Dibrugarh University| B.A| CBCS| Economics, Essentials of Microeconomics| Question Paper - (Nov/ Dec) - 2022| 3rd Semester
3 SEM TDC ECOH (CBCS) C 5
2022
(Nov/ Dec)
ECONOMICS
(Core)
Paper: C-5
(Essentials of Microeconomics)
Full Marks: 80
Pass Marks: 32
Time: 3 hours
The figures in the margin indicate
full marks for the questions
1. Choose the correct option/ Answer the following: 1x8=8
(a) Indifference curve analysis is based on ________marginal rate of
substitution. (Diminishing/ increasing/ constant)
(b) What is meant by utility maximization/
(c) One feature of Giffen good is
(i) Negative income effect
(ii) Positive income effect
(iii) Zero income effect
(iv) Positive substitution effect
(d) The substitution effect can be measured holding
(i) Income constant
(ii) Utility constant
(iii) The price of one good constant
(iv) The price of all goods constant
(e) What do you mean by marginal rate of technical substitution?
(f) In the long run, some firms will exit the market if the price of
the goods offered for sale is less than
(i) APC
(ii) MC
(iii) ATC
(iv) AR
(g) The firm in a perfectly competitive market is a price taker. The
designation as a price taker is based on the assumption that
(i) The firm has nominal control over its product price
(ii) There are so many buyers and sellers in the market that any
individual firm cannot affect the market
(iii) There is easy entry into or exit from the market
(iv) None of the above
(h) Profit for a firm is maximum, when
(i) MR > MC
(ii) MR < MC
(iii) MR = MC
(iv) MR = MC = 0
2. Write short notes on any four of the
following (within 150 words each): 4x4=16
(a) Indirect utility function
(b) Revealed preference theory
(c) Expansion path
(d) Diseconomies of scale
(e) Profit maximization rule
Answer the following questions (within
500 words each):
3. (a) Write
the meaning of rational choice. Explain, by using indifference curve and budget,
how a consumer attains equilibrium. 3+8=11
Or
(b) What is meant by expenditure minimization? Explain the
properties of expenditure function. 3+8=11
4. (a) Using indifference curve analysis,
show how price effect of a commodity is decomposed into income effect and
substitution effect in case of normal good. 11
Or
(b) Explain graphically the compensated and ordinary demand curves.
11
5. (a) What is meant by marginal rate of
technical substitution? How do you calculate marginal rate of substitution? Explain.
2+9=11
Or
(b) What is production function? What are the properties of C-D
production function? Explain C-D production function with the help of suitable
diagram. 2+2+7=11
6. (a) Explain graphically the short-run
cost curves and their interrelationships. 12
Or
(b) How is the LAC curve derived from a set of short-run AC curves?
Why is LAC curve U-shaped? Explain. 7+5=12
7. (a) What is perfect competition? Explain
short-run and long-run equilibrium in a competitive industry with the help of
suitable diagram. 2+9=11
Or
(b) (i) Write the differences between perfect competition and pure
competition.
(ii) Explain why firms earn zero profit in long-run competitive
equilibrium. 6+5=11
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