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Write a note on returns to scale.
What is meant by elasticity of substitution ?
Write a note on Cobb-Douglas Production function.

Part C (Short Essay Questions)
Answer any six questions.

Explain the properties of isoquats.
Distinguish between Normative and Positive Economics.
Explain the measurement of point elasticity.
What are degrees of price elasticity of demand ?
Explain the derivation of Engel curve.
Explain the economic region of production using isoquants.
Explain the derivation of income consumption curve.

Explain the derivation of market demand curve.

Part D (Essay Questions)
Answer any two questions.
Explain the ordinal utility approach to consumer’s equilibrium.
Explain the Revealed preference Theory.
Explain the Laws of Returns to Scale.

D 92899

(10 x 2 = 20 marks)

(6 x 5 = 30 marks)

Explain Hicksian and Slutski’s approaches to the decomposition of the substitution effect and

income effect.

(2 x 12 = 24 marks)