Applied Economics 2020

                                               Group B 

 Attempts any SIX questions.                                                                                                                           [6x5=30]

2. Distinguish the concepts of micro-economics and macro-economics.

3. What is demand? Explain its determinants.

4. a) A consumer buys 80 units of a goods at a price of Rs.4 per unit. When the price falls, he    buys 100 units. If the price  elasticity of demand is -1, find out the new price of the goods.

  b) Price elasticity of supply of a good is 5. A producer sells 500 units of this good at Rs.5 per    unit. How much will sell at the price of Rs.6 per unit?

5. 'Price effect is the combination of income and substitution effects.' Describe.

6. Explain the relationships between AR and MR.

7. How price and output are determined under perfect competition market in the long-run?

8. Explain the primary and secondary functions of money.

                                      Group C

 Attempt any TWO questions.                                                                                                                         [2x10=20]

9. Explain the properties of the Indifference Curve.

10. Based on the table given below, answer the questions:

 a) Plot the TFC,TVC and the TC curves.

 b) Explain the reason for the shape of short-run total cost curves.

 c) Calculate the average fixed cost (AFC), the average variable cost (AVC), the average total cost, and the marginal cost (MC).

11. Consider the following data to calculate the following.