Model Paper no 1 ETCE -312

Compulsory question
1. Write Short notes on the following
a) Cross elasticity of demand
b) Time value of money
c) Opportunity costs
d) Depreciation
(25 marks)
Section I
2. What do you understand by elasticity of demand? Why
demand curve is downward sloping
Or
3. Discuss about Indian Financial System. How does it help
the economic growth?
(12.5 marks)
Section II
4. How break even analysis is helpful in pricing decisions?
What are its limitations?
Or
5. What are the important financial statements? How will you
prepare profit and loss account?
(12.5 marks)

Section III

6. What is the difference between a partnership firm and a

joint stock company?
Or
7. What are the functions of a commercial bank? What are
the products available based upon technology
(12.5 marks)

Section IV

8. Small computers purchased by a public utility company

costs Rs 7000/- each. Past records indicate that they should
have a useful life of 5 years after which they will be disposed
off with no salvage value. The company currently has a cost
of 7%. Determine:
a) Depreciation charge during the years 1, 2 & 3.
b) Book value of the computers and the end of year 3.
Or
9. What do you think are the main causes of inflation? Out of
the two evils inflation and deflation, which is better and
why?
(12.5 marks)