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BACHELOR OF ARTS (HONOURS) ECONOMICS (BAECH)
Term-End Examination June, 2025
BECC–101 : INTRODUCTORY MICRO ECONOMICS
Time : 3 Hours Maximum Marks : 100
Note : (i) Answer questions from each Section as per instruction given.
(ii) Section-A : Answer any two questions from this Section.
(iii) Section-B : Answer any four questions from this Section.
(iv) Section-C : Answer both the questions from this Section.
Section—A
1. (a) What do the following signify ?
(i) Movement from one point on the PPcurve to another.
(ii) Movement from a point within the frontier to point on the frontier.
(iii) An outward shift in PP-curve.
(b) “Economics is a science of choice making.” Explain this statement.
(c) Distinguish between the following :
(i) Static and Dynamic Economic analysis
(ii) Micro Economics and Macro Economics
2. (a) Which causes of shortage of a good–a price ceiling or a price floor ? Justify your answer with a graph.
(b) What determines how the burden of a tax is divided between buyers and sellers ? Why ?
3. (a) “A typical production function has three stages.” Explain with the help of diagrams.
(b) Explain the following concepts with the help of diagrams :
(i) Expansion path
(ii) Ridge lines
4. (a) Suppose that a competitive firm has a total cost function C=450+159+2q²
and the marginal cost function MC=15+4q. If the market price is P = ` 115 per unit,
find the level of output produced by the firm and the level of profit.
(b) What is the price discrimination ? Explain the different degrees of price discrimination.
BECC 101 Introductory Micro Economics Question Paper June 2025 in English
Section—B
5. (a) There is a straight line demand curve in the figure :
Prove that the point elasticity at point “C” on the demand curve is the ratio of line segment M1 to line segment M2.
(b) On what factors does the price elasticity of supply depend ? Explain.
6. (a) Discuss the law of equi-marginal utility.
(b) What is the inferior goods ? Must the demand curve for an inferior good slope downward ? Explain with the help of I.C. (indifference curve) analysis
7. Explain the price effect, income effect and the substitution effect of a fall in price for an
inferior commodity using suitable diagram
8. (a) Define expansion path. Show graphically expansion path in case of linear
homogeneous production function in the short-run and the long-run.
(b) Discuss the concept of long period economic efficiency
9. (a) Show that a competitive firm always operates at its optimal capacity in the long run.
(b) How does a monopolist firm face efficiency loss ?
10. Write short notes on any three of the following :
(a) Comparison of monopoly with perfect competition
(b) Kinked demand curve analysis
(c) Ricardian theory of Rent
(d) Excess Capacity
Section—C
11. “The kinked demand curve describes price rigidity.” Explain how the model works. What
are its limitations ?
12. Define the fundamental role of the marginal cost in achieving efficiency in a perfectly
competitive market
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