Questions
Syllabus
Qns. By Syllabus

Semester

Subject

Year

Tribhuwan University

Institute of Science and Technology

2082

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 market equilibrium. Explain how shifts in demand and supply curves affect equilibrium price and quantity, with appropriate diagrams. [10]
2.
What is perfect competition? Discuss its characteristics and the process of price-output determination in the short run using marginal approaches. [10]
3.
Explain the concept of indifference curve. Derive the consumer’s equilibrium using indifference curves and budget line with a diagram. [10]
Section B

Short Answers Questions

Attempt any Eight questions.
[8*5=40]
4.
Explain the concept of production possibility curve with an example. [5]
5.
Given the demand schedule:
Price (Rs.)252015105Quantity Demanded50100150200250\begin{array}{|c|ccccc|}\hline \text{Price (Rs.)} & 25 & 20 & 15 & 10 & 5 \\ \hline \text{Quantity Demanded} & 50 & 100 & 150 & 200 & 250 \\ \hline \end{array}
a) Calculate the price elasticity of demand from point Rs. 20 to Rs. 15 using the point method. b) Compute the arc elasticity of demand between points Rs. 15 and Rs. 10. [5+0+0]
6.
Explain the concept of producer surplus. How does a price floor affect producer surplus? Illustrate with a diagram. [5]
7.
Define the law of diminishing marginal utility. Explain its significance with an example. [5]
8.
What is a production function? Discuss the properties of isoquants with a diagram. [5]
9.
Consider the following cost schedule:
Output012345TFC (Rs.)202020202020TVC (Rs.)0305080120160\begin{array}{|c|cccccc|}\hline \text{Output} & 0 & 1 & 2 & 3 & 4 & 5 \\ \hline \text{TFC (Rs.)} & 20 & 20 & 20 & 20 & 20 & 20 \\ \hline \text{TVC (Rs.)} & 0 & 30 & 50 & 80 & 120 & 160 \\ \hline \end{array}
a) Calculate TC, AFC, AVC, AC, and MC. b) Explain the relationship between AVC and MC. [5+0+0]
10.
Define monopoly. Discuss its key features and provide one real-world example. [5]
11.
Given the following data for a country (in Rs. billions): Consumption = 500, Investment = 150, Government Spending = 200, Exports = 100, Imports = 80, Net Factor Income from Abroad = 20. a) Calculate GDP using the expenditure approach. b) Calculate GNI. [5+0+0]
12.
Define fiscal policy. Discuss the tools of fiscal policy used for economic stabilization. [5]