Questions
Syllabus
Qns. By Syllabus

Semester

Subject

Year

Tribhuwan University

Institute of Science and Technology

Model

Bachelor Level / First Year / Second Semester / Science

Bachelors in Information Technology (ECO155)

(Economics)

Full Marks: 60

Pass Marks: 24

Time: 3 Hours

Candidates are required to give their answers in their own words as for as practicable.

The figures in the margin indicate full marks.

Section A

Long Answers Questions

Attempt any TWO questions.
[2*10=20]
1.
Define elasticity of demand. Discuss the relationship between total expenditure and price elasticity of demand.[10]
2.
What is indifference curve? How can a consumer will attain an equilibrium under indifference curve approach?[10]
3.
Distinguish between GDP and GNP. Describe various problems of measuring national income in developing countries like Nepal.[10]
Section B

Short Answers Questions

Attempt any Eight questions.
[8*5=40]
4.
Describe briefly society's production possibility curve. [10]
5.
Suppose a demand schedule is given as below: a. Workout with elasticity for fall in price from Rs. 80 to Rs. 60. b. Calculate elasticity for the increase in price from Rs. 60 to Rs. 80. c. Why is the elasticity coefficient in part a) different from that in b)?

$\begin{array}{|c|c|c|c|c|c|c|}\hline \text{Price} & 100 & 80 & 60 & 40 & 20 & 0 \\ \hline \text{Quantity demand} & 100 & 200 & 300 & 400 & 500 & 600 \\ \hline \end{array}$
[5]
6.
The cost and output of a firm is as below: From this information find out i. AFC of producing 3 units ii. AVC of producing 4 units iii. Least AC level of output iv. MC of producing 5 units and v. TVC of producing 6 units

$\begin{array}{|c|c|c|c|c|c|c|c|}\hline \text{Output (units)} & 0 & 1 & 2 & 3 & 4 & 5 & 6 \\ \hline \text{TC (Rs.)} & 150 & 300 & 420 & 600 & 790 & 1000 & 1260 \\ \hline \end{array}$
[5]
7.
Demand and cost function faced by a firm is given as P = 12 - 0.4 Q and $C= 5 + 4Q + 0.6Q^2$. Find the equilibrium price, quantity, total revenue, total cost and total profit which maximizes profit of the firm. [5]
8.
Discuss the government intervention in the market through price floor, price ceiling and tax and effect. [5]
9.
Describe the tools of monetary policy. [5]
10.
What are the properties of Iso-quant? [5]
11.
Explain centralized cartel. [5]
12.
Find the gross domestic product at market prices from following data.

$\begin{array}{|c|l|c|}\hline \text{S.N.} & \text{Particular} & \text{Rs. (In crores)} \\ \hline 1. & \text{Consumption of fixed capital (Depreciation)} & 60 \\ 2. & \text{Government's final consumption expenditure} & 200 \\ 3. & \text{Net factor income from abroad} & -10 \\ 4. & \text{Private final consumption expenditure} & 800 \\ 5. & \text{Export} & 50 \\ 6. & \text{Import} & 30 \\ 7. & \text{Gross domestic capital formation} & 230 \\ \hline \end{array}$
[5]