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Seat No.: Enrolment No.:
GUJARAT TECHNOLOGICAL UNIVERSITY
BPLAN SEMESTER II- • EXAMINATION WINTER 2016
Subject Code: 1025501 Date:17/11/2016
Subject Name: Elements of Economics
Time:02:30 PM to 04:30 PM 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
A market is a group of and
Buyers determined and Sellers determined by
The term GDP refers to
When total cost is higher than total revenue, a firm does
Government revenue generates from
05
Explain the following term:
Fix Cost
Revenue
Economics
Surplus
Taxation
05
Q.2 Explain about Microeconomics and Macroeconomics 05
Describe the Law of Demand and Low of Supply 05
OR
What are the Substitute Goods and Complimentary Goods? 05
Q.3 Describe Market Equilibrium, Equilibrium Price and Equilibrium Quantity 05
Calculate the Price Elasticity of Demand in following example.
If the price of an ice cream cone increases from Rs. 30 to Rs. 40 and the
amount you buy falls from 25 to 20 cones,
then elasticity of demand would be calculated as:
05
OR
Q.3 What is Competitive Market? Explain with the example. 05
What is GDP? What are the components of GDP? 05
Q.4 Explain the Elastic and Inelastic curve in Demand 05
When the Shortage of Quantity occurs? Explain with Graph. 05
OR
Q.4 Explain Income and Expenditure with use of Circular Flow Diagram. 05
Describe the variety or types of demand curves with use of graphs. 05
Q.5 Explain types of Competition. 05
Explain the Explicit Cost and Implicit Cost of a Firm with an example. 05
OR
Q.5 What are Price Ceiling and Price Floor? Explain with examples. 05
What is total revenue? How revenue changes in Inelastic and Elastic demand? 05