[Total No.

of Questions: 5]
Seat No..
Yashashwi Education Societys
International Institute of Management Science
END Term Exam MBA I Sem
Sub (102) Economic Analysis of Business Decisions
[Time: 2:15 Hours]

[Max. Marks: 50]

Instructions to the candidates

1)
2)
3)
4)
5)

All questions are compulsory

Each question has an internal option
Each question carries 10 marks
Figures to the right indicate marks for that question/sub question.
Answer to the question should specific and to the point

Q.1 a) Explain the concept of Circular Flow of Economic Activity with Two, Three
& the Four Sector Models.
OR
b) Write short notes on any two of the following:
i.
ii.
iii.

Accounting Profit & Economic Profit.

Rationale & Objectives of firms.
Adam Smiths Invisible Hand Theory

Q.2 a) Describe the concept of Demand. Discuss the determinants of Demand at

Firm & Industry Level.
OR
b) What do you understand by the term Price? Illustrate the pricing under
monopolistic competition in the long-run period.
Q.3 a) Define Cost. Describe the following costs with examples:
1

i.
ii.
iii.

Opportunity Cost.
Marginal Cost.
Sunk Cost.
OR

b) Explain the concept of Break- Even Analysis. What are the advantages &
dis-advantages of Break-Even Analysis?
Q. 4 Explain the Role of RBI in Indian Money Market.
OR
Explain the Role of SEBI in Indian Capital Market.
Q. 5 Explain the following terms and their significance in foreign trade:
1. GATT,
2. WTO
OR
Explain the following terms:
1. Fiscal Deficit
2. Capital Account v/s Revenue Account

..Best of Luck