Intro_to_Microeconomics_Practice_Questions_All_Examinable_2022_Docx

Document Content and Description Below

1. Answer any nine of the following questions in 5-6 sentences each: 2x10=20 a) Distinguish between positive and normative economics b) State any two uses of the study of microeconomics c) Give the... meaning of production function d) Distinguish between cardinal and ordinal utility e) What is an indifference map? f) Give the meaning of the term equilibrium g) Distinguish between increase and extension of demand. h) What is opportunity cost? i) Differentiate between a firm and industry. j) Given the meaning of selling costs k) Define Quasi rent. l) Mention any two features of Oligopoly. Part-B (Analytical) Answer any four questions: 5x5=25 2. Graphically explain the economy’s production possibility curve in terms of economic growth. 3. Explain various types of price elasticity of demand with the help of diagrams. 4. Describe the two conditions necessary for attaining equilibrium for a firm in the shortrun. 5. Discuss the conditions of price discrimination under monopoly. 6. Explain the innovation theory of profit. 7. What are the diseconomies of scale? Explain with illustrations Part-C (Descriptive) Answer any four questions: 15x3=45 8. Compare and contrast the marginal utility approach with the indifference curve approach in understanding consumer behaviour. 9. State and explain with suitable diagrams the law of deaman. What are the reasons for the downward slope of the demand? 10. How does the producer attain equilibrium under the iso-quant approach? 11. Discuss the role of time element in the determination of price and output under perfect competition with the help suitable diagrams. 12. Explain the liquidity preference theory of Interest. What is liquidity trap? [Show More]

Last updated: 1 year ago

Preview 1 out of 13 pages