CAEC353 Applied Economics

Applied Economics TU Board 2021 question paper

10 questionsSit this paper (timed)

Tribhuvan University

Bachelor of Computer Application

Semester 6 · TU Board 2021

Course Title: Applied Economics (CAEC353)

Full Marks: 60Pass Marks: 24Time: 3 hours

Candidates are required to answer the question in their own words as far as possible.

Group B

Attempt any SIX question.(6 × 5 = 30)

  1. 2.

    Distinguish the concepts of microeconomics and macroeconomics.

    5
  2. 3.

    What is demand? Explain its determinants.

    5
  3. 4.

    a) A consumer buys 80 units of a goods at a price of Rs.4 per unit. When the price falls, he buys 100 units. If the price elasticity of demand is -1, find out the new price of the goods. b) Price elasticity of supply of a good is 5. A producer sells 500 units of this good at Rs.5 per unit. How much will sell at the price of Rs.6 per unit?

    5
  4. 5.

    'Price effect is the combination of income and substitution effect.' Describe.

    5
  5. 6.

    Explain the relationships between AR and MR.

    5
  6. 7.

    How price and output are determined under perfect competition market in the long-run?

    5
  7. 8.

    Explain the primary and secondary functions of money.

    5

Group C

Attempt any TWO questions(2 × 10 = 20)

  1. 9.

    Explain the properties of the Indifference Curve.

    10
  2. 10.

    Based on the table given below, answer the questions:Quantity of output012345Total Variable cost020304890170Total cost30506078120200a) Plot the TFC, TVC and the TC curves. b) Explain the reason for the shape of short-run total cost curves. c) Calculate the average fixed cost (AFC), the average variable cost (AVC), the average total cost (ATC), and the marginal cost (MC).

    10
  3. 11.

    Consider the following data to calculate the following.S.NoParticularsRs(In crores)1Exports of Goods and Services35422Imports of Goods and Services36323Private Final Consumption Expenditure583264Net Factor Income from Abroad (NFIA)(-)5685Subsidies6746Capital Consumption Allowances (Depreciation)44347Compensation of Employees267268Government's Final consumption Expenditure76029Indirect Taxes772810Gross Fixed Capital Formation1261011Mixed Income of the Self-employees3222412Interest, Rent and Profit (Operating Surplus)1008813Change in Stocks2078a) GDP_MP by using income method and by expenditure method. b) GDP_FC and GNP_MP c) NNP_FC and NNP_MP

    10

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