Indira Gandhi National Open University (IGNOU) 2006 B.Com Economic theory - Question Paper

Test Papers / Previous ques. Papers of IGNOU ECO6 Economic Theory December 2006
Bachelors Degree Programme

Term-End exam
December, 2006

Elective Course: Commerce
ECO6: Economic Theory
Time : two hours
Maximum Marks : 50 (Weightage 70%)

Note : The paper contains 3 parts A, B and C. Instructions are provided in every part along with marks.

part A

ans any 2 ques. from this part. (2x12=24)

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

2. discuss the concept of Elasticity of Demand. elaborate its various kinds ? elaborate the main determinants of Price Elasticity of Demand ?

3. What is Full-Cost pricing ? Does it lead to a higher than optimum production ?

4. Critically examine the Marginat Productivity Theory of Distribution. Is it a satisfactory theory of distribution ?

part B

ans any 2 ques. from this part. (2x8=16)

5. describe Production. Distinguish ranging from fixed and variable inputs.

6. What is meant by income inequality ? Distinguish ranging from personal and functional distribution of income.

7 . discuss the marginal and avg. revenues of a firm in both perfect and imperfect competition.

8. discuss the concept of consumer's surplus. elaborate its limitations ?

part C

ans any 2 ques. from this part. (2x5=10)

9. Distinguish ranging from an inferior good and a Giffen good.

10. Is indifference curves analysis superior to utility analysis ?

11. Distinguish ranging from rent and quasi-rent.

12. Distinguish ranging from 'extension in supply' and 'increase in supply'.

Earning:   Approval pending.