Total number of questions:08 Number of Pages:2

MKSSS's

Cummins College of Engineering for Women, Pune

(An Autoromous lnsiitut. Amliat€d to Savitribai Phule Punc tJniversity)
S. Y. B.Tech. (Mech./ I.T./ Comp.)
End-Semester Examination, Nov 2017
08.ta.l+
Subject: HS 2l0l Principles of Economics and Finance
Time: 2 hrs. Maximum Marks: 50
Instructions to candidates :
l. Do not u)rite or mark on queslion paper.
2. No graph papers provided. Draw graphs using appropriate scale.
3. All questions are compulsory. Figures to the right indicate.full marlcs.

Q.l) If a country decides to produce more capital goods, it should produce fewer consumer
goods. Apply the concept of PPFs to explain the above statement. (6)

Q.2) Suppose that we are studying the market for comflakes. Suppose ftrnher that during (6)
the next summer, both the following events occur.
(i) The weather in the farm belt is extraordinarily hot, with very little rain; and
(ii) A new research study is published and widely publicised, which proves that
eating comflakes makes people healthier and adds years to their lives.
Show how the two events described above will change this market with respect to
equilibrium price and the equilibrium quantity in this market?

Q,3) The numbers in Table below indicate the total cost incurred in producing quantities (6)
of output lrom 0 to 20 units weekly.
Fill in the missing figures for total variable cost, AVC (average variable cost), ATC (average
total cost). and AFC (average fixed cost) and MC (marginal cost).
Q.4) Explain the difference between microeconomics and macroeconomics. What are the
major goals of macroeconomic policy. Describe the tools used to achieve these goals. (6)

Q.5) What is Gross Domestic Product ( GDP ) ? Demonstrate the different approaches of
measuring GDP. (6)

Q.6) Briefly describe the role of Capital and Money market in Financial systems. (6)

Q.7) Describe the evolution of the monetary system from barter, through commodity money,
and into today's system ofmodem money. (6)

Q.8) Write short notes on grylryg of the following. (8)

a) Opportunity cost and Efficiency

b) Command, Market and Mixed Economic systems

c) Law of Diminishing Marginal Utility.