4. What is meant by linear demand function?

1. Define economics. 5. What is meant by nonlinear demand function?

2. State Adam Smith‘s definition of economics. 6. Define single variable demand function with examples.

3. State Marshall‘s definition of economics. 7. Define multivariable demand function with examples.

4. State Robbin‘s definitions of economics. 8. Define demand curve.

5. Define scarcity. 9. Define demand schedule.

6. Make a list of major economic problems. 10. What is meant by movement along a demand curve?

7. What are the characteristics of Robbins‘ definition? 11. What is meant by shift in demand curve?

8. Define scarcity and choice. 12. Write any five causes responsible for shifting demand curve.

9. Define production possibility curve. 13. State any five determinants of demand.

10. Make a list of major economic problems arisen from scarcity of resources. 14. What are the determinants of supply?

11. What is meant by micro economics? 15. What is meant by reservation price?

12. State the objective of micro economics. 16. Supply is a flow concept. Justify.

13. State the scope of micro economics. 17. Define supply function.

14. Why is micro economics called price theory? 18. Define single variable supply function with examples.

15. Why is micro economics called microscopic analysis or slicing method? 19. Define multivariable supply function with examples.

16. Why is micro economics called partial equilibrium analysis? 20. What do you mean by movement along a supply curve?

17. Show the scope of micro economics in a chart. 21. Define supply schedule.

18. What are the uses of micro economics in business decision making? 22. Define supply curve.

19. Make a list of any four uses of micro economics. 23. What is meant by shift in supply curve?

20. Write any two differences between micro and macro economics. 24. What are the causes responsible for shift in supply curve?

21. Define macro economics. 25. What is meant by equilibrium price?

22. State the objective of macro economics. 26. Graphically represent the equilibrium price.

23. Macro economicsisthe study of aggregates. Give reasons. 27. What will be the effect on equilibrium price with an increase in demand at constant

24. Macroeconomicsis also calledincome and employmenttheory.Why? supply?

25. Write any five examples of macro economic variables. 1. Demand is a flow concept. Justify this 28. What will be the effect on equilibrium price with an increase in supply at constant
statement with reasons.
demand?
2. Define demand function.
29. Distinguish between stock and supply.
3. What are the types of demand function?
30. Define price elasticity of supply.
31. Define elasticity of demand. 21. State the behaviour of TP, AP and MP in 1

32. What are the types of elasticity of demand? st stage of production.

33. State the various degrees of price elasticity of demand. 22. State the behaviour of TP, AP and MP in 2

34. State the various degrees of cross elasticity of demand. nd stage of production?

35. State the various degrees of income elasticity of demand. 23. State the behaviour of TP, AP and MP in 3

36. What is price elasticity, according to arc method? rd stage of production?

37. How does monopolist determine price of product on the basis of price elasticity of 24. What are the causes responsible for the operation of law of increasing returns?

demand? 25. What are the causes responsible for the operation of law of decreasing returns?

26. Why is 2

1. Define production. nd stage of production called stage of diminishing returns?

2. Define land. 27. State any two relationships between TP and MP in short run PF.

3. Define labour. 28. State any two relationships between AP and MP in short run PF.

4. Define division of labour. 29. State any two relationships between TP and AP in short run PF.

5. Define efficiency of labour. 30. Why does MP decrease with an increase in TP at a decreasing rate?

6. Define efficiency of capital. 31. Why does MP increase with an increase in TP at an increasing rate?

7. Define organization. 32. The stage of diminishing returns is called rational stage of production. Justify with proper

8. Make a list of characteristics of land. reasons.

9. Make a list of characteristics of labour. 33. State the laws of returns to scale.

10. Make a list of characteristics of capital. 34. Define increasing returns to scale.

11. Make a list of advantages of division of labour. 35. Define decreasing returns to scale.

12. Make a list of disadvantages of division of labour. 36. Define constant returns to scale.

13. State the production function. 37. Geometrically derive the condition of decreasing returns to scale

14. Define short run production function with an example. 1. What is meant by money costs?

15. Define long run production function with an example. 2. What is meant by opportunity cost?

16. Define total product. 3. What is meant by explicit cost?

17. Define average product. 4. What is meant by implicit cost?

18. Define marginal product. 5. What is meant by accounting cost?

19. State the law of variable proportions. 6. Define economic cost?

20. What are the assumptions of law of variable proportions? 7. What are the differences between accounting cost and economic cost?
8. Write any two differences between fixed costs and variable costs. 37. Make a list of diseconomies of scale.

9. State the behavioural of total fixed cost. 38. All competitive firms are price taker. Why?

10. State the behaviour of total variable cost. 39. State the trend of TR, AR and MR under perfect competition.

11. Derive total cost curve. 40. State the trend of TR, AR and MR under monopoly.

12. State the relationship between TFC and AFC. 41. Why does demand curve of firm slope negative under imperfect competition?

13. State the relationship between TVC an AVC. 42. Why does producer not sell product at price elasticity less than one?

14. Why is AC U-shaped? 43. State any two relationships between AR and MR

15. Why is MC U-shaped? 1. State the features of homogenous product.

16. Why is AVC U-shaped? 2. All competitive firms obtain normal profit in long run. Why?

17. Why is AFC sloped as rectangular hyperbola? 3. Competition firms are called optimum firm. Why?

18. What are the relationships between AVC and AC? 4. What are the conditions for industry equilibrium?

19. What are the relationships between TVC and MC? 5. What are the conditions of firm equilibrium?

20. State any three relationships between AC and MC? 6. Define monopoly.

21. Why does MC decrease with an increase in TVC at a decreasing rate? 7. Define patent right monopoly.

22. Why does TVC slope as inverse-s-shaped? 8. Define legal monopoly.

23. Why is LAC U-shaped? 9. Define discriminating monopoly.

24. Why is LAC called an envelope curve? 10. Write any five assumptions of monopoly.

25. Why is LAC called a planning curve? 11. Write any two examples of price discrimination.

26. Why is LAC called a tangent curve? 12. What are the conditions of price discrimination?

27. Write any five examples of total fixed cost. 13. What are the objectives of price discrimination?

28. Write any two examples of total variable cost. 14. State the basis of pricing under price discrimination.

29. What is meant by LMC? 15. State the conditions for first degree of price discrimination.

30. Why is LMC U-shaped? 16. State the conditions for second degree of price discrimination.

31. State any two relationships of AC with AFC and AVC. 17. State the conditions for third degree of price discrimination.

32. What are the characteristics of LAC? 18. What are the differences between simple monopoly and discriminating monopoly?

33. Define managerial economies of scale? 19. Do you agree that there is distinction between firm and industry under monopoly?

34. State the role of technological economies of scale in long run production. 20. Does monopoly firm obtain only excess profit in short run?

35. State the relationship between AP and AC. 21. Define oligopoly.

36. State the relationship between MP and MC. 22. Write any two examples of oligopoly market in Nepal.
23. What are the conditions for oligopoly market? 47. Why would a monopolist advertise its product if it has a monopoly power over the

24. Do you agree that perfect competition leads to optimum size of the firm? Give reasons. product?

25. Show how under the condition of perfect competition in the long run, the price of a 48. Why might a competitive firm remain in business in the short run even if increasing a loss,

commodity equal to its average and marginal cost. but will always leave the industry it incurring a loss in the long run.

26. There is an element of monopoly in monopolistic competition. What factors give 49. A firm‘s total revenue is $100, its total cost is $120, and its total fixed cost is $40. Should

monopoly power to a firm in monopolistic competition? the firm stay in business? Why?

27. Why do firms in monopolistic competition incur selling costs? 50. How does the shape of the monopolist‘s total revenue curve differ from that of a perfectly

28. Give two examples of selling costs. competitive firm?

29. A monopoly firm may earn normal or abnormal profit or may even incur losses in the short 51. Why would a monopolist never operate in the inelastic range of its demand curve?

run. Do you agree with this statement? Give reasons for your answer. 52. Why does excess capacity arise in monopolistic competition? 53 . Is advertising good or

30. Why does monopoly firm not fix its price where e < 1? bad for consumers? Why

31. Suppose price charged by a monopolist at equilibrium is twice as high as its MC. What is 1. Define foreign trade.

the price elasticity of demand? 2. Define free trade.

32. Show the difference between the long run equilibrium of a competitive firm and monopoly 3. Define protection trade.

firm with regard to the (i) profit and (ii) use of capacity. 4. Define balance of trade.

33. What are the characteristics of oligopoly? 5. Define balance of payment.

34. State the geometrical condition for profit maximization under TR – TC approach. 6. Make a list of problems of foreign trade

35. What is meant by non-price competition? 1. Make a list of characteristics of Nepalese economy.

36. Define selling costs? 2. Make a list of characteristics of Nepalese agriculture.

37. Write the examples of selling costs. 3. Make a list of importance of Nepalese agriculture.

38. Define differentiated product. 4. Make a list of problems of Nepalese agriculture.

39. State the features of differentiated product. 5. What are the sources of agri-finance?

40. All firms obtain normal profits in long run under monopolistic competition. Why? 6. State the nature of agricultural marketing.

41. Do you agree that all competitive firms obtain excess profit in short run? 7. What are the problems of agricultural marketing?

42. Write any four characteristics of perfect competition. 8. What are the problems of CSSI?

43. Write any four characteristics of monopoly. 9. What are the problems of MLSI?

44. Write any four characteristics of monopolistic competition. 10. What are the problems of tourism industry?

45. Define the shape of demand curve of monopolistic firm with proper reasons. 11. What is meant by transport?

46. What forces limit the monopolist‘s market power in the real world? 12. What is meant by communication?
13. Make a list of means of transport.

14. Make a list of means of communication.

15. What are the importance of CSSI?

16. What are the importance of MLSI?

17. What are the importance of tourism industry?

18. What are the prospects of tourism industry?

19. What are the importance of transport and communication?