Exam Details

Subject economics for managers (efm)
Paper
Exam / Course mba
Department
Organization Gujarat Technological University
Position
Exam Date May, 2018
City, State gujarat, ahmedabad


Question Paper

Page 1 of 2
Seat No.: Enrolment
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA (PART TIME) SEMESTER 01 EXAMINATION SUMMER-2018
Subject Code: 3519902 Date:01/05/2018
Subject Name: Economics for Managers
Time: 10:30 AM To 01:30 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.
Question Text and Description
Marks
Q.1
Definitions terms explanations short questions based on concepts of theory/practical
Law of demand
Deadweight loss
Economies of Scope
Isoquants
Cartel
Consumer surplus
Selling cost
14
Q.2

The study of economics has many facets and the field is unified by several Central ideas regarding decision making of peoples, their interaction and the Working of economy as a whole- Explain.
07

Explain price elasticity of demand and the income elasticity of demand. Also explain the determinants of the price elasticity of demand
07
OR

Discuss production and pricing decision for monopoly firm.
07
Q.3

Explain the role that banks play in the monetary system through the money multiplier. Explain the Reserve Bank's tools of monetary control.
07

What is CPI? List the steps involved in calculation of CPI. Briefly explain the three problems in measuring the cost of living
07
OR
Q.3

GDP is not ultimate measure of well-being of an economy. Discuss it.
07

What are the features of firms in a competitive market? Why do competitive firms stay in business if they make zero economic profit? Discuss.
07
Q.4

What is the slope of the Aggregate-Demand and Aggregate-Supply curve in the Short run and in the long run? What shifts both these curves?
07

What is the Prisoners Dilemma What does it have to do with Oligopoly?
07
OR
Q.4

Explain the short run trade-off between inflation and unemployment using the Phillips curve. When does the Phillips curve become vertical?
07
Page 2 of 2

Define Nominal Exchange Rate, Real Exchange Rate and the concept PPP with suitable examples.
07
Q.5
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.

How did De Beers dominate the diamond industry?
07

As more businesses and nations enter the diamond industry, why does De Beers retain such a significant share of the market?
07
OR
Q.5

Below are some data from the country of Shortsville.
Year
Price per
football
Quantity of footballs
Price per baseball
Quantity of baseballs
2014
$10
200

75
2015
14
200
10
75
2016
14
350
10
125
Compute nominal GDP, real GDP, and the GDP deflator of each year, using 2014 as the base year.
Compute the percentage change in nominal GDP, real GDP, and the real GDP deflator in 2015 and 2016 from the preceding year.
07

Define ATC, AVC, AFC, and MC. Discuss relationship among them with the help of diagram.
07



Subjects

  • accounting for managers
  • accounting for managers (afm)
  • advance marketing management
  • applied pharmaceutics
  • b2b marketing
  • banking and insurance
  • banking and insurance -ii
  • brand marketing
  • business analytics (ba)
  • business communication
  • business english (be)
  • business environment
  • business ethics
  • business ethics and corporate governance (becg)
  • business law for managers
  • business mathematics
  • business process reengineering
  • business process reengineering (bpr)
  • business statistics
  • business statistics (bs)
  • business structure and management
  • business structure and process
  • change management & organization development
  • change management and organizational development
  • company law
  • compensation management
  • computer applications
  • constitution of india
  • consumer behavior (cb)
  • consumer behaviour
  • cooperative management
  • corporate accounting (ca)
  • corporate restructuring
  • corporate tax planning
  • corporate taxation (ct)
  • corporate taxation and financial planning (ct & fp)
  • cost & management accounting (cma)
  • cost and management accounting
  • counseling skills for managers
  • creativity and innovation
  • creativity, incubation and innovation (cii)
  • cross continent business philosophy
  • cyber security and it governance (csitg)
  • database management
  • designing of operations system (dos)
  • development of human skills
  • digital marketing
  • e-commerce
  • ecological management & business
  • economics for managers (efm)
  • effective communication skills
  • elements of direct & indirect taxes
  • elements of financial accounting
  • english language
  • enterprise resource planning
  • entrepreneurial finance (ef)
  • entrepreneurship
  • environment for business
  • environment management
  • export – import policy, procedure documentation
  • export-import policy procedures & documentation
  • export-import procedures
  • family business management
  • financial accounting
  • financial management
  • financial planning
  • foreign exchange management
  • foreign language-french
  • french (foreign language)
  • fundamentals of information technology
  • fundamentals of marketing (fom)
  • gandhian philosophy for managing business (gpmb)
  • german (foreign language)
  • global human resource management (ghrm)
  • healthcare and hospital management
  • human resource development
  • human resource management
  • human resource management.
  • human skills
  • human values & business ethics (hvbe)
  • import export procedures
  • income tax (it)
  • indian economy
  • indian ethos & human quality development
  • information system audit and control
  • information systems
  • information technology and global business
  • integrated marketing communication
  • integrated marketing communication (imc)
  • intellectual property rights
  • international accounting practice
  • international business
  • international business (ib)
  • international commercial law (icl)
  • international economic environment (iee)
  • international economics (ie)
  • international finance
  • international financial management (ifm)
  • international human resource management
  • international human resource management (ihrm)
  • international marketing
  • international supply chain management
  • inventory management, material planning and management
  • inventory management, materials planning and management
  • investment banking (ib)
  • labor law
  • leadership
  • legal aspects business
  • legal aspects of business
  • legal aspects of business (lab)
  • macro economics (me)
  • management accounting
  • management control system
  • management control systems
  • management information system
  • management of cooperatives
  • management of financial planning (mfp)
  • management of financial services (mfs)
  • management of industrial relation and labour law
  • management of industrial relations and labour laws (mir & ll)
  • management principles
  • managerial communication
  • managerial communication (mc)
  • managerial economics
  • managerial economics(me)
  • managing digital innovation and transformation (mdit)
  • marketing management
  • marketing research (mr)
  • material management
  • mergers and acquisitions
  • micro economics
  • micro small and medium enterprise
  • multicultural organizational behavior (mob)
  • new entrepreneurship & innovation management
  • new venture creation
  • operation management
  • organisational dynamics
  • organizational behavior
  • organizational behaviour
  • performance management (pm)
  • principles of management (pm)
  • product & brand management (pbm)
  • product and brand management
  • product design and development
  • production & operations management (pom)
  • production and operations management
  • production management
  • project management
  • project management for entrepreneurs
  • public relation management
  • quantitative analysis - ii
  • quantitative analysis (qa)
  • quantitative analysis-i
  • relational database management system (rdbms)
  • research methodology
  • research methodology (rm)
  • retailing - ii
  • retailing and franchising (rf)
  • risk management
  • rural marketing
  • sales & distribution management
  • sales and distribution management (sdm)
  • security analysis & portfolio management
  • security analysis & portfolio management (sapm)
  • service marketing
  • services and relationship marketing (srm)
  • social entrepreneurship
  • social media analytics (sma)
  • strategic financial management
  • strategic financial management (sfm)
  • strategic human resource management
  • strategic information technology management
  • strategic management
  • supply chain & logistics management
  • supply chain and logistics management
  • supply chain management
  • supply chain management (scm)
  • system analysis and design
  • system analysis and design(sa&d)
  • talent management
  • technology and business
  • technology management
  • total quality management and world class manufacturing excellence (tqmwcme)
  • tourism and hospitality management (thm)
  • wto multilateral trading system and it’s impact on business
  • wto multilateral trading system and its impact on business(wmts-i)