BECC-132 · December 2024 · English

IGNOU BECC-132 December 2024 Previous Year Question Paper

PRINCIPLES OF MICRO ECONOMICS—II

Structured previous year question paper for BECC-132, December 2024 session.

Max marks: 100 · Questions: 12 · Sections: 3

Verified: 5 Aug 2026

BACHELOR OF ARTS (GENERAL)

(BAG)

Term-End Examination

December, 2024

BECC-132 : PRINCIPLES OF

MICROECONOMICS-II

Time : 3 Hours Maximum Marks : 100

Note :

(i) Answer questions from each Section as

per the instructions.

(ii) Section A : Answer any two questions

from this Section.

(iii) Section B : Answer any four questions

from this Section.

(iv) Section C : Write short notes on any

three from this Section.

Section—A

Note: Answer two questions from this Section.

2x20=40

Q1.(a) Explain the long-run equilibrium of a perfectly competitive firm using a diagram.

(b) Why is the demand curve under Monopoly downward sloping ? Explain the relationship between AR, MR and price elasticity under Monopoly.

Q2.(a) How is the Ricardian theory of rent different from the modern theory of rent ? 10

(b) Derive the demand for labour in a competitive market. How is value of Marginal Product and Marginal Revenue Product curve relevant in the derivation of labour demand ?

Q3.(a) What are externalities ? How is the role of government important in solving the problem of externalities ? 10

(b) How is Pareto optimality achieved in a perfectly competitive market ? Explain using diagram.

Q4.(a) How is comparative advantage theory of Ricardo an improvement over Adam Smith’s theory of absolute advantage? 10

(b) Explain the TRIPs and TRIMs agreements of WTO.

Section—B

Note : Answer any four questions from this

Section. 4x12=48

Q5.What is deadweight loss under Monopoly ?

Q6.Explain using diagram.

Q7.What is quasi rent ? How is it different from economic rent ?

Q8.What are Public goods or Social goods ? Explain its two properties using examples.

Q9.What is excess capacity ? How is it different from optimal capacity under Monopolistic Competition ?

Q10.Explain the theory of profits. Differentiate between economic and accounting profits.

Q11.If P=20-2Q and C = 80 + 2Q2, find the profit maximizing levels of output and price using the above information.

Section—C

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

(6) Shut Down Point

(ii) Prisoner’s Dilemma

(iii) Moral Hazard

(iv) Price Discrimination under Monopoly

(v) Marginal productivity theory of factor pricing 2x20=40 [71 BECC-132 4212-48