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Seat No.: Enrolment
GUJARAT TECHNOLOGICAL UNIVERSITY
BPLAN SEMESTER • EXAMINATION SUMMER 2017
Subject Code: 1025501 Date: 25/05/2017
Subject Name: ELEMENTS OF ECONOMICS
Time: 10.30AM to 12.30PM Total Marks: 50
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Q.1

Fill in the blanks
In a Market, buyers and sellers usually do
Price elasticity of demand is always greater than 1 in demand.
A good's maximum retail price is called its
A firm's total revenue minus total cost gives of a firm.
In India, we use as measure of nation's economic growth.
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Find out the following statements are True or False:
A competitive market is a market in which there are many buyers and very few sellers.
Perfectly Inelastic demand curve expands in horizontal direction.
Unit Elastic Curve define equal of price and quantity changes.
Any firm's objective is to maximize the profit.
Income from informal sectors counts under nation's GDP.
05
Q.2

Explain about Microeconomics and Macroeconomics
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Give the explanation of following terms.
1. Market 2.Demand Curve
05
OR

Describe Market Equilibrium, Equilibrium Price and Equilibrium Quantity
05
Q.3

How economics is useful in Urban Planning?
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When the Shortage of Quantity occurs? Explain with Graph.
05
OR
Q.3

What is Competitive Market? Explain with the example.
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What is the difference between Surplus and Shortage? Explain with graph.
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Q.4

Explain the Elastic and Inelastic curve in Demand
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Draw the following graphs for Demand Curve:
1. Perfectly Inelastic Curve
2. Inelastic Curve
3. Unit Elastic Curve
4. Elastic Curve
5. Perfectly Elastic Curve
05
OR
Q.4

Explain Monopoly and Oligopoly.
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What is total revenue? How revenue changes in Inelastic and Elastic demand?
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Q.5

What is GDP? What are the components of GDP?
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Explain in brief: The growth and development indicators for a nation.
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OR
Q.5

What is Price Ceiling and Price Floor? Explain with examples.
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Explain the Explicit Cost and Implicit Cost of a Firm with an example.
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