Most important questions for Microeconomic Theory (Paper-1) for MA./M.Sc. Economics Part-I from the paper point of view are given below.
Theory of Consumer Behaviour and Demand Analysis
- Define and explain the concept of Marginal Rate of Substitution (MRS) diagrammatically and mathematically.
- Prove with arguments that Ordinal Approach is considered better over the Utility Approach.
- Explain consumer equilibrium geometrically and mathematically in the light of ordinal approach.
- Slutsky Theorem
- Prove that Price effect = Income effect + Substation effect in case of Giffen commodity. Hicksian and Slutsky approaches
- Compare Hicksian and Slutsky approaches of consumer behaviour with the help of diagrams.
- Prove that Price effect = Income effect + Substation effect in case of Inferior commodity.
Market Demand & Elasticity
- Explain Indirect Utility Function
- Derive Hicksian and Slutsky demand curve for consumer with the help of indifferent curves in double story diagram.
- Explain Revealed Preference theory
- Derive Slutsky demand curve of consumer in case of Giffen commodity.
- Cross Elasticity of demand
- Income Elasticity of demand
- Law of Variable Proportion
- Define and explain the concept of Marginal rate of Technical substitution (MRTSL,K) mathematically.
- How a firm can minimize its cost of production by using two inputs for producing a particular level of output explain with the help of diagrams and mathematics.
- How a firm succeeds in maximization of output when cost of production is given with the help of diagrams and mathematics.
- Explain the Cobb Douglas production function with reference to:
- Marginal Product of Labour
- Marginal Product of Capital
- Factor Intensity
- Marginal Rate of Technical Substation
- Elasticity of factor substitution
- Law of Increasing return to scale with Iso quant and schedule
- Law of Decreasing return to scale
- Explain the three Laws of Return to Scale with the help of schedule and diagram.
- Expansion Path
- Explain briefly different types of isoquants.
Cost of Production
- Explain main features of Modern Cost theory with the help of diagrams.
- Compare and contrast Traditional Theory of Cost with Modern Theory of Cost. Explain with the help of diagrams.
- How we can derive Long run marginal+ Average cost curve with the help of short run cost curve.
- How equilibrium of the firm taken place under perfect competition in short and long period.
- Make a comparison of monopoly and perfect competition.
- Make a comparison of perfect competition and pure competition.
- Derive Supply Curve of a Competitive firm and industry in short period.
- Multi-plant Monopolist Firm
- Bilateral Monopoly
- Explain the Second-Degree Price Discrimination policy of monopolist firm with the help of diagram.
- Prove mathematically that MR = P [1-1/e]
- Long run equilibrium of firm under monopoly
- Using Kinked demand curve Hypothesis explain price stability in a oligopolist firm.
- Explain Cournot model of Non-Collusive oligopoly with the help of reaction curves.
- Game Theory
- Explain the concept of Dominant Strategy in respect of Game theory by using Pay-off matrix
- Nash Equilibrium
Pricing of Factors of Production
- Derived Market demand curve for labour under perfect competition, when Firm is using several variable inputs in the process of production.
- Derived Market demand curve for labour under perfect competition, when Firm is using single variable input in the process of production graphically and mathematically.
- Derivation of Backward bending and Negatively slope supply curve of labour using indifference curve approach.
- Explain the General Equilibrium of Consumption using Edgeworth Bowley diagrams and also derive Utility Possibility Curve.
- Explain the concept of Partial and General Equilibrium. Also discuss 2x2x2 model of general equilibrium with the help of diagrams.
- Explain three Marginal conditions of Pareto optimality with refence to perfect competition with the help of diagram.
- Bergson Criteria of social welfare