L-1ff-2/ARCH Date: 10/04/2019

BANGLADESH UNIVERSITY OF ENGINEERING AND TECHNOLOGY, DHAKA

L-I/T-2 B. Arch Examinations 2017-2018

Sub: HUM 701 (Principles of Economics)

Full Marks: 140 Time: 3 Hours

USE SEPARATE SCRIPTS FOR EACH SECTION
The figures in the margin indicate full marks

SECTION -A
There are FOUR questions in this section. Answer any THREE.
Symbols indicate their usual meaning.

1. (a) Define supply function. (5)

(b) What are the main causes of shifting of the supply curve? Explain. (10)

(c) Why do demand curves generally slope downward? (S/j')

2. (a) Define price elasticity of demand and cross elasticity of demand. What are the

determinants of price elasticity of demand? (13/j')

(b) From the following table calculate elasticity of demand if you move from point A
to C and explain what you understand from the result. (10)

POINT Y Q
A 5000 500
B 6000 600
C 7000 700

3. (a) Explain the properties of an indifference curve. (10)

(b) Explain consumer's equilibrium with the help of budget line and indifference curve. (13/j')

4. (a) How is price determined in an economy under competition? What will happen to
the price and quantity due to change in supply? (10)
(b) From the following demand and supply functions, calculate equilibrium price and

quantity and show the result in a graph. (13/j')

p= 0.20 Q+ 10
p = -0.10 Q + 40
(i) What will happen to the equilibrium price and quantity if government imposes
a unit tax of TK 10 per unit?
(iii) Describe the change in equilibrium. Show the equilibrium coordinates on
the same graph.

"

Contd P/2
•

=2=
HUM 701

SECTION -B
There are FOUR questions in this section. Answer any THREE.

5. (a) What are the assumptions of a perfectly competitive market? Explain them. (10)
(b) Graphically explain the short run equilibrium ofa firm under perfect.competition. (13 ,X')
6. (a) Define fixed cost and variable cost. (10)
(b) Complete the following table and sketch the graph explaining the relations among

the various short run cost curves.

(2) (3) (5) (6) (7)

(I) (4) Average Average Average
(8)
Total Total
Quantity Total IvI.arginal
fixed variable fixed variable Total
of output cost cost
cost cost cost cost cost
I 80 30
2 80 40
3 80 45
4 80 55
5 80 75
6 80 120

7. (a) When does a firm emerges as a monopolist? (10)

(b) From the following revenue and cost functions calculate the profit maximizing

level of output and maximum profit. (10)

R = 111Q-2Q2
C = .!.Q3 _8Q2 + 122Q+50
3 .
(b) What are the conditions of profit maximization? (3 ,X')
8. (a) What do you understand by division of labour? Explain different types of division

oflabour. (8 ,X')
(b) What are the advantages and disadvantages of division of labour? Explain. (15)
 L-l/T-2/ARCH Date: 12/03/2018
BANGLADESH UNIVERSITY OF ENGINEERING AND TECHNOLOGY, DHAKA

L-lIT -2 B. Arch. Examinations 2016-2017

Sub: HUM 70J (Principles of Economics)

Full Marks : 140 Time: 3 Hours

The figures in the margin indicate full marks.
USE SEPARATE SCRIPTS FOR EACH SECTION
___ •••• ••• ••• _ •••••• __ •••••••• H •• ••••••••• •••••• __ •••••••••••••••••••••• _ ••••• __ ••••• ••••••••••• __ •••••• ••••••••• ••••••• __ ••• _. __ •••• • __ ••••• __ •••• _. __ •••• __ •••• __ ••••••• __ ••• _

SECTION -A

There are FOUR questions in this section. Answer any THREE.

1. (a) What do you know about the fundamental economic problems and how are these

problems addressed in a mixed economic systems? Explain. (13}j)

(b) Clarify the concept of utility in Economics. Explain the law of diminishing marginal

utility with numerical as well as graphical presentations. (10)

2.. (a) State the preconditions for an effective demand in Economics. Describe the common

factors that affect the demand for a commodity. (13}j)

(b) The demand and supply functions ofa commodity (say, X) are given respectively. (10)

Qdx = 1120 - 35Px

and
Qsx = 550 + 9Px
Where, Px is the price of the commodity. Find the equilibrium price and quantity of the
commodity X. If the Government imposes 16% VAT on unit price, what would be the
new equilibrium price and quantity?

3. (a) What is elasticity of demand? Describe different types of elasticity of demand and

their importance. (10)

(b) What are the factors that govern the price elasticity of demand in general? (7)

(c) Define an indifference curve and describe its properties with graphical presentations. (6}j )

Contd P/2
 =2=

HUM 701/ARCH

4. Write short notes on any THREE of the following: (23X)

(a) 'Change in supply' and 'change in quantity supplied'

(b) Substitution effect and income effect of a price change

(c) Market equilibrium and its mechanism

(d) Optimal consumption point of a consumer

SECTION -B

There are FOUR questions in this section. Answer any THREE.

5. (a) Graphically explain the stages of production. Why does a firm produce at stage II? (13 X)

(b) What do you mean by return to scale? Explain constant, increasing and decreasing

return to scale. (10)

6. (a) "GDP is not a perfect measure of the happiness or quality of life" - Explain. (7)

(b) Describe the circular flow of income and expenditure in a two sector economy. (12)

(c) What do you mean by potential GDP? (4 X)

7. (a) What do you mean by aggregate demand and aggregate supply? Give reasons why the
aggregate supply curve should slope upward and aggregate demand curve slope down

ward. (15)

(b) Graphically explain macro failure. (8 X)

8. (a) Define real GDP and nominal GDP. (7 X)

(b) Write short notes on (Any two): (16)

(i) Money supply

(ii) Economic recession

(iii) Human Development Index (HDI)

L-l/T-2/URP Date: 06/02/2017
BANGLADESH UNIVERSITY OF ENGINEERING AND TECHNOLOGY, DHAKA
L-l/T-2 B. Urp. Examinations 2015-2016

Sub: HUM 177 (Macroeconomics)

Full Marks: 210 Time: 3 Hours
The figures in the margin indicate full marks.
USE SEP ARA TE SCRIPTS FOR EACH SECTION

SECTION-A
There are FOUR questions in this Section. Answer any THREE.

1. (a) Define national income. Discuss the various methods of measuring national income of

a country. (10)
(b) Describe the circular flow of income and expenditure in a two sector economy. (10)
(c) Calculate national income from the following information: (15)
GNP = Tk. 1,18,000 crore
Depreciation = Tk. 11,000 crore
Indirect tax = Tk. 12,500 crore
Subsidy is 20% of indirect tax.

2. (a) What is meant by stagflation? Discuss the causes of inflation. (10)

(b) What are the factors that affect the changes in aggregate demand and aggregate

supply? (5)
(c) Briefly discuss the following policies for controlling inflation with reference to the

context of Bangladesh: (10)

(i) Monetary policy
(ii) Fiscal policy
(d) Show that the growth rate of a country is directly related to its saving-ratio and

inversely related to its capital-output ratio. (10)

3. (a) How do the short run and long run differ in Macro Economics? (10)
(b) Derive the Aggregate Demand curve using Quantity Equation. (10)
(c) Derive the long run and short run Aggregate Supply curve. (10)
(d) Show the equilibrium of a economy in long run and short run. (5)

4. (a) What is meant by development? Explain. (5)

(b) Discuss the strategy of balanced growth with reference to the context of Bangladesh. (15)
(c) Define investment. Briefly narrate the following criterion for making an investment

decision. (15)
(i) The capital-output ratio criterion,
(ii) The marginal social productivity criterion.
Contd P/2
 =2=

HUM 177(URP}

SECTION-B
There are FOUR questions in this Section. Answer any THREE.

5. (a) What is Money? (5)

(b) Describe the functions of money. (10)
(c) Discuss the Quantity Theory of Money? (15)
(d) Suppose money supply is 10000, price level is 10, and output is 150. Find the

velocity. (5)

6. (a) Show the relationship between net capital outflow (S - I] and trade balance [NX] in a

small open economy? (15)

(b) What are the nominal and real exchange rate? Give example. (10)
(c) What will happen to export and import if real exchange rate decreases and why? (10)

7. (a) Derive the IS curve using Keynesian Cross. (15)

(b) Derive the LM curve from Liquidity Preference. (15)
(c) Show the effect of an increase in government expenditure in IS-LM model. (5)

8. (a) What is fiscal policy? Give two examples of fiscal policy. (5)
(b) What is monetary policy? Give one example of monetary policy. (5)
(c) Explain the aggregate supply using "Sticky-Wage Model". (15)
(d) What is Philips Curve? (10)

•
L-2/T-1IARCH Date: 30/0112012
BANGLADESH UNIVERSITY OF ENGINEERING AND TECHNOLOGY, DHAKA
L-3/T-1 B. ARCH Examinations 2010-2011

Sub: HUM 113'(Economics)

Full Marks: 140 Time : 3 Hours

The figures in the margin indicate full marks.
USE SEPARATE SCRIPTS FOR EACH SECTION

SECTION-A
There are FOUR questions in this Section. Answer any THREE.

1. (a) Write the determinants, which affect the changes in supply of an indi.vid~al.

(b) Given the demand and supply equations:

Q = 16777216 and Q = pH!

p
Find out the equilibrium price and quantity and then show them graphically.

(c) Describe the reasons behind the "shift of demand" and show graphically. (8)
, ,

2. (a) Discuss in detail price elasticity of demand, cross elasticity of demand and income

elasticity of demand.

(b) Explain twin themes of Economics - 'scarcity' and 'efficiency'.

(c) Applying the knowledge o,f price elasticity of demand show that 'the more inelastic

the demand, the more tax burden on a consumer". (7)

3. (a) What is indifference curve? Mention the exceptional cases of indifference curve.

(b) Explain the "law" of diminishing marginal utility" and "law of equi-marginal utility.
(c) Let the price of coffee rise from Tk. 4.50 per hundred grams to Tk. 5 per hundred
grams. As a result, the consumer's demand for tea increase's from 60 hundred grams to 70
hundred grams. Find the cross elasticity of demand of tea for coffee. (6)

4. Write short notes Qn (any three): (23.!. )

3
(a) Movement along the demand curve and the supply curve.
(b) Paradox of bum-per harvest.
(c) Properties of indifference curve.
(d) Relationship between 'total utility' and 'marginal utility'.

Contd P/2
 =2=

HUM 113
SECTION -B
There are FOUR questions in this Section. Answer any THREE.

5. (a) What do you understand by production function? (5)

(b) Describe the various forms of productivity. / (101. )

3
(c) State and prove the application of Euler's theorem in the theory of distribution. (8)

6. (a) Describe the short-run equilibrium of a firm under perfect competition .'- (8)
(b) Define the concept of long-run. Show how would you 'derive long-run average cost
(LAC) curve from its short-run cost curves. Why is LAC curve often called the planning

curve? (101. )
3
2
(c) A television producer's per week cost to produce x-quantity set is x /25 + 3x + 100
and his" demand function is x = 75 - 3p, where p is the price of per set television.

Calculate the profit maximising level of output and price. (5)

7. (a) Narrate the concepts of national income, GNP, GDP and NNP. (8)
(b) Discuss the various methods of measuring national income with reference to the

context of Bangladesh. (101. )

3
(c) Given that (5)
GNP = Tk. 98,000 crore
Depreciation = Tk. 8,000 crore
Indirect tax = Tk. 1,000 crore
Subsidy is 20% of indirect tax.
Calculate national income.

8. (a) Explain the concept of inflation.

(b) What are the causes of inflation? Briefly discuss.

(c) Briefly discuss the various policies for controlling inflation with reference to the
context of Bangladesh. (15)
 ~'J:\!l
\::?'l?-'\L.j

L-2ff-l/ARCH Date: 13/12/2014

BANGLADESH UNIVERSITY OF ENGINEERING AND TECHNOLOGY, DHAKA
L-2/T-I B. Arch. Examinations 2013-2014

Sub: HUM 113 (Economics)

Full Marks: 140 Time: 3 Hours
USE SEPARATE SCRIPTS FOR EACH SECTION
The figures in the margin indicate full marks.

SECTION-A
There are FOUR questions in this section. Answer any THREE.

1. (a) Define demand function. (5)

(b) What are the main determinants of demand? Explain them. (10)

(c) What are the exceptions to the law of demand? (8X)

2. (a) How is price determined in an economy under competition? What will happen to the

equilibrium price and quantity due to change in demand? (10)

(b) From the following demand and supply functions, calculate equilibrium price and
quantity and show the result in a graph. What will happen to the equilibrium price and

quantity if government imposes a tax of Tk 5 per unit?

QDx = 1200 - 5Px

QSx = -500 + 12 Px

3. (a) Define budget line and budget set. (10)

(b) Explain consumer's equilibrium with the help of budget line and indifference curve. (13X)

4. (a) What is an indifference curve? What are the assumptions of an indifference curve

analysis? (10)

(b) Explain the properties of an indifference curve. (13X)

SECTION -B
There are FOUR questions in this section. Answer any THREE.

,5. (a) When does a firm emerge as a monopolist? (8)

(b) Explain the short run equilibrium ofa firm under monopoly. (10)

(c) Prove that MR = P (1- ~) in case of a monopolist. (5X)

Contd P/2
 =2=

HUM 113/ARCH

6. (a) Define net national product (NNP) at market price. (5)

(b) What are the methods of measuring national income? Explain any two of them. (8}j )

(c) What are the problems of measuring national income? Discuss. (10)

7. (a) What do you understand by localization of industries? Explain the main causes of

localization of industries. (10)

(b) What are the advantages of localization of industries? Explain them. (13}j )

8. (a) Explain the concept of division of labour. Discuss different types of division of

labour. (13}j )

(b) Illustrate the disadvantages of division of labour. (10)

'.

L-2ff-1IARCH Date: 07/0112013

BANGLADESH UNIVERSITY OF ENGINEERING AND TECHNOLOGY, DHAKA
L-2/T-1 B. Arch. Examinations 2011-2012

Sub : HUM 113 (Economics)

Full Marks: 140 Time: 3 Hours
,The figures in the margin indicate full marks.
USE SEPARATE SCRIPTS FOR EACH SECTION

SECTION-A
There are FOUR questions in this section. Answer any THREE.

1. (a) Mention the characteristics of a perfectly,competitive market. Show graphically the

'super normal profit', 'abnormal loss' and 'normal profit' of a firm in a perfectly

cpmpetitive market. (10 ~)

(b) What are the properties of monopoly market, monopolistic market, oligopoly market'

and monopsony market?

(6)

(c) Show graphically the 'profit' and 'loss' of a monopolist. (7)

2. ' (a) Derive 'average product' (AP) and 'marginal product' (MP) curves from 'total product'

(TP) curve. Show the relationship among AP, MP and TP. (8~)

(b) Suppose, an arbitrary production equation of Google is

(10)

TP = 90K2 _K3
Sketch a graph of total, average and marginal product curves of Google.
(c) What is the impact of technological development on the production function? (5)

3. (a) Define Gross DomesticProduct (GDP) and Gross National Product (GNP). (5)
(b) Explain the ivalue addition', 'income'and 'expenditure' methods to measure Gross

Domestic Product (GDP). (12 ~)

(c) What are not counted in Gross Domestic Product (GDP)? (6)

4. (a) What do you meanby 'returns to scale'? Explain different types of 'returns to scale'. (6)
(b) Define 'total cost' (TC), 'average cost' (AC) and 'marginal cost' (MC). Derive AC and
MC curves from TC curve. Show the relationships among AC, MC and TC. (7 ~)

(c) Given total cost function:

(10)

TC = 2Q3 - 36Q2 + 1500Q

.Sketch the graphs of 'total cost' (TC), 'average cost' (AC) and 'marginal cost' (MC)
curves. Then show the relationship among AC, MC and TC.

Contd ,. P12
 =2=

HUM 113

SECTION-B
There are FOUR questions inthis section. Answer any THREE.

S.. (a) Explain graphically the concepts of marginal utility and total utility. (7)

(b) Narrate the assumptions of the cardinal theory of consumer equilibrium. (3~)

(c) Describe the cardinal theory of consumer equilibrium. (13)

6. (a) Discuss the factors that affect the demand for a commodity in general. (9)

(b) What is meant by market demand? Explain graphically. (5~)

(c) (i) Calculate the equilibrium price and equilibrium quantity from the following

demand and supply functions and show the result in a graph. (9)

QDx= 4000 - 400Px

QSx = -500 + SOOPx

(ii) If a per unit tax of Tk. 0.90 is imposed, how will it affect the equilibrium price and

quantitY?
(iii) If Governnient provides a subsidy of Tk. 2 per unit, what will happen to the

equilibrium price and quantity?

7. (a) Illustrate how the supply of a commodity depends on the state of technology. (5~)

(b) Define income elasticity. of demand and write down its formula. "A commodity may
be luxury at 'low' levels of income, a necessity at 'intermediate' levels of income and an
inferior commodity at 'high' levels of income" - Explain the statement with suitable

example. (10)

(c) .What is meant by cross elasticity of demand? Write down the formula for cross

elasticity of demand and give suitable example. (8)

8. (a) What are the assumptions of indifference curve analysis? (3 }j)

(b) Explain the concepts of 'marginal rate of substitution' and 'budget line'. (10)

(c) Discuss the properties of indifference curve. (10)

---------------------------------------
•

L-I/T-l/ARCH Date: 04/0812015

BANGLADESH UNIVERSITY OF ENGINEERING AND TECHNOLOGY, DHAKA
L-l/T-I B. Arch. Examinations 2014-2015

Sub: HUM 701 (Principles of Economics)

Full Marks: 140 Time: 3 Hours

The figures in the margin indicate full marks .
. Symbols indicate their usual meaning.
USE SEPARATE SCRIPTS FOR EACH SECTION

SECTION -A
There are FOUR questions in this section. Answer any THREE.

1. (a) Define demand function. (5)

(b) What are the factors that influence the shifting of the demand curve? (10)

(c) What are the Exceptions to the law of demand? Explain them. (810

2. (a) Show that price elasticity of demand varies from zero to infinity along any straight

line demand curve. Explain graphically. (1313" )

(b) From the following table calculate elasticity of demand if you move from point B to C

and explain what you understand from the result. (10)

Point Px Qy
A 200 120
B 300 ISO
C 400 180

3. (a) What is an indifference curve? Explain the properties of an indifference curve. (IS)
(b) Define budget line and budget set. (813" )

4. (a) How is price detennined in an economy under competition? Explain graphically. (813" )
(b) From the following demand and supply functions, calculate equilibrium price and

quantity and show the result in a graph. (IS)

P = 0.30 Q + 100
P = -0.50 Q + 180
(i) What will happen to the equilibrium price and quantity if the govemment imposes
a unit tax ofTk. 10 per unit?
(ii) Describe the change in equilibrium. Show the equilibrium coordinates on the
same graph.
Contd P/2
 =2=

HUM 701lARCH

SECTION -B
There are FOUR questions in this section. Answer any THREE.

5. (a) What are the assumptions of a perfectly competitive market? Explain them. (10)

(b) Graphically explain the short run equilibrium ofa firm under perfect competition. (1313' )

6. (a) What are the methods of measuring national income? Explain any two of them. (10)
(b) What are the problems of measuring national income in a developing country like

Bangladesh? Explain them. (1313' )

7. (a) What do you understand by localization of industries? What are the causes of'

localization of industries? (1313' )

(b) Explain the advantages oflocalization of industries. (10)

8. (a) What do you understand by division of labour? Explain different types of division of

labour. (813' )
(b) What are the advantages and disadvantages oflabour? Explain them. (15)
 .;

-,

L-2/T -1/ ARCH Date: 06/02/2016

BANGLADESH UNIVERSITY OF ENGINEERING AND TECHNOLOGY, DHAKA
L-2/T-1 B. Arch. Examinations 2014-2015

Sub: HUM 113 (Economics)

Full Marks: 140 Time: 3 Hours
USE SEP ARA TE SCRIPTS FOR EACH SECTION
The figures in the margin indicate full marks.
Symbols indicate their usual meaning.

SECTION -A
There are FOUR questions in this section. Answer any THREE.

1. (a) Define supply function. (5)

(b) What are the main causes of shifting of the supply curve? Explain them. (10)
(c) Why do demand curve generally slope downward? (8X)

2. (a) How would you measure price elasticity of demand at any point of a straight line

demand curve? Explain graphically. (13 X)

(b) From the following table calculate elasticity of demand if you move from point A to

C and explain what you understand from the result. (10)

POINT Y Q
A 5000 500

B 6000 600

C 7000 700

3. (a) Explain the properties of an indifference curve. (10)

(b) Explain consumer's.equilibrium with the help of budget line and indifference curve. (8X)

(c) What are the assumptions of the indifference curve analysis? (5)

4. (a) How is price determined in an economy under competition? What will happen to the

price and quantity due to change in supply? (10)

(b) From the following demand and supply functions, calculate equilibrium price and

quantity and show the result in a graph. (13 X)

P=0.20 Q+10
P = -0.10 Q+40

(i) What will happen to the equilibrium price and quantity if government imposes
a unit tax ofTk 10 per unit?
(ii) Describe the change in equilibrium. Show the equilibrium coordinates on the
same graph.
Contd P/2
..
=2=

HUM 113

SECTION -B
There are FOUR questions in this section. Answer any THREE.

5. (a) Briefly define the factors of production. Distinguish between a fixed factor and a

variable factor with examples. (10)

(b) Explain the law of diminishing marginal returns with graphical presentations. (13 ~)

6. (a) Describe the relationship between average and marginal costs of a firm in the short

run. Use diagrams. (10)

(b) What do you mean by revenue of a firm? Derive average and marginal revenue
curves for a price-taking firm and also for a firm facing a downward sloping demand

curve. (13 ~)

7. (a) Define an isoquant and an isocost line. Illustrate the least-cost combination of

factors to produce a given level of output. (8~)

(b) Explain the short run profit maximization rule using average and marginal curves. (10)
(c) What is an envelope curve? (5)

8. Write short notes on any THREE of the following (23 ~)

(i) Economies of scale of production
(ii) Long run and short run
(iii) Gross Domestic Product (GDP) and Gross National Production (GNP)
(iv) Circular flow of income of a country.
 L-1IT -11ARCH Date: 03/08/2016
BANGLADESH UNIVERSITY OF ENGINEERING AND TECHNOLOGY, DHAKA
L-1/T-1 B. Arch. Examinations 2015-2016

Sub: HUM 701 (Principles of Economics)

Full Marks : 140 Time: 3 Hours
The figures in the margin indicate full marks.
Symbols have their usual meaning.
USE SEP ARA TE SCRIPTS FOR EACH SECTION

SECTION-A
There are FOUR questions in this Section. Answer any THREE questions.

1. (a) What are the assumptions of a perfectly competitive market? Explain them. (10)
(b) Graphically explain the short run equilibrium of a firm under perfect competition. (13 ~)

2. (a) Define fixed cost and variable cost. (10)

(b) Complete the following table and sketch the graph explaining the relations among the

various short run cost curves . (13 ~)

(1) .(2) (3) (4) (5) (6) (7) (8)
Quantity Total Total Total Average Average Average Marginal
of fixed variable cost fixed variable total cost
output cost cost cost cost cost
1 80 30
2 80 40
3 80 45
4 80 55
5 80 75
6 80 120

3. (a) What do you understand by localization of industries? What are the causes of

localization of industries? (13~)

(b) Explain the advantages of localization of industries. (10)

4. (a) What do you understand by division of labour? Explain different types of division of

labour. (8~)
(b) What are the advantages and advantages of division of labour? Explain them. (15)

SECTION -B
There are FOUR questions in this Section. Answer any THREE questions.

5. (a) What do you know about the fundamental economic problems that every economy

has to face? (10)

(b) How these problems are solved with reference to the mixed economic system? (6)
" (c) What are the prerequisites for an effective demand in economics? Describe the

exceptions to the law of demand. (7~)

Contd P/2
 =2=

HUM 701
6. (a) What do you understand by 'change in quantity supplied' and 'change in supply? (5~)
(b) Graphically explain the determination of equilibrium price and output of a commodity

in the free market economy. (8)

(c) From the following demand and supply functions. (10)
QD = 1350 - 75Pz
Qs = 680 + 25Pz
find the equilibrium price and quantity of the commodity Z. If Government provides a
subsidy ofTk. 2.50 per unit, what will be the new equilibrium price and quantity?

7. (a) Define price elasticity and cross-price elasticity of demand. How would you derive

the formulae for measuring these two types of elasticity of demand? (10)
(b) From the given table, calculate the cross elasticity of chicken when case A is
considered to be the starting point. What are the implications of the results you have

obtained. (6)
Cases Price of Mutton Amount of Chicken demand
A Tk. 550 100MT
B Tk. 600 125 MT
C Tk. 650 135MT

(c) Describe the basic determinants of elasticity of demand in your own words. (7~)

8. (a) Evaluate the critique of the cardinal theory of utility analysis. (6)
(b) Clarify the concept of an indifference curve and present its properties. (7~)
(c) Illustrate the equilibrium of the consumer using indifference curve approach. (10)
L-1/T-1/ARCH Date: 11/11/2019
BANGLADESH UNIVERSITY OF ENGINEERING AND TECHNOLOGY, DHAKA
L-1/T-l B. Arch. Examinations 2018-2019
Sub: HUM 701 (Principles of Economics)
Full Marks: 140 Time: 3 Hours
USE SEPARATE SCRIPTS FOR EACH SECTION
The figures in the margin indicate full marks.
SECTION -A

There are FOUR questions in this section. Answer any THREE.

I. (a) Define demand function. (5)

(b) What are the main detenninants of demand? Explain. (10)
(c) What are the exceptions to the law of demand? (8 YJ)

2. (a) What do you understand by localization of industries? What are the main causes of
localization of industries? (13 YJ)
(b) From the following table calculate elasticity of demand if you move from point A
to C and explain what you understand from the result. (10)

- --
POINT Y
... - .- -~-----
Q
,
A 5000 500
p:,.
:! .. ". '. B 6000 600
!' ..•.. C 7000 700 !

3. (a) Explain the properties of an indifference curve. (15)

(b) Explain consumers equilibrium with the help of budget line and indifference
curve. (8 YJ)

4. (a) How is price detennined in an economy under competition? What will happen to
the price and quantity due to change in supply? (10)
(b) From the following demand and supply functions, calculate equilibrium price and
quantity and show the result in a graph. (13 YJ)
DD: Q= 50-3P
55: Q = - 10 + 3P
(i) What will happen to the equilibrium price and quantity if government imposes
a unit tax ofTk. 2 per unit?
(ii) Describe the change in equilibrium. Show the equilibrium coordinates on the
same graph.
Contd P/2
.~,

•
=2=

HUM 701
SECTION -B
There are FOUR questions in this Section. Answer any THREE.

5. (a) Explain the factors of production in Economics and elarifY the concepts of short run and

long run in the theory of production. (8)

(b) 1l1ustrate the law of diminishing marginal returns in production. (5 YJ)
(c) Describe the relationship between total physical product (TPP), average physical product

(APP) and marginal physical product (MPP). Use diagrams. (10)

6. (a) Define an isoquant and an isocost line. ll1ustrate the least-cost combination of factors to

produce a given levcl of output. (8)

(b) Describe the loss minimising and the shut down points under perfect competition. (5 YJ)
(c) The following are respectively the Total Revenue (TR) and Total Cost (TC) functions of a
firm
TR = 1400Q - 7.5Q2
TC = Q3 _ 6Q2 + 140Q + 750
Construct the profit function and find the maximum profit earning level of output and the

maximum profit. (10)

7. (a) Distinguish between the following terms (8)

(i) Gross Domestic Product (GOP) and Gross National Product (GNP)
(ii) Consumer Price Index (CP1) and GOP deflator

(b) What do understand by inflation? How is it measured? Describe the causes of inflation. (7 YJ)

(c) Explain the fiscal and monetary policies that are adopted for controlling inflation. (8)

8. Write Short Notes on any THREE of the following: (23 YJ)

(i) The circular flow of income and expenditure in an open economy.
(ii) Economies of scale of production
(iii) Characteristics of perfect competitive market
(iv) National income accounting