LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034
|
M.A. DEGREE EXAMINATION – ECONOMICS
FIRST SEMESTER – APRIL 2008
EC 1806 – MICRO ECONOMIC THEORY – I
Date : 28/04/2008 Dept. No. Max. : 100 Marks
Time : 1:00 – 4:00
PART – A
Answer any FIVE questions in about 75 words each. (5 x 4 = 20 marks)
- What is meant by comparative statics?
- Distinguish between strong ordering and weak ordering.
- “Neuman-Morgenstern Utility Measure is not the same as Neoclassical Cardinal Measurement of Utility” – Explain.
- Write a short note on Private versus Social Cost.
- What is a Learning Curve?
- Establish the relationship between AR and MR.
- List out the features of monopolistic competition.
PART – B
Answer any FOUR questions in about 250 words each. (4 x 10 = 40 marks)
- Analyse the merits and demerits of Deductive method.
- Critically examine Prof. Samuelson’s Revealed Preference theory of demand.
- Distinguish between economies and diseconomies of scale and explain the factors responsible for the same.
- Bring out the conditions for consumer equilibrium under indifference curve analysis.
- Explain the St.Petersburg Paradox and Bernoulli’s hypothesis.
- Illustrate the equilibrium of the firm using TR and TC approach. What are its limitations?
- There are two commodities X and Y on which a consumer spends his entire income in a day. He has utility function Find out the optimal quantities of X and Y if price of X and Y are Rs. 5 and Rs. 2 respectively and his daily income equals Rs. 500.
PART – C
Answer any TWO questions in about 900 words. (2 x 20 = 40 marks)
- Explain the simple dynamic model using Cobweb Theorem.
- Explain the method of decomposing price effect adopted by Hicks and Slutzky.
- Explain in detail the reasons for the behaviour of Risk Lover and Risk Averter in a risky and uncertain situation.
- Illustrate monopolist equilibrium. Are you in favour of a monopoly market?
Latest Govt Job & Exam Updates: