1. Define an indifference curve. What are its properties? Explain consumer's equilibrium with the help of indifference curves.

2. Discuss the concept of Marginal Propensity to Consume (MPC). How is it related with Multiplier Why does marginal propensity to consume decline with increase in income?

3. Explain the concept of balance of payments. What are its components? Explain why balance of payments always balanced.

4. What do you mean by demand for money Describe different motives for holding money as propounded by Keynes.

5. "In the real life, the conditions of perfect competition rarely exist. In fact, there are various market imperfections that prevail". In the light of this statement, bring out the important features of the most prevalent market structure.

6. Explain how wage rate is determined under marginal productivity theory.

7. Explain the theory of comparative cost advantage.

8. What is National Income? How is national income in India estimated

9. Explain the relationship between average cost and marginal cost. Use suitable diagram for your answer.

10. Explain with the help of diagram the law of variable proportions.

11. Define any three of the following

Say's law

Giffen goods

Iso -cost line

Selling costs