CODE: MOG1124

FINAL EXAMINATION

Faculty: BUSINESS AND ACCOUNTANCY

Program: MASTER OF BUSINESS ADMINISTRATION - HRM

Module: BUSINESS ECONOMICS

Semester: YEAR 1/SEMESTER 1

Date: 7/2/2024

Time Allowed: 03 HOURS

Start: 5.30 P.M Finish: 8.30 P.M

Instructions to candidate

1. This question paper has TWO (2) Sections.

2. Answer ALL questions in Section A and Section B.
3. No scripts or answer sheets are to be taken out of the Examination Hall.

DO NOT OPEN THIS QUESTION PAPER UNTIL INSTRUCTED

 SECTION A
ANSWER ALL QUESTIONS
(Total Marks :60)

CASE STUDY ( Marks)

1. Doctors usually resort to price discrimination by scaling fees to the income of the
patients who approach them. Thus the fees charged by the doctors to individual
patients are a case of discriminating monopoly in medical profession. This is according
as the practice of what the traffic will bear. Doctors tend to justify this policy on the
basis of charities. According to Kessel (1985), “if there were mere competition among
doctors in the sale of medical services, there would be less discrimination in the pricing
of medical services and the charges will be low for the patients”. Even though medical
practices are currently treated as commercial plus charitable activity, the tendency
among the medical practitioners is to adopt a monopolistic competitive market practice
rather than discriminating monopoly. Even in certain countries, it has got the features of
an oligopoly market.
Questions:
A. If doctors follow a perfectly competitive framework in medical profession, what can
be the benefit to the society as whole?
B. Is price discrimination beneficial to the society? How far it can be justified in
healthcare industry practices?
C. What features of monopolistic competition are found in the medical industry
currently? Explain your assessment based on the country in which you reside.
D.Is the market tend to become more and more monopolistic or oligopolistic? Assess
your answer in the light of the modern trends in healthcare industry.
E. In the current scenario, the medical profession has become a purely commercial
activity targeting towards profit maximization. Comment.
 2. Discuss the need for and importance of economic growth and stability in the country’s
business development.
(b) ‘The scarcity of the resources gives rise to various basic economic problems which
have to be solved by an economy if it is to fulfill its purpose’ – Explain such problems.
(20 Marks)

SECTION B
Answer all questions
(Total 40 Marks)

1. Write notes on the following ( 20 Marks)

 a) Significance of national income accounting.

 b) Consumption function.
 c) Objectives of demand forecasting.
 d) Need for planning in business.

2. Why there is a need for Demand Forecasting? Explain any two methods of
demand forecasting for the established product.

Define ‘Production Function’. Explain with a diagram, the three stages of the Law of

Variable Proportions.

The End