ALLAMA IQBAL OPEN UNIVERSITY
Level: Bachelor: Spring 2006
Paper: Micro Economics (Code 131) Maximum marks: 100
Time allowed: 3 Hours Pass marks: 40
Note: ATTEMPT ANY FIVE QUESTIONS. ALL QUESTIONS CARRY EQUAL MARKS
Discuss the law of demand with the help of schedule/graph. Also give its assumptions and limitations.
How a consumer maximizes his satisfaction? Explain with the help of graphs using indifference curve approach.
Explain the following concepts with the help of diagrams:
1. Total Product 2. Average Product 3. Marginal Product
4. Total Cost 5. Average Cost 6. Marginal Cost
What are the various forms of market structure? Compare the conditions for profit maximizing level of output in each market with the help of diagrams.
How the equilibrium wage rate is determined under perfect market conditions?
a. Derive supply curve of a profit maximizing firm from marginal cost curve.
b. Elaborate the relationship between production and cost.
What is the price elasticity of demand? Why is it less elastic for some goods while more elastic for other goods? Give the determinants of price and income elasticity of demand in separate.
Compare following economic systems giving merits and de-merits of each.
a. Command Economy b. Market Economy c. Mixed Economy
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