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D 74418

Distinguish between Positive analysis and Normative Analysis.

. What is Budget Line ?
. Write a note on Marginal product and Average product.

. What are the properties of an indifference curve ?

Define the concept elasticity.
What is meant by cardinal utility analysis ?
What do you mean by a model ?
(10 x 2 = 20 marks)
Part C
Short essay questions answer any six questions.
Explain the Law or Diminishing Marginal Utility.
Briefly explain the scope of Micrceconomics.
Explain the degrees of price elasticity of demand.
Explain the derivation of Engel Curve.
Explain the effect of price changes on consumption with price consumption curve.
Explain with suitable diagram the income and substitution effect for Giffen good:
Explain the Hicksian substitution effect.

Explain with suitable examples the concepts Total product, Average product and Marginal product.
(6 x 5 = 30 marks)
Part D

Essay questions.
Answer any two questions.

Critically Explain the Revealed Preference Theory.
Explain the derivation of demand curve from price consumption and income consumption curves.
Critically examine the laws of returns to scale.

Explain the laws of Variable proportion.
(2 x 12 = 24 marks)