E 1200HUT300052401
Reg No.:
APJ ABDUL KALAM TECHNOLOGICAL UNIVE
B.Tech Degree 56 (R,S) / 56 (PT) (R,S) Examination May 2024
Course Code: HUT300
- Course Name: INDUSTRIAL ECONOMICS & FOREIGN TRADE
Max. Marks: 100 Duration: 3 Hours
PART A
Answer all questions, each caruies 3 marks. Marks
I Point out any three advantages of proprietorship. (3)
2 What is consumer surplus? Draw a diagram to represent consumer surplus. (3)
J Describe production function. (3)
4 State any three propenies of an isoquant. (3)
5 List out any six non-price competition methods followed in oligopoly. (3)
6 What is price skimming? (3)
7 What are stocks and florvs in an economv? (3)
8 Distinguish between a bond and share (3)
9 Point out any three advantages and disadvantages offoreign trade (3)
l0 What is Marshall-Lerner condition? (3)
I
PART B
Answer one question from each module, each carries 14 marks.
Module I
ll ,a) What is a production possibility curve? How will you use a PPC to explain, (10)
underutilisation, full employment and r"*.fi of resources.
b) What is elasticity of demand? Explain at least two of its applications. (4)
OR
12 a) Draw the demand curves when ep : 0, €p : l, ep>l and ep<I. Suppose the price (10)
of a prbduct is RslO and the quantity demanded is 100 units. When price decreases
to Rs 8, the quantity demanded increases to 120 units. Calculate the price elasticity
of demand.
b) Explain any four determinants of Demand. (4)
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Module II
13 a) State the law of variable pioportion. Examine its three stages of production with (10)
the help of a diagram.
b) Briefly explain any four types of internal economies from large scale production. (4)
OR
14 a) Draw a break-even chart and explain break-even point. Suppose a firm's fixed (10)
cost is Rs 50000 and they sell their product at a price of Rs.l00 per unit. If the
average variable cost per unit of output is Rs. 50, estimate break even output. [f
they sell 1500 units what will be the profit and margin of safety?
.
b) The Cobb-Douglas production function is given as Q: A K0'5 L0's, if the amount (4)
of capital (K) is 100 units, the amount of labour (L) is 64 units and A is 2. calculate
total product and marginal product of capital.
Module III
15 a) What is perfect competition? Examine the situations of loss, normal profit and (10)
super normal profit under perfect competition with diagrams.
b) What is collusive oligopoly? (4)
OR
l6 a) Point out any four differences betu'een monopol;- and monopolistic competition. (10)
Also draw and compare the demand curves of firms under these tr,r'o market
situations.
b) Distinguish betu'een predatory pricing and penetration pricing. (4)
Module IV
W a) Calculate the national income of a hypothetical country using both the expenditure (10)
and income methods. (All figures in Rs. Crores)
Consumption expenditure: 500, Investment expenditure: 400, Government
expenditure: 200,Net exports: 50, Wages and salaries: 600, Rent: I 00,
Interest: 150, Profits:2OO. NFIA: (-50), Depreciation:50, Net Indirect tax : 50
b) List out any four activities coming under Primary and Tertiary sectors (4)
OR
18 a) Diagrammatically explain demand pull inflation. What are the quantitative (10)
measures taken by a central bank to control inflation.
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b) Examine the circular flow ofeconomic activities in a two sector model with saving (4)
and investment.
' ttur" t
19 a) What is balance of payments? Briefly explain the components of balance of (10)
payments.
b) Point out any four arguments in favour of protection. (4)
-oR
20 a) Examine comparative cost theory with the help of a numericalexample. (10)
b) What is free trade? Point out any three arguments in favour of free trad€. (4)
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