Student’s Roll No. ……………………………..

Subject Code : ECOG

(To be written before writing any answer)

SEMESTER II – B.A./B.Sc EXAMINATION 2008

ECONOMICS GENERAL
Full Marks: 75
Time: 3 Hrs..

GROUP A Answer ANY FIVE

1.a. In the long run, all firms in a competitive industry earn zero economic profit. Why is this
true? (7)
b. Graphically explain the ‘break–even point’ and the ‘shut–down point’ of a competitive
firm. (8)

2.a. What is meant by price discrimination under monopoly? (4)

b. Under what conditions is it possible? (4)
c. How does a profit – maximizing discriminating monopolist determine the prices that he
charges in different markets? (7)

3. Under perfect competition, in both product and input markets, the price of any input is
determined in accordance with the marginal product of that input. Examine the statement.
(15)
4a. Distinguish between money wage and real wage. On what factors do real wages depend?
(8)
b. Discuss the risk and uncertainity bearing theory of profit. (7)

5a. How is rent defined by modern economists? How do you explain that economic rent
depends on the elasticity of supply of an input? (8)
b. Discuss the statement that the rate of interest is determined by the demand for and supply of
money. (7)

6. Account for the inverse relation between the farm size and the productivity of Indian
agriculture. This relation is true to a certain extent only. Do you agree? (15)

7. Discuss the main shortcomings of the Industrial Policies followed upto 1990. Does the
New Industrial Policy attend to them? (10+5)

8.a. How will you use the Theory of Loanable Funds to explain the rate of interest?
b. Trade Unions cannot achieve both employment and wage rate targets under perfect
competition. Discuss. (8+7)

******************************