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of Pages: 4 Roll n

V-SEMESTER

B.Tech

END TERM EXAMINATION NovwDec-2022

HU301-ENGINEERING ECONOMICSs
Mux Murks: 50
Time: 03:00 Hours

Note: Attempt any five questions. All questions carry equal marks.
Q.1 (a) A consumer consumes only two goods X&Y both priced at 3 per
unit. 1f the consumer chooses a combination of these two goods with
the marginal rate of substitution equal to 3. Is the consumer in
equilibrium? Give reasons. What will a rational consumer do in 1his
situation? [CO:1][5 Marks]

(6) What do you mean by Production Function? Explair, the likely

behaviour of Output when all the inputs are increased in the
production process. [CO:1,2][5 Marks]

Q.2 (a) How are commercial banks different from the Central Bank?
Discuss the mechanisin of credit creation by commercial banks.
ICO:2][5 Marks]
(b) What causes the fluctuations in the Economic output over a period
of time. Discuss phases of the business cycle. [Co:2,3]|5 Marks]1
P)-421

Q.3 (a) Investment A costs Rs.10,000 today and pays back Rs.11,500 twoP
years from now. Investment B costs Rs.8000 today and pays back
Rs.4500 cach year for two years. 1f an interest rate of 5 % is used,
which alternative is superior? [co:4] [SMarks]
(6) A company can make a particular component or purchase from the
market. The cost detail is as below:
if it purchases from the market. | Rs.3050+GST @18%
The purchasing price per unit
|ifit makes:
Cost of the machine Rs 1020300+GST@18%
 Rs 30000
machine operator
of the (a) A company
Salary Q.6
Rs25000 alternatives. The
month
month |
of the workshopP per with the followin
Rent
material-I per unit
Rs 400+GST@I8%
Raw Rs 1100 +GST
inaterial-2 per
unit @18%
Kaw
Other cost per unit
Rs300
demand is 1500
annual
the
Whether company should Make or 'purchase'. Suggest Investment

Pevreln 753,98,So [CO:2,4] [5 Marks] Gtn)-

65,0e
Annual equal re

MeLRe- Aa, 68, 75*

L2
has the cost function TCC)
200y + Sy and
=

Q4 (a) A monopolist Salvage val=

faces the demand function given by p= 1200 -10y. On the basis of -4ro&S+74+26 Determine the
given information, calculate the following: [cO:1,4][5 Marks]
414 method ifi=25
4 - ( ) What output maximizes its profit? mRy)= -20
i ) What is the profit-maximizing price? mc L ) 2 (2o)
(b) Discuss the ma
ii) What is its maximal profi? Price ust+)= 0 trade.
10,ovo P-1560
(b) Discuss the guiding principles of indian Five Ycar Plans. Prott 10,000 3S4766h27()
O . 7 (a) A company
[CO:3]5 Marks) meetplanning
theexpansior
to deposit
it will
Q.5 (a) A person is planning for his retired life. He has 10
more years of
increase the=
service. He would like to deposit deposit for the nex5
20 %of his salary which is 4000 at
the end of the first year and thereafter he total amount which
wishes to deposit the of 10 years.
ainount with an annuaB increase of Rs 500 for the next 9
years with ouo

cenD b )
an interest rate of 15%. Find the total
ycar of the above series.
amount at the end of the 10th From the follo-
[CO:4][5 Marks] the turnover (sales=
Fixedoverheads
(6) What do you mean by Fiscal policy? How can Fiscal Policy Variable cost per
to close an be useo
Inflationary and Recessionary gap? [CO:2,3]15 MarkS
5 Selling price
If the i
5691.S 66 company
safety level.
Aone a4 4 ,1S, SS q.aS24 Bre e .

1,15,S1, 63
 Q.6 (a) A Company invests in one of the two mutually exclusive

alternatives. The life of both alternatives is estimated to be 5 years

with the following
investments, annual returns and salvage value.
Alternatives

Investment (Rs) -1,50,000 -1,75,000

-

Cra)-60
Annual equal return (Rs) |+60,000 +70,000

of
6Jo4S+7+263|
( 9 7424
Salvage value (Rs) +15,000 +35,000
Determine the best alternative based on the annual equivalent
q 1 4 8

method if i= 25 % [cO:4] [5 Marks]

' B KY Dre
) (6) Discuss the major trade barriers imposed by countries to restrict

P-[o00 trade. [CO:2,3] [5 Marks]

0,000 FQ.7 (a) A company is planning to expand its business after 10 years. To
354766h2,
1 m e e t the expan_ion expenditure, at the end of first year the company is
planning to deposit Rs. 20,00,000 in the reserve and from the next year
it will increase the amount to be deposited Rs. 15,000 from the previous
rs of deposit for the next 9 years with an interest rate of 12%. Calculate the
n which the company will have for the expansion at the end
total amount
00 a
the
/1,guo
of 10 years.
I 0

1,13 [CO:4] [5 Marks]

with (b) From the following information calculate the break- even point and
Conhb

T0th the turnover (sales) required to earm a profit of Rs 36000.

qFixed overheads Rs. 18000

Variable cost per unit Rs.2

used
Rs. 20 14-50
rks] Selling price
If the company is earning a profit of Rs. 36000 express the margin of
safety level [cO:4][5 Marks]

400