Gauhati University B.Com 1st Sem Question Paper
4 (SEM – 1 / CBCS) MICE/ISM
MICRO ECONOMICS QUESTION PAPER 2021 (Held in 2022)
Answer the Questions from any one Option
OPTION – A
Paper: COM – HG – 1016
Full Marks: 80
Time: 3 hours
The figures in the margin indicate full marks for the questions
1. (A) Answer the following questions: 1×5=5
(1) What do you mean by isocost line?
(2) Define Cartel.
(3) Define imperfect competition.
(4) What is meant by economies of scale?
(5) What is opportunity cost?
(B) Choose the correct answer: 1×5=5
(1) In perfect competition, a firm maximizes profit in the short run by deciding
(a) How much output to produce.
(b) Whether or not to enter a market.
(c) What price to change?
(d) How much capital to use?
(2) The elasticity of the demand for a durable good is
(b) Equal to unity.
(c) Greater than unity.
(d) Less than unity.
(3) As the degree of product differentiation increases among the products sold in a monopolistically competitive industry, which of the following occurs?
(a) The cost of production falls.
(b) The amount of marketing expenditures decreases for each firm.
(c) The demand curve for each seller’s product becomes more horizontal.
(d) Each seller’s demand incomes more inelastic.
(4) The value of marginal product is calculated by multiplying the _______ by the _______.
(a) Marginal product; price of the product.
(b) Quantity of labour; wage rate.
(c) Wage; price of the product.
(d) Total product; wage rate.
(5) Moving along an indifference curve the
(a) Consumers prefer some of the consumption points to others.
(b) Marginal rate of substitution for a good increase as more of the good is consumed.
(c) Marginal rate of substitution is constant.
(d) Consumers do not prefer one consumption point to another.
2. Answer the following questions: 2×5=10
a) Mention any two properties of indifference curve.
b) What do you mean by consumer’s equilibrium?
c) Define normal price.
d) What are the two important factors affecting price elasticity of demand?
e) State the relationship between average revenue (AR) and marginal revenue (MR) in imperfect competition market.
Also Read: Gauhati University Micro Economics Question Paper
3. Answer any four questions of the following: 5×4=20
a) Write short notes on:
– Indifference curve.
– Engel curve.
b) Distinguish between short-run and long-run cost of production.
c) Discuss the economic region of production.
d) Explain the concept of price leadership.
e) Mention the characteristics of monopolistic competition.
f) What are the factors that determine income elasticity of demand?
4. Answer the following questions: 10×4=40
(a) What is monopolistic competition? Discuss how price output is determined under monopolistic competition.
Compare the impact of cash subsidy and kind subsidy with the help of indifference curve analysis. Which subsidy results greater welfare of the consumers?
(b) What is perfect competition? Explain the equilibrium of the firm and industry in the short-run and long-rununder perfect competition.
Critically explain Cournot’s duopoly model.
(c) Define income effect. Explain the shape of price consumption curve for inferior good.
What is price effect? Explain the shape of price consumption curve for normal good.
(d) What is price discrimination? Explain the degrees of price discrimination under monopoly market.
What is production function? Explain various types of production function with proper diagrams.