Assam University Silchar B.A 1st Semester Economics (Honours) Question Paper-2012

TDC Odd Semester Examination, 2012

ECONOMICS (Honours)

(1st Semester)

Course No:ECOH-101

(Micro Economies)

Full Marks: 5o

Pass Marks:17

Time : 2 Hours

The figures in the margin indicate full Marks for the question

Answer five question, taking one from each unit

UNIT-I

1. (a) Define microeconomics.                           4

(b) Write a few scope and uses of microeconomics theory.            3+3=6

2. (a) Define Optimization.                     4

(b) Explain briefly on the three elements of optimization problem.         2×3=6 

UNIT-II

3. (a) What do you mean by demand function? Write down one linear demand function giving the names of the variables used.       3+1=4

(b) What is market supply? Express it in a functional form.             2+1=3

(c) Why does the supply curve generally slope upward to the right?      3

4. (a) Define elasticity of supply. Distinguish between elasticity and slope of a supply curve.     2+3=6

(b) Prove that the elasticity of supply is equal to unity when the supply curve passes through the point of origin in a price quantity diagram.     5

UNIT-III

5. (a) Explain the concept of “indifference curve”.         4

(b) Derive the individual demand curve from an indifference curve.          6

6.  (a) With the help of a diagram. Explain the breakup of the price effect into income effect and substitution effect through indifference curve in case of a fall in price.        5

(b) State “revealed preference hypothesis” with the assumption.          3+2=5

7. (a) Distinguish between returns to a factor and returns to scale.        4

(b) Explain , with a diagram , the meaning of iso-product curve. Also show that iso-product curves never cut each other.         3+3=6 

8.  (a) Write the general form of Cobb-Douglas (C-D) production function giving the meaning of the variables used. Why is the function names so?            2+2=4

8. (b) Prove the following :

(i) C-D production function is homogeneous of degree one.             

(ii)  Elasticity of substitution of C-D production function is equal to unity.               3+3=6

UNIT-V

9. (a) Explain why the short-run average cost (AC) curve is U shaped.            6

(b) Distinguish between actual cost and opportunity cost.                    4

10. (a) Show that in imperfect competition when average revenue (AR) curve traces a straight line , the marginal revenue (MR) curve also lies on a straight line passes through the midpoint of the AR curve and revenue axis.      5

(b) Explain the relationship along AR,MR and price elasticity.                 5

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