UG/CBCS/B.A./Hons./1st Sem.

/Economics/CCECOH1/2022

COOCH BEHAR PANCHANAN BARMA UNIVERSITY

B.A. Honours 1st Semester Examinations, 2022
Under Revised and Old Syllabus

ECONOMICS
MICROECONOMICS-I
CORE-1
Time Allotted: 2 Hours Full Marks: 40

The figures in the margin indicate full marks.

Candidates are required to give their answers in their own words as far as practicable.

SECTION-I
1. Answer any ten questions from the following: 1×10 = 10
(a) Draw AFC and AVC curve.
(b) What does an Income Consumption Curve represent?
(c) What do you mean by inverse demand function?
(d) Draw a demand curve when price elasticity of demand is infinity.
(e) What does a ridge line represent?
(f) What is the law of Equi-marginal utility?
(g) What is meant by homogeneous production function?
(h) What is meant by constant returns to scale?
(i) Draw an IC when one commodity is ‘good’ and other commodity is ‘bad’.
(j) If cross elasticity of output of any two goods are negative then what is the nature
of the goods?
(k) What is sunk cost?
(l) What is derived demand?
(m) When does the consumer consume only one commodity at equilibrium?
(n) What is the law of diminishing marginal rate of technical substitution?
(o) What is the compensated demand curve?

SECTION-II
2. Answer any one question from the following: 5×1 = 5
(a) Is there any relationship between degree of homogeneity and returns to scale?
Explain.
(b) Distinguish between law of variable proportion and returns to scale.

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(c) Show that the sum of own price elasticity of demand, cross price elasticity of
demand and income elasticity of demand is always equal to zero. (When the
demand function homogenious of degree zero).

SECTION-III
Answer any one question from the following 10×1 = 10
3. Using the axioms of revealed preference theory show that substitution effect of a 10
price change is always negative.

4. Prove that scale elasticity of output is the sum of input elasticities. 10

5. (a) How can you derive demand curve from PCC? 6+4
(b) Comment on price elasticity of demand when PCC is
(i) Downward sloping (ii) Vertical straight line

SECTION-IV
Answer any one question from the following 15×1 = 15
6. (a) Prove that iso-quant for Cobb Douglas production function is downward sloping 7+8
and convex to the origin.
(b) Find out the elasticity of substitution for CES production function.

7. (a) Explain with suitable diagram the three stages of short run production function. 10+5
(b) Which stage of production is suitable for a rational producer and why?

8. (a) Derive Slutsky equation in a two commodity framework. 10+5

(b) Explain from Slutsky equation that substitution effect is negative but income
effect is indeterminate.

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UG/CBCS/B.A./Hons./1st Sem./Economics/CCECOH2/2022

COOCH BEHAR PANCHANAN BARMA UNIVERSITY

B.A. Honours 1st Semester Examinations, 2022
Under Revised and Old Syllabus

ECONOMICS
MATHEMATICAL METHODS FOR ECONOMICS-I
CORE-2
Time Allotted: 2 Hours Full Marks: 40

The figures in the margin indicate full marks.

SECTION-I
1. Answer any ten questions from the following: 1×10 = 10
(a) Suppose the Engel curve is given by the expression X I 2 . Find the income
elasticity of demand.
(b) What is the average propensity to consume for the consumption
function: C 3  0 º 8Y ?
(c) Given the total cost function C 4Q  Q 2  2Q 3 , find out AC.
(d) Find MR when the demand function is P 20  4q .
(e) What is the degree of homogeneity of the production function Q A K 0.40 L0.60 ?
(f) What is the out-put elasticity of capital (K ) of the production function
Q A K α Lβ ?
(g) For the Cobb-Douglas production function Q A K α L1 α , find MPK .
(h) If MR Rs. 25 and AR Rs. 50 , find | e p | .
(i) When the percentage change in price is 2 then the percentage change in quantity
demanded is 1. Calculate price elasticity of demand.
(j) What do you mean by nonsingular matrix?

U 0 Py
(k) What is the income elasticity of demand for the demand function x ,
Px
where x is quantity demand and Px , Py are the unit of x and y respectively.
MPK
(l) If 2 , find MRTSLK.
MPL
(m) What is the relationship between AP and MP when AP is maximum?
(n) What is the slope of budget line 3 x  4 y 60 ?
(o) If 2 units of commodity X is substituted for 4 units of commodity Y then find
MRSXY.

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SECTION-II
(Short note type question)
2. Answer any one question from the following: 5×1 = 5
(a) Given the savings function S 10  0.2Y and autonomous investment 5
I Rs. 50 crores. Find the equilibrium level of income.
(b) In a two commodity framework, prove that two commodities cannot be inferior. 5
(c) The C-D production function is Q A K D LE where, D  E 1 . Show that the 5
sum of output elasticity of L and K is equal to 1.

SECTION-III
(Short type questions)

Answer any one question from the following 10×1 = 10

3. Find the ordinary demand function for x and y from the utility function 10
U xy and the budget constraint Px º x  Py º y M .
4. If the demand and supply functions respectively are P 20  5 x and P 4  3x . 10
Find the consumer’s surplus and producer’s surplus if the output and price are
determined in a perfectly competitive market.
5. The total cost function of a firm is C 2q3  3q 2  12q . Show that at the 10
minimum point of the average cost curve the average cost equals the marginal
cost.

SECTION-IV
(Essay type questions)

Answer any one question from the following 15×1 = 15

2Y
6. Suppose that an individual’s preferences are represented by MRS , prices 10+5
X
are PX 3 , PY 1 and income is I 180 .
(I) What is the optional consumption basket?
(II) What happens if a ration limit RX 50 is applied to X ?
7. Consider the C-D production function Q A K D LE . 5+10
(I) How can you interpret the condition D  E 1?
(II) For the condition above show that the marginal product of L and K only
depends on the input ratio and expansion path is a straight line passing
through origin.
8. Solve by using Cramer’s rule 15
2x  y  z 1
x  y  2 z 1
3x  2 y  z 4
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