Questions
Syllabus
Qns. By Syllabus

Semester

Subject

Year

Credit:Nikesh DhimalNikesh Dhimal

Tribhuwan University

Institute of Science and Technology

2080.1

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 income elasticity of demand. Describe the various types of income elasticity of demand with suitable diagrams. [10]
2.
What is indifference curve? What are its properties? [10]
3.
What is monopoly market? How price and output are determined under monopoly market? [10]
Section B

Short Answers Questions

Attempt any Eight questions.
[8*5=40]
4.
Explain the concept of production possibility curve. [5]
5.
Describe the features of mixed economy. [5]
6.
Consider the following table:
CombinationsABCDEFGPrice (Rs.)6543210Demand (Units)0100020003000400050006000\begin{array}{|c|ccccccc|}\hline \text{Combinations} & A & B & C & D & E & F & G \\ \hline \text{Price (Rs.)} & 6 & 5 & 4 & 3 & 2 & 1 & 0 \\ \hline \text{Demand (Units)} & 0 & 1000 & 2000 & 3000 & 4000 & 5000 & 6000 \\ \hline \end{array}
a) Find the price elasticity of demand for movement from points B to D and D to B by proportional method. b) Compute the price elasticity of demand at the mid way between A to C and C to A by arc method. [5+0]
7.
Consider the following cost schedule:
Output012345678TFC200−−−−−−−−TVC020364864100160248360\begin{array}{|c|cccccccc|}\hline \text{Output} & 0 & 1 & 2 & 3 & 4 & 5 & 6 & 7 & 8 \\ \hline \text{TFC} & 200 & - & - & - & - & - & - & - & - \\ \hline \text{TVC} & 0 & 20 & 36 & 48 & 64 & 100 & 160 & 248 & 360 \\ \hline \end{array}
a) Calculate TC, AFC, AVC, AC and MC. b) Derive TFC, TVC and TC curves. Explain their relationship. [5+0]
8.
The market demand and supply functions for product are given below:
Qd=500−5PQ_d = 500 - 5P
Qs=100+5PQ_s = 100 + 5P
a) Find the equilibrium price and output. b) If the sales tax (indirect tax) of Rs. 10 per unit is imposed by the government, what will be the new equilibrium price and output? [5+0]
9.
Explain the objectives of monetary policy. [5]
10.
Define isoquants. What are the properties of isoquants? Explain. [5]
11.
What is cartel? Why is it illegal? Give the examples of cartel. [5]
12.
Distinguish between GDP and GNP. What are the problems of calculating national income in developing countries like Nepal? [5]