MICROECONOMICS

SEMESTER:1
50/50
Paper as per NeW syllabus
IDG
 Gobind Kumar Jha 9874411552
Microeconomic
Semester – I
New Syllabus (CCF)
Paper Code – IDC
Suggested Questions
2 Marks Questions: -
1. What is opportunity cost?
2. Who is the father of economics?
3. What is positive economics?
4. Distinguish between positive economics and normative.
5. What is production possibility curve?
6. What is MRT? OR What is the slope of the PPC?
7. Distinguish between microeconomics and macroeconomics.
8. What is labour intensive technique of production?
9. What is capital intensive technique of production?
10.What is indifference curve?
11.What is the slope of indifference curve? OR What is marginal rate of substitution?
12.What is the equation of budget line?
13.What are the equilibrium conditions of consumer’s utility maximization?
14.What is production function?
15.What is short run production?
16.What is long run production?
17.What is the difference between short run and long run?
18.What is law of variable proportion?
19.What is average product of labour?
20.What is marginal product of labour?
21.What is isoquant curve?
22.What is the slope of isoquant curve? OR What is marginal rate of technical substitution?
23.What is the equation of isocost line?
24.What is the slope of isocost line?
25.What are the equilibrium conditions of producer’s output maximization?
26.What is the difference between short run cost and long run cost?
27.What is total fixed cost?
28.What is total variable cost?
29.What is marginal cost?
30.What is the difference between economic cost and accounting cost?
31.What is the demand curve of a perfectly competitive firm?
32.What is the relationship between demand curve and marginal revenue in a perfectly competitive firm?
33.What is the relationship between demand curve and marginal revenue in a monopoly market?
34.What do you mean by homogeneous goods?
35.What is the difference between price taker and price maker?
36.What is the difference between normal profit and supernormal profit?
37.What are the necessary and sufficient conditions of profit maximization?
38. Explain different stages of return to scale.

1
 Gobind Kumar Jha 9874411552

5 Marks Questions: -
1. Distinguish between microeconomics and macroeconomics.
2. What are the central problems of economics?
3. What are the axioms of consumer equilibrium analysis?
4. What will happen to the budget line under the following circumstances – (i) Good x becomes cheaper (ii)
Good y becomes cheaper (iii) Money income of the consumerrises (iv) Money income and prices of both
the good rises at the same rate
5. Why is Total Product of Labour (TPL) curve Convex or Concave?
6. Derive average product of labour (APL) from TPL.
7. Derive marginal product of labour (MPL) from TPL.
8. What is the relationship between APL and MPL
9. What are the assumptions of producer equilibrium analysis?
10.Why is isoquant curve downward sloping?
11.Why is isoquant curve convex to the origin?
12.Higher the isoquant curve, higher is the output – Explain.
13.Prove that two isoquant curves do not intersect each other.
14.What will happen to the isocost line under the following circumstances – i) Labour becomes cheaper ii) Capital
becomes cheaper iii) Producer’s cost rises iv) Producer’s cost and prices of both the input rises at the same
rate
15.What is the shape of average fixed curve? Draw the curve. Explain.
16.What is the shape of average variable curve? Draw the curve. Explain.
17.What is the relation among average cost, average variable cost and marginal cost?
18.What are the features of a perfectly competitive firm?
19.Draw the supply curve of a perfectly competitive firm. Explain
20.What is perfect price discrimination and block price discrimination?
21.What are the conditions of profitability of price discrimination of a monopolist?
22. Explain Indifference Curve.

10 Marks Questions: -
1. Explain with diagram the concept of law of variable proportion explaining in detail the slope ofTPL curve.
2. What is the most economic zone of production? Explain with diagram.
3. What are the shutdown conditions of a perfectly competitive firm with special reference toshort run
supply curve of the firm?
4. Explain equilibrium for profit maximisation of a perfectly competitive firm in the short run.
5. Explain equilibrium for profit maximization of a monopolist in the short run.
6. Show that a perfectly competitive firm earns only normal profit in the long run.
7. Describe PPC with diagram.
8. Explain law of returns to scale.
9. Discuss Indifference curve with properties.