B.COM DCM 1102 ECONOMIC THEORY

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B.COM DCM 1102 ECONOMIC THEORY
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SESSION JULY-AUGUST 2024
PROGRAM BACHELOR OF COMMERCE (B.COM)
SEMESTER I
COURSE CODE & NAME DCM1102 ECONOMIC THEORY
   
   

 

 

Assignment Set – 1

 

  1. Elaborate Micro and Macro Economics, with suitable example. Also discuss the methods of economics.

Ans 1.

Micro and Macro Economics

Economics is a social science that studies how individuals, organizations, and societies allocate scarce resources to fulfill unlimited wants and needs. It is broadly categorized into two primary branches: microeconomics and macroeconomics. Each branch focuses on different levels of

 

 

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  1. Define Cost. Throw light upon cost in short-run and long-run.

Ans 2.

Definition of Cost

Cost refers to the value of resources used in the production of goods and services. It represents the monetary or non-monetary expenditure required to produce a specific output. Costs can be explicit, involving direct monetary payments (e.g., wages and raw materials), or implicit, representing

 

 

  1. Define demand. Discuss different types of elasticity of demand. 2+8

Ans 3.

Definition of Demand

Demand refers to the quantity of a good or service that consumers are willing and able to purchase at various prices over a specific period. It is not merely a desire for a product but is backed by the consumer’s purchasing power. Demand is influenced by factors such as price, income, consumer preferences, and the prices of related goods. For instance, the demand for apples increases when their price decreases, provided all other factors remain constant. This behavior is explained by the

 

 

Assignment Set – 2

 

 

  1. Elucidate interest with its different types. Explain the Fisher’s Time Preference Theory of interest.

Ans 4.

Definition of Interest

Interest is the cost of borrowing money or the return on investment for lending funds. It represents the compensation paid by the borrower to the lender for using the latter’s funds. In economic terms, interest is the price of capital, reflecting its value over time. For instance, a person

 

  1. Examine the main differences in between perfect and imperfect competition, as forms of market structures.

Ans 5.

Introduction to Market Structures

Market structures refer to the characteristics and organization of markets that influence the behavior of buyers and sellers, pricing mechanisms, and competition levels. Two broad categories of market structures are perfect competition and imperfect competition. These structures differ in terms of

 

 

  1. Analyze the Marginal productivity Theory of Wage Determination.

Ans 6.

Introduction to Wage Determination

Wages are the payments made to labor for their contribution to the production process. Several theories explain wage determination, one of the most notable being the Marginal Productivity Theory. This theory links wages to the productivity of labor, emphasizing the value of an additional unit of

 

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