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eco sem 3 question paper

This document is a question paper for the course 'Intermediate Microeconomics I: Behavioural Foundations of Market Interaction' for B.A. (Programme) students in their third semester. It consists of two parts, with specific instructions for answering questions in either English or Hindi. The paper includes various questions related to microeconomic concepts such as budget lines, utility functions, indifference curves, and production functions.

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yashasvi chauhan
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15 views

eco sem 3 question paper

This document is a question paper for the course 'Intermediate Microeconomics I: Behavioural Foundations of Market Interaction' for B.A. (Programme) students in their third semester. It consists of two parts, with specific instructions for answering questions in either English or Hindi. The paper includes various questions related to microeconomic concepts such as budget lines, utility functions, indifference curves, and production functions.

Uploaded by

yashasvi chauhan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 5

DATE

[This question paper contains 8printed pages.]


Nol32he.13 t6
Your Roll
Sr. No. of
Question Paper : 22223
Unique Paper Code : 2272202301

Name of the : Intermediate MicroeconomicsI:


Paper Behavioural Foundations of
Market Interaction

Name of the Course : B.A. (Programme)

Semester : III

Duration: 3 Hours Maximum Marks : 90

Use of calculator is allowed

Instructions for Candidates


)
1 Write your Roll No. on the top immediately on receipt
of this question paper.

2. The question paper conSists of two parts i.e., Part A


and Part B.

3. Answer any four questions from Part A and any two


questions from Part B.
4. Answers may be written either in English or Hindi;
but the same medium should be used throughout the
paper.

P.T.0.
DATE

2223 2223 3
her
-3) and
(C) If a demands are (5, demands?
consumer's net
what are her gross
endowment is (4, 4), (5)

2.

Ca P,X, + P,X, M hI
() Y # Tq
4

PART A (TT )

1. (a) What happens to the budget line if the price.of


good 2 increases, but the price of good 1 and
income remain constant. (5)
qetqtf (4, 4) , a 3H HRT I?
(b) Originally the consumer faces the budget line
P,X, + P,X, = M. Here P, is the price of good1, (7)
2. (a) What is Satiation point or a Bliss point.
P, is the price of good 2, M is the income, X, is
the quantity of good 1and X, is the quantity of (b) What is a Utility function. What do you mean by
good2. Then the price of good 1 double, the price positive monotonic transformation of given utility
becomes
of good 2 becomes 8 times larger, income function, explain with example. (8)
for the
4 times larger. Write down an equation
the original prices and
new budget line in terms of
income. (5)

P.T.0.
2223 4

(a) 3qtrar 2223 5

3. (a) What are the properties of an


indifference curve?
(5) (iii) g
(b) What is the shape of an
indifference curve when
two goods are (i) Perfect
substitute (ii) Perfect
complements. Explain with the help of diagram. 5. (a) What kind of preferences are represented by a
(5+5) utility function of the form U(X,, X) = (X, +X)?
X, for quantity of good 1 and X, for quantity of
good 2. What about the utility function V(X, X,)
= 13X, + 13X,? (5)

(b) If a consumer has a utility function U(X,, X,) =


X,x,. Here X, for quantity of good I and X, for
quantity of good 2. What fraction of her income
4. What is the optimal choice for a consumer in the case will she spend on good 2. (5)
of
(c) True or false? If the demand function is X, = -P,
(i) Perfect substitutes
then the inverse demand function is X, = -1/P,.
(ii) Perfect complements
X, for quantity of good I and P,for price of good
(iii) Bads. 1. If true then why and if false then why.

Explain with the help of diagram. (5+5+5) (5)

P.T.0.
6 2223
2223
T (*) Ux,. X,) =(X, +X,)l2 f (a) Show that ifa+a< 1. the production
function
to scale.
las the property of decreasing returns
f X, sir 4g 2 (b) Showthat if a+ R=1. the production function is
constant returns to scale.
Thr V(X,, X) = lSAt 13X, a BI?
(C) Show that if a+ B> 1. the production function is
increasing returns to scale. (S+5+5)
, X,) =
siET e y = f(x,, x.) = x, x,8, R feR IGITa0

HT het X, = -1/P,1 ( ) YE t f qft a + B <I, a sA Fett


X, q 1ât HI fee

PART B (T a)

6. Consider the production function y = f(x,, x) = x, x,, 7. (a) What is an Isoquant? Explain with the help of a
where a and B are positive constants. Assume the diagram. (7)
input prices are w, and W2 Here x, is the input l and
(b) What is the condition for profit maximization with
x, is input 2. This production function is called a Cobh
output as the choice variable for the competitive
Douglas production function. firm? (8)

P.T.0.
8
2223

hf fe
() fa vfaef

Coneider the Cobb-DoUias production functio


8. 1/2
v=
y fX.X,) = XX,"*. Assume the input prices
are W, = 1 and W,2 =2. Here X is the.input 1 and
X, is input 2. Assume the 1nput 2 quantity is fixed in
the short run at X,= 9. ASSume the output price is
p= 2.

Find fixed cost FC, the variable cost function VC(y),


the average variable cost function ÅVC(y), and the
short-run total cost function C(y). (4+4+3+4)

h+q-H JAGA hH y=f(X,, X,)= XX2 far


IIHT Yf s4C 4 W, =1 r W, =2

fe 313Ye. Y p =2 I

(7000)

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