Question 1

Distinguish between price elasticity of demand and income elasticity of demand. How will you judge the quality of a good on the basis of value of income elasticity of demand? The demand curve and the supply curve of the product is given as under: Qd=300-2P+4I Qs=3P-50 Where I is the average income m

Accepted Answer

Answer available — download the full PDF for complete details.

Question 2

What do you understand by the term ‘Equilibrium in real market and money market'? Is it possible to integrate both the markets in a way both the markets are in equilibrium? Discuss with diagram the techniques through which such an equilibrium can be attained.

Accepted Answer

In economics, understanding equilibrium across different markets is crucial. The term 'Equilibrium in real market and money market' refers to the specific conditions under which the supply and demand forces balance within the goods and services sector (real market) and the financial assets sector (money market) respectively. These two markets are interdependent, and their simultaneous equilibrium is a cornerstone of macroeconomic analysis, often illustrated by the IS-LM model, which is typically

Question 3

Distinguish between laws of variable proportions and returns to scale. Why does law of diminishing returns operate?

Accepted Answer

The Laws of Variable Proportions and Returns to Scale are fundamental concepts in production theory, differing primarily in their time horizons and how inputs are varied.

**Law of Variable Proportions (Simulated from EEC-11 PDF, Unit 7, Sec 7.2):**
This law operates in the short run, where at least one factor of production is fixed, and others are variable. It states that as successive units of a variable input (e.g., labor) are added to a fixed input (e.g., land or capital), the total output w

Question 4

State the difference between variable cost and fixed cost. Explain the reasons for U shaped short run average cost curve.

Accepted Answer

Fixed costs (FC) are expenses that do not change with the level of output produced in the short run. These costs are incurred even if production is zero, such as rent for factory premises, insurance premiums, or salaries of permanent administrative staff. They represent the cost of fixed factors of production.

Variable costs (VC), conversely, are expenses that vary directly with the level of output. As production increases, variable costs increase, and they are zero if no output is produced. Ex

Question 5

Distinguish between monopoly and monopolistic competition. How does monopolistic competitive firm decide its price and output in short run period.

Accepted Answer

Monopoly and monopolistic competition are distinct market structures differentiated by several key characteristics. A monopoly is defined by a single seller in the market offering a unique product with no close substitutes, safeguarded by extremely high barriers to entry. This sole firm exercises substantial control over its price, facing a relatively inelastic, downward-sloping demand curve, and can sustain supernormal profits in the long run due to lack of competition.

In contrast, monopolist

Question 6

Do you think that demand for labour is essentially derived in nature? Why does individual labour supply curve is backward bending?

Accepted Answer

Yes, the demand for labour is essentially derived in nature. This means that the demand for labour is not an end in itself, but rather it is derived from the demand for the goods or services that labour helps to produce. Firms demand labour because it is a factor of production essential for creating goods or services that consumers want.

For instance, if there is a high demand for cars, then there will be a high demand for car manufacturing workers, engineers, and designers. If the demand for c

Question 7

Distinguish between any four of the following:

Accepted Answer

This response distinguishes between five key economic concepts as requested. Each distinction is elaborated within a 100-word limit, providing clarity on their core differences and significance in economic analysis. The pairs discussed include private income versus personal income, economic growth versus economic development, direct versus indirect taxes, positive versus normative economics, and economic law versus economic theory, covering fundamental aspects of macroeconomics and economic meth

Question 8

Explain any four of the followings:

Accepted Answer

This answer explains five key concepts in Fundamentals of Economics (EEC-11) as requested. Each explanation focuses on definitions, core characteristics, and implications within the economic framework, adhering to the specified word limits per sub-question.

EEC-11 Solved Assignment — January 2026 / July 2025

FUNDAMENTALS OF ECONOMICS | IGNOU BA CHELORS DEGREE PROGRAMME (BDP)

EEC-11—January 2026 / July 2025

FUNDAMENTALS OF ECONOMICS

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EEC-11 Assignment Questions — January 2026

Q2. What do you understand by the term ‘Equilibrium in real market and money market'? Is it possible to integrate both the markets in a way both the markets are in equilibrium? Discuss with diagram the techniques through which such an equilibrium can be attained.

Q3. Distinguish between laws of variable proportions and returns to scale. Why does law of diminishing returns operate?

Q4. State the difference between variable cost and fixed cost. Explain the reasons for U shaped short run average cost curve.

Q5. Distinguish between monopoly and monopolistic competition. How does monopolistic competitive firm decide its price and output in short run period.

Q6. Do you think that demand for labour is essentially derived in nature? Why does individual labour supply curve is backward bending?

Q7. Distinguish between any four of the following:

Q8. Explain any four of the followings:

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