Ba/Eco–201 (N)
2021
( 2nd Semester )
ECONOMICS
Paper : ECO–201
( Microeconomics—II )
( New Course )
( PART : A—OBJECTIVE )
( Marks : 25 )
The figures in the margin indicate full marks for the questions
SECTION—I
( Marks : 15 )
1. Choose and write the correct answer from the
options provided : 1×10=10
(a) Perfectly competitive industry is in the long-run
equilibrium when
(i) industry earns normal profits
(ii) industry incurs losses
(iii) industry earns supernormal profits
(iv) no firm makes any loss
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( 2 )
(b) Market price of a commodity is determined by
(i) cost of production
(ii) size of the market
(iii) demand
(iv) supply
(c) The shape of the AR and MR curves under
monopoly will be
(i) sloping upward to the left
(ii) sloping downward to the right
(iii) a vertical straight line
(iv) a horizontal straight line
(d) Product differentiation exists in
(i) oligopoly
(ii) monopolistic competition
(iii) monopoly
(iv) duopoly
Ba/Eco–201 (N)/215
( 3 )
(e) Demand curve under oligopoly is
(i) upward rising
(ii) downward sloping
(iii) kinky
(iv) horizontal
(f) Duopoly was first given by
(i) Augustin Cournot
(ii) P. M. Sweezy
(iii) D. N. Hyman
(iv) Chamberlin
(g) The supply of land is
(i) inelastic
(ii) elastic
(iii) perfectly elastic
(iv) perfectly inelastic
Ba/Eco–201 (N)/215
( 4 )
(h) When the prices of other goods increase, real
wage
(i) remains constant
(ii) increases
(iii) falls
(iv) None of the above
(i) Profit is also known as
(i) net income
(ii) gross income
(iii) contractual income
(iv) residual income
(j) The uncertainty bearing theory of profit is
associated with
(i) Hawley
(ii) Clark
(iii) Schumpeter
(iv) Knight
Ba/Eco–201 (N)/215
( 5 )
2. State whether the following statements are True
or False : 1×5=5
(a) Market price fluctuates frequently.
(b) Monopolistic competition is a blend of
competition and monopoly.
(c) The oligopolistic firms produce purely
homogeneous products.
(d) Quasi-rent occurs in the short run.
(e) According to Hawley, profit is the reward for
innovation.
SECTION—II
( Marks : 10 )
3. Write short notes on any five of the following : 2×5=10
(a) Market price and normal price
(b) Features of monopoly
(c) Product differentiation
(d) Excess capacity of firms
(e) Wage differentials
(f) Gross interest and net interest
(g) Risk theory of profit
HHH
Ba/Eco–201 (N)/215 12-21—PDF
Ba/Eco–201 (N) ( 2 )
2021 2. (a) What is group equilibrium? Explain
Chamberlin’s approach to group
( 2nd Semester ) equilibrium. 2+7=9
Or
ECONOMICS (b) What is supernormal profit? Explain
how an individual firm attains
Paper : ECO–201
equilibrium under monopolistic
competition. 2+7=9
( Microeconomics—II )
3. (a) What is stable equilibrium? Does
( New Course ) Cournot’s duopoly model provide stable
equilibrium? Explain. 2+7=9
Full Marks : 70 Pass Marks : 45%
Or
Time : 3 hours
(b) Explain price rigidity with the help of
kinked demand curve. 9
( PART : B—DESCRIPTIVE )
( Marks : 45 ) 4. (a) Critically examine the modern theory
of wages. 9
The figures in the margin indicate full marks Or
for the questions
(b) Explain the modern theory of rent. 9
1. (a) What is long run? Examine the
equilibrium of a firm under perfect 5. (a) “Profit is the reward for uncertainty
competition in the long run. 2+7=9 bearing.” Discuss. 9
Or
Or
(b) What is profit? Explain the innovation
(b) Explain the methods for measuring theory of profit. 2+7=9
monopoly power. 9
HHH
12-21/215a ( Turn Over ) 12-21/215a Ba/Eco–201 (N)
