Macro Economics for Business Decisions First Semester M.Com. Degree Examination Question paper

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Bangalore University M.Com. Degree Examination First Semester, February/March 2011 (2007-08 Scheme)(NS) COMMERCE



Paper - 1.4: Macro Economics for Business Decisions
Time: 3 Hours Max. Marks: 80
SECTION – A


1. Answer any ten of the following in about 3-4 lines each. Each sub-question carries 
2 marks. (2X10=20)


a. Define macro economics.
b. What is per capita income?
c. What is capital outpet ratio?
d. What do you mean by capital formation?
e. Define fiscal policy.
f. What is cheap money policy?
g. What is statutory liquidity ratio?
h. What do you mean by selective credit control?
i. Define inflation.
j. What are the tools of fiscal policy?
k. What do you mean by disguised unemployment?
l. What is meant by marginal propensity to consume?


SECTION-B


Note : 1) answer any three questions in about a page each.
2) each question carries five marks.


2. Distinguish berween micro-economics and macro-economics.
3. Explain the role of national income in business decisions.
4. What are the factors determining the economic growth? Explain.
5. Explain in brief the objectives of fiscal policy.
6. Explain the effect of taxation on income.


SECTION-C


Note: 1) Answer any three questions.
2) Each question carries 15 marks.


7. Discuss the role of monetary policy in economic development.
8. Define business cycle. Explain the evil effects of cyclical fluctuations on business firms.
9. What are the problems in the computation of national income? Explain.
10. What are the sources of saving in India? Suggest measures for raising the rate of savings.
11. Discuss the various policies towards economic stability.

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