ECO/I/01 Student's Copy
2 0 1 8
Pre-CBCS
1st Semester
ECONOMICS
FIRST PAPER
Microeconomics—I
Full Marks 75
Time 3 hours
PART A—OBJECTIVE
Marks 25
The figures in the margin indicate full marks for the questions
SECTION—A
Marks 10
Tick the correct answer in the brackets provided 1×10=10
1. The fundamental economic problem is
how to produce
what to produce
the problem of choice
for whom to produce
2. In economics sense, the goods which are demanded in increasing
quantities as consumers' rises are known as
inferior goods
normal goods
luxury goods
essential consumer goods
/172 1 Contd.
3. The slope of indifference curve represents
diminishing MRS
increasing MRS
diminishing MRTS
increasing MRTS
4. The law of demand does not operate on
normal goods
luxury goods
Giffen goods
necessity goods
5. Law of returns to scale is a
diminishing marginal concept
short-run concept
medium concept
long-run concept
6. When total cost is maximum, the marginal cost is
maximum
minimum
zero
negative
7. Firm where there is coexistence of large number of buyers and sellers
alongside homogeneous products is called
perfect competition
monopolistic competition
duopoly
oligopoly
ECO/I/01/172 2 Contd.
8. The simplest form of oligopoly market is
monopoly
duopoly
monopolistic competition
perfect competition
9. The practice of setting difference prices in difference markets reference to
price discrimination of
first degree
second degree
third degree
All of the above
10. The demand curve under monopoly market is
downward sloping
upward sloping
horizontal
None of the above
SECTION—B
Marks 15
Write short notes on the following 3×5=15
1. Factors affecting demand
2. Engel's curve
3. Law of variables proportion
4. Administered price
5. Definition of monopoly
ECO/I/01/172 3 Contd.
PART B—DESCRIPTIVE
Marks 50
The figures in the margin indicate full marks for the questions
1. Discuss the meaning, nature and scope of economics. 10
OR
"Economics is a science which studies human behavior as a
relationship between ends and scarce means which have alternative
uses." Critically examine the statement.
2. Show how a consumer attains equilibrium under indifference curve
analysis. 10
OR
Discuss Slutsky's theorem of splitting price effect into income effect and
substitution effect. 10
3. What is isoquant? Discuss the properties of an isoquant. 2+8=10
OR
Explain the law of returns to scale with suitable diagram.
10
4. Explain the equilibrium of a firm under perfect competition in the long
run. 10
OR
Explain how equilibrium output and price are determined in Cournot's
duopoly model. 10
5. State and explain the zero profit theorem. 10
OR
Explain the equilibrium of a firm under monopoly in the short run. 10