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Reg. No. : ..................................... Name : ........................................
First Year B.A. Degree Examination, March 2009 Part – III (Group – III) : ECONOMICS Paper – I : Micro Economics (2005 Admn. Onwards) Time : 3 Hours
Max. Marks : 100
Instruction : Answer may be written in English or in Malayalam. I. Choose the correct answer. Write only the alphabet.
(5×1=5 Marks)
1) Change in demand occurs when a household demands more/less quantity of a commodity at a) The same price b) A lower price c) A higher price d) None of the above
examquestionpapers.com 2) Perfectly elastic demand curve is a) Parallel to x-axis c) Inclined at 45° to x-axis
b) Parallel to y-axis d) None of the above
3) Economics of scale means a) Reductions in unit cost of production b) Reductions in unit cost of distribution c) Addition to the unit cost of production d) Reduction in the total cost of production 4) Perfect competition implies a) Differentiated goods c) Advertised goods
b) Homogeneous goods d) Distress scale of goods
5) The subsistence wage theory is due to a) T.R. Malthus b) David Ricardo c) Adam Smith d) J.S. Mill P.T.O.
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II. State true or false :
(5×1=5 Marks)
6) Firms have chronic excess capacity in perfect competition. 7) Net profit stands for gross profit minus implicit cost. 8) Price discrimination is possible when elasticities of demand are different in different market at the ruling price. 9) Monopsony is a form of market organisation in which there is a single seller of an output. 10) Expansion of demand is concerned with an upward shift in supply curve. III. Fill in the Blanks :
(5×1=5 Marks)
11) Average revenue curve of a firm is _____________ under imperfect competition. a) More than perfectly elastic b) Less than perfectly elastic c) Perfectly elastic d) None of the above
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12) The market demand curve for a factor is derived by summing the ___________ a) Marginal physical product b) Value of marginal product c) Marginal revenue product d) None of the above 13) Selling cost shifts ___________ curve to the ________________ a) Supply right b) Demand left c) Demand right d) None of the above 14) Consumers are likely to get a variety of similar goods under a) Monopoly b) Perfect competition c) Duopoly d) Monopolistic competition 15) The marginal productivity theory of distribution was presented in a book entitled “The Distribution of Wealth” written by a) J.R. Hicks b) Leon Walras c) J.B. Clark d) David Ricardo
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IV. Define any four of the following :
(4×1=4 Marks)
16) Implicit cost 17) Cartel 18) Economic rent 19) Bilateral monopoly 20) Product differentiation. V. Answer any seven of the following is not more than half a page.
(7×3=21 Marks)
21) State the marginal productivity theory of wages. 22) What are the different conditions for the implementation of price discrimination ? 23) Distinguish between perfect competition and pure competition.
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24) Explain price elasticity of demand.
25) Explain the factors that favour concentration and emergence of monopoly. 26) According to Keynes, why do people prefer to hold liquidity ? Explain. 27) When is according to Bentham social welfare improved ? Explain.
28) Distinguish between marginal efficiency of capital and marginal productivity of capital. 29) Explain how can trade unions raise wages. 30) What are the different possible alternative relationship between wages and average revenue product ? VI. Answer any six of the following questions each not more than one page : (6×5=30 Marks) 31) Discuss Pigou’s welfare theory. 32) Discuss the application of break-even point.
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33) Explain the features of Cob-Web theorem. 34) Explain how wage is determined under perfect competition in labour market. 35) Discuss the modern theory of economic rent. 36) What is meant by internal and external economies of scale ? 37) What is marginal rate of technical substitution ? Illustrate graphically. 38) Discuss relationship between rent and price. 39) Explain the Cobb-Douglas production function. 40) What is the relationship between total utility and marginal utility ? Explain. VII. Answer any three of the following not exceeding three pages each : (3×10=30 Marks) 41) Explain how linear programming problem can be solved graphically.
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42) Discuss how output and price is determined under monopolistic competition. 43) Explain the law of variable proportion.
44) What is the purpose of demand forecasting ? Describe the uses and limitations of the trend methods of forecasting demand. 45) Explain the Ricardian theory of rent. 46) Discuss to what extent the theory of Revealed Preference is superior cardinal and ordinal theories of utilities. –––––––––––––––––––––