15GE701

Regulation: 2015

BANNARI AMMAN INSTITUTE OF TECHNOLOGY

(An Autonomous Institution Affiliated to Anna University, Chennai)
SATHYAMANGALAM – 638 401

PERIODICAL RETEST I - DEC 2020

VII Semester
Degree & Branch : B.Tech-TT 15GE701

Time :1½ Hrs. Maximum : 50

Marks

Number of Students:56

Instructions:
1.Section A and B contains questions for 20 Marks each. Section C contains questions for 10 Marks.
2.No Choices are given

Q.No Questions

SECTION A COURSE OUTCOME 1 MAXIMUM : 20 MARKS

A1 In an automobile industry and restaurant shops, the consumers preference can refer to both
individuals and households. Whereas, the purchase of automobile are usually analyzed on a
household basis and restaurant purchases are usually analyzed on an individual basis.
Economists study consumer spending habits and patterns, because consumer tastes and
preferences help to determine the demand for various commodities as shown in Figure 1.
Analyse the given situation and choose best economics point of view either in microlevel or
macrolevel to solve the consumer preferences.

Figure 1. Elements of Economic System.

The cost of inputs in relation to output are studied to optimise ___________. (2 Marks-[An/P,2])
(i)
(a) Quality
(b) Quantity
(c) Price
(d) Product
(e) Profits
(f) Sales
(ii) Infer the economics helpful in determining the prices of a product along with the prices of factors

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of production (land, labor, capital, entrepreneur etc.) within the economy. (2 Marks-[U/C,2])
(a) Mixed economy
(b) Social economy
(c) Market economy
(d) Microeconomy
(e) Macroeconomy
(f) Traditional economy
(iii) In macro economics, maintains stability in the general price level and resolves the major
problems of the economy like _______ and ________. (2 Marks-[An/C,3])
(a) Land and labour
(b) Goods and income
(c) Capital and goods
(d) Land and income
(e) Inflation and poverty
(f) Deflation and labour
(iv) Macroeconomic models that do not consider the behavior of variables from one time period to
another in an explicit manner are called __________. (2 Marks-[Ap/C,2])
(a) Static models
(b) Dynamic models
(c) Output models
(d) Kinetic models
(e) Price models
(f) Domestic models
(v) Select the type of policy helps government, managing the nation’s money, credit, and banking
system? (2 Marks-[Ap/C,3])
(a) Price and Incomes Policy
(b) Exchange rate policy
(c) International Trade Policy
(d) Employment Policy
(e) Fiscal policy
(f) Monetary policy
A2 All business entities are not the same. Some provide owners a lot of flexibility in management
and control and some do not. Some provide owners a significant degree of protection from
liability and some do not. And some are heavily regulated, and some are not. All of these factors
should be considered when an entrepreneur is selecting the type of business entity she or he
wishes to use for her or his business. First of all consider the unlimited liability entities, or
those business organizations that don't provide the owner or owners any protection from
personal liability, such as sole proprietorships and general partnerships. Secondly consider the
limited liability entities, which are business organizations that usually limit an owner's liability
to his or her investment in the business, such as corporations, limited liability companies, and
limited partnerships is shown in Figure 2. Analyse the given situation and choose the best
entities for gaining profits to the organisation.

Figure 2. Different types of Business Organisations.

(i) Financial Institutions evaluate the success and strength of firm in terms of ______revenue

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rather than profit. (2 Marks-[An/C,2])
(a) Rent revenue
(b) Sales revenue
(c) Marginal revenue
(d) Price revenue
(e) Average revenue
(f) Total revenue
(ii) Select the kind of organisation the owner gets 100% profit and has total control over the
business. (2 Marks-[Ap/C,2])
(a) Partnership organisation
(b) Private limited companies
(c) Public sector organisation
(d) Sole propertership companies
(e) Corporate organisations
(f) Franchise companies
(iii) The cooperative organisation is a non-profit, non political, voluntary organisation and not to earn
profit, but encourage to mutuality and cooperation will promote______ values. (2 Marks-[An/P,3])
(a) Legal values
(b) Social values
(c) Monetary values
(d) Fiscal values
(e) Financial values
(f) Ethical values
(iv) In private limited companies, shareholders have limited_________, therefore it is safer for
people to invest but creditors must be cautious because if the business fails they will not get their
money back. (2 Marks-[Ap/P,3])
(a) Divident
(b) Income
(c) Assets
(d) Liquidity
(e) Liability
(f) Capital
(v) Identify the objective belong to business firms in an organisation. (2 Marks-[U/C,2])
(a) Maximization of profit
(b)Minimization of sales revenue
(c) Short- run survival of the firm
(d)Minimization of managerial utility function
(e) Dissatisfying behaviour of firm
(f) Maximisation of output
SECTION B COURSE OUTCOME 2 MAXIMUM : 20 MARKS
B1 Small-scale fruit and vegetable vendors generally have more difficulty in finding established
markets; therefore, they usually develop marketing systems tailored to their unique situations.
Fruits and vegetables are produced seasonally, but the market requires products throughout the
year. For many decades, this problem of matching product availability with consumer demand
was solved in two ways:
 Selling fresh products during harvest and shortly sale it according to consumer demand.
 Processing the rest to meet demand during the rest of the year.
As technology improved and consumer incomes increased, it became possible to provide fresh
produce year-round. Some retailers contract year-round with fresh fruit and vegetable packers,
who may in turn contract with growers. Contracts and large-volume buying practices enable
packers to obtain sufficient quantities of individual products. As a small-scale fresh fruit and
vegetable grower, the supply of vegetables and fruits to the retailers based on demand should
be the problem. Analyse the given supply and demand curve and you must develop your own

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marketing system with respect to supply and demand for the products to handle the indian
economical situation as shown in Figure 3.

Figure 3. Supply and Demand Curve.

(i) Above the equllibrium point (E) in Figure 3, the supply curve will tends to _______.
(a) Decrease than the demand curve (2 Marks-[An/P,2])
(b) Equal to the demand curve
(c) Increase than the demand curve
(d) Shift upwards to the demand curve
(e) Shift downwards to the demand curve
(f) Increases and decreases than the demand curve
(ii) Small scale vendors will supply less quantity at the same price with decrease in supply as shown
in Figure 3 is said to be ___________ supply. (2 Marks-[U/C,3])
(a) Market supply
(b) Contraction supply
(c) Increase supply
(d) Decrease supply
(e) Extension supply
(f) Increase and decrease supply
(iii) The following factor is not responsible for the shift of the supply curve fron one point to another
point in the supply demand curve is _________. (2 Marks-[Ap/C,2])
(a) Prices of Related Goods and Services
(b) Resource price
(c) Technology and Productivity
(d) Customer preferences of the product
(e) Number of producers
(f) Expectations of the producers.
(iv) A monopolist firm will like to restrict supply, so as to raise the ________and as a result _______
decreases. (2 Marks-[An/C,2])
(a) Market demand and price
(b) Market supply and demand
(c) Market price and supply
(d) Market demand and quantity
(e) Market supply and price
(f) Market quantity and supply
(v) A quantity of a product in which a firm is willing to produce and offer for sale at a particular price
during a specified period is said to be __________. (2 Marks-[Ap/C,2])
(a) Joint supply
(b) Substantive supply
(c) Market supply
(d) Price supply
(e) Mixed supply

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(f) Individual supply
B2 Murugan is running a steel plant industry with the capacity of 500 employees working and
producing 1000 tons of steel per day and he is plan to expand the unit to produce 5000 tons of
steel per day as per the market demand and forecasting the demand of steel capacity in india for
future in the year 2025 as shown in Figure 4. Murugan is planning to increase the employee
count working per day to increase the production of steel to acheive maximum profit and
increase the economic growth. Based on the situation, murugan choose best forecasting
technique to analyse the demand growth of steel in future world market structure. As per the
forecasting results, Murugan decide the expansion of steel plant industry in india or worldwide.
Analyse the situation properly and answer the following questions.

Figure 4. Demand forecasting of steel capacity in indian market .

(i) The following element is not related to good forecasting according to Murugan steel plant is
______. (2 Marks-[An/C,2])
(a) Timely completion of production.
(b) Accurate level of production
(c) Meaningful to the consumers
(d) Non-reliable to the products
(e) Maintaining good quality
(f) User friendly to the consumers
(ii) A survey of all consumers for the products under consideration and interview schedule or
questionnaire are used to ask consumers about the quantity of products they would like to buy in
the forecast period. Such forecasting method is said to be ____________. (2 Marks-[Ap/P,3])
(a) Sample survey Method
(b) End use method
(c) Complete enumeration method
(d) Delphi method
(e) Panel consensus method
(f) Opinion survey method
(iii) Forecasting of steel prediction is done under the condition of likely future changes in the actions
by the firms is said to be ____________. (2 Marks-[An/C,2])
(a) Short term forecasting
(b)Long term forecasting
(c) Passive forecasting
(d)Active forecasting
(e) Internal forecasting
(f) External forecasting
(iv) Forecasting demand for durable consumer goods will depends upon ______. (2 Marks-[U/C,2])
(a) Recent trends of the consumer.

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(b) Price of the products
(c) Quality level of the products
(d) Taste and preferences of producers.
(e) Social status of the company
(f) Income level of the consumer
(v) The forecasting structure is not related to internal demand forecasting technique is __________.
(a) Forecast of annual sales. (2 Marks-[Ap/P,3])
(b) Forecast of production cost
(c) Forecast operating profit
(d) Forecast land resources
(e) Forecast of marginal revenue
(f) Forecast of number of employees
SECTION C COURSE OUTCOME 3 MAXIMUM : 10 MARKS
C1 An automotive industry produces mainly cars, and remodel the second hand cars to a newer one
in which adding more workers to a job, such as assembling a car on a factory floor. At some
point, adding more workers causes problems such as workers getting in each other’s way or
frequently finding themselves waiting for access to a part. In all of these processes, producing
one more unit of output will eventually cost increasingly more, due to inputs being used less and
less effectively.This increase in the marginal cost of output as production increases can be
graphed as the marginal cost curve, with quantity of output on the x axis and marginal cost on
the y axis as shown in Figure 5. Analyse the given situation and choose the production function
with respect to inputs and outputs without increase the marginal cost of the products.

Figure 5. Production function curve for increase in the marginal cost.

(i) Cobb-Douglas Production Function (Q = ALa Kb) is the technological relationship between the
amounts of two or more inputs and the amount of output that can be produced  will affect the
_________of the firm. (2 Marks-[An/C,3])
(a) Variable cost
(b) Fixed cost
(c) Marginal price
(d) Working capital
(e) Marginal cost
(a)(f) Product cost
(ii) A lengthy enough period of time that all inputs can be varied with respect to cost of production
are said to _______production function. (2 Marks-[Ap/C,2])
(a) Short run
(b) Variable
(c) Return on scale
(d) Cobb-Douglas
(e) Long run

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(f) Marginal cost
(iii) The production function does not change with the change in technology, state of technical
knowledge, process of production or organisation of the firm. whether the statement is ______
(a) True (1 Mark-[U/C,2])
(b) False
C2 In the long run all factors of production are variable. No factor is fixed. Accordingly, the scale of
production can be changed by changing the quantity of all factors of production. Returns to scale
relates to the behaviour of total output as all inputs are varied and is a long run concept. In the
long run, output can be increased by increasing all factors in the same proportion as shown in
Figure 6. Generally, laws of returns to scale refer to an increase in output due to increase in all
factors in the same proportion. Increasing returns to scale or diminishing cost refers to a
situation when all factors of production are increased, output increases at a higher rate. It means
if all inputs are doubled, output will also increase at the faster rate than double. Hence, it is said
to be increasing returns to scale. Diminishing returns or increasing costs refer to that production
situation, where if all the factors of production are increased in a given proportion, output
increases in a smaller proportion.

Figure 6.Law of return to scale curve.

In the case of stage-III, the average product shows a steady decline, but never becomes zero,
(i)
but marginal product becomes negative and this stage is known as stage of __________.
(a) Variable proportion (2 Marks-[An/P,2])
(b) Constant returns
(c) Positive returns
(d) Product returns
(e) Price returns
(f) Negative returns
(ii) Find the following causes is not responsible for increasing returns to scale is __________.
(a) Technical indivisibilities (2 Marks-[Ap/P,2])
(b) Division of labour
(c) External economies of scale
(d) Internal economies of scale
(e) Higher degree of specialization
(f) Managerial indivisibilities
(iii) In the case of variable proportion, only two variable factors unit are varied, while all other factors
should be kept constant. whether the statement is _________. (1 Mark-[U/C,2])
(a) True
(b) False
***End of Question Paper***

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RBT ANALYSIS
Remember Understand Apply Analyze Evaluate Section Total
Knowledge
Total
Section A B C A B C A B C A B C A B C A B C

Factual

Conceptual 8 8 4 12 8 4 8 12 4 28 28 12 68

Procedural 4 8 4 8 4 4 12 12 8 32

Metacognitive

Section Total 8 8 4 16 16 8 16 16 8 40% 40% 20% 100%

Cognitive
20 40 40 100% -
Total

Fill the RBT analysis in percentage of marks ((Marks/75)*100) at each applicable cells.
It should be given in landscape layout and in separate page.

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