BECC-132 · December 2020 · English
IGNOU BECC-132 December 2020 Previous Year Question Paper
PRINCIPLES OF MICRO ECONOMICS—II
Structured previous year question paper for BECC-132, December 2020 session.
Max marks: 100 · Questions: 14 · Sections: 3
Verified: 5 Aug 2026
B. A. (GENERAL) (BAG)
Term-End Examination
December, 2020
BECC-132 : PRINCIPLES OF
MICROECONOMICS-II
Time : 3 Hours Maximum Marks : 100
Note : Answer questions from each Section as per
instructions.
Section—A
Note : Answer any two questions from this Section.
2x 20= 40
Q1.(a) State the features of an_ oligopolistic market structure. What are the various reasons that have led to emergence of this market structure ? 15
(b) Comment with illustration on the marginal revenue curve associated with kinked demand curve of oligopolistic model given by Paul M. Sweezy. 5 Lot-I 2.1. 0.
Q2.(a) Distinguish between absolute advantage and comparative advantage theory of trade. 6
(b) Consider two countries I and I producing two commodities A and B. There is only one factor of production, that is labour hours. The table below gives labour hours required by each country to produce a unit of commodities A and B: Labour hours needed to produce a unit of Country | Commodity A |Commodity B Based on the above information, answer the following : @ Which country has an_ absolute advantage in producing commodity A ? Give reasons. 5 Gi) Which country has a comparative advantage in producing commodity B ? Give reasons. 5 @ii) If trade takes place between both given countries, which country will export commodity A ?
Q3.What is meant by Pareto efficient allocation of resources ? Is perfect competitive market equilibrium Pareto efficient ? Discuss using appropriate diagrams. 5 +15
Q4.(a) Discuss the underlying characteristics of WTO. 5
(b) What are the impacts of major agreements of the WTO on the Indian economy ?
Section—B
Note:Attempt any four questions from this
Section. 4x12=48
Q5.Distinguish between gross profit and net profit.
Q6.Discuss the Joseph Schumpeter’s theory of profit.
Q7.Do you think that the concept of quasi-rent is an extension of Ricardian concept of rent to other factors of production ? Give reasons.
Q8.What is the difference between perfect competition and monopolistic competition ?
Q9.How does a monopolistic firm attain equilibrium in short-run period ?
Q10.Discuss the relationship between marginal revenue, average revenue and price elasticity of demand in case of a monopoly.
Q11.Compare and contrast the demand for labour as a factor of production under perfect competition with that under imperfect competition.
Q12.What are the various causes of market failure ?
Q13.How is state intervention useful to address these failures ?
Section—C
Q14.Write short notes on any three of the following : 3x4=12
(i) TRIMS
(ii) Adverse Selection
(iii) Public Good
(iv) Externalities
(v) Moral Hazard 2»