IMPORTANT QUESTIONS OF BBS 1st YEAR ECONOMICS FOR EXAMINATIONS

CHAPTER 1
(INTRODUCTION TO MICROECONOMICS)
Q.1 What is micro economics? What are its Scopes Explain?
Q.2 Explain the importance of microeconomics in making business
decisions?………..probable
Q.3What are the limitation of microeconomics?
Q.4 Explain the types of Micro economics?………………..almost sure Q
Q.5 Explain the relation of Business economics with tradional economics?

CHAPTER 2
(THEORY OF DEMAND AND SUPPLY)
Q.6 Explain the concept of movement and shift in supply curve/demand
curve(both)?………..Sure Q
Q.7 What is Demand function/supply function? What are its types?
Q.8 What is demand? What are its determinant?
Q.9 Distinguish between individual and Market Demand
curve?…………………….important
Q.10 how is market equilibrium determined explain?…………..probable

CHAPTER 3
(ELASTICITY OF DEMAND AND SUPPLY)
Q.11 what is price elasticity? explain its types?………………………..important
Q.12 What is the importance of Price Elasticity of Demand(PED)?
Q.13 Explain the Importance of Income Elasticity and its types?
Q.14 Explain the types of cross elasticity and its importance?……………………..very
important
Q.15 How would you measure the PED by Total outlay(expenditure) method? Or Arc
method?……….probable

CHAPTER 4
(THEORY OF CONSUMER BEHAVIOUR)
Q.16 Explain indifference curve and its properties?
Q.17 What is Marginal rate of Technical substitution? Why MRS
Diminishes?……………………important
Q.18 Explain the concept of consumer equilibrium in Consumer behavior?
Q.19 What is price effect or price consumption curve (PCC)? Explain its
types?………….probable
Q.20 What is income effect? Explain its types or how would you derive income
consumption curves(ICC)?
Q.21 Explain Substitution effect? How decomposition(separation) of price effect into
substitution is done?…………………………..very very important
Q.22 what are the difference cardinal and ordinal Analysis(IC Analysis)? Explain the
superiority of ordinal analysis?……………(long Questions probable)
Q.23 What are the Assumptions and of Ordinal Analysis? Explain criticisms too.

CHAPTER 5
(THEORY OF PRODUCTION)
Q.24 Explain production function and its types?
Q.25 Explain the Concept of TP,AP,MP? Show their Relationship.
Q.26 Explain the law of variable proportion?What are the causes of Diminishing
returns?
Q.27 What is isoquant? Explain its properties?……………..important
Q.27 Explain optimal combination of two imputs(producer’s Equilibrium)?How this
equilibrium is achieved?……………….probable
Q.28 Explain The Law of Returns to Scale and its types?………………….important
Q.29 Explain the causes of increasing returns and decreasing returns to scale?

CHAPTER 6
(COST AND REVENUE MARKET)
Q.30 Explain the concept of Cost? What are its types?
Q.31 What is Total Cost ?Explain the nature of Fixed cost variable cost and TC with
Diagram?
Q.32 what is Average cost curve? Explain Why it is U-Shaped?
Q.33 Explain the Relationship between AC and MC?………….probable
Q.34 What is LAC? Why it is U shaped? What are the empirical evidences behind this
curve of being L-shaped?………….very important
Q.35 Explain The Concept of Economies of Scale and Economies of Scope?(5+5)
……probable
Q.36 What are TR,AR and MR? Explain this curves in Perfect As well as imperfect
Competition?
Q.37 Explain the Relationship between AR and MR?………….important
Q.38 Explain the relationship between TR,MR and Price Elasticity?………probable

CHAPTER 7
(THEORY OF PRODUCT PRICING)
Q.39 What is Perfect competition? How is price and output determined under it?
Q.30 How would you derive short run supply curve Explain?……….probable
Q.31 What is monopoly? How is price and output determined under it?……….probable
Q.32 What is Price Discrimination?Explain its types and Condition
required?………probable
Q.33 What is Dumping? Explain its concept with figure?………………probable
Q.34 What is monopolistic competition? How is price and output determined under it?
Q.35 What is Oligopoly? Explain pricing under Carteling?.
Q.36 Differentiate between:
Perfect Competition and Monopolistic Competition∙
Perfect Competition and Monopoly∙
Monopolistic and monopoly…………….probable∙
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CHAPTER 8
(THEORY OF FACTOR PRICING)
Q.37 Derive the Demand Curve of a firm for a single variable factor under imperfect
competition?
Q.38 Derive the Demand Curve of a firm for single variable factor labour under perfect
competition?
Q.39 Explain the marginal productivity theory of wages?……………..probable
Q.40 “Rent is a surplus of a current over transfer earnings” Explain?
Q.41 Differentiate between economic profit and business profit?…………..probable
Q.42 Explain Dynamic theory of Profit?……….probable
Q.43 Explain Innovation theory of profit?
Q.44 Explain lonanble theory of Interest?
Q.45 Explain Liquidity preference theory? ……….probable