M.A. DEGREE EXAMINATION, NOVEMBER 2017
First Semester
Economics
MICRO ECONOMICS — I
(CBCS 2014 onwards)
Time 3 Hours Maximum 75 Marks
Part A (10 2 20)
Answer all questions.
1. What is economic analysis?
2. Give the meaning of positive economics.
3. What is strong ordering of consumer's preferences?
4. State Slutsky's theorem.
5. Define isoquant.
6. What do you understand by expansion path?
7. Define abnormal profit.
8. What is the reason for dead weight loss in monopoly
market?
9. Mention the types of price leadership.
10. What is non-collusive oligopoly?
Sub. Code
4MEC1C1
AFF-4775
2
WS4
Part B 5 25)
Answer all questions, choosing either or
11. What do you mean by distribution of national
product? Enumerate the problems in it.
Or
Describe the nature of economic models.
12. State and explain the Friedman-Savage hypothesis
on consumer's choice under risky situation.
Or
Make a critical appraisal of the Marshallian utility
approach to demand.
13. Distinguish between long run and short run
production functions.
Or
Explain the elasticity of substitution of factors of
production.
14. Differentiate perfect competition from pure
competition.
Or
"Equilibrium price is possible only through
negotiation under Bilateral monopoly" — Discuss.
15. What is product differentiation? Explain its role in
the determination of price and output under
monopolistic competition.
Or
Explain the Cournot's model of Oligopoly.
AFF-4775
3
WS4
Part C 10 30)
Answer any three questions.
16. Give a brief account of both methods of economic
analysis.
17. Explain the relationship between ordinary and
compensated demand curves.
18. Describe with suitable examples economics of scale and
diseconomics of scale.
19. Explain with the suitable diagram the determination of
equilibrium price under discriminating monopoly.
20. Make a critical appraisal of the Chamberlin's theory of
Excess capacity.
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