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BUSINESS ECONOMICS 2008 

 

1.    What is elasticity of demand? Describe the factors which determine elasticity of demand. 

Or

        Refer unit-I answer to question No.7. 

2.    Draw an isoquant and explain its properties. Identify the economic region of production with the help of isoquant curve.                                                                                                                                  

Or

        Discuss the laws of returns to scale.                                                                                                                        

 

3.    Mention the objectives of a business firm. Analyse the equilibrium of a business firm under perfect competition in the short period with the help of suitable diagram.     

 Or 

        What is monopoly market? How does a monopolist determine the price of his commodity under condition of price discrimination? Illustrate your answer with suitable diagram.                             

 

4.    Critically examine the marginal productivity theory of distribution. 

                                                                 Or 

        What is rent? Explain the Ricardian theory of rent.                                                                  

 

5.    What do you mean by interest? Describe the liquidity preference theory of interest propounded by Keynes. 

Or 

        Discuss the uncertainty bearing theory of profit. How is the risk theory of profit different from the uncertainty bearing theory of profit?                                                                     

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