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3 C 21240

Part B (Very Short Answer Questions)
Answer any ten questions.

Each question carries 2 marks.
Define Production possibility curve.
Define Mathematical Economics.
Define linear programming problem.
Define feasible solution.
Define Demand function.
Explain production function.
Define Marginal Revenue.
Define Leontief matrix.
Define Investment function.
Define Input-output model.
Define return to acale.
Define isocost line.

(10 x 2 = 20 marks)
Part C (Short Essay Questions) |
Answer any six questions.

Each question carries 5 marks.
If D = 40- 5p and S = 30 —p are the demand and supply functions in a market show that a specific
tax of Re. 1 per unit will cause a decline in the market price.
Explain the conditions for maxima and minima.
Explain market equilibrium.
Explain the relationship between MC and AC.
If AR = 6, MR = 4 find price elasticity of demand. | 5
Given the line 2x + 3y = 20, find the slope and Y intercept.
Write a note on LPP.
Explain the importance of mathematical economics.

(6 x 5 = 30 marks)

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