- Question 1
Define macroeconomics.
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- Question 2
When is a firm called price maker?
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- Question 3
Define a budget line.
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- Question 4
What is ‘decrease’ in supply?
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- Question 5
Define Production Function.
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- Question 6
How is production possibility curve affected by unemployment in the economy? Explain.
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- Question 7
From the following data calculate price elasticity of demand:
Price (Rs)
Demand (units)
9
100
9
150
- Question 8
Distinguish between explicit cost and implicit cost and give examples.
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- Question 9
Draw in a single diagram the average revenue and marginal revenue curves of a firm which can sell any quantity of the good at a given price. Explain.
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- Question 10
Explain the implications of the feature ‘large number of buyers’ in a perfectly competitive market.
OR
Explain the implications of the feature ‘homogeneous products’ in a perfectly competitive market.
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- Question 11
Explain the law of diminishing marginal utility with the help of a total utility schedule.
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- Question 12
Explain how rise in income of a consumer affects the demand of a good. Give examples.
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- Question 13
Define marginal cost. Explain its relation with average cost
OR
Define variable cost explain the behaviour of total variable cost as output increases.
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- Question 14
What is producer’s equilibrium? Explain the conditions of producer’s equilibrium through the ‘marginal cost and marginal revenue’ approach. Use diagram.
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- Question 15
Explain the concepts of (i) marginal rate of substitution and (ii) budget line equation with the help of numerical examples.
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- Question 16
Market for a good is in equilibrium. There is ‘increase’ in supply of the good. Explain the chain of effect of this change. Use diagram.
OR
Distinguish between ‘non-collusive’ and ‘collusive’ oligopoly. Explain the following features of oligopoly:
(i) Few firms
(ii) Non-price competition
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