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APJ ABDUL KALAM TECHNOLOGICAL UNIVERSITY
THIRD SEMESTER B.TECH DEGREE EXAMINATION, DECEMBER 2017
Course Code: HS200
Course Name: BUSINESS ECONOMICS
Max. Marks: 100 Duration: 3 Hours
PART A
Answer any three questions, each carries 10 marks.
1 What is a PPC? Explain opportunity cost concept using Production Possibility
Curve.

What is Price Elasticity of demand?
2 Explain the market equilibrium concept using a schedule and diagram.
Calculate marginal utility from the following data.
X 1 2 3 4 5 6 7 6
TU 10 18 25 30 33 35 35 30

3 Give examples of any three business decisions which can be taken effectively
using the concepts in business economics.

Comment on the nature of elasticity from the following data
Ep ii) Ep=0 iii) Ep=2 iv) Ep=.85

4 Given below are the production function of Firm A
Q 100 K0.3L0.7
The firm use 20 units of Labour and 10 units of Capital
Calculate the output

State and explain the Law of variable proportions
PART B
Answer any three questions, each carries 10 marks.
5 Elucidate the features of a perfect market structure
What will happen if a firm cut price in an oligopoly market
6

(i)Calculate Break Even Quantity from the following data
Fixed Cost:Rs. 25,000 Average Variable Cost Rs. 12; Selling Price Rs. 17
What will be the Break-Even Quantity, if selling price increases by Rs.3?
What are the limitations of Break-even analysis?


7 Describe the Circular Flow Concept using a three-sector model.
Differentiate between GDP and GNP.
8 What is inflation? What adjustments can be made in CRR and SLR to bring
down the level of inflation?

Describe the different phases of Trade Cycle
PART C
Answer any four questions, each carries 10 marks.
9 What are the advantages of NPV method
Mr. Keynes, an investor is evaluating two projects with an objective of selecting
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one among these for making an investment. From the following data, recommend
which project to be selected using Pay Back Period Method
Project Initial
Outlay
Year1 Year 2 Year3 Year4
A 90,000 20,000 30,000 50,000 50,000
B 90,000 30,000 40,000 50,000 20,000
10

What is GST?
Distinguish between a money market and capital market.


11 Elucidate the four main cannons of taxation.
What are the uses of demand forcasting?
12 Prepare a balance sheet and arrange the following items in it
Cash, Interest Payable, Machinery, Wages Payable, Goodwill, Sundry Creditors,
Inventories

Why is it important to preparea balance sheet?
13 What is Cost Benefit Analysis?
Discuss Delphi Technique of demand forecasting?
14 "Business always operate in an environment of uncertainty". Do you agree?
Give three reasons.

What are the benefits of FDI?