BECC-132 · December 2021 · English
IGNOU BECC-132 December 2021 Previous Year Question Paper
PRINCIPLES OF MICRO ECONOMICS—II
Structured previous year question paper for BECC-132, December 2021 session.
Max marks: 100 · Questions: 12 · Sections: 3
Verified: 5 Aug 2026
B. A. (GENERAL) (BAG)
Term-End Examination
December, 2021
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.
Q1.(a) What is the distinction between perfect competition and monopoly forms of market ? 5
(b) Consider the figure given ahead, where line D represents demand curve facing a monopolist, MR and MC represent the marginal revenue and m arginal cost curve respectively :
(i) Which point depicts the monopoly equilibrium in the above figure ? What will be the price cha rged and quant ity produced by this monopolist ? 5
(ii) What would have been the equilibrium output and price had it been a perfect competitive industry ? Compare your result with that of monopoly. 5
(iii) Why does a monopolist not produce on the inelastic part of its demand curve ?
Q2.(a) Discuss the condit ions required to be fulfilled to ensure Pareto efficient allocation of resources. 10
(b) ‘A perfect competitive equilibrium is Pareto efficient.’ Do you agree with this statement ? Give reasons using an appropriate diagram.
Q3.(a) Explain with an appropriate diagram how interaction of demand and supply cur ve in land market leads to determination of equilibrium rent. 10
(b) What are the main functions of an entrepreneur ?
Q4.Why does trade take place between two or more countries ? Explain with the help of He ckscher- Ohlin theorem.
Section—B
Note : Attempt any four questions from this
Section. 4 × 12 = 48
Q5.What is WTO ? What have been the impact s of WTO on Indian economy ?
Q6.Distinguish between monopoly and monopolistic competition. How d oes a perfectly competitive firm attain equilibrium in short - run and long-run ?
Q7.Why does the slope of the demand curve vary on both sides of the kink ? Give reasons. 12 [ 4 ]
Q8.Using an appropriate diagram, discuss the deadweight loss associated with the problem of externality. How can a Pigouvian tax inter alize this externality ?
Q9.How is the rate of interest determined ? Discuss the loanable fund theory of interest in this regard.
Q10.‘Innovation leads to profits and profit s make it possible to innovate’.
Q11.Explain theory of profit associated with this statement.
Section—C
Q12.Write short notes on anythree of the following :
(i) Derived Demand
(ii) Price Discrimination
(iii) Marginal Physical Product
(iv) Cartel
(v) Adverse Selection 2021 -132 II 4 × 12 = 48 (WTO) WTO
(iv) (Cartel)