No. of Printed Pages : ECO-6 BACHELOR'S DEGREE …No. of Printed Pages : 8 ECO-6 BACHELOR'S DEGREE PROGRAMME r. Term-End Examination June, 2010 Ur)O ELECTIVE COURSE : COMMERCE ECO-6

No. of Printed Pages : 8 ECO-6

BACHELOR'S DEGREE PROGRAMME

r. Term-End ExaminationJune, 2010

Ur)O ELECTIVE COURSE : COMMERCE

ECO-6 : ECONOMIC THEORY

Time : 2 hours

Maximum Marks : 50

(Weightage 70%)

Note : The paper contains three sections, A, B, and C.Instructions are given in each section along with marks.

SECTION - A

(Long Answer Questions)

Attempt any two questions from this section : 2x12=24

What do you understand by ProductionPossibility Curve ? Illustrate it with the help of asuitable example. What are its assumptions ?

What is meant by income inequality ? Distinguishbetween personal and functional distribution ofincome. Suggest measures to reduce inequalityof income and wealth.

3. Why should equilibrium between marginal costand marginal revenue be a necessary conditionfor equilibrium of a firm ? Explain with the helpof a diagram.

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1 P.T.O.

4. (a) Distinguish between price elasticity ofdemand and income elasticity of demand.Describe the point method of measuringelasticity of demand.Explain the importance of elasticity ofdemand.

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SECTION - B

(Medium Answer Questions)

Attempt any two questions from this section : 2x8=16

Explain the concept of consumer's surplus. Doesthis concept have any utility in practice ? Discuss.

"Marginal revenue productivity of the factor playsan important role in factor pricing". Explain.

What is price discrimination ? State the conditionsunder which price discrimination be practiced.

Discuss the law of variable proportions. Whatare the causes of diminishing returns ?

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3 P.T.O.

SECTION - C

(Short Answer Questions)

9. Distinguish between any two of the following : 2x5=10

Rent and quasi - rent

Fixed and variable costs

Extension of demand and increase (shift)in demand

Cardinal and ordinal approach to utilityanalysis

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