2079 (partial exam)
Attempt any two questions from group A and four from group B
Group A (Long question answer) 30 marks
- Derive an individual demand curve for normal and Giffen goods with the help of price consumption curve under indifference curve approach.
- What is production function? Explain Cubba-Douglas production function.
- “Interest is the reward for parting with liquidity.” Explain.
Group B (short question answer) 40 marks
- What do you mean by microeconomics? Distinguish between micro and macroeconomics with appropriate examples.
- A consumer’s income increases from Rs.10,000 to 15,000. Due to this change, the demand for a good increase from 60 units to 80 units. Find the income elasticity of demand.
- Distinguish between short run and long run average cost curves.
- How are price and output determined under the perfect competition market in the short run? Illustrate.
- Discuss the various determinants of employment in the factor market.
- Define the general equilibrium of consumption with the help of the Edgeworth Box diagram.