In this article, we are going to discouss about Micro Economics Important Questions B.Com 5th Sem Non Hons, CBCS Pattern
Unit I: Demand and Consumer Behaviour
2. Define supply of a commodity. What are the factors which determine supply of a commodity?
3. Distinguish between movement along a demand curve and shift in demand curve. What are the factors which cause shift in the demand curve?
4. Distinguish between movement along a supply curve and shift in supply curve. What are the factors which cause shift in the supply curve?
5. Define equilibrium price and equilibrium quantity. How they are determined?
6. What is law supply? What are the assumptions necessary for explanation of the law of supply? Explain the individual supply curve and the market supply curve with diagram. 2018
7. What is Elasticity of Supply? Mention its determinants. 2014, 2016
Unit 2: Consumer Theory
1. What is a consumer preference? What are the three assumptions about consumer preferences?
2. What are indifference curves? What are the assumptions on which indifference curve analysis of a demand is based?
3. What is an indifference curve? Explain the main properties of an indifference curve. 2020
4. What is consumer’s equilibrium? Explain with the indifference curve and budget constraint how a consumer attains equilibrium.
5. What is an isoquant? Explain its properties. Identify the economic region of production with the help of isoquant curve. 2012, 2013(SN), 2014, 2015(SN), 2016, 2018
6. Explain why consumer’s difference curve have negative slope, do not intersect and are convex to the origin.
7. Show that if indifference curves are concave, a consumer will consume only one of the two goods.
8. What is budget line? What does it intercept on X-axis show? What does its intercept on Y-axis show? What does slope of the budget line measure?
9. What is price consumption curve? What is the relationship between price consumption curve and price elasticity of demand?
10. Derive demand curve from price consumption curve.
11. Using indifference curve analysis, show how price effect of a commodity is decomposed into income effect and substitution effect.
12. Explain using income and substitution effects why giffen goods have demand curves that slope upward.
13. What is law of Demand? How would you explain it with substitution effect and income effect? Mention the assumptions which are necessary for law of demand analysis (2012). What are the exceptions to the law of demand?
14. What is Giffen Good? How does indifference curve analysis explain Giffen paradox? What is the shape of price consumption curve for a giffen good? Illustrate with diagram.
15. All Giffen goods are inferior goods but all inferior goods are not giffen goods. Do you agree.
Unit 3: Production and Cost
3. Discuss laws of returns to scale. How are laws of returns to scale different from laws of variable proportions? 2019
5. What do you mean by economies and diseconomies of large-scale production? Discuss the different factors influencing economies and diseconomies of large-scale production. 2017
6. What is called production expansion path (2017SN)? Discuss how it can be expressed with the help of budget line and iso-product curve. 2014, 2016
Di7. scuss about optimum factor combination of a business firm with the help of diagram. 2017
1. Explain the concept of total fixed cost, total variable costs, total costs and average cost. How they are related to each other? Distinguish between fixed costs and variable costs relevant in the long run and short run.
2. Write the meaning of ‘optimal combination’ of factor of production. Explain the equilibrium of a firm with the help of isoquant and isocost lines. (Write both output maximization and cost minimization.)
3. Explain how a technological change affects ling-run cost curves. Distinguish between process innovation and product innovation.
Unit 4: Market Structure
Part A: Perfect Competition
4. Define normal price. Diagrammatically explain how normal price is determined. Why does a firm under perfect competition make only normal profit in the long run?
5. What is Producer Surplus in Case of a Firm and Market under Perfect Competition? How it is measured?
6. Illustrate the effects of taxes and subsidies on demand and supply under perfect competition. 2020
8. Distinguish between Perfect Competition, Monopoly and Monopolistic Competition.
Part B: Monopoly
1. What is monopoly market? What are its features? How does a monopolist determine the price of his commodity under condition of price discrimination? Illustrate your answer with suitable diagram. 2020
2. Describe how a monopolist determines his profit-maximizing output and price in the long-run. How can monopoly power be measured? 2019
3. Explain with diagram how price and output are determined under monopoly. 2020
4. Show why supply curve does not exist under monopoly.
5. What do you understand by ‘dead-weight loss’ of monopoly? If the gains to producers be redistributed to consumers, would the ‘dead-weight loss’ be eliminated?
6. What is price discrimination? Discuss the types of price discrimination with examples. Discuss the conditions of price discrimination. 2019
7. Under what conditions price discrimination is profitable? Is price discrimination socially justified?
Part C: Imperfect Competition
1. What is monopolistic Competition? What are its features?
2. Illustrate how a firm in monopolistic competition reaches its equilibrium in the short-run. Can economic efficiency be attained in monopolistic competition? Discuss. 2019
3. What is meant by product differentiation? Explain with the help of diagram the ‘individual equilibrium’ and ‘group equilibrium’ under monopolistic competition. 2020
4. What is Oligopoly? Mention the main features of oligopoly. Explain how a cartel determines price and output under collusive oligopoly. 2020
5. Why does price leadership sometimes evolve in oligopolistic markets? Explain how the price leader determines a profit-maximizing price. 2019