DU SOL B.Com Question Paper 1st Year 2018 Principles of Economics

This quati.on paper contains 4 printed pages.
1263 Your Roll No.

B.Com. / I G-r

Paper Code : A-104

Paper ry- PRINCIPLES OF ECONOMICS

Time: 3 hours Maximum Marks : 75

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Nore:- Answers may be written either in English or in
Hindi; but the same medium should be used
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Anempt anY five questions.
All questions carry equal marl<s-

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1. Explain how the problem of scarcity can be depicted
by the production possibility curve- Show the
difference between:

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(b) Movement from a point to another point both on
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2. (a) Explain the law of equi-marginal utility- Show how
the demand curve can be derived from the
marginal utilitY curve.
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(b) Explain the diamond-water paradox'

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3. (a) Explain diagrammatically the price consumption
curve and deiive the'demand cunre from it for a
normal good.

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(b) Explain and draw indifference curves in the case
of perfect substitutes and perfect complements.

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4' (a) Diagrammaticalry show a firm's equilibrium with
the help of isoquants and isocost line.
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(b) What do you mean by expansion path?
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5. (u) "The long-run equilibrium of a competitive
industry occurs when firms are earning zero
profits." Elaborare.
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(b) Draw and explain short run supply curve of a firm.
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6. Distinguish between monopoly and dir*i.ir"li?;
monopoly. How are prices determined under simple
monopoly? Explain diagrammatically.

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7. Define public goods. What is a free-rider problem?
How does the existence of public good lead to market
failure?
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8. Write short notes on any two of the following:

(a) Backward bending supply curve of labour
(b) Economic rent
(c) Adverse selection and moral hazard.
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