BBA Second Semester
Old Question Paper
Year: 2005 | Semester : Spring
Exam 2005 Spring
1. a. What are the economic resources? What are the problems of scarcity that the society faces? 
b. What is quantity demanded. Why do most demand curve slope downwards to the right? 
2. Discuss the equilibrium of a consumer with the help of indifference curve technique? Draw price consumption curve for a normal good. Derive demand curve with the help of price consumption curve. 
3. What is the price elasticity of demand? Compute price elasticity of demand of oranges on the following observations: 
Quality demanded Price
|In 2001 AD||2000 tons per week||Rs. 20 per kg|
|In 2001 AD||1500 tons per week||Rs. 30 per kg|
What is the nature of the demand for oranges at this point?
4. Explain the law of variable proportion. Clearly interpret the three stages of production with the help of diagram. Distinguish between law of variable proportion and return to scale. 
5. Describe the three attributes of monopolistic competition with examples. How is monopolistic competition like monopoly? How it like perfect competition? 
6. Clearly define average fixed cost, average variable cost, average cost, and marginal cost. Discuss the relationship with the help of diagrams. 
7. Write short notes on: 
a. How is firm’s production function related to its marginal product of labour?
b. Explain how a firm’s value of marginal product is related to its demand for labour.