CHRIST

UNIVERSITY,BENGALURU - 560029
End Semester Examination October - 2015
LLB I SEMESTER
Code: BAL143 / BBL143 Max.Marks: 100
Subject: PRINCIPLES OF ECONOMICS Duration: 3Hrs
SECTION A
Answer any SIX. Each question carries equal marks 6X5=30
1 The United States is considered a rich country because Americans can choose from an abundance of
goods and services. How can there be scarcity in a land of abundance?
2 What do you understand by price controls? In what conditions price floor and price ceiling will be
effective?
3 Explain the relationship between TR and MR with the help of a graph.
4 List and briefly explain each of the four properties of Isoquants curves.
5 Why equilibrium wages equal the value of the marginal product of labor.
6 What is a tax? Discuss different types of taxes.
7 Explain the various instruments of monetary policy
8 The principle of comparative advantage can be explained in opportunity cost. Elaborate with example.
SECTION B
Answer any FOUR. Each question carries equal marks 4X10=40
9 Using a supply-demand diagram, show a labor market with a binding minimum wage. Now, use the
diagram to show those who are helped by the minimum wage, and those who are hurt by the minimum
wage.
10 Draw a budget constraint that is consistent with the following prices and income.
Income = 200
PY = 50
PX = 25
a. Demonstrate how your original budget constraint would change if income increases to 500.
b. Demonstrate how your original budget constraint would change if PY decreases to 20.
c. Demonstrate how your original budget constraint would change if PX increases to 40.
11 What do you understand by price discrimination? Discuss when price discrimination is possible and
profitable.
12 Explain the effects of public expenditure on production and distribution.
13 During the last few days the Superior Company has been running into problems with its computer system.
The last run of the production cost schedule resulted in the incomplete listing shown below. From your
knowledge of cost theory, fill in the blanks.
Q TC TFC TVC ATC AFC AVC MC_
0 40 x x x x
1 52
2 20
3 21.33
4 4
5 40
6 15.67
7 10
8 96
9 15
10 45
14 Analyze the current macroeconomic condition of the Indian Economy. Discuss the policy measures that
can be taken to stabilize the economy.
 SECTION C
Answer any TWO. Each question carries equal marks 2X15=30
15 Why does production eventually experience diminishing marginal returns to labor in the short run?
Explain with the help of well labeled diagram.
16 Discuss the classification and canons of public expenditure.
17 Explain 'monopolistic competition' and the price and output determination in the short and long run under
monopolistic competition.
 CHRIST UNIVERSITY,BENGALURU - 560029
End Semester Examination September/October - 2016
LLB I SEMESTER
Code: BAL143/BBL143 Max.Marks: 100
Subject: PRINCIPLES OF ECONOMICS Duration: 3Hrs
SECTION A
Answer any SIX. Each question carries equal marks 6X5=30
1 Economists say that individuals make decisions at the margin. What does this mean?
2 Discuss the relationship between Total revenue and price elasticity of demand.
3 Discuss the L-Shaped long run average cost curve.
4 Define Marginal rate of substitution. How is it different from Marginal rate of technical substitution?
5 Explain how a profit-maximizing monopolist chooses its level of output and the price of its goods.
6 What is a tax? Discuss different types of taxes.
7 Explain the various instruments of fiscal policy
8 Explain the link between scarcity and each of the following: (a) choice, (b) opportunity cost, (c) the need
for a rationing device, (d) competition.
SECTION B
Answer any FOUR. Each question carries equal marks 4X10=40
9 Discuss the gains from International trade to participating countries.
10 Define Total Utility, and Marginal Utility. Discuss the relationship between TU and MU with the help of a
graph.
11 What are some of the different types of barriers to entry that give rise to monopoly power? Give an
example of each.
12 What is the official definition of unemployment? What are the causes of unemployment?
13 How and why does a firm's average-total cost curve differ in the short run and in the long run?
14 Using a supply-demand diagram, show a labor market with a binding minimum wage. Now, use the
diagram to show those who are helped by the minimum wage, and those who are hurt by the minimum
wage.
SECTION C
Answer any TWO. Each question carries equal marks 2X15=30
15 Write an essay on Laws of Returns to Scale and its association with different cost industries with
appropriate diagrams and examples.
16 Discuss the factors influencing the shifting and incidence of a tax burden.
17 Explain 'monopolistic competition' and the price and output determination in the short and long run under
monopolistic competition.
 CHRIST UNIVERSITY,BENGALURU - 560029
End Semester Examination October - 2017
BA LLB/BBA LLB I SEMESTER
Code: BAL143/BBL143 Max.Marks: 100
Subject: PRINCIPLES OF ECONOMICS Duration: 3Hrs
SECTION A
Answer any SIX. Each question carries equal marks 6X5=30
1 Discuss Adam smith's enduring contributions to modern Economics.
2 Explain Elasticity of Demand and Supply? Discuss different types of elasticity of demand you studied in
class.
3 Discuss Break-Even Point with suitable illustrations.
4 Distinguish between Short run and Long Run Production Function.
5 Examine 'excess capacity' under monopolistic competition.
6 Monetary Burden of taxes entails the issue of Impact, Incidence and Shifting. Examine.
7 What is the natural rate of unemployment?
8 What are the dynamic gains from international trade?
SECTION B
Answer any FOUR. Each question carries equal marks 4X10=40
9 Examine the various definitions of Economics.
10 Discuss the Law of Diminishing Marginal Utility with the help of a graph. What are the assumptions to be
made to explain this Law?
11 Explain different types of pricing strategies followed by firms under imperfect competition.
12 What is inflationary gap? How does it arise and how can it be removed in the economy?
13 "Average cost and marginal cost is the mirror image of average product and marginal product in short-
run". Examine.
14 Identify the determinants of Elasticity of Demand.
SECTION C
Answer any TWO. Each question carries equal marks 2X15=30
15 Examine the "three stages of production" under Law of Variable Proportions. Which stage is best for a
producer and why?
16 What are the objectives of Fiscal Policy? State the instruments or tools of Fiscal Policy.
17 What are the characteristics of oligopoly market structure? Explain the price and output determination
under the kinked demand curve model.
 CHRIST (DEEMED TO BE UNIVERSITY),BENGALURU - 560029
End Semester Examination October/November - 20 18
LLB I SEMESTER
Code: BAL143/BBL143 Max.Marks: 10 0
Course: PRINCIPLES OF ECONOMICS Duration: 3Hrs
SECTION A
Answer any SIX. Each question carries equal marks 6X5=30
1 Discuss Adam smith's enduring contributions to modern Economics.
2 Distinguish between a "change in demand" and a "change in quantity demanded"?
Graph your answer.
3 Identify the relationship between TR and MR with the help of a graph.
4 Distinguish between Short run and Long Run Production Function.
5 Examine Consumers Surplus and Producers Surplus with the help of a diagram.
6 What are the characteristics of a good tax system?
7 What are the different types of unemployment?
8 Discuss 'Economic Models' with suitable examples and illustrations.
SECTION B
Answer any FOUR. Each question carries equal marks 4X10 =40
9 Examine the Comparative Advantage Theory of International Trade.
10 Diminishing marginal returns occur because the efficiency of variable resources
depends on the quantity of the fixed resources". Explain.
11 What do you understand by price discrimination? Discuss when price discrimination
is possible and profitable.
12 State the objectives of economic policy. Briefly describe the tools of fiscal and
monetary policy.
13 List the 7 concepts of costs used in economic analysis with examples and
illustrations.
14 Write a note on the 'Economics of Agriculture'. Use diagrams to prove your point.
SECTION C
Answer any TWO. Each question carries equal marks 2X15=30
15 Answer the following questions based on the table. A consumer is able to consume
the following bundles of rice and beans when the price of rice is $2 and the price of
beans is $3.
RICE BEAN S
12 0
6 4
0 8
a. How much is this consumer's income?
b. Draw a budget constraint given this information. Label it B.
c. Construct a new budget constraint showing the change if the price of rice falls
$1. Label this C.
d. Given the original prices for rice ($2) and beans ($3), construct a new budget
constraint if this consumer's income increased to $48. Label this D.
16 Explain with the help of graphs the relationship between the Incidence of Taxation
and Elasticity of demand and supply.
17 Examine how a firm under monopoly market structure earns positive economic
profit even in the long run. Use appropriate examples and diagrams.
 CHRIST DEEMED TO BE UNIVERSITY,BENGALURU - 560029
End Semester Examination September/October - 20 19
BA/BBA LLB I SEMESTER
Code: BAL143/BBL143 Max.Marks: 10 0
Course: PRINCIPLES OF ECONOMICS Duration: 3Hrs
SECTION A
Answer any FIVE. Each question carries equal marks 5X6=30
1 Discuss Adam smith's enduring contributions to modern Economics.
2 Construct the demand curve showing: a) PEd = 0, b) PEd = infinity, c) PEd<1 d)
PEd>1
3 Examine the U-shaped average short run cost curve.
4 Discuss MRS. How is it different from MRTS?
5 What are the different ways that government policymakers can respond to the
problem of monopoly?
6 What is the difference between tax evasion and tax shifting?
7 What are the different types of unemployment?
SECTION B
Answer any FOUR. Each question carries equal marks 4X10 =40
8 Discuss five arguments in favor of international trade.
9 Diagrammatically illustrate how a consumer achieves equilibrium under Indifference
Curve analysis.
10 What are some of the different types of barriers to entry that give rise to monopoly
power? Give an example of each.
11 What is meant by monetary policy? What should be its objective in a developing
country like India?
12 Examine in detail the concepts of Economies and Diseconomies of scale and scope.
13 Define, formulate and illustrate the different types of Elasticity of Demand. How do
you use these concepts to arrive at important economic decisions?
SECTION C
Answer any TWO. Each question carries equal marks 2X15=30
14 Can a firm have a production function that exhibits increasing returns to scale,
constant returns to scale, and decreasing returns to scale as output increases?
Discuss.
15 Classify the various types of unemployment and state the reasons for unemployment
in India.
16 Discuss how firms determine price and output under monopolistic competition.
Explain with the help of graphs.