IGNOU BECC-132 December 2022 Previous Year Question Paper

Q1.(a) Distinguish between perfect competition and monopolistic forms of market. 8

(b) In monopolistic competition why the actual level of output produced by a firm is always less than the optimum level of output ? Explain. 12 [2] BECC

Q2.(a) What is Minimum Wage Law ? Describe the role of trade unions in influencing wages and level of employment. 10

(b) Is the demand for factors of production a derived demand ? Give reasons.

Q3.(a) What do you understand by ‘Market Failure’ ? Explain with the help of an appropriate diagram, how negative externality affects the allocation of resources. 10

(b) What do you mean by efficient allocation of factors of production ? Explain it with the help of an Edgeworth box diagram.

Q4.State the Ricardian theory of comparative advantage. How do nations gain from trade ?

Q5.Explain with the help of an example.

Q6.A firm in a perfectly competitive market may earn supernormal profit in short-run but earns normal profit in long-run. Explain with the help of a diagram. 12 [3] BECC

Q7.Can a monopoly firm earn supernormal profit in long-run ? Explain. Why does a monopoly firm change that price, where price elasticity of demand is greater than one ?

Q8.“The rate of interest is determined by the demand and supply of loanable funds.” Explain with the help of a diagram.

Q9.What is Prisoner’s Dilemma ? Explain the behaviour of firms in the oligopolistic form of market.

Q10.Does profit arise due to innovation ? Give arguments to substantiate your answer.

Q11.Discuss the role of WTO in Indian Economy.

Q12.Write short notes on any three of the following : 3x4=12

Q13.Mark-up pricing in Public Monopoly

(i) Shut down point in perfect competition

(iii) Labour supply curve

(iv) Cartel

(v) Factor abundance [4] BECC -132 2» 205 40 [6] BECC -132 4» 12 5 48 [7] BECC

Q14.ada stern FY fara era Wet (WTO)