BCOG-171 PRINCIPLES OF MICRO ECONOMICS in English Solved Question Paper June 2024

BCOG-171 PRINCIPLES OF MICRO ECONOMICS in English Solved Question Paper June 2024

PRINCIPLES OF MICRO ECONOMICS
Course Code: BCOG-171

1. (a) ‘Scarcity is the mother of every economic
system.’ Explain. 10
(b) Explain the determinants of demand for a
market. Distinguish between Inferior
goods and Giffen goods. 6+4
2. (a) Explain elasticity of demand. Also explain
price elasticity, income elasticity and price
cross elasticity of demand. 15
[ 2 ] BCOG-171
(b) Why is long-run average cost curve
U-shaped ? 5
3. (a) State the concept of indifference curve.
What are the properties of indifference
curves ? 5+10
(b) Explain law of supply. Point out its
exceptions. 5
4. (a) Explain the law of variable proportions
with the help of total, average and
marginal product. 10
(b) Is interest a return on capital ? How is
interest rate determined ? 5+5
5. Explain the marginal productivity theory of
distribution. Also state its assumptions. Why is
the marginal productivity theory not considered
a satisfactory theory of distribution ? 5+5+10
6. (a) What is monopoly ? How does it differ from
perfect competition ? 10
(b) Define the concept of marginal cost. What
is the relation between average cost and
marginal cost ? 5+5
[ 3 ] BCOG-171
P. T. O.
7. (a) What is Ricardian theory of rent ? Explain
and evaluate it. 15
(b) Define the concept of quasi rent. 5
8. Write short notes on any four of the
following : 4×5=20
(a) Oligopoly
(b) Isoquants
(c) Distinguish between fixed cost and
variable cost
(d) Nominal and real rates of interest
(e) Difference between competitive and noncompetitive wages
(f) Full cost pricing