Indira Gandhi National Open University (IGNOU) 2010-1st Year B.Com Economic Theory - Question Paper

No. of Printed Pages : 8    ECO-6

BACHELOR'S DEGREE PROGRAMME Term-End Examination June, 2010 ELECTIVE COURSE : COMMERCE ECO-6 : ECONOMIC THEORY

Time : 2 hours    Maximum Marks : 50

(Weigh tage 70%)

Note : The paper contains three sections, A, B, and C.

Instructions are gwen in each section along with marks.

SECTION - A (Long Answer Questions)

Attempt any two questions from this section : 2x12=24

1.    What do you understand by Production Possibility Curve ? Illustrate it with the help of a suitable example. What are its assumptions ?

2.    What is meant by income inequality ? Distinguish between personal and functional distribution of income. Suggest measures to reduce inequality of income and wealth.

3.    Why should equilibrium between marginal cost and marginal revenue be a necessary condition for equilibrium of a firm ? Explain with the help of a diagram.

4. (a) Distinguish between price elasticity of demand and income elasticity of demand.

(b)    Describe the point method of measuring elasticity of demand.

(c)    Explain the importance of elasticity of demand.

SECTION - B (Medium Answer Questions)

Attempt any two questions from this section :    2x8=16

5.    Explain the concept of consumer's surplus. Does this concept have any utility in practice ? Discuss.

6.    " Marginal revenue productivity of the factor plays an important role in factor pricing". Explain.

7.    What is price discrimination ? State the conditions under which price discrimination be practiced.

8.    Discuss the law of variable proportions. What are the causes of diminishing returns ?

SECTION - C (Short Answer Questions)

9. Distinguish between any two of the following :

(a)    Rent and quasi - rent

(b)    Fixed and variable costs

(c)    Extension of demand and increase (shift) in demand

(d)    Cardinal and ordinal approach to utility analysis

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ECO-6    8

Attachment: indira-gandhi-national-open-university--ignou--2010-b-com-55002-1.pdf

Earning:   Approval pending.