CWA/ICWA Inter :: Economics and Business Fundamentals: June 2005

*C-3(EBF)* *Revised Syllabus*
Time Allowed : 3 Hours	Full Marks : 100
The figures in the margin on the right side indicate full marks.
SECTION I (50 marks)
Answer Question No. 1 which is compulsory and any two from the rest.
Marks

(a)

Answer the following:

(i)

In a monopoly, the monopolist can

(A)	Control supply and demand;
(B)	Control price or supply;
(C)	Control price and demand;
(D)	Control price and supply.

(ii)

The concept of Quasi Rent is given by

(A)	Ricardo;
(B)	Joan Robinson;
(C)	Marshall;
(D)	Robbins.

(iii)

The difference between GDP at factor cost and GDP at market price is

(A)	Depreciation;
(B)	Net factor income from aboard;
(C)	Net indirect taxes and subsidies;
(D)	Direct taxes.

(iv)

Effective demand is

(A)	Demand exceeds supply;
(B)	Aggregate demand is equal to aggregate supply;
(C)	Elasticity of demand for a product is high;
(D)	Difference between actual and forecast demand.

(v)

Progressive taxation means

(A)	Tax burden falls more heavily on similar income;
(B)	Tax burden increases with income;
(C)	Large quantity of tax evasion;
(D)	Large quantity of tax avoidance.

1x5=5

(b)

Fill in the blanks:

(i)	A firm maximises its profits where its marginal revenue is equal to its ___________.
(ii)	The rate of interest charged by the Central Bank is called the ____________.
(iii)	The value of marginal propensity to consume is always ___________ than unity.
(iv)	When even displacements of large number of workers cannot affect output, it implies the existance of ___________.
(v)	Industrial Finance Corporation has the objective to provide funding for _________ and ________ terms.

1x5=5

(c)

Define the following terms in not more than two lines:

(i)	Investment multiplier;
(ii)	Liquidity trap;
(iii)	Balance of payment;
(iv)	Total utility;
(v)	Say's Law;
(vi)	Bank money.

1x6=6

What is price discrimination? What are the different types of price discrimination? When is it possible? When is price discrimination profitable?

2+5+5+5=17

Explain the quantitative and qualitative weapons of credit control Bank of a country.

What is taxable capacity? What are its types? Explain the factors on which taxables capacity depends.

2+5+10=17

(a)

Discuss the functions of IMF.

(b)

Critically examine the role of IBRD.

8+9=17

Please turn over

( 2 )

C-3(EBF)
Revised syllabus

Marks

SECTION II (50 marks)

Answer Question No. 6 which is compulsory and any two from the rest

(a)

Answer the following:

(i)

In a Sole proprietorship

(A)	Liability is limited;
(B)	There is no risk;
(C)	Liability is unlimited.

(ii)

In India, a foreign company is a company

(A)	Having a place of business outside India;
(B)	Incorporated outside India and having business outside India;
(C)	Incorporated outside India and having business in India.

(iii)

In a partnership, a minor

(A)	Can be admitted as partner;
(B)	Can be admitted as a partner in an unregistered firm;
(C)	Can be admitted as a beneficiary of profits.

(iv)

SWOT stands for

(A)	Sadness, weakness, oppression and terrorism;
(B)	Success, worthiness, opportunities and trust;
(C)	Strength, weakness, opportunities and threats.

(v)

Bulls are oprators in stock exchange who are also called

(A)	Mandeewalas;
(B)	Lameducks;
(C)	Tejiwalas.

1x5=5

(b)

State which of the following statements are "True" and which are "False":

(i)	OTEC provide promoter's contribution or seed capital.
(ii)	Encoding is deciphering the meaning of the communication received.
(iii)	A proxy is not entitled to speak or vote in a general meeting of a company.
(iv)	Statement in lieu of prospectus is issued by a private company.
(v)	Age and sex compositions of population is a part of social environment.

1x5=5

(c)

Define the following terms in not more than two lines:

(i)	Cooperative;
(ii)	Annual General meeting;
(iii)	Business Circular;
(iv)	Spot transactions.

1½x4=6

Distinguish between —

(a)	Shares and Debentures.
(b)	Public Limited company and Private Limited Company.

8+9=17

What are the various objectives of a business? Explain their characteristics and importance.

8+5+4=17

What is a Stock Exchange? Discuss the functions of Stock Exchange.

5+12=17

10.

Write short note on

(a)	Special Resolution;
(b)	Social responsibility of business;
(c)	Essential requirements of a meeting;
(d)	Ten commandments for good communication.

4+4+4+5=17

__________

CWA/ICWA Foundation :: Economics and Business Fundamentals: June 2005