VIVEKANANDA DEGREE & PG COLLEGE KARIMNAGAR

(Affiliated to Satavahana University)

BBM/B.Ccom. Ist year. Ist Sem. First Internal examination 2017.

SUBJECT: BUSINESS ECONOMICS

Name of the Student:

Hall ticket No:
Class: Invigilator signature

I. Multiple Choice Questions, choose the correct answer (10*1/2= 5 Marks)

1. Business Economics is mainly a study at the level of [ ]

a) Economy b) Industry
c) Firm d) State
2. Economics is that body of knowledge which relates to wealth is said by [ ]
a) J.B. Say b) Adam smith
c) F.A. Walker d) Alfred Marshall
3. Which of the following is an example of substitutes.. [ ]
a) Coffee & Milk b)Diamond & Cow
c) Pen & Ink d) Mustard oil & coconut oil.
4. When demand curve is vertical, it represents s [ ]
a) e = 1 b) e = 0
c) e >1 d) e <1
5. ..Of the following commodities, which has the lowest elasticity demand? [ ]
a) Car b) salt
c) Tea d) houses
6. An example of joint supply is [ ]
a) Pen & Ink b) Radio & TV
c) Wool & Mutton d) Book & Pencil
7. Business Economics is [ ]
a) Positive in nature b) Normative in nature
c) Incremental in nature d) Discounting in nature
8. Which of the following is an example of complementary [ ]
a) Milk & Sugar b) Bed & Tea
c) Bike & Car d) Pen & Pencil
9. Cross elasticity of demand between two perfect substitutes will be [ ]
a) Very high b) high
c) Infinity d) Very low
10. .is the life study of whole economic system . [ ]
a) Macro economic b) Micro economics
c) Normative economics d) Positive economics

II. Fill in the blanks: (10*1/2 = 5 Marks)

1. 1.Welfare definition of economics was given by __________________________

2. 2.Robbins definition of economics is also called as _____________________definition

3. 3.Micro Economics is also called as __________________________

4. 4.Macro Eco nomics deals with the problems of economy as ____________________

5. 5.En exceptional demand curve slopes _______________________

6. 6.Forward planning means planning for the ____________________

7. 7.When the demand curve is horizontal, it represents ______________________

8. 8.The demands for cars and diamonds are ___________________________

9. 9.Substitute goods demand curve has a ______________________slopes

10. 10.A consumer reaches equilibrium at a point where _________________________

III. Short Answer Questions (1*5 = 5 Marks)

1. What is Micro and Macro Economics?

2. Differentiate Arc & Point method?

3. Show the unitary elasticity of demand?

4. Define law of Diminishing Marginal utility?

5. Define Law of Demand?