LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034
B.A. DEGREE EXAMINATION –ECONOMICS
SUPPLEMENTARY EXAMINATION – JUNE 2007
EC 2500 - MICRO ECONOMICS - II
Date & Time: 25/06/2007 / 9:00 - 12:00
Dept. No.
Max. : 100 Marks
PART - A
Answer any FIVE questions in about 75 words each.
1.
2.
3.
4.
5.
6.
7.
(5 x 4 = 20 Marks)
What is monopsony? Give an example.
Explain the concept Recardian theory of Rent.
What is insurable and non-insurable risks? Give an example.
Briefly explain the concept of interest.
What do you mean by Gains from Trade?
What is factor price equalization in international trade?
Distinguish between functional and personal distribution of income.
PART - B
Answer any FOUR questions in about 250 words each.
(4 x 10 = 40 Marks)
8. Critically examine the Keynes liquidity preference theory of interest.
9. Explain the wage determination under collective bargaining.
10. Explain the Ricardo’s theory of comparative difference in cost.
11. Explain the case for and against of free trade.
12. Diagrammatically explain the Quasi Rent.
13. Explain the factors determining the gains from trade.
14. Diagrammatically explain the factor price determination under monopoly.
PART - C
Answer any TWO questions in about 900 words each.
(2 x 20 = 40 Marks)
15. Explain the demand and supply factors of perfect competition.
16. Discuss the economic and non-economic factors of trade protection.
17. Elucidate marginal conditions of pareto optimal of social welfare theory.
18. Discuss the Heckscher-Ohlin theory of international trade. To what extent is it superior
to the Classical theory of international values?
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