Micro Economics Important Questions B.Com 1st Sem Hons, CBCS Pattern

In this article, we are going to discouss about Micro Economics Important Questions B.Com 1st Sem Hons.

Unit I: Demand and Consumer Behaviour

Part A

1. What is Elasticity of Demand? What are its determinants (2013, 2016SN)? What are various types of elasticity of demand? Mention various degrees of elasticity with diagram. 2013, 2017, 2018

2. Explain any one method of measuring price elasticity of demand with the help of numerical example.      2012, 2020

3. What is price elasticity of demand? Explain the importance of price elasticity of demand. 2012, 2014, 2015, 2016, 2019

4. What is cross elasticity of demand (2015SN)? Discuss the importance of cross elasticity of demand in business decision making (2018SN). 2013, 2017

5. What is Income elasticity of demand? Discuss the importance of income elasticity of demand in business decision making. 2015

6. Explain the concept of Marginal and Average revenue under conditions of perfect competition and imperfect condition.

Part B

1. Using indifference curve analysis, show how price effect of a commodity is decomposed into income effect and substitution effect.

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 price consumption curve? What is the relationship between price consumption curve and price elasticity of demand?

6. Derive demand curve from price consumption curve.

7. Explain using income and substitution effects why giffen goods have demand curves that slope upward.

8. What is income consumption curve? Draw indifference curve diagram showing the income consumption curve in the following cases: a) Both X and Y are normal goods b) X is normal goods and Y is inferior goods or vice-versa

9. What is Engel curve? How is Engel curve derived from income consumption curve?

10. What is revealed preference theory? What are its assumptions? Why economist criticized revealed preference theory?

Unit 2: Production and cost

Part A

1. 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

2. Explain with diagram the law of variable proportion. In which stage output is decided? 2012, 2015, 2018, 2020

3. Discuss the laws of returns to scale. Discuss the causes of increasing return to scale (2016SN, 2018SN) and decreasing return to scale. 2013

4. Discuss laws of returns to scale. How are laws of returns to scale different from laws of variable proportions? 2019

5. Explain marginal rate of technical substitution and the expansion path.

6. 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.)  

Part B

1. What do you mean by internal (2012SN) and external economies (2017SN)? Explain the different factors responsible for internal economics. 2013, 2015, 2019

2. 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

3. 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

4. Discuss about optimum factor combination of a business firm with the help of diagram. 2017

5. Explain in brief learning curve and economies of scope.

Unit 3: Perfect Competition

1. What is perfectly competitive market? What are its characteristics and Assumptions? Explain the process of price-output determination, under perfect competition. 2012, 2014, 2015, 2017, 2018

2. Analyse the short run and long run equilibrium of a business firm under perfect competition with the help of suitable diagram. 2013, 2014, 2016, 2017, 2018

3. Analyse the short run and long run equilibrium of an industry under perfect competition with the help of suitable diagram. 2013, 2014, 2016, 2017, 2018

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. Write a brief note on Walrasian and Marshallian approach on the stability of the equilibrium.

6. What is Producer Surplus in Case of a Firm and Market under Perfect Competition? How it is measured?

7. Illustrate the effects of taxes and subsidies on demand and supply under perfect competition. 2020

7. Write a brief note on various classification of markets.

8. Distinguish between Perfect Competition, Monopoly, Monopolistic Competition and Oligopoly.

9. Write a brief note on short run supply curve, long run supply curve and minimum support price.

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Unit 4: 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 is monopoly power? How it is measured? State the sources of monopoly power.

6. State Lerner’s measure of degree of monopoly power. Show that degree of monopoly power is inverse of the price elasticity of demand.

7. 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?

8. What is a social cost of monopoly? If the gains to the monopolist could be redistributed to consumers, would the social cost of monopoly be eliminated? Explain briefly.

9. What is price discrimination? Discuss the types of price discrimination with examples. Discuss the conditions of price discrimination.                2019

10. Under what conditions price discrimination is profitable? Is price discrimination socially justified?

11. Explain horizontal and vertical integration of firms.

Unit 5: Imperfect Competition

Part A

1. What is monopolistic Competition? What are its features?

2. Illustrate how a firm in monopolistic competition reaches its equilibrium in the short-run and long-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. Explain the concept of economic efficiency. Evaluate economic inefficiency of firms operating under monopolistic competition.

Part B

1. What is Oligopoly? Mention the main features of oligopoly. Explain how a cartel determines price and output under collusive oligopoly. 2020

2. Why does price leadership sometimes evolve in oligopolistic markets? Explain how the price leader determines a profit-maximizing price.           2019

3. What is kinked demand curve? How does it help in explaining price rigidity under oligopoly?

4. Using the kinked demand curve model, explain how the increase and reduction in marginal cost need not lead to any change in price or output.

5. What is collusive oligopoly? How are price and output determined under it?

6. What is prisoner’s dilemma? How does it help to explain the likelihood of firms opting for sub-optimal solution in oligopoly?

7. Explain Cournot’s duopoly model? What should the firms do to maximise their profits?

8. Explain Boumol’s sales maximisation model using a suitable diagram. Compare it with profit-maximisation objective of the firm.

9. What is sales maximisation? Explain how a firm determine optimal price and output when it pursue the goal of sales maximisation?

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