EC01 Micro Economic Theory BA Question Bank : vmou.ac.in
Name of the University : Vardhman Mahaveer Open University
Degree : BA
Department : Economics
Subject Code/Name : EC01 Micro Economic Theory
Year : 1
Document Type : Question Bank
Website : vmou.ac.in
Download Model/Sample Question Paper : https://www.pdfquestion.in/uploads/vmou.ac.in/3477-EC-01_208.pdf
Micro Economics Question Paper
SET – A
Very Short Answer type questions :-
1) State the three basic questions of resource allocation in a society.
2) Mention the idea of business decision making.
3) Define opportunity cost.
Related : VMOU EC03 Macro Economics BA Question Bank : www.pdfquestion.in/3482.html
4) Discuss the role of price mechanism.
5) Why does the TVC curve start from the origin- TVC –
6) Show that MC equals AC when AC is at minimum level.
7) Why does LRTC start from origin-
8) Define opportunity cost.
Short Answer type questions :-
1) State the law of demand.
2) Explain the following with graph :-
(a) Price elasticity of demand (b) Income elasticity of demand
3) Explain the following with graph :-
(a) Total cost (b) Marginal cost (c) Average cost
4) Explain the reasons for the downward sloping demand curve.
5) State the law of variable proportions-
6) Explain the laws of returns to scale.
7) Explain the price and output determination of a firm under monopoly market.
8) Explain the price and output determination under cartel.
Long Answer type questions :-
1) “The price effect is the sum of Income effect and substitution effect.” Explain it by using Hicks method.
OR
Define price elasticity of demand. Explain the various types of elasticity of demand with graphs.
2 “The demand curve is negatively sloped due to diminishing marginal utility”. Discuss.
OR
Explain the following :-
(a) Opportunity cost (b) Economic Cost (c) Social cost (d) Sunk Cost
3 Discuss the characteristics of Monopoly and perfect competition.
OR
Describe the conditions of equilibrium of a firm.
4 Explain the Cournot- s duopoly model in detail.
OR
Discuss the price leadership model in Collusive Oligopoly.
SET – B
Very Short Answer type questions :-
1 Define cost. How would you explain economic cost-
2 Explain why short run MC is equal to the slope of both the TC and TVC Curves.
3) LAC is called an envelope curve-
4 Who is the founder of Economics-
5 Define the Law of diminishing Marginal Utility.
6 State any four characteristics of Isoquants.
7 What is the meaning of market structure-
8 Define supply curve. How is a supply equation specified-
9 Explain the concept of optimum utilization of resources.
10 Differentiate between desire and demand.
Short Answer type questions :-
1 Explain the role of micro economic analysis-
2 What is demand- State the differences between changes in quantity demanded and change in demand.
3 Explain the concept of cross elasticity of demand in case of complementary and substitute goods.
4 If there is a simultaneous change in demand and supply, show by using diagram under which price will increase but quantity sold remains unchanged.
5 Distinguish between short-run and long-run in production.
6 Explain the law of increasing returns to scale.
7 Discuss the characteristics of Indifference curve in detail.
8 Explain the price and output determination of a firm under perfect competitive market.
Long Answer type questions :-
1“The price effect is the sum of Income effect and substitution effect.” Explain it by using slutsky- s method.
OR
1) How price effect is differ among Normal, Inferior and Giffen goods- Explain it with graphs.
2) Explain the consumer surplus theory with graphical representation.
OR
3) Discuss the various stages of production under the law of returns to scale.
4) What is cost function- Explain the various types of cost with suitable example and graph.
OR
5) Explain the price determination of multiple products by a monopoly.
6) Explain the theory of price rigidity in kinked demand curve model. kinked .
OR
7) Discuss the problem of scarcity and choice.