IGNOU BECC-101 June 2022 Previous Year Question Paper

Q1.(a) Illustrate the relationship between total product and marginal product curves. 8

(b) Construct isoquants having positively sloped segments. In the same diagram draw the ridge lines and explain the concept of Economic Region of Production.

Q2.Consider an equation : where Q stands for quantity of a commodity, P for price of that commodity, m and n represent any constant numbers. Answer the following questions :

(a) Is the given equation, a demand or a supply equation ? Give reason for your answer. Also draw the curve representing such an equation. 6

(b) Now consider another equation : Here again Q stands for quantity of a commodity, P for price of that commodity, r and s represent any constant numbers. Considering equations

(A) and _

(B), determine the equilibrium price (P*) and quantity (Q*) of the commodity. 8

(c) Let m = 500, n = 1, r = 200, s = 2. What will be the values of equilibrium price (P*) and quantity (Q*) ?

Q3.(a) Illustrate and discuss the three stages of production using the average product and marginal product curves. 10

(b) In which stage of production will a rational producer produce and why ?

Q4.(a) Compare the marginal-cost and _ the average-cost pricing approaches considered by the firms owned and controlled by the Government, that is, the public monopolies. 12

(b) A monopoly has no supply curve. Do you agree ? Does this hold for a firm under perfect competition as well ?

Q5.(a) What is meant by Income elasticity of demand ? What does an income elasticity coefficient of 0 signify ? 6

(b) Illustrate the graphical method for finding price elasticity of demand considering a straight-line demand curve.

Q6.(a) Elucidate the cardinal utility analysis. Also write down the underlying assumptions. 6

(b) Explain the Law of diminishing marginal utility. In what case(s) does this law not apply ?

Q7.(a) What is meant by an Income consumption curve ? 4

(b) Consider a consumer earning an income of = M and who consumes two goods X and Y, priced at Py and Py, respectively. Derive a demand curve from the indifference curve for this consumer.

Q8.Consider the figure below, where capital (K) and labour (L) are the factors of production in producing output. I,, I,, I, represent isoquants for output levels 650, 750 and 850 units, respectively. NS = 850 I, = 750 41 = 650 ९ Labour (L)

(a) Identify the returns to scale represented by the above set of isoquants. What are the factors that lead to such returns to scale ? 6

(b) What is meant by External Economies ? Contrast it with External Diseconomies.

Q9.What is meant by a Pareto efficient allocation ? With the help of a diagram, discuss the conditions for overall efficiency.

Q10.Write short notes on the following :

(a) Central problems of an Economy 3

(b) Income effect vs Substitution effect of a price change 3

(c) Marshall’s Theory of Rent 3

(d) Imperfect Information

Q11.What is the need for the government intervention to solve the problem of Externality ? Explain one such intervention with the help of a diagram.

Q12.Differentiate between the linear demand curve faced by a Monopolist and a kinked demand curve under Oligopoly. 6 BECC-101 6 BECC-101 8 wea BECC-101 10 RS = 850 I, = 750 I, = 650 o 3 (L)