Punjab University 2007 B.A Economics Micro - Question Paper

Note: Attempt 5 ques. in all. ques. No.l is compulsory. choose 1 ques. every from every Unit.

1. Attempt any ten: (10X2=20)
(a) Adam Smith’s definition of Economics
(b) Utility
(c) Market Demand Curve
(d) avg. and Marginal Revenue
(e) Gross Rent
(0) Net Profit
(g) Consumer’s Surplus
(h) Perfect Competition
(i) Quasi Rent
(j) Economics as an Art
(k) Normal Price
(I) Price Elasticity
(m) Real Wages
(n) Explicit Costs
(o) Demand for Loanable Funds.

Unit-I
2. What is Price Effect, Income Effect and Substitution Effect ? Prove that PE = IE + SE. (20)
Or
3. Examine legal regulations of Demand. elaborate different factors on which demand depends? (20)

Unit-II
4. Evaluate legal regulations of Variable Proportions. Under what conditions does it apply? (20)
Or
5. Examine the relationship ranging from avg. Revenue, Marginal Revenue and Elasticity of Demand. (20)

Unit-Ill
6. discuss how output and price of a firm is determined under Perfect Competition? (20)
Or
7. How equilibrium of a firm is determined under Perfect Competition? (20)

Unit-IV
8. What is difference ranging from Real wage and Money wage ? How wages are determined according to Marginal Productivity Theory ? (20)
Or
9. Critically evaluate Ricardian Theory of Rent. (20)

Earning:   Approval pending.