1. Explain the law of variable proportion with the help of a schedule and diagram.
2. How is the equilibrium price and equilibrium quantity of a good affected if rate of excise tax on this good falls.
3. Determine market equilibrium with the help of a schedule.
4. Why must a consumer obtains equilibrium when Marginal Rate of Substitution between two goods becomes equal to price ratio of two goods?
5. Explain the relationship between ATC, AVC and MC with the help of a diagram.
6. Explain the following
i. Increasing returns to a factor and its reasons
ii. Negative returns to a factor and its reasons
7. Determine producer’s equilibrium with the help of a diagram and Schedule.
8. Explain the effect of following on the demand of a good. With diagram
i. Rise in own price of a good
ii. Fall in the price of its substitutes
iii. Fall in the income of buyer
iv. Rise in price of complimentary good.
9. Draw AR, MR and TR curve of a firm when the firm is able to sell
i. Entire output a the constant price
ii more by lowering the price only
10. Explain the effect of following on the price elasticity of demand of a good.
I. Substitutes
ii. Habits
iii. Nature of the commodity
iv. Time period
11. Determine the nature of demand curve from the equality between Price = Marginal utility approach.
12. Define the following-:
1. Law of demand
2. Law of supply
3. Law of diminishing Marginal Utility
4. Law of diminishing marginal product
13. State true and false by giving reasons
1. TP will increase at diminishing rate when MP falls.
2. TC is the Sum of Variable cost and Average Fixed cost.
3. When AC falls MC also falls.
4. When MC Rises AVC also rises.
5. When MC falls ATC also falls.
6. When AR is constant and not equal to Zero TR also be constant.
Sincerely attempt all these question.Diagrams and schedules should be practiced well.
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