BUSINESS ECONOMICS 2009 1. What
do you mean by elasticity of demand? Give a brief idea about the various
factors that affect price elasticity of demand. Mention the importance of
income elasticity of demand in business decision.
Or Explain
the concept of cross elasticity of demand with the help of suitable example and
diagram. What is the practical usefulness of the concept?
2. 2. Explain
with example the law of variable proportion. In which stage output is decided? Or What
do you mean by internal and external economics? Explain the different factors
responsible for internal economics.
3. 3. What
are the characteristics of perfect competition? Explain with the help of
diagram the determination of normal price under perfect competition. Or Explain
with diagram how price and output are determined under monopoly.
4. 4. Give
the meaning of real wage and money wage. Explain with suitable diagram about
determination of wage rate under perfect competitive market.
Or
Give
the meaning of Quasi-rent. Mention two similarities of rent and quasi rent.
"Rent as a price for the use of land, like other factor prices, is determined
by the demand for and supply of land”. Discuss.
5. Explain the classical theory of
interest and point out its limitations. Or
What
are the natures of profits? Explain the various elements of gross profit.
Assess the risk-bearing theory of profit.
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