# Calicut University 2009 B.A Economics ch, VI – Optional (vi) : Mathematical - Question Paper

Tuesday, 07 May 2013 09:20Web

**I.**select the accurate ans. Write only the alphabet.

**1)**Which theory made use of General Equilibrium framework ?

**a)**Linear programming

**b)**Input-output table

**c)**Game theory

**2)**TV 2nd order condition of profit maximisation is

**a)**0 2

2

<

?

? p

x

**b)**0 2

2

>

?

? p

x

**c)**0 2

2

<

?

? p

x

**3)**The nature of apparent real income in slutsky formula is

**a)**decreasing

**b)**increasing

**c)**constant

**4)**The elasticity of supply for the function s = 100 – 5p2 at p =3.

**a)**Less than 1

**b)**1

**c)**More than one

**5)**At q = 2, the function x2 – 2x – 7, is ___________

**a)**decreasing

**b)**increasing

**c)**stationary (5×1=5 Marks)

**I**State actual or False :

**I.****6)**Saddle point is a different name for dominant equilibrium.

**7)**Product differentiation is a feature of monopoly.

**8)**Expansion path is the locus of the optimal input combinations as the output

level modifications input prices remaining constant.

**9)**Lagrangian multiplier is unconstrained optimisation technique.

**10)**The Engel curve for an inferior good is negatively slope

**d.**(5×1=5 Marks)

**I**Fill in the blanks :

**I****I.****1**___________ of a provided matrix is the new matrix found by interchanging its

**1)**rows and columns.

[Transpose, Determinants]

**1**_________ is that the price derivative of a demand function can be decomposed

**2)**into an income effect and substitution effect.

[Euler's Theorem/Slutsky Equation]

**1**_______ measures the rate at which substitution ranging from factors takes place.

**3)**[Elasticity of substitution/Marginal rate of substitution]

**1**Perfect price discrimination is also termed as _________

**4)**[First degree discrimination/Third degree discrimination]

**1**___________ developed input-output model.

**5)**[Robinson/Leontieff] (5×1=5 Marks)

**I**describe any 4 of the subsequent :

**V.****1**Saddle point.

**6)****1**Market equilibrium.

**7)****1**Budget line.

**8)****1**Returns to scale.

**9)****20)**Quadratic formul

**a.**(4×1=4 Marks)

**V.**ans any 7 of the subsequent not more than half a page.

**2**elaborate the assumptions of input-output model ?

**1)****2**discuss Prisoner's dilemma.

**2)****2**discuss consumer's surplus.

**3)****2**From the demand function X = 80 – 4P – P2, determine price elasticity of

**4)**demand when P = 5.

**2**Differentiate y = (x2 +

**5)****3)**(2x3 + 4x).

**2**If the total cost is TC = 50 + 10q + 25q

**6)****2.**obtain the avg. Cost and Marginal

Cost when q = 2.

-3- 1264

**2**obtain the equilibrium price and volume

**7)**P Q (demand function)

8

7

= 50 -

P Q (sup ply function)

4

3

=15 + .

**2**Determine which kind of returns to scale is the subsequent production function

**8)**Q = 2K + 3L + KL.

**2**Distinguish ranging from primal and dual.

**9)****30)**discuss price effect. (7×3=21 Marks)

**V**ans any 6 of the following, every not more than 1 page.

**I.****3**Examine the subsequent function for its maxima or minima and determine its

**1)**value

C = 2x2 – 12x + 40.

**3**discuss CES production function.

**2)****3**discuss economic interpretation of time margin function.

**3)****3**Solve the LPP by graphic method :

**4)**Maximise Z = 3x1 + 4x2

Subject to x1 + x2 < 6

2x1 + 4x2 < 21

x1, x2 > 0

**3**The cost function of a monopolist is

**5)**TC = 500 + 20q2

The demand function is P = 400 – 20q. What is the profit maximising output ?

**3**Production function is provided by k k

**6)**k

Q two 12

3

2

3

= - + + . Beyond what points

do diminishing returns do exist ?

**3**discuss Ridge Lines.

**7)****3**discuss dynamic input-output model.

**8)****3**State and prove Adding-up Theorem.

**9)****40)**The supply function for a commodity P = two + Q

**2.**obtain the producer's surplus

when price is Rs.

**1**(6×5=30 Marks)

**8.****V**ans any 3 of the subsequent not exceeding 3 pages every.

**I****I.****4**discuss Cobweb Model.

**1)****4**obtain firm's equilibrium and cost function if the production function is Cobb-

**2)**Douglas function.

**4**discuss constrained optimisation. Optimise the function z = 2x3 + 3x2 – 2x2y2

**3)**subject to x + y = 10.

**4**The demand function of a monopolistic firm is

**4)**P = 8000 – 4q

LAC = 8000 – 7q + 0.002q2.

obtain profit maximising price and output.

**4**Production function is provided by 2

**5)**1

2

1

Q= 2K L . presume that K = 9, P = six and

wage rate (w) =

**2.**Determine optimal volume of labour. If wage rate is increased

to Rs. 3/-, obtain the optimal volume of labour.

**4**discuss Simplex method of Linear Programming. (3×10=30 Marks)

**6)**Earning: Approval pending. |