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THE INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF BANGLADESH CMA DECEMBER, 2017 EXAMINATION
BUSINESS LEVEL
SUBJECT: GE 04. FUNDAMENTALS OF BUSINESS ECONOMICS.
Time: Three hours Full Marks: 100
All questions are to be attempted.
Show computations, where necessary.
Answer must be brief, relevant, neat and clean.
Start answering each question from a fresh sheet.
Q. No. 1
Explain the concept of the balance of payments and its implications for govt. policy.
[Marks: 10]
Q. No. 2
Explain the role of major institutions promoting global trade and development.
[Marks: 15]
Q. No. 3
Calculate marginal cost, marginal revenue, Break Even point and Profit Maximising output point from the following information:
Units of Output Total Cost Variable Cost Fixed Cost Total Revenue
0 150 0 150 0
1 300 150 150 250
2 450 300 150 300
3 500 350 150 500
4 550 400 150 600
5 600 450 150 700
6 800 650 150 900
7 900 750 150 1000
8 1000 850 150 1100
[Marks: 10]
Q. No. 4
Illustrate the potential impact on prices and competition of e-business and globalization.
[Marks: 15]
Q. No. 5
Identify causes of instability of prices in markets for primary goods.
[Marks: 10]
Q. No. 6
Explain market concentration and the factors giving rise to differing levels of concentration between markets, including acquisitions and combinations.
[Marks: 15]
Q. No. 7
Explain the financial and economic functions of financial intermediaries.
[Marks: 10]
Q. No. 8
Explain the role of the ‘central bank’ in ensuring liquidity and in prudential regulation.
[Marks: 15]
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