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HS1340

This document contains an end semester examination for a Principles of Economics course. It consists of two sections - Section A contains 6 short answer questions worth 6 marks each, and Section B contains 7 short answer questions worth 2 marks each. The questions cover a range of topics in economics, including different types of markets and monopoly equilibrium, approaches to calculating GDP, marginal revenue product of labor, measures of money supply, inflation, price discrimination, diminishing marginal returns, microeconomics vs macroeconomics, production functions, and the circular flow of income in an economy.

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Prarabdha Sharma
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63 views2 pages

HS1340

This document contains an end semester examination for a Principles of Economics course. It consists of two sections - Section A contains 6 short answer questions worth 6 marks each, and Section B contains 7 short answer questions worth 2 marks each. The questions cover a range of topics in economics, including different types of markets and monopoly equilibrium, approaches to calculating GDP, marginal revenue product of labor, measures of money supply, inflation, price discrimination, diminishing marginal returns, microeconomics vs macroeconomics, production functions, and the circular flow of income in an economy.

Uploaded by

Prarabdha Sharma
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
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NATIONAL INSTITUTE OF TECHNOLOGY, ROURKELA

END SEMESTER EXAMINATION, 2018


SESSION: 2018-19, AUTUMN SEMESTER
PROGRAMME: B.TECH
Dept. Code: HS, Course Code: HS-1340, Course Name: PRINCIPLES OF ECONOMICS
Full Marks: 50 Duration of Examination: 3 hours

This question paper contains two page


Figures at the right hand margin indicate marks
All parts of a question should be answered at one place
Q. No Marks
Section A
Answer any six 6x6
1. Discuss various types of market. How monopoly equilibrium is different from
market equilibrium under perfect competition?

2. Explain the different approaches to calculate GDP. Discuss the limitations of


GDP as a measure of social welfare.

3. Briefly explain the terms marginal revenue product and value of marginal
revenue product of labour. Explain how it can be used to derive the demand
curve of labour. Discuss how a firm reaches an equilibrium position regarding
labour inputs with suitable diagrams.

4. Discuss the four measures of money supply. How money market attend
equilibrium? What are the factors responsible for rapid increase in money
supply?

5. Distinguish between demand pull and cost push inflation. How are they often
intertwined? What are the main factors that cause demand pull inflation?

6. What is price discrimination? Discuss various degree of price discrimination.

7. What is the law of diminishing marginal returns? Why does it operate? What
is the operational significance of this law?

8. Distinguish between micro and macroeconomics. Discuss what are the major
issues addressed in macroeconomics. How government plays an important role
in controlling macroeconomic policies of a country?

Section B
Answer any seven 2x7
1. Given the production function: Q=LK-80L and input prices: PL=60 and PK=
30, estimate the optimum input combination for a profit maximizing firms,
assuming the firm has only Rs 6000/- to spend.

1
2. What are the main causes of inflation in India? What measure do you suggest
to control inflation in India?

3. A firm produces q units of computer keyboards per month. Its monthly


production cost is Rs. (q2+64q+1000), while it faces a demand function
= where p is the price. Find the profit maximizing output and price.

4. Distinguish between broad money and narrow money. Which concept is more
relevant in the discussion of cause of inflation in the economy?

5. Explain and illustrate isoquants and iso-cost curve.

6. Differentiate between GNP and GDP.

7. Define disposable income. How it is different from personal income?

8. Determine whether the following perfectly competitive firm should produce


output in the short run or temporarily shut down. Given
P=MR= USD 60
TC=4000+204Q-3Q2+0.02Q3

9. Explain the circular flow of income in an economy.

**End**

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