IGNOU BCOG-171 December 2025 Previous Year Question Paper

Q1.(a) In what forms opportunity costs manifest for the consumer, the producer, the investor and a factor of production ? Give suitable examples. 10

(b) Explain the exceptions to the law of demand using the distinction between substitution and income effects.

Q2.(a) Explain the cross elasticity of demand of a substitute and complementary goods. 10

(b) Explain the concept of consumer’s surplus. What are its limitations?

Q3.(a) Explain price consumption curve with the help of suitable example and diagram. 5+5

(b) Distinguish between increasing and decreasing returns to scale with the help of isoquants.

Q4.(a) What is the relationship between average cost and marginal cost ? Explain’ with suitable diagram. 10

(b) What is monopoly ? How does it differ from perfect competition ?

Q5.(a) Explain an industry’s short period equilibrium under perfect competition. 10

(b) Explain price elasticity of demand with suitable example and diagram.

Q6.(a) How can trade unions secure an increasing in the wage rates through collective bargaining ? 10

(b) Explain the concept of profit. Do you think that profit is a reward for uncertainty bearing ? Give suitable example to support your answer.

Q7.Explain the significance of ‘movement along the supply curve’ and distinguish it from ‘shift of the supply curve’. Discuss with the help of example and diagram.

Q8.Explain the marginal productivity theory of distribution. Also state its assumptions.

Q9.Write short notes on any two of the following : 2x10=20

(a) Concept of surplus and deficit

(b) Perfect competition

(c) Concept of equilibrium

(d) Keynes’ view of interest

(e) Distinction between Economic Cost and Accounting Cost 2x10=

(20)