Unit-5

1.
2.
3.
4.
5.

What is Business Cycle? Discuss its phases'. (2011-12)

What is Gross National Product? (2011-12)
Compare economic cycle with business cycle'(2011-12)

How is profit explained in economics? Explain two major theories explaining profit. (2011-12)
Explain the concept of inflation. Elaborate on the reasons leading to high inflation. Also explain how high
inflation can be contained. (2011-12)
6. What is inflation? How does it affect economic growth and employment? (2010-11)
7. Examine critically profit maximization as the objective of business firms. Explain the first and second order
conditions of profit maximization. (2010-11)
8. What do you understand by term inflation? How is it to be measured? (2008-09)
9. Write a brief note on business cycle. (2008-09)
10. What do you understand by National Income? Explain one method of your choice to measure National
Income. (2007-08)
11. Write a brief note on business cycle. (2007-08)
12. Briefly explain the concept of National Income. Also state and explain the methods of the
measurement of national income. (2006-07)
13. What is inflation? What are the causative factors to inflation? (2006-07)
14. What do you understand by GNP? How is it different from NNP and National Income? (2005-06)
15. What are the common characteristics of Business cycle? (2005-06)
16. What method should be used to avoid double counting in the measurement of GNP? (2005-06)
17. What do you understand by Inflation? How inflation affects employment in the economy? (2005-06)

Unit-4
20011-12
1.
2.
3.
4.

Explain Oligopoly Market. How is price rigidity explained in Oligopoly market?

What is pricing strategy?
What is market skimming pricing?
Explain the characteristics of monopoly market' Also elaborate on the phenomenon of price discrimination
in monopoly market'.
5. Explain Perfectly Competitive Market. How are prices determined in this market?

2010-11
6. Define Oligopoly. What is the basic difference between, oligopoly and monopolistic competition? In which
of the two kinds of markets price and output are intermediate?
7. What are the sources of monopoly of a firm? Distinguish' between a franchise monopoly and natural
'monopoly.

8.

Case Study :- (30)

Gagan Pvt. Ltd. was established in 1995. The company started manufacturing of Water Geyser with a brand
name of' Ganga'. During initial 10 years, the company made good profits. But, its profits gradually declined
due to competition from national brands. The promoters of the company had a committed team of workers
who were constantly working on Research and Development. Finally, they came out in the year 2006, with
an innovative procuct, named Maha Ganga which runs even at very low voltage and consumes less
electricity. Thus, the company is monopoly manufacturer of 'Maha Ganga'. The company is currently

supplying its products in geographically separated markets of Punjab and '11' Haryana. The company is
currently charging the same price in Punjab and Haryana. The Chief Economist of the company has
informed the top management that price elasticity of demand at currently-charged price is 3 in Punjab and 5
in Haryana. The top management is planning to charge two different prices in Punjab and Haryana. In order
to make more profits
Questions:
1. Will it be possible for the company to charge two different prices in Punjab and Haryana ? If yes,
under what conditions? Explain.
2. Will it be profitable for the company to charge two different prices in Punjab and Haryana ? Explain.
3. Given the volume of total production, supply will be transferred from Punjab to Haryana or from
Haryana to Punjab. Why?
(Assume that transport cost for supplying the product in Punjab and Haryana is the same for the company.)

2008-09
9. What is kink demand curve? What is the assumption behind such a demand curve?
10. What do you understand by monopolistic competition? How is it different from perfect competition?
11. What is shut down point? Take a suitable example to explain shut down point.

2007-08
12. Differentiate between collusive and non collusive oligopoly.
13. Bring out the point of difference between perfect and imperfect competition.
14. Explain the concept of price discrimination. What are the three degrees of price discrimination?
15. How are the prices determined under perfect competition? Explain with the help of suitable diagrams.

2006-07
16. What are salient features of perfect competition? How is the price policy determined under perfect
competition?
17. State Monopoly and Monopolistic market conditions and trace a line of difference between the two.
18. Enumerate the importance factors governing the pricing decisions.
19. Brief note on oligopoly market.

2005-06
20. Differentiate between market period, short period and long period.
21. Explain firms equilibrium in monopolistic market when that firm is suffering loss.
22. Whether price discrimination justified? Give some example of price discrimination in practice.
23. What are the main features of monopoly and how does it differ from perfect competition?
24. What are main features of perfect competition? How does a firm adjust price policy in perfect competitive
market?
25. What is monopoly? State the factors that give rise to monopoly.
26. Brief note on pricing under oligopoly.