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.
emand. 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 aare the properties of Indifference curve?

Chap3: Average Revenue

1. Establish the relationship between AR, MR and Elasticity of demand.

2. Establish the relationship between price elasticity of demand and TR

Chap4: Production:

1. Define law of variable proportions. Explain the different stages of law of variable proportions. Explain
relationship between AP,MP and TP.
2. What is production function? How does a long run production function differ from a short run production
function?
3. Define Isoquant. What aree the properties of Isoquant?
4. Prove that two iso-quants
quants never intersect
5. Short Note Ridge Line, Economics of Scale, Isocost Line, Linearly homogeneous Production Function ,
Expansion Path

Chap5: Theory of Cost

1. Why short run average cost curve U shaped?
2. Why LAC curve called “Envelop Curve”?
3. Explain Long run cost curve diagrammatically
4. Maths related to cost schedule

Chap6: Market Structure

1. Main features of Perfect Competition, Monoply, Oligopoly and monopolistic Market

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

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

Chap7: Factor Pricing

1. Explain the Marginal productivity theory of factor pricing

Chap 8: Concept of Rent

1. Explain Economic Rent, Quasi Rent, Recardian Theory of Rent
2. Difference between Recardian theory of rent and modern theory of rent.

Chap 9: Concept of Labour

1. Explain marginal productivity theor
theory of Labour
2. Explain how wage rate is determined under perfect competition in both labor and product market

Chap10: Concept of Capital

1. Explain liquidity preference theory

Chap11: Concept of Profit

1. What is normal, abnormal profit?
2. Explain Dynamic theory of Profit, Risk uncertainty theory of profit

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