Indira Gandhi National Open University (IGNOU) 2007 B.A Economics FUNDAMENTALS OF - Question Paper

part A
(long ans Questions)
Attempt any 2 guesfions t'rom this part. 2x20=40
l. 'Economics is a science of choice-making.' discuss this
statement with the help of Production Possibility Curve
(PPC).
2. elaborate indillerence curves ? elaborate their main
characteristics ? Show state of equilibrium achieved by a
consumer, with the help of suitable diagrams.
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3. discuss various forms of market. How does a firm achieve
equilibrium in a perfect competition market ?
4. Examine the concept of
'circular flows of income'. How will
you relate circular flows and national income in terms of
flow of goods and services, flow of factor incomes and flow
of final expenditures ?
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SBCTION B
(Medium ans Questions)
ans any 3 guesfions from this part. 3x10=J0
5. discuss the concept of consumption function and
distinguish ranging from avg. Propensity to Consurne (APC)
and Marginal Propensity to Consume (MPC).
6. What is inflation ? How is inflation measured through indo<
number ?
7. Differentiate ranging from interregional and international trade.
What factors determine gains from international trade ?
8. What do you mean by demand for money ? define
Keynes' various motives for holding money.
_ 9. discuss the 'law of variable proportions' with the help of a
diagram.
a
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part C
(Short ans Questions)
ans aII the ques. in this part qs indicated.
2x75:30
10. discuss any fiueof the subsequent concepts : 5x3:75
(i) Elasticity of Demand
(ii) Consumers' Surplus
(iii) Comparative Cost Advantage
(iv) Giffen Goods
M Oligopoly
(vi) Multiplier
(vii) Transfer Payments
1. 1. Distinguish ranging from any 3 of the subsequent : 3x5:75
(i) Autonomous Investments and Induced Investments
(ii) Stock Variable and Flow Variable
(iii) Partial versus General Equilibrium
(iv) Positive versus Normative Economics
(v) Fixed and Variable Cost
(vi) Concept of demand for money by Fisher and
Cambridge

Earning:   Approval pending.