2019 Level-3 Term-I Economics paper (HSS 301) from BUTEX affiliated colleges. Examines opportunity cost, budget lines, production possibility frontiers, price elasticity of demand, and cost-minimizing input combinations through numerical and graphical problems.
Level-3 Term-I, Final Exám-2019
Subject: Economics (Code: HSS 301)
Time: 3.0 Hrs. Full Marks: 72
(Use separate answer script for Part: A and Part: B)
(All parts of a question must be answered consecutively)
Part: A
(Answer any three questions)
1. (a) What is opportunity cost? Proof that the slope of the budget line measures the opportunity cost.
(b) Graphically show the changes in budget line due to change in price of good 1 and income.
(c) "Indifference curve cross each other" - True or False. Explain your answer.
[3.5+6+2.5=12]
2. (a) How do you distinguish between 'Microeconomics' and 'Macroeconomics'? What is the necessity of studying Economics in Engineering?
(b) Draw a Production Possibility Frontier (PPF) from the following table and describe 'Opportunity Cost' and 'Productive Efficiency' with the help of that PPF. Show the 'Unattainable Point' and find the reasons for which Production Possibility Frontier (PPF) might shift outward.
Alternative Production Possibilities
Possibilities | Butter (millions of pounds) | Guns (thousands) |
|---|---|---|
A | 0 | 15 |
B | 1 | 14 |
C | 2 | 12 |