16.
27
18.
19.

20.
21.
22.
23.
24.

25.
26.
27.

29.
30.
31.
32.

33.
34.
35.
36.

3 D 52809
Utility.
Income effect.
Extension of demand.
Complementary goods.
Elasticity of supply.
Inductive method.
Positive economics.
Market equilibrium.
Partial and total analysis.

(10 x 2 = 20 marks)
Part C (Short Essay Type Questions)

Answer any six questions.
Each question carries 5 marks.

Distinguish between Microeconomics and Macroeconomics.

What are the factors determining the price elasticity of demand ?
Explain the law of diminishing marginal utility.

Explain Consumers surplus.

What are the properties of indifference curve ?

Explain TP, AP and MP.

Compare fixed and variable proportion production function.
Explain returns to scale.

(6 x 5 = 30 marks)
Part D (Essay Type Questions)

Answer any two questions.
Each question carries 12 marks.

What is production function? Explain the properties of Cobb-Douglas Production function ?
Explain the revealed preference they ?
Explain the cardinal and ordinal versions of the consumers equilibrium.
Explain the nature and significance of the study of microeconomics.
(2 x 12 = 24 marks)