ECO155 Economics

Economics TU Board 2080 question paper

12 questionsSit this paper (timed)

Tribhuvan University

Bachelor of Information Technology

Semester 2 · TU Board 2080

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. 1.

    Define elasticity of supply. What are the various types of elasticity of supply? Explain with diagrams.

    10
  2. 2.

    Define production function. Discuss the various features of the Cobb-Douglas production function.

    10
  3. 3.

    What is a perfect competition market? How the price and output are determined under it in the short run?

    10

Group B

Attempt any Eight questions(8 × 5 = 40)

  1. 4.

    What are the features of a mixed economy?

    5
  2. 5.

    Explain the concept of scarcity and choice in the decision-making process.

    5
  3. 6.

    Consider the following demand schedule. CombinationABCDEIncome (Rs)02468Demand (Units)2001601208040 i) Compute the income elasticity of demand at movement from B to C and C to B by the proportional method. ii) Compute the income elasticity of demand midway between B and C and C and B.

    5
  4. 7.

    Define price consumption cure (PCC). Derive the price consumption curve for Giffen goods with the help of indifference curve approach.

    5
  5. 8.

    Consider the following cost schedule: Output01234567TVC05090120140175230310 a) At TFC=120, compute TC, AFC, AVC, and ATC. b) Draw the graph of AFC, AVC, and ATC.

    5
  6. 9.

    Explain the various properties of the indifference curve.

    5
  7. 10.

    Show the relationship between AR and MR under the monopoly market with the help of a table and figure.

    5
  8. 11.

    Differentiate between expansionary fiscal policy and contractionary fiscal policy.

    5
  9. 12.

    From the following data, calculate the national income: ParticularsRs.in millionGross fixed capital formation300Private final consumption expenditure900Net Export-50Subsidies50Government final consumption expenditure150Indirect taxes250Change in stock50Consumption of fixed capital50Net factor income from abroad50

    5

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