Business Economics — DU B.A.(Prog.) with Commerce (Entrepreneurship and Small Business) Previous Year Question Papers

1. (a) Define Business Economics. How does it differ from traditional economics? Explain the nature of Business Economics. (b) Explain in detail the scope of Business Economics. (a) Explain the three basic economic problems: What, How, and For Whom to produce. (b) Explain economic theories and give any four examples of how economic theories help in business decision-making. (9+9) (b) Define price elasticity of demand. Distinguish between elastic, in clastic, and unitary elastic demand. State any three factors that determine price elasticity of demand. (9+9) (b) "Explain how a movement along the demand curve differs from a shift of the demand curve. Use diagrams and appropriate examples wherever needed." (9+9) 3. (a) What is economies of scale? Explain the various types of economies of scale. (b) What are the factors of production? Elucidate the role of technology in production function. (a) Using diagrams, explain the various short-run cost curves (TFC, TVC, TC, AFC, AVC, AC, MC). (b) What is law of returns to scale? Why does the law of returns to scale operate? (9+9) 4. (a) Explain long-run equilibrium of a firm and industry in perfect competition with the help of diagrams. (b) Explain the main features of oligopoly. Describe the kinked demand curve. (9+9) (a) Describe the main characteristics of monopolistic competition. Explain why firms under monopolistic competition face a highly elastic demand curve. (b) Discuss why a monopolist has market power. Using diagrams, explain how a monopolist determines profit-maximizing output and price. (9+9) 5. Write short note on any four: (4.5 each) (a) Basic problems of an economy (b) Net National Income (c) Marginal cost pricing (d) Diseconomies of scale (e) Advertising elasticity of demand (t) Perfect competition 1. (Business Economi 2(9)E (Normal Goods) +41 8781 83 349477 (4) fRee Fe at (Linear Demand Curve) 4 ata sil (a) 3r41 d at (Factors of Production) q4l 8? 3000 0н (Production Function & c (8) 77I7 i fr dI Pa (LaN of Returns to Scale) AH → →¡ ea (Perfect Competition) : (Kinked Demand Curve [2) en (Monet) d e -a (Market (79) ]e 24 314 (Net National Income) (4) 1ЧК- 3 (Diseconomies of Scale) (5) fay l (Advertising Elasticity of Demand) (a) a (Perfect Competition)