Economics TU Board 2079 question paper

Define price elasticity of demand. Discuss the various types of price elasticity of demand with diagrams.

What is indifference curve? What are its properties? Explain.

What is perfect competition market? How price and output are determined under it?

Write short notes on scarcity and choice.

Consider the following table: CombinationABCDEFGPrice (Rs.)7654321Quantity (Units)50075012502000325047508000a. Find the price elasticity of demand for movement from points A to C and C to A by proportional method. b. Compute the price elasticity of demand at the mid way between A to C and C to A by arc method.

Consider the following cost schedule: Output0123456789Total Cost (TC)3003303543723964505406728401080a. Compute TFC, AFC, AVC, MC and AC. b. Graph AC and MC and explain the relationship between AC and MC.

Let us suppose a consumer has fixed income of Rs.2000. He selects two goods X and Y for consumption having prices with Rs.400 and Rs.200 respectively. a. Derive budget line. b. Show his equilibrium point when he allocates entire budget equally on two goods.

Discuss the government intervention in market through price floor, price ceiling and tax effect.

What are the instruments of monetary policy?

Explain the condition for optimum employment of two variable inputs.

Explain the features of free market economy.

Calculate Gross Domestic Product (GDP) and National income from the following data: S.N.ItemsRs. (in Millions)1Personal Consumption Expenditure65002Indirect tax less subsidies1503Government consumption and investment expenditure25004Change in business inventories1005Gross Private domestic fixed investment9506Exports9007Net factor payments to the rest of the world-1008Imports12009Depreciation20010Foreign Investment250