Full Marks: 100
Pass Marks: 35
Candidates are required to give their answers in their own words as far as practicable. The figures in the margin indicate full marks.
Brief Answer Questions [10×2=20]
Attempt ALL Questions.
1 What is incremental analysis in economics?
2 What is the effect of increases in tax in equilibrium price and quantity?
3 Define cross elasticity of demand?
4 Differentiate between cardinal approach and ordinal approach for demand analysis?
5 Draw the budget line if income of consumer is rs 20000,price of good X is 100 and price of good Y is 200.
6 Why does isoquant slope downward?
7 Differentiate between explict cost and implict cost.
8 Define predatory pricing.
9 Calculate the equilibrium level of output of the firm when marginal revenue is MR=300-0.00020 and marginal cost is MC =20+0.0008Q
10 Prepare a list of factors thar causes wage differentials.
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Descriptive Answer Questions
Attempt FIVE Questions. [5×10=50]
11 How the production possibility curve is useful to illustrate the economic concepts?
12 What is demand Function? Explain it’s types.
13 Explain the degrees of price elasticity of supply. Value of price elasticity of demand of milk is calculated as -0.7 and price elasticity of demand of coffee is calculated as -2.0.Interpet the result and explain the natures of goods.
14 Explain the law of returns of the goods.
15 Explain the consumer equilibrium in cardinal approach under one commodity models .Find the consumer’s equilibrium if the price of apple is Rs 20,price of banana is Rs 10 and the consumer spends whole income Rs 140 on apple and banana with following marginal utility (MU) schedule.
|units of consumption||1||2||3||4||5||6||7|
|MU of apple||800||700||600||500||400||300||200|
|MU of banana||500||450||400||350||300||250||200|
16 Consider the following table of labor production
Analytical Answer Question [15*2=30]
Attempt Any two questions
17 Define cartel.Explain it;s types.How price is determined under centralized cartel ?
18 Consider the following schedule of a competitive firm.
a Graph AVC,AC and MC .What is the position of firm’s profit at price Rs 132 ,Rs 90 and Rs 154?What is the position of firm at price Rs 24 ?Does this point refer to the shut down point? Give reason
b Using the cost schedule, explain the relationship of AV with AVC and AFC.
18 Price effect is the sum of income effect and substitution effect.Explain with the examples of Gifften goods.