PART$-$A

What is inflation? Distinguish between demand$-$pull and cost$-$push inflation.

$(25$ Marks$)$

$[2]$ Discuss the merits and demerits of sole proprietorship.

$[3]$

c$)$ Differentiate between movement along a demand curve and shift in the demand curve.

$[2]$

$9.$ Explain, briefly, the survey method of demand forecasting.

$[3]$

e$)$ Define the following: i$)$ Production function ii$)$ Isoquant.

$(2)$ Explain the ways, by which Piv ratio chin be improved.

$[3]$ What is accounting period connept? What is its significance?

$(2)$

h$)$ What are the limitations of Financial Statements? Explain them briefly.

$[3]$

i$)$ Distinguish between fund flow annlysis and cash flow analysis.

$[2]$

j$)$ Explain the merits of ratio analysis as a twol for interpretation of financial statements.

$71$

rks$)$

ute auvannages ana dis$-$ advantages in each case.

$[10]$

OR

$3.$a$)$ What are business cycles? What are their various phases?

$()$

b$)$ Discuss the effects of business cycles and the measures to be initiated at the firm level and government level to control bginness cycles.

$5+5$

$4.$ The demand function for a firm is estimated as: $Q-55-0\mathrm{.}5P($where $P=$ Price and $Q-$ Rate of output$)$ and the total cost function $TC=20+Q+0\mathrm{.}2Q^2$ where TC$=$Total cost, determine:

a$)$ The total revenue function of the firm.

b$)$ The marginal revenue and marginal cost functions and find the rate of output for which marginal revenue equals margimal cost.

c$)$ An equation for profit and the level of output that maximices total profit.

OR

$5.$a$)$ The price of a commodity $x$ fatis trom Rs$.5$ per kg to Rs$.4$ per kg and quantity demanded by consumer A increases from $4$ kg to $6$ kg $.$ Comment on the nature of demand for commodity X in this case.

b$)$ What would you say about the price$-$elasticity of commodity X $,$ if the quantity demandad remains unchanged?

c$)$ Discuss the smoothing techniques of demand forecasting.

$4+3+3$