M.A. DEGREE EXAMINATION, APRIL 2016
Second Semester
Economics
MICRO ECONOMICS II
(2011 onwards)
Time 3 Hours Maximum 75 Marks
Part A (10 2 20)
Answer all questions.
All questions carry equal marks.
1. How a firm's demand for input is derived?
2. What is meant by least-cost rule?
3. Define "unstable equilibrium".
4. What is meant by uniqueness of general equilibrium?
5. Define "risk premium".
6. Explain "value of complete information".
7. What are the assumptions of Stigler's search theory?
8. Define "stoppling rule".
9. What is meant by externalities?
10. Define Pareto optimality.
Sub. Code
455201
RW-10824
2
Sp2
Part B 5 25)
Answer all questions choosing either or
All questions carry equal marks.
11. Explain Ricardian theory of distribution.
Or
Explain Kalecki's degree of monopoly theory.
12. Describe the problems of existence of general
equilibrium.
Or
Distinguish between positive and welfare
economics.
13. Explain the individual's attitudes towards risk.
Or
Explain the problems of insurance.
14. What are the criticisms of Stigler's search theory?
Or
Describe the theory of Asymmetric Information.
15. Describe Pigovian conditions for maximisation of
welfare.
Or
Explain the optimum condition of exchange.
RW-10824
3
Sp2
Part C 10 30)
Answer any three questions.
All questions carry equal marks.
16. Discuss Marx's theory of distribution.
17. Explain the walrasian general equilibrium model.
18. Describe the various types of individual attitude to
Gambling. Explain the choice between Insurance and
Gambling.
19. Illustrate the types of efficient market hypothesis.
20. Describe Arrow's impossibility theorem.