Totil' No. of Questions: 8 ] ( Total No.

of Printed Pages : 2

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B. E. (Third Semester) EXAMINATION, Dee., 1999 (New

Scheme)
(Computer Engg.)
PRINCIPLES AND APPLICATIONS OF ECONOMICS (HUM
- 201- C)
) Time: Three Hours J [ Maximum Marks: 100 (
Minimum Pass Marks : 40
Note: Attempt five questions in all, however Q. No. 1 is
CQmpulsory.
1. Which of the foUowing statements are correct and which are
incorrect ? Give reasons in brief for your answers. (Attempt
any ten) : 2 each (a) According to Alferd MlirshaU
Economics is the
science which is related with the problem of choice. (b)
Micro Economics deals with aggregates of the economy. (c)
Total utility is maximum, \\-hen marginal utility is negative.
(d) Contraction of demand is the result of decrease in the
income of purchaser.
(e) In case of an inferior good, the i.-1come elasticity of
demand is zero.
(I) Internal economies accrue to all the firms irrespective of
any increase in scale of production.
(g) Division of laboUT is not rdated to the size of the firm.
P. T. O.
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(2)
. .
t
in production.
(i) Globlisation only refers to allowing more experts. I
(j) There is ltlI inverse relationship between price and the
supply of the commodity.
.t
I
(
(k) Under perfect competition, the firms are the price makers.
(I) Monopolistic competition is the most prevailing form of
I
I
I
market structure.
2. Critically examine the welfare centred defmitions of
Economi,cs. 20
3. State and explain the law of diminishing marginal utility with
its practical importance and application. 20
4. Explain the concept of elasticity of demand. How is elasticity
of demand measured ? Mention the various areas of the
applicatiun of this concept. 20
5. What do- you understand by division of labour ? Explain in
brief the merits and demerits of division of labour. 20
6. Explain th~ terms fIxed cost, variable cost, average cost and
marginal cost and aLso explain the relationship between these
with short run. 20
7. Explain in brief the main features of the perfect competition
and monopoly. How perfect competition differs from
monopolistic competition ? 20
8.Write short notes on any two of the following: 10 each
(a) Features of indian Economy
(b) Privatisation: its merits and demerits (c)
Demand iorccastlIlg
(d) Nature of economic laws
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