Important Questions in Economics

Economics notes by Rahul Sir’s MBA/BBA Classes

Chap 1: Introduction:

1. What are the basic problems of economy? How these problems are solved in different economic systems?
2. Explain “scarcity of resources”
3. Short Note of Production Possibility Curve

Chap2: Elasticity of Demand:

1. What is demand? What is law of demand?

2. State the factors of demand.
3. Explain the exceptions of law of demand
4. Define Inferior Goods, Geffen good, Substitute goods and complementary goods
5. Define elasticity of demand. State different types of elasticities. How do you measure Elasticity?
6. Define Income Elasticity and Cross Elasticity
7. How can goods be classified on the basis of the value of cross elasticity of demand? Give example.
8. What is indifference curve? What are the properties of Indifference curve?
9. What is price elasticity of demand? Discuss different types of price elasticity of demand.
10. Why does demand curve slope downward?
11. What is consumer surplus?
12. Define indifference curve. What assumptions are required to draw an indifference curve? State and explain
the properties of Indifference curve.
13. How can substitute & complementary goods be identified with the help of cross elasticity of demand?
14. What is budget line of the consumer? Mention factors which determine the position and the slope of the
budget line.
15. Discuss the equilibrium of a consumer on an indifference map.
16. Define and show consumer equilibrium in a two commodity world.
17. Establish the relationship between AR, MR and Elasticity of demand.
18. Establish the relationship between price elasticity of demand and TR
19. Derive the relationship between price, marginal revenue and price elasticity of demand. How are price and
total revenue related?

Chap3: Production & Cost

1. Define law of variable proportions. Explain the different stages of law of variable proportions. Explain
relationship between AP,MP and TP. Graphically & Algebraically.
2. What is production function? How does a long run production function differ from a short run production
function?
3. Define Isoquant. What are the properties of Isoquant?
4. Prove that two iso-quants never intersect.

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 Important Questions in Economics
Economics notes by Rahul Sir’s MBA/BBA Classes

5. Short Note Ridge Line, Economics of Scale, Isocost Line, Linearly homogeneous Production Function ,
Expansion Path, MRTS (Marginal Rate of technical substitution)
6. Why short run average cost curve U shaped?
7. Why LAC curve called “Envelop Curve”?
8. Explain Long run cost curve diagrammatically
9. Maths related to cost schedule

Chap4: Market Structure

1. Main features of Perfect Competition, Monoply, Oligopoly and monopolistic Market
2. What is price discrimination? Why is price discrimination possible and profitable? Also mention
different types of price discrimination.
3. Distinguish between perfect competition and monopoly.
4. Establish the conditions for profit maximization or equilibrium of a firm
5. Why is supply curve absent in monopoly market?
6. Short Note: Kinked Demand Curve, Dumping, Duopoly

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