Questions
Syllabus
Qns. By Syllabus

Semester

Subject

Year

Tribhuwan University

Institute of Science and Technology

2078

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.
What is indifference curve? Explain the consumer's equilibrium under ordinal utility approach. [10]
2.
Define national income. Explain the difficulties of measuring national income in developing countries like Nepal. [10]
3.
List out the features of monopoly? Explain the short run and long run equilibrium of a firm under monopolistic market? [10]
Section B

Short Answers Questions

Attempt any Eight questions.
[8*5=40]
4.
"Scarcity and choice are central issues of economics". Justify the statement. [5]
5.
Describe the major determinants of demand. [5]
6.
Given the Price demand schedule below. Find 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.
Price50403020100Quantity Demand51015202530\begin{array}{|c|c|c|c|c|c|c|}\hline \text{Price} & 50 & 40 & 30 & 20 & 10 & 0 \\ \hline \text{Quantity Demand} & 5 & 10 & 15 & 20 & 25 & 30 \\ \hline \end{array}
[5]
7.
Explain the law of returns to scale. [5]
8.
What is marginal rate of substitution (MRS)? Write the reason to diminishing MRS. [5]
9.
Calculate TC, AFC, AVC, AC, and MC under the total fixed cost 100, from the following cost schedule.
Output0123456789TVC0101824325080124180260\begin{array}{|c|c|c|c|c|c|c|c|c|c|c|}\hline \text{Output} & 0 & 1 & 2 & 3 & 4 & 5 & 6 & 7 & 8 & 9 \\ \hline \text{TVC} & 0 & 10 & 18 & 24 & 32 & 50 & 80 & 124 & 180 & 260 \\ \hline \end{array}
[5]
10.
Explain, the uses of quantitative instruments under the expansionary monetary policy? [5]
11.
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. [5]
12.
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\begin{array}{|l|c|}\hline \text{Items} & \text{(Rs in crores)} \\ \hline \text{Gross fixed domestic capital formation} & 200 \\ \text{Net exports} & (-14) \\ \text{Net indirect taxes} & 94 \\ \text{Net changes in stock} & 26 \\ \text{Private final consumption expenditure} & 500 \\ \text{Government's final consumption expenditure} & 150 \\ \text{Net factor income from abroad} & 50 \\ \text{Capital consumption allowance} & 80 \\ \hline \end{array}
[5]