EEC-11 Important Questions

EEC-11 Important Questions for upcoming exams

EEC-11 Important Questions
1. Explain the determination of factor pricing under the conditions of perfectly competitive factor
market.
2. Explain briefly the law of variable proportions. In which stage does a business firm operate and
why ?



3. Differentiate between inflation and deflation. How does inflation affect different sections of the society ? How is it related to unemployment ?
4. Discuss the concept of Marginal Propensity to Consume (MPC). How is it related with Multiplier ? Why does marginal propensity to consume decline with increase in income ?
5. How are wage rate determined in a perfectly competitive market ? Do the imperfections in the market influence the wage rate structure ?
6. State the concept of circular flow of Income.



7. Explain briefly the law of variable proportions. In which stage does a business firm operate and why ?
8. Define an indifference curve. What are its properties ? Explain consumer’s equilibrium with the help of indifference curves.
9. Explain the theory of comparative cost advantage.
10. Define National Income. What are the various methods of measuring the National Income ? Do all the methods yield the same results ? Explain.
11. Define Monopoly. How is price determination under monopoly different from monopolistic competition ?
12. What do you mean by demand for money ? Describe different motives for holding money as propounded by Keynes.
13. Distinguish between Micro economics and Macro economics.



14. What do you mean by maximum support price in agriculture marketing ? How do these influence the terms of trade between agriculture and non-agriculture sector ?
15. Write notes on:
a. Production Function
b. Elasticity of Demand
c. Consumer Surplus
d. Giffen goods
e. Public goods
f. Multiplier
g. Monopolistic competition
h. Stagflation
i. Liquidity preference
j. Balance of Payments