Download EcoQuestXII

Part – A
Micro-Economics
Long Questions:
1. What do you mean by market economy? What are the features of a market economy? Explain.
2. Draw a market demand curve. Why does a demand curve shift? Explain.
3. What is demand? Explain the process of deriving individual and market demand curves.
4. Explain the law of demand. What are the exceptions to this law?
5. “Supply varies directly with price.” Explain and illustrate.
6. What is supply and supply schedule? Explain the factors that cause a shift in supply exception.
7. Explain the law of diminishing marginal utility. Is there any exception to this law?
8. Explain and illustrate the concept of consumer's surplus. Describe the importance of this concept.
9. Distinguish between desire and demand. Why does demand increase when price of a commodity
falls?
10. Describe the main determinants of demand. Give an example of a joint demand.
11. Define elasticity of demand. Explain briefly about various types of elasticity of demand.
12. What is meant by price elasticity? Explain how price elasticity of demand measured by total outlay
method.
13. Explain the law of substitution. What are its exceptions and its limitations?
14. Explain the law of diminishing marginal utility. What are its limitations?
15. What is division of labor? Explain the merits and demerits of division of labor.
16. What is meant by efficiency of labor? Explain the factors on which the efficiency of labor depends.
17. Critically explain Malthusian theory of population.
18. Explain optimum theory of population. Why this theory is regarded superior to Malthusian theory?
19. What is sole proprietorship? Describe advantages and disadvantages of sole proprietorship.
20. Explain advantages and disadvantages of Joint Stock Company.
21. Explain law of variable proportions. Does this law apply only in agriculture?
22. Explain the law of diminishing returns. Does it only apply to agriculture?
23. Explain and illustrate the concept of law of returns to scale.
24. What is meant by TR, AR and MR? Show the relationship between AR and MR under monopoly.
25. Distinguish between average revenue and marginal revenue. Explain about the shapes of revenue
curves under perfect competition.
26. Explain about short run cost curves and illustrate them with the help of diagram.
27. What is average cost? How is long run average cost curve derived?
28. Explain the equilibrium of firm and industry by total revenue-total cost approach.
29. What is meant by perfect competition? How sis price and output determined under it.
30. What are the conditions necessary for monopoly? How is price and output determined under
monopoly?
31. Critically explain Ricardian theory of rent.
32. Distinguish between nominal wage and real wage. Explain the subsistence theory of wage,
33. What is interest? How is interest determined according to classical theory?
34. Define profit. Explain uncertainty-bearing theory of profit.
Short Questions:
1. What do you mean by market economy?
2. Why does a demand curve shift? Explain.
3. How do you derive individual demand curve.
4. Explain the law of demand by the help of a table.
5. "Supply varies directly with price." Explain.
6. Explain the factors that cause a shift in supply curve.
7. Explain the conditions under which the law of diminishing marginal utility does not apply.
8. Describe the importance of consumer's surplus.
9. Explain briefly about various types of elasticity of demand.
10. What is meant by price elasticity?
11. Explain the merits of division of labor.
12. What is meant by efficiency of labor?
13. What are the Characteristics and features of land?
14. Explain major weaknesses of Malthusian theory of population.
15. Explain why optimum theory of population theory is regarded superior to Malthusian theory?
16. Describe disadvantages of sole proprietorship.
17. Explain what is meant by Joint Stock Company.
18. Does law of variable proportions apply only in agriculture?
19. Explain and illustrate the concept of law of increasing returns to scale.
20. Distinguish between average revenue and marginal revenue.
21. How is short run average cost curve derived?
22. Explain the features of perfect competition?
23. What are the conditions necessary for monopoly?
24. Explain Ricardian theory of rent by the help of a diagram.
25. Distinguish between nominal wage and real wage.
26. What is interest?
27. Explain risk theory of profit.
28. Distinguish between total utility and marginal utility.
29. Give an introduction of factors of production.
30. Explain the characteristics of land.
31. Distinguish between average product and marginal product.
32. How is gross interest different from the net interest?
Very Short Questions:
1. In a market economy decisions are made without central direction. Say true or false.
2. What do you mean by demand?
3. Enlist the factors causing a shift in demand curve.
4. What does the law of demand imply?
5. How the movement in the demand curve is different from the shift in the demand curve?
6. Whether the relationship of supply with price is positive or negative?
7. What are the factors that cause shift in supply curve?
8. What is meant by elasticity of demand?
9. What will be the shape of demand curve when demand is perfectly inelastic?
10. What is meant by negative income elasticity?
11. What type of elasticity is involved when the change in the price of a commodity causes change in the
demand for another commodity?
12. What is meant by marginal utility and total utility?
13. Why the consumer needs to substitute one thing for another?
14. What is meant by consumer's surplus?
15. What are the factors of production without which production is not possible?
16. Which of these is called labor in economics:
(a) girl singing in her garden
(b) a girl dancing in a night club?
17. What are preventive checks?
18. What is optimum population?
19. Why capital is called the produced means of production?
20. What does the term limited liability mean?
21. How do you computer marginal product?
22. Why is it said that the law of variable proportion is universal in application?
23. Why MR curve coincides with AR curve in perfect competition?
24. What shape does short-run AC curve take?
25. What are two basic conditions necessary for a firm to be in equilibrium?
26. Define an economic rent.
27. Who propounded of Ricardian Theory of rent?
28. The real wages will be low if the purchasing power of money is low, Say true or false.
29. What is meant by net interest?
30. What are the two major factors that determine the rate of interest according to the classical theory?
Part-B
Money, Banking, Government Finance and International Trade
Long Questions:
1. What is barter system? How money removed the difficulties of barter system?
2. Define money. Explain the function of money.
3. What is index number? How is index number constructed?
4. Describe the quantity theory of money. Is this theory fully satisfactory?
5. Define bank. Explain the role of banking system in the economy.
6. Explain the functions of modern commercial banks.
7. What is meant by central bank? Explain the functions of central bank.
8. What is public finance? Explain the advantages of public finance.
9. What do you mean by public expenditure? Explain the importance of public expenditure.
10. What is public revenue? What are the major sources of public revenue? Explain.
11. Define tax. Explain the characteristics of a good tax system.
12. What is meant by free trade? Explain the merits and demerits of free trade.
13. Give your argument for and against protection.
14. Distinguish between direct and indirect taxes. Explain the merits and demerits of direct tax.
15. What is budget? How is budget formulated? Explain.
16. What is international trade? Explain the advantages of international trade.
17. Distinguish between balance of trade and balance of payment with the help of a balance payment
account.
18. Explain the comparative cost theory of international trade. What criticism has been leveled against
this theory?
Short Questions:
1. What are the inconveniences of barter system?
2. Define money.
3. What is index number?
4. Define bank.
5. Explain accepting deposit function of modern commercial banks.
6. Explain any two functions of a central bank.
7. Explain the advantages of public finance.
8. Explain the importance of public expenditure.
9. What are the major sources of public revenue? Explain.
10. Explain the characteristics of a good tax system.
11. What is meant by free trade?
12. What arte the benefits of protection.
13. Distinguish between direct and indirect taxes.
14. What is budget?
15. Explain the advantages of international trade.
16. Distinguish between balance of trade and balance of payment.
Very Short Questions:
1. What does the quantity theory of money imply?
2. What is meant by barter system?
3. Where was paper money used for the first time?
4. Give examples of bank money.
5. Name four basic functions of money.
6. What do you mean by value of money?
7. What is inflation?
8. How is deflation different inflation?
9. What does the term universal bank mean?
10. What is the name of the central bank of Nepal?
11. Why central bank is called the lender of the last resort?
12. How is money market different from capital market?
13. What are the major items that enter into non-tax revenue?
14. How do you distinguish between direct and indirect tax?
15. What is meant by regressive tax?
16. Enlist the characteristics of a good tax system.
17. Why does the government need to borrow?
18. What is budget?
19. What is international trade?
20. How is balance of trade different from balance of payment?
21. Give an introduction of WTO.
22. Give an introduction of SAFTA.
23. Write short notes on:
(a) Kinds of money.
(b) Inflation.
(c) Deflation.
(d) Money market and capital market.
(e) Proportional, progressive and regressive taxes.
(f) Internal borrowing and external borrowing.
(g) Concept of budget.