16.
17.
18.
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20.

21.
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23.

24,
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26.

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2 D 32425
Section B

Short Essay /paragraph Questions. Maximum marks in this section is 35.
Students can attempt all questions.

Each question carries a maximum of 5 marks.
Differentiate positive economics and normative economics.
Explain the basic problems of an economy.
Explain the importance of demand forecasting.
What are the determinants of individual demand ?

Explain price effect, income effect and substitution effect in the case of a normal good with the
help of a diagram.

Discuss the properties of an indifference curve.

Describe the modern theory of cost.

Explain the assumptions of ordinal utility analysis.
Section C

Long Essay Questions. Answer any two questions.

Each question carries a maximum of 10 marks.
Explain the major properties and limitations of Cobb-Douglas production function.
Critically analyse the cardinal utility approach towards consumer behaviour.
Discuss the nature and scope of economics and justify the need for studying economics.

Explain the elasticity of demand concepts in detail and describe the various methods used for
measuring elasticity.

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