Applied Economics — CACS353 (6th Sem)

Ca fm . er ow Tribhuvan University xox Faculty of Humanities & Social Sciences "KATHMANDU Pun aS Gi 7 OFFICE OF THE DEAN | 2024 Bachelor in Computer Applications Course Title: Applied Economics Full Marks: 60 Code No: CACS 353 Pass Marks: 24 Semester: VI Time: 3 hours Candidates are required to answer the questions in their own words as far as possible. Group B Attempt any SIX questions. [6x5 = 30] 2. Briefly explain the goals of macroeconomics. hae “oh 3. Explain through a figure how a consumer is in equilibrium under the ordinal utility (indifference curve) analysis. 4. With the help of the following information on output (Q), short-run total fixed cost (TFC), and short-run total variable cost (TVC), compute short-run (i) total cost (TC), (ii) ee fixed cost (AFC), (iii) average variable cost (AVC), (iv) average cost (AC), and (v) margina cost (MC): | TGRa en Moores 2800 | 900 | 110%. “]_ 1508 [a 240- "| 5. If the quantity supply of a commodity x (Q,) rises from 400 units to 1200 units as its price (P,) rises from Rs. 200 per unit to Rs. 400 per unit, then (i) compute the price elasticity of supply (e,) and, (ii) interpret this result. -6. Derive a short-run supply curve of a firm under the market of perfect competition. 7. Briefly explain the concepts and types of balance of trade and balance of payment. 8. Using the marginal cost-and-marginal revenue (MC-MR) approach and an appropriate figure, explain how the monopolist reaches a short-run equilibrium. Group C Attempt any TWO questions. [2x10 = 20] 9. From the table given below, (i) compute the income elasticity of demand (€gy) for a etc ae re Be from ae : to 2 B to C; C to D, D to E, and E to F; and so state the natures of this commodity x based on the values and si his € at different levels of income. gs ween oy ce A Income (in Rs, oe 7,000 | 4,000 | 6,000 [8,000 | 10,000] 12,000 The quantity demanded of a 200 commodity x (in units per oe. 1,100 | 1,100 a da  10. Explain the concepts of following terms: (i) gross domestic product at market price (GDPyp) and gross domestic product at factor cost (GDPrc), (ii) net domestic product at market price (NDPyp) and net domestic product at factor cost (NDPxc), (iii) gross national product at market price (GNPyp) and gross national product at factor cost (GNPpc), (iv) ) net national product at market price (NNPyp) and net national product at factor cost (NNPxc); and (Vv) national income (NI). 11. With the help of the following table and this demand function for a commodity expressed in terms of price (P), P = 10 — 2Q, where Q = the quantity demanded of the commodity; P = price of the commodity or the average revenue (AR), (i) compute AR or P, total revenue (TR), and marginal revenue (MR) in this table, (ii) also draw the AR, TR, and MR curves through the data you computed in this table, and finally (iii) state, based on the natures of AR and MR curves, whether this market is related to perfect competition or imperfect competition. pean PorAR(nRs) | TRGnRs) [| MRGnRs) 0 = ae. ee ee aie | eS Sa ee SF ee eS ae an Note. Plot the MR values midway between two successive levels of output and then draw this MR curve.