This document contains important questions from 5 units of a Business Economics course. It includes essay questions and short answer questions on topics such as scarcity, demand, elasticity, costs of production, market structures like perfect competition and monopoly, business cycles, and concepts like national income. The questions are designed to test students' understanding of key economic concepts and theories covered in the course.

1. B Com I Year (Comp & Gen) – Business Economics
Osmania University
Important Questions
Unit – I
Essay Questions:
1. Explain the Scarcity Definition of Economics.
2. State and explain the Law of Consumer Equilibrium.
3. Explain the nature, scope and importance of Business Economics.
4. Explain the Law of Diminishing Marginal Utility with a suitable schedule and
diagram. Discuss its exceptions.
5. Explain the nature and scope of Business economics
6. Distinguish between Micro and Macro Economics
7. Distinguish between Normative and Positive Study of Economics.
Short Questions:
1. Micro Economics
2. Ordinal measurement of utility
3. Nature of Business Economics
4. Economic and Non-Economic activities
5. Equi-Marginal utility
6. Macro Economics
7. Cardinal Measurement of utility
8. Positive study of Economics
9. Business Economics
10. Choice
11. Deductive Method
12. Cross Elasticity of Demand

2. Unit – II
Essay Questions:
1. Explain the various Elasticity’s of Demand.
2. State the Law of Supply and explain the reasons for the positives lope of the Supply
Curve.
3. State and explain Law of Demand? Why does a demand curve slope downwards?
4. What is Elasticity of Demand? How do you measure it?
5. Explain the concepts – Income Elasticity and Cross Elasticity.
6. Explain the concepts of Consumer Surplus.
7. Define Supply. Explain the Determinants of Supply.
8. Define Demand. Explain the determinants of Individual Demand and Market
Demand.
9. Define Demand. Explain the properties of Demand Curve.
10. Explain the classification of goods on the basis of income and cross elasticity of
demands.
11. Explain the methods of measurement of elasticity of Demand.
12. Explain the Price Elasticity of Demand.
13. Explain the various types of Demand.
14. Explain the concept of Consumer Surplus.
Short Questions:
1. Cross demand
2. Determinants of Supply
3. Cross Elasticity of Demand
4. Market Demand
5. Price Elasticity
6. Supply Function
7. Elasticity of Demand
8. Consumer Surplus
9. Giffin Paradox
10. Market Demand

3. 11. Unit Elasticity of Demand
Unit – III
Essay Questions:
1. Distinguish between Internal and External economies of scale.
2. State and explain the Law of Variable Proportions with suitable graph.
3. Briefly explain the nature of cost and cost curves in the short run.
4. Explain the importance of Law of Variable Proportions in Business decision making.
5. Explain about various concepts of short run costs.
6. State the Law of Variable Proportions. Explain reasons for the different stages of the
law.
7. Give a diagrammatic representation of the relationship among Average cost (AC),
Average Variable Cost (AVC) and Average Fixed Cost (AFC).
8. Define Marginal revenue and Average Revenue and explain the relationship
between Total revenue, Marginal revenue and Average revenue curves.
9. Explain various internal economies of scale.
10. Give a diagrammatic representation of the relationship between Average cost and
Marginal cost
11. Distinguish between Average revenue and Marginal revenue.
12. Discuss about the concepts of costs.
13. Explain the Law of returns to scale.
Short Questions:
1. Average Fixed Cost
2. Long run Average Cost curve
3. Mixed Economy
4. Features of Land
5. Production Function
6. Isoquant Curve
7. Iso-cost curves
8. Supply Function

4. 9. Marginal cost
10. Selling Cost
11. Average Cost curve
12. Variable costs
13. Socialism
14. Fixed Cost
15. Features of land
16. Product Differentiation
17. Mixed Economy
Unit – IV
Essay Questions:
1. Explain the conditions of a equilibrium of a firm under perfect competition.
2. Bring out the important points of difference between Perfect Competition and
Monopoly
3. Define Oligopoly. Discuss the features of Oligopoly.
4. What is equilibrium price? “The equilibrium price under perfect competition is
determined by demand and supply”. Explain.
5. Explain how price is determined under Monopolistic Competition.
6. What is Oligopoly? Discuss how pricing decision is made under it?
7. Explain short run equilibrium of Firms under Perfect Competition.
8. Explain the Price and output determination under Monopoly.
9. Explain the characteristics of Monopolistic Competition market. How price and
output determines? Discuss.
10. Discuss the characteristics of Oligopoly Market and explain the price determination
methods in it.
11. Explain how price is determined under Perfect Competition.
12. Compare between Perfect and Monopoly market.
13. Explain the features of monopoly and show how the price output equilibrium is
determined under monopoly.
Short Questions:
1. Kinked Demand Curve

5. 2. Price Discrimination
3. Product Differentiation
4. Free Market Economy
5. Discriminating Monopoly
Unit – V
Essay Questions:
1. Explain the features of Capitalism.
2. Define Business Cycle and explain their phases.
3. What are Business Cycles? Explain different phases of business cycle.
4. Explain the objectives and functions of WTO.
5. What are Business Cycles? Suggest suitable measures to control business cycles.
6. Describe comparative cost theory of international trade.
7. Define National Income. Explain the methods of measurement of national Income.
8. What is economic system? Explain the characteristics of Socialist and Mixed
economy.
9. What is International trade? Describe about comparative cost theory.
10. Explain about economic Systems.
11. Explain the concepts of National Income.
Short Questions:
1. Gross Domestic Product
2. GATT
3. TRIPS
4. Trade Cycles
5. Balance of Trade
6. Privatisation
7. Balance of Payments
8. MFN clause
9. Innovations
10. Devaluation
11. Net National Product