M.A. DEGREE EXAMINATION, NOVEMBER 2017
Second Semester
Economics
MICRO ECONOMICS II
(CBCS 2014 onwards)
Time 3 Hours Maximum 75 Marks
Part A (10 X 2 20)
Answer all the questions.
1. What is organisational slack?
2. Define limit price.
3. What is factor pricing?
4. What is monopolistic exploitation of labour?
5. State product exhaustion theorem.
6. What are the sources of demand for loanable funds?
7. Define pareto optimality.
8. What is value judgment in social welfare?
9. What is meant by maximum social welfare?
10. Define welfare economics.
Sub. Code
4MEC2C1
AFF-4780
2
WS6
Part B X 5 25)
Answer all questions by choosing either or
11. Explain the Andrew's version of full cost pricing
theory.
Or
''Organisational goal is reached through the
consensus of its conflicting groups'' Discuss.
12. Describe profit as a reward for innovation.
Or
Explain with the suitable diagram the optimum
choice of work and leisure.
13. Enumerate the assumptions of Marginal
productivity theory of income distribution.
Or
Explain how Kalecki discusses the constancy of
labour share in National income.
14. Describe the views of classicals on social welfare
function.
Or
Discuss the three different concepts of social
welfare.
15. Make a review of the theory of second best.
Or
Explain the need for trade off between equity and
efficiency.
AFF-4780
3
WS6
Part C X 10 30)
Answer any three questions.
16. Make a critical appraisal of Williamson's Model of
managerial discretion.
17. Explain how wage is determined under collective
bargaining.
18. Discuss the Ricardian theory of income distribution.
19. State Scitovsky paradox and describe the double criterion
of social welfare.
20. Enumerate the various obstacles to Pareto optimality.
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