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University of Madras (UoM)

University of Madras (UoM)

Syllabus

Test Papers

Permission for writing BE/BTech/BArch/ME Exams

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Business Economics
Business Economics
October 2003
U/IC 5206/PXC

Time: Three hours
Maximum: 100 marks

SECTION A - (5 x 8 = 40 marks)

Answer ALL sub-questions.
Each answer should not exceed 50 words.

1. a. State the meaning of business economics.
b. Enlist the phases of Decision making.
c. What is a demand curve?
d. Define opportunity cost.
e. What is known as business cost?
f. Define Historical cost.
g. State the significance of specialization of labour.
h. What is a market economy?
i. Why social responsibility of business?
j. What is known as traditional values in business?

SECTION-B (5x6=30 marks)
Answer any FIVE questions.
All questions carry equal marks.
Each answer should not exceed 300 words.

2. What are the exceptions to the law of demand?
3. State the components of cost of production.
4. Explain the theory of capital and investment.
5. Differentiate long run from short run costs.
6. Explain the modes of price determination.
7. What is the theory of profit?
8. Discuss the concept of full cost pricing.

SECTION-C (2x20=40 marks)
Answer BOTH the questions.
All questions carry equal marks.
Each answer should not exceed 1200 words.

9. a. Explain the operational problems of Business economics.

Or

b. Explain the objectives of business with suitable example.

10. a. How is pricing determined under pure monopoly? State the causes of monopoly.

Or

b. What are the implications of Industrial Policy, 1991?
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