Unique Paper Code 3091
Revised 0 of 5

Introductory Microeconomics2022–23, paper 3091

BA (Programme) · 8 questions · 10 parts still being checked

Duration: 3 HoursMaximum Marks: 90

Reworded by Kunji from the printed paper. The original paper belongs to the University of Delhi. See DU's question bank.

Before you start

  1. This paper. Attempt any five questions. All questions carry equal marks. Each question here adds up to 15 marks, though the cover prints a maximum of 90.
  2. Most asked here. Supply, demand and market equilibrium (8 papers), Games and strategic interaction (8 papers), Externalities (8 papers). These come back almost every year, so learn them first. The asked N× note beside each part counts the DU papers that set its topic.
  3. Pace. Two minutes a mark: about 30 minutes for each 15-mark question, with nothing spare in 3 hours. Move on when the time is up.
  4. Keep score. Every part opens a worked answer checked against the books. Turn the key when you have revised it; the boxes at the top fill in, on this device.

1.

15 marks
· ~30 min
(a)
What economics is, and its principles in three groupsBeing checked
(10)
(b)Optimization at the margin: comparing the extra benefit with the extra costasked 5×Explain the principle of optimization at the margin. (10,5)(5)

2.

15 marks
· ~30 min
(a)
Consumer and producer surplus, tariffs and quotasBeing checked
(10)
(b)Strategic games, with a fare-setting exampleasked 8×What are strategic games? Explain with an example. (10,5)(5)

3.

15 marks
· ~30 min
(i)
Supply, demand and market equilibriumBeing checked
(5)
(ii)
Supply, demand and market equilibriumBeing checked
(5)
(iii)
Supply, demand and market equilibriumBeing checked
(5)

4.

15 marks
· ~30 min
(a)
Consumer choice: budget line and indifference curvesBeing checked
(8)
(b)
Consumer and producer surplus, tariffs and quotasBeing checked
(7)

5.

15 marks
· ~30 min
(a)The supply curve of a perfectly competitive firm and its shut-down conditionasked 5×Derive the supply curve of a firm operating in a perfectly competitive market. Also explain the shut-down condition.(10)
(b)
Outside the topics the syllabus namesBeing checked
(5)

6.

15 marks
· ~30 min
(a)How market prices share an industry's output among its plants at least costasked 8×Explain how the invisible hand efficiently allocates production within an industry among its different plants.(9)
(b)Why a binding price ceiling or price floor causes a deadweight lossasked 7×Explain how deadweight loss arises in the case of price controls. (9,6)(6)

7.

15 marks
· ~30 min
Tax incidence, deadweight loss and subsidiesBeing checked
(15)

8.

15 marks
· ~30 min
ExternalitiesBeing checked
(15)

— End of the paper —