1. What do you understand by factors of production? Briefly explain each of the four main factors. (20)

2. Diagrammatically explain concepts of income effect, substitution effect and price effect. Also show the manner in which price effect can be split up into income and substitution effects. (20)

3. Explain the significance of ‘movement along the supply curve’ as distinguished from ‘shift of the supply curve.’ (20)

4. What is monopoly? How does its concept differ from that of perfect competition? (20)

5. Write short notes on the following :

(a) Concept of Equilibrium

(b) Ricardian theory of rent

(c) Full cost pricing principle

(d) Isoquant (4×5)