LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034
B.A. DEGREE EXAMINATION – ECONOMICS
SECOND SEMESTER – APRIL 2006
EC 2500 – MICRO ECONOMICS – II
(Also equivalent to ECO501/E 217)
Date & Time : 24-04-2006/1.00-4.00 P.M. Dept. No. Max. : 100 Marks
PART – A
Answer any FIVE questions in about 75 words each. (5 ´ 4 = 20 Marks)
- What are functional and personal distributions?
- Explain the concept of optimum tariff.
- When can trade be possible between two countries?
- What is terms of trade?
- Write a short note on Pareto optimum?
- Explain the concept of Quasi rent.
- What do you mean by transfer earnings?
PART – B
Answer any FOUR questions in about 250 words each. (4 ´10 = 40 Marks)
- Bring out the need for a separate theory of factor pricing?
- Explain the Ricardian theory of rent?
- Discuss the absolute cost advantage.
- How does liquidity preference theory of interest have an edge over earlier theories?
- Bring out the gains arising out of international trade.
- Explain the nexus between collective bargaining and wage determination.
- Discuss the role of prices in market economy.
PART – C
Answer any TWO questions in about 900 words each. (2 ´ 20 = 40 Marks)
- Critically analyse the Classical theories of international trade.
- Explain the factor endowment theory with necessary illustration.
- Discuss the case for and against free trade.
Explain the marginal productivity theory of factor pricing under competitive market conditions.