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Seat No.: Enrolment
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA (PART TIME) SEMESTER 1 EXAMINATION WINTER 2018
Subject Code:4519905 Date:26/12/2018
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 Explain the terms
Demand
Supply
Opportunity cost
Fiat money
Inflation
Equilibrium
Elasticity
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
Draw the circular flow diagram and explain why an economy's
income must equal to its expenditure.
07
OR
Define Cost of Living Index. Explain the steps in the calculation
of Cost of Living Index. State the problems involved in its
calculation.
07
Q.3 What is GDP? What are the four components of GDP. 07
What is monopoly? List down reasons behind monopoly. 07
OR
Q.3 List and describe four determinants of productivity 07
Define economies of scale and explain why they might arise.
Define diseconomies of scale and explain why they might arise.
07
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Q.4
CASE STUDY
Following is the data of Aakash Brass ltd which is combination
of labor intensive and capital intensive company producing
product X. From the following data of output company produces
and total variable cost associated with it. Currently company is
incurring fixed cost of Rs.500
Output Total Variable cost
10 800
20 1000
30 1250
40 1600
50 1800
60 2100
Calculate total cost, Average cost AVC and ATC) 07
Calculate Marginal Cost and interpret the answer. 07
OR
Aakash Brass ltd., has shifted from combination of labor and
capital intensive to Capital intensive company, which increases
the cost of producing product to Rs.760 as fixed cost. By taking
this cost, calculate total cost, Average cost AVC and
ATC)
07
Calculate Marginal cost and interpret the answer. 07
Q.5
CASE STUDY:
Below are some data from country of Spottsville:
Year Price of
football
Quantity
of
football
Price of
basket ball
Quantity
of basket
ball
2006 $10 200 75
2007 $14 200 $10 75
2008 $14 350 $10 125
calculate Nominal GDP, Real GFP and GDP deflator for each
year using 2006 as base year
07
Calculate percentage change in Nominal GDP, Real GDP and
GDP deflator.
07
OR
Q.5 If price of football in 2006 is 12, and price of basketball in
2006 is then calculate Nominal GDP, Real GFP and GDP
deflator for each year using 2006 as base year
07

Calculate percentage change in Nominal GDP, Real GDP and
GDP deflator.
07