BECC-132 · June 2022 · English

IGNOU BECC-132 June 2022 Previous Year Question Paper

PRINCIPLES OF MICRO ECONOMICS—II

Structured previous year question paper for BECC-132, June 2022 session.

Max marks: 100 · Questions: 13 · Sections: 3

Verified: 5 Aug 2026

B. A. (GENERAL) (BAG)

Term-End Examination

June, 2022

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.

2 × 20 = 40

Q1.(a) Distinguish between perfect competition and monopolistic compe tition with illustration of examples. 6

(b) How does a monopolistic firm attain equilibrium by promoting its sale th rough spending on advertisement and publicity ? [ 2 ]

Q2.(a) Explain the difference between Domestic Trade and International Trade. 5

(b) Consider two countries I and II producing 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 I 12 3 II 24 4 Answer the following :

(i) Which country has an absolute advantage in producing commodity A ? Give reasons. 5

(ii) Which country has a comparative advantage in producing commodity B ? Give reasons. 5

(iii) If trade takes place between both given countries , which country will export commodity A ? 5 [ 3 ]

Q3.(a) State the features of labour market. How is value of marginal product and marginal revenue product curve relevant in the derivation of labour demand ? 10

(b) Why do you find variations in the wage rates across different professions ?

Q4.(a) What is Oligopoly ? Explain with few examples. 10

(b) Discuss in brief the price output models to explain the behavior of oligopolistic firms.

Section—B

Note : Attempt any four questions from this

Section. 4 × 12 = 48

Q5.Discuss Joseph Schumpeter’s theory of profit.

Q6.How is it different from the theory of profit given by Frank Night ?

Q7.Do you agree that ‘The concept of quasi -rent is extension of the Ricardia n conce pt of rent to other factors of production.’ Give reasons.

Q8.How is a public monopol ist firm different from a private monopolist firm ? How does public monopoly firm make its price and output decision ? 4+8 [ 4 ]

Q9.What is WTO ? How has the major agreem ent of WTO affected the Indian economy ?

Q10.What is the production possibilities frontier ?

Q11.How does marginal rate of transformation relate to the production possibilities frontier ?

Q12.What do you mean by the term ‘Efficiency’ ?

Q13.Explain the vario us factors that distort the ability of competitive markets to achieve efficiency.

Section—C