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Eco Paper

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Submitted By agnesh
Words 1611
Pages 7
2015
SECTION A
1. Answer the following questions : 1×4
(i) Define marginal opportunity cost.
(ii) Why is a production possibility curve concave ?
(iii) State two characteristics of resources which give rise to an economic problem.
(iv) Give two examples of microeconomic studies
2. Give meaning of (i) demand, (ii) normal good and (iii) inferior good. 3
3. Explain the effect of ‘input price changes’ on the supply of a good. 3
4. Explain the relation between marginal revenue and average revenue. 3
5. Draw Average Total Cost, Average Variable Cost and Marginal Cost curves in a singlediagram. 3
For Blind Candidates only in lieu of Q. No. 5
When is supply of a commodity said to be (i) elastic, (ii) inelastic and (iii) perfectly inelastic ?
6. Price of a good rises from Rs. 10 per unit to Rs. 11 per unit. As a result quantity demanded of that good falls by 10 percent. Calculate its price elasticity of demand. 4
OR
A consumer buys 70 units of a good at a price of Rs. 7 per unit. When price falls to Rs. 6 per unit, he buys 90 units. Use Total Expenditure Method to find whether the demand for the good is elastic or inelastic.
7. Give meanings of (i) marginal physical product, (ii) fixed cost, (iii) variable cost, and (iv) total revenue. 4
8. Calculate Marginal Cost and Total Cost from the following Cost Schedule of a firm whose Total Fixed Costs are Rs. 15 : 4
Output Total Variable Cost (Unit) (Rs.)
1 10
2 19
3 29
4 40
9. How is the equilibrium price of a good determined ? Explain with the help of diagram a situation when both demand and supply curves shift to the right but equilibrium price remains the same. 4
For Blind Candidates only in lieu of Q. No.

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