2019
(December)
ECONOMICS
(Generic Elective)
Paper
G-1
( Introductory Microeconomics)
The figures in the
margin indicate full marks for the questions
1. Answer the
following as directed: 1x8=8
a) The amounts of
resources in an economy
1) Are fixed.
2) Never decrease.
3) Increase over time.
4) Are limited at any
moment of time.
(Choose the correct
option)
b) What is opportunity
cost?
c) Law of demand shows
the relationship between
1) Income and price of
a commodity.
2) Price and quantity
demanded of a commodity.
3) Quantity demanded
and quantity supplied.
4) Price and quantity
supplied of a commodity.
(Choose the correct
option)
d) Consumer’s surplus
is
1) The price of a
consumer is willing to pay.
2) The cost of
producing a unit of a commodity.
3) The profit made by
a firm.
4) The difference between
the price a consumer is willing to pay for the commodity and the
price he actually
pays.
(Choose the correct
option)
e) When TR is maximum,
MR is _________.
5.(Fill in the blank)
3) Marginal physical
product.
4) Marginal cost.
(Choose the correct
option)
h) Why is demand for
labour called derived demand?
2. Write short notes
on any four of the following (within 150 words each): 4x4=16
a) Scarcity and
choice.
b) Producer’s surplus.
c) Labour supply and
savings decision.
d) Envelope curve.
e) Shifts in input
demand curve.
3. (a) What is the
importance of studying the subject of Economics? Discuss about the scope and
methods
of studying Economics.
3+4+4=11
Or
(b) What is economic
model? Explain the economic model of price determination of a commodity.
3+8=11
4. (a) Define the
concept of demand. Draw individual demand and market demand curves with the
help of a
hypothetical demand
schedule. 3+8=11
Or
(b) Prepare notes on
the following: 5+6=11
1) Consumer surplus.
2) Application of elasticity
of supply.
5. (a)
Diagrammatically explain the various properties of indifference curve. How does
a consumer make
choice of his optimum
consumption of two goods? 6+6=12
Or
(b) Explain
substitution effect and income effect in case of normal good and Giffen good.
6+6=12
7. (a) Explain the
process of derivation of an input demand curve with the help of an example. 11
Or
(b) Explain how wage
is determined in a competitive labour market. 11
