Published by: sadikshya
Published date: 22 Jun 2021
This is the question set along with answers of Introductory Microeconomics – Fall 2017, which was taken by the Pokhara University.
POKHARA UNIVERSITY – Introductory Microeconomics
Level: Bachelor Semester: Fall Year:2017
Programme: BBA/BBA-BI/BCIS/BHCM/BBA-TT Full Marks: 100
Course: Introductory Microeconomics Pass Marks: 45
Time: 3 hrs
Section “A”
Very Short Answer Questions
Attempt all the questions.
Section B
Descriptive Answer Questions
Attempt any six questions.
11. “Scarcity is the root cause of all the economic problems.” Discuss.
12. What means by consumers equilibrium? Explain consumer’s equilibrium using indifference curve.
13. Consider the following data
No. of labour | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
Total product | 40 | 100 | 180 | 240 | 280 | 300 | 310 | 300 |
a. Compute AP and MP.
b. Graph TP, AP and MP.
c. Explain the relationship between AP and MP.
14. Complete the following table and explain the relationship between AC and MC.
Output | TFC | TVC | TC | AFC | AVC | AC | MC |
0 | 200 | ||||||
1 | 250 | ||||||
2 | 290 | ||||||
3 | 320 | ||||||
4 | 340 | ||||||
5 | 375 | ||||||
6 | 430 | ||||||
7 | 510 | ||||||
8 | 600 |
15. Find the profit-maximizing output and maximizing profit from, cost function, C= 50+6Q2 and price function P= 100-4Q. Also, find MC and MR.
16. Define monopolistic competition. Explain how price and output are determined under it in the short-long run?
17. What is meant by a brain drain? What are its causes and consequences? Explain.
Case Study
Nepal has a long history of tea cultivation. Planting of a tea plant in Illam 150 years ago is considered as the beginning of tea cultivation in Nepal. Scientific development and promotion of tea started after Nepal Tea Development Corporation was established in 1966. Commercial tea cultivation spread to Panchthar, Terathum, Dhankuta and Jhapa districts within decades after starting in the hills of Illam. These five districts were declared tea zone in 1981 due to their huge potential.
Despite the huge production potential, the labour problem is one of the main problems of the tea industry. Frequent strikes lead to a decrease in the production of tea.
Demand for Nepalese tea is increasing not only inside the country but also outside the country. Due to the increasing demand for tea, its price is increasing day-by-day. However, the supply of tea is inelastic because the production of tea can be expanded to other districts like Taplejung, Lalitpur, Kavre, Lamjung, Nuwakot and others.
The whole country can reap benefits if tea cultivation is promoted. It is unfortunate that the government has still not been able to provide adequate facilities and subsidies for tea cultivation despite it being an economically important crop. The Indian government provides grants and subsidies to the tea industry in Darjeeling district adjoining Ilam and Taplejung of Nepal. Many factories in Darjeeling procure tea leaves from Nepal and sell them abroad as their own products. The Indian government has also been providing grants and subsidies for tea cultivation in the state of Assam. Another neighbouring country Sri Lanka, like India, has also been providing facilities to the tea industry. It is necessary for the Nepal government to also give special priority to the tea industry.
Questions: