LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

RF 32

M.A. DEGREE EXAMINATION – ECONOMICS

FIRST SEMESTER – APRIL 2007

EC 1806  – MICRO ECONOMIC THEORY – I

 

 

 

Date & Time: 25/04/2007 / 1:00 – 4:00      Dept. No.                                       Max. : 100 Marks

 

 

 

 

 

Part  – A

 

Answer any FIVE questions in about 75 words each.                   (5 x 4 = 20 marks)

1. “The deductive method is a mere arm chair analysis” (Lerner) comment.
2. Distinguish between economic static and economic dynamic analysis.
3. Define ‘”Introspective ordinalist” approach and “Behaviourist ordinalist approach”
4. What is meant by income effect and price effect?
5. What are the similarities between N-M utility analysis and Friedman-Savage hypothesis?
6. Distinguish between Iso-quants and Iso-cost lines.
7. Distinguish between personal price discrimination and group price discrimination.

 

Part – B

 

Answer any FOUR questions in about 300 words each.               (4 x 10 = 40 marks)

8. Do you think that economic statics is superior to economic dynamics to analyse modern economic issues? Why?
9. Compare and contrast indifference curve analysis with production function analysis.
10. Critically examine N-M utility analysis.
11. Discuss the different kinds of costs in production.
12. Compare the Laws of variable proportions with the laws of returns to scale.
13. Discuss the three degrees of price discrimination with diagrams.
14. Critically analyse the reformulated demand theory of Hicks.

 

Part – C

 

Answer any TWO questions in about 900 words each.                 (2 x 20 = 40 marks)

15. “The indifference curve analysis is the old wine in a new bottle” – Robertson. Discuss.
16. “Maximization of expected utility is the goal that consumers pursues in uncertain situations” – Newmann. How is it applied to analyze the behaviour of investors in the case of insurance and gambling?
17. Compare and contrast the concept of Returns to scale and the short-run and long-run production functions. How is the long-run production operative in modern firms?
18. Outline the features of monopolistic competition. Examine the short-run and long-run equilibrium of a firm under monopolistic competition with suitable diagram.

 

 

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LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

RF 25

M.A. DEGREE EXAMINATION – ECONOMICS

FIRST SEMESTER – APRIL 2007

EC 1806 /  1803 / 1800  – MICRO ECONOMIC THEORY – I

 

 

 

Date & Time: 25/04/2007 / 1:00 – 4:00      Dept. No.                                       Max. : 100 Marks

 

 

Answer any Five questions in about 75 words each ( 5x 4 = 20 Marks).

       

• Define Comparative Statics.
• What are the steps involved in Deductive method.
• What do you understand by Cardinalist Approach?
• Explain Income effect and Price effect.
• What are the Postulates of Revealed Preference Theory?
• Differentiate Strong Ordering from Weak Ordering?
• Elucidate Friedman-Savage Hypothesis.

 

Part- B

 

Answer any Four questions in about 250 each (4×10 = 40 Marks).

 

• Discuss the Features of Cobb-Douglas Production function.
• Compare and Contrast the Laws of Variable Proportions and the Laws of

Returns to Scale.

10) Enumerate the advantages and disadvantages of Economic Dynamics.

11) In what respects, N-M utility analysis is superior to Ordinal Utility analysis?

12) What do you understand by Price discrimination? Do you think that the three

degrees of Price discrimination are applicable to real life situations?

13) Critically examine Markowitz’s modern utility analysis.

14) Differentiate Perfect Competition from Monopolistic competition

Part – C

Answer any TWO questions in 900 words (2 X 20 = 40 Marks)

• Compare and contrast Indifference Curve analysis with Revealed Preference Theory
• Compare and contrast Monopoly and Monopolistic competition. Of the two markets, which is realistic in today’s context?
• Compare and contrast the Expected Utility Theory and Cardinal Utility Theory
• What is Product differentiation? What role does it play on the determination of output and price under monopolistic competition?

 

 

 

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