Micro Economics Question Paper' 2020 | Gauhati University | CBCS Pattern

Gauhati University B.Com 1st Sem Question Papers

4 (Sem–1/CBCS) MICE/ISM
2020 (Held in 2021)
Full Marks: 80
Time: Three hours

The figures in the margin indicate full marks for the questions.

Answer the Questions from either

Option-A or Option-B

Answer either in English or in Assamese

Option - A

MICROECONOMICS (Honours Generic)

Paper: COM-HG-1016

1. (a) Choose the correct answer:             1×5=5

(1) Price elasticity of demand in case of an essential good is

a)         high.

b)         low.

c)          zero.

d)         infinite.

(2) Total revenue is maximum where marginal revenue is

a)         zero.

b)         greater than zero.

c)          less than zero.

d)         None of the above.

(3) Firms under perfect competition in long-run can earn only

a)         normal profit.

b)         supernormal profit.

c)          losses.

d)         All of the above.

(4) A firm’s average fixed cost is Rs. 20 at 6 units of output. At 4 units of output it will be

a)         Rs. 20/-.

b)         Rs. 30/-.

c)          Rs. 60/-.

d)         Rs. 80/-.

(5) Oligopoly is a type of market where numbers of sellers are

a)         large.

b)         few.

c)          too many.

d)         None of the above.

(b) Answer the following questions:   1×5=5

1)         What is expansion of demand?

2)         Define total revenue.

3)         What is production function?

4)         What do you mean by equilibrium level of output?

5)         What is market in economics?

2. Answer the following questions in brief:          2×5=10

a)         Mention the determinants of demand.

b)         What are two conditions that a firm has to fulfill for attaining equilibrium?

c)          State the relationship between AC and MC (i.e. Average Cost and Marginal Cost).

d)         What do you mean by price discrimination?

e)         Mention the root causes of economic problems.

3. Answer any four questions of the following:  5×4=20

a)         Discuss the nature of microeconomics.

b)         Explain the concept of marginal rate of technical substitution.

c)          Distinguish between accounting cost and economic cost.

d)         Write a note on ‘Cobb-Douglas production function’.

e)         Explain the concept of ‘excess capacity’ of a firm under monopolistic competition.

f)          Discuss the laws of returns to scale.

4. Answer the following questions:          10×4=40

(a) Discuss the role of demand and supply on price and output determination process under perfect competition.      10

Or

How does monopolist fix the price of his product? Explain.           10

(b) Explain the law of variable proportions with the help of diagram.       10

Or

What are iso-quants? Explain the properties of iso-quants.          2+8=10

(c) What is elasticity of demand? Discuss different types of elasticity of demand.                              4+6=10

Or

Explain consumer’s behaviour with the help of indifference curve technique.     10

(d) Explain the possibilities and profitability of price discrimination. Discuss the price and output determination process under discriminating monopoly.   5+5=10

Or

What is oligopoly? Determine price and output under oligopoly with the help of kinked demand curve model.      4+6=10