Define price consumption curve (PCC). Derive the price consumption curve for Giffen goods with the help of indifference curve approach.[5]
2.
Explain the various properties of the indifference curve.[5]
Costs and Revenue
1.
Consider the following cost schedule: a) At TFC=120, compute TC, AFC, AVC, and ATC. b) Draw the graph of AFC, AVC, and ATC.
OutputTVC0015029031204140517562307310
[5]
Demand, Supply and Price
1.
Define elasticity of supply. What are the various types of elasticity of supply? Explain with diagrams.[10]
2.
Consider the following demand schedule. i) Compute the income elasticity of demand at movement from B to C and C to B by the proportional method. ii) Compute the income elasticity of demand midway between B and C and C and B.
Explain the concept of scarcity and choice in the decision-making process.[5]
Macroeconomic Policies
1.
Differentiate between expansionary fiscal policy and contractionary fiscal policy.[5]
Market Structure
1.
What is perfect competition market? How price and output are determined under it?[10]
2.
Show the relationship between AR and MR under the monopoly market with the help of a table and figure.[5]
National Product and its Measurement
1.
From the following data, calculate the national income.
ParticularsGross fixed capital formationPrivate final consumption expenditureNet ExportSubsidiesGovernment final consumption expenditureIndirect taxesChange in stockConsumption of fixed capitalNet factor income from abroadRs. in million300900−5050150250505050
[5]
Production
1.
Define production function. Discuss the various features of the Cobb-Douglas production function.[10]