Tribhuvan University
Bachelor of Information Technology
Semester 2 · TU Board 2078
Course Title: Economics (ECO155)
Full Marks: 60Pass Marks: 24Time: 3 hours
Candidates are required to give their answers in their own words as far as practicable.
Group A
Attempt any Two questions.(2 × 10 = 20)
- 1.10
What is indifference curve? Explain the consumer's equilibrium under ordinal utility approach.
- 2.10
Define national income. Explain the difficulties of measuring national income in developing countries like Nepal.
- 3.10
List out the features of monopoly? Explain the short run and long run equilibrium of a firm under monopolistic market?
Group B
Attempt any Eight questions(8 × 5 = 40)
- 4.5
"Scarcity and choice are central issues of economics". Justify the statement.
- 5.5
Describe the major determinants of demand.
- 6.5
Given the Price demand schedule below. Price50403020100Quantity Demand51015202530Find the price elasticity of demand when price changes from 40 to 20 and 20 to 40 by percentage method and also compare the results between them.
- 7.5
Explain the law of returns to scale.
- 8.5
What is marginal rate of substitution (MRS)? Write the reason to diminishing MRS.
- 9.5
Calculate TC, AFC, AVC, AC, and MC under the total fixed cost 100, from the following cost schedule. Output0123456789TVC0101824325080124180260
- 10.5
Explain, the uses of quantitative instruments under the expansionary monetary policy?
- 11.5
Let the demand and cost functions are P = 12 - 0.4Q and C = 5 + 4Q + 0.6Q² respectively. Then find the equilibrium price, quantity, total revenue, total cost and total profit.
- 12.5
Find the GDPMP, GNPM, and NNP from the following information Items(Rs in crores)Gross fixed domestic capital formation200Net exports(-14)Net indirect taxes94Net changes in stock26Private final consumption expenditure500Government's final consumption expenditure150Net factor income from abroad50Capital consumption allowance80
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