Model Test Paper 2012 B.A.

Part-II (Economics-I) Micro Economics

ShortAnswerTypeQuestions.
Q.1 Q.2 Q.3 Q.4 Q.5 Q.6 Q.7 Q.8 Q.9 Q.10 Q.11 Q.12 Q.13 Q.14 Q.15 Q.16 Q.1 Q.2 Q.3 Q.4 Q.5 Q.6 Q.7 Q.8 Q.9 Q.10 Statethemaincharacteristicsofindifferencecurves. Explainthemarginalrateofsubstitution. Definecrosselasticityofdemand. Explaintheconceptofexcesscapacity. Distinguishbetweeninferiorgoodandgiffengoodusingdiagrams. Ricardiantheoryofrent. Profitisthepaymentforuncertaintybearing?Discuss. Relationshipbetweentotalutilityandmarginalutility. Explainlawofequimarginalutility. Explainreturnstoscale. Explainstagesofproduction. Calculationofconsumerssurplus. Explainpricediscriminationpolicy. Explainliquiditypreferencetheory. Meaningandscopeofmicroeconomics. Explaincomparativestatic,staticanddynamicmicroeconomicanalysis.

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EssayTypeQuestions.

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By explaining difference between total utility and marginal utility, explain Marshalls total utility maximizationtheoremwiththehelpofproperequationandmathematicalexample. What do you understand by isoquants and Iso cost curve? How optimum factor combination can beachievedwiththesecurves? Explain the necessary condition for price discrimination and also analyse the allocation of total salesbyamonopolistintwodifferentmarketsforrevenuemaximization. Explain critically marginal productivity theory of distribution under the situation of pure competitionandimperfectcompetitionmarket. Explain price, income and substitution effect of normal goods by using Hicksian method (with properdiagram). RelationbetweenAR,MRandelasticityofdemand(usingproperdiagramandequations) Or ProvethatMR= AR

AR n

Explainlongrunequilibriumofpurecompetitionmodel.(firm&industry) What do you understand by monopolistic competition? Explain long run equilibrium of a monopolisticcompetitionfirm. Explain the meaning of price elasticity of demand. What are the different methods of measuring elasticityofdemand? Explain the three stages of production. Why is it that the 2nd stage of production is considered the mostrelevantstageforfactoruseinproduction?Discussusingsuitablediagram.