ECO/I/EC/01 Student's Copy
2 0 1 8
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. Who wrote the book entitled the Principles of Economics?
J. M. Keynes
Lionel Robbins
Alfred Marshall
2. Downwards sloping of the demand curve towards the right indicates that
the relationship between demand and supply is positive
MC and MR curves are following with the increase in output
the relationship between price and quantity demanded in inverse
1 Contd.
3. The amount of satisfaction which a person derives from consuming a
commodity is known as
demand for a commodity
utility of a commodity
scarcity of a commodity
4. The relationship between consumer's income and his money expenditure
on a particular good is shown by the
Engel's curve
indifference curve
supply curve
5. The changes in output when all factors change in the same proportion is
referred to as
law of variable proportion
returns to scale
coefficient of income elasticity
6. The marginal cost curve intersects the average cost curve when the average
cost is
minimum
maximum
rising
7. The condition of monopoly equilibrium occurs at the point where the
MC cuts MR from above
MC and MR are parallel to each other
MC cuts MR from below
8. The form of market in which the firm is a 'price taker' is
monopoly market
perfect completion
monopolistic competition
ECO/I/EC/01/6 2 Contd.
9. Monopolistic competition does not include
homogeneous product
large number of sellers
free entry and exit of firms
10. Perfect competition market has a
horizontal demand curve
vertical demand curve
straight line demand curve
SECTION—B
Marks 15
Write short notes on the following 3×5=15
1. Law of demand
OR
Basic economic problems
2. Distinguish between cardinal utility and ordinal utility
OR
Giffen paradox
3. Production function
OR
Expansion path
4. Price discrimination
OR
Administered prices
5. Monopsony
OR
Oligopoly market
ECO/I/EC/01/6 3 Contd.
PART B—DESCRIPTIVE
Marks 50
The figures in the margin indicate full marks for the questions
1. Critically discuss the statement, "Economics is a study of mankind in
the ordinary business of life." 10
OR
Briefly discuss the role of price mechanism in solving the basic
economic problems.
2. Show how a consumer attains equilibrium under indifference curve
analysis. 10
OR
Explain the decomposition of price effect into substitution and income
effect using Hicksian method.
3. State and explain the law of variable proportion. 10
OR
Define cost function. What are the different concepts of cost? 2+8=10
4. Explain the short-run equilibrium under perfect competition. 10
OR
Show with suitable diagram, how a monopolist determine price and
output in the short-run.
5. Define monopolistic competition. Discuss the important characteristics
of monopolistic competition. 3+7=10
OR
Give a diagrammatic explanation of Cournot's model of duopoly.
10