them
2. When the total utility increases, marginal utility becomes
positive
negative
constant
None of the above
/218 1 Contd.
3. The elasticity at midpoint of the demand curve is known as
point elasticity of demand
income elasticity of demand
product elasticity of demand
price elasticity of demand
4. Indifference curve analysis is based on
ordinal utility analysis
cardinal utility analysis
marginal utility analysis
average utility analysis
5. A firm can attain maximum profit only at
MC MR
MC MR
MC MR
MR MC
6. Long-run average cost curve is also called
time curve
envelop curve
cost curve
None of the above
7. The average revenue curve under monopolistic competition is
perfectly inelastic
perfectly elastic
less than perfectly elastic
more than perfectly elastic
8. Price MC AC is under
perfect competition
monopoly
monopolistic competition
oligopoly
COM/III/09/218 2 Contd.
9. Law of diminishing return is universal as the law of life itself'. Who said
this?
Wicksteed
Robinson
Marshall
Adam Smith
10. At the level of optimum output
SAC is rising
SAC is maximum
SAC is minimum
SAC is decreasing
SECTION—B
Marks 15
Write short notes on the following 3×5=15
1. Opportunity cost
2. Factors of demand
3. Applications of Law of Marginal Utility
4. Law of variable proportion
5. Monopolistic competition
PART B—DESCRIPTIVE
Marks 50
The figures in the margin indicate full marks for the questions
UNIT—I
1. What is business economics? Discuss the scope and importance of
managerial economics. 4+6=10
OR
2. What is production? On what factors does it depend? 3+7=10
COM/III/09/218 3 Contd.
UNIT—II
3. State and explain the law of demand.
Are there any exceptions to the law? 5+5=10
OR
4. What is elasticity of demand? Explain the importance of elasticity of
demand. 3+7=10
UNIT—III
5. What is law of diminishing marginal utility? What are the principles of
equi-marginal utility? 3+7=10
OR
6. What is an indifference curve? What is the importance of indifference curve
analysis? 3+7=10
UNIT—IV
7. What do you mean by production function? What are the features of
relationship between average product and marginal product of a factor?
4+6=10
OR
8. Write short notes on the following 5+5=10
Accounting cost
Economic cost
UNIT—V
9. Explain the different structures of market and their characteristics. 10
OR
10. What is monopoly? What are the features of monopoly? 3+7=10