2015
ECONOMICS
Full Marks:
100
Pass Marks:
30
Time: Three
hours
The figures
in the margin indicate full marks for the questions.
PART – A
Q. No. 1
(a-f) carries mark each 1 X 6 = 6
Q. No. 2-7
carries 2 marks each 2 X 6 = 12
Q. No. 8-12
carries 4 marks each 4 X 5 = 20
Q. No. 13
& 14 carries 6 marks each 6 X 2 =
12
Total = 50
PART – B
Q. No. 15
(a-f) carries 1 mark each 1 X 6 = 6
Q. No. 16-21
carries 2 marks each 2 X 6 = 12
Q. No. 22-26
carries 4 marks each 4 X 5 = 20
Q. No. 27
& 28 carries 6 marks each 6 X 2 =
12
Total = 50
Total (Part A
& B): 50 + 50 = 100
PART A
1. (a) Fill
in the blanks:
In economics,
it is generally assumed that the consumer is a ____ individual. 1
(b) Define
substitute goods. 1
(c) Define
inferior goods. 1
(d) In which
form of market, products are homogeneous? 1
(e) What is
the shape of supply curve in the market period? 1
(f) what is
meant by equilibrium price? 1
2. Give the
concept of centrally planned economy. 2
3.
Distinguish between positive economics and normative economics. 2
4. Draw a
vertical demand curve and state the nature of price elasticity on it. 2
5. State any
two assumptions of the law of demand. 2
6. What is
shut down point of a firm? 2
7. Total
fixed cost of a firm is Rs. 100 when it produces 15 units of output. If the
level of output increases to 30 units, what will be the fixed cost in the
short-run? Given reasons for your answer. 2
8.
Distinguish between change in quantity supplied and change in supply. 4
9. Write down
four characteristics of perfectly competitive market. 4
10. Explain
with the help of a diagram how the shifting of the demand curve for a commodity
affects the equilibrium price and output. 4
Or
What is
change in demand? State any three factors that can cause shift in the demand
curve. 4
11. State the
law of diminishing returns. State the reason behind the law. 1+3 = 4
Or
Explain the
relationship between Marginal Product (MP) and Total Product (TP) of an input. 4
12. Distinguish
between explicit cost and implicit cost. Give one example of each of them. 2+2 = 4
13. Explain
with the help of a diagram why at consumer’s optimum point the budget line
should be tangent to an indifference curve. 6
Or
Explain the
conditions for profit maximization of a firm. 6
14. Show with
the help of a diagram how the market demand curve can be derived from
individual demand curves. 6
Or
Explain the
relation among TR, AR and MR of a monopolist with the help of a hypothetical
table and a diagram. 6
PART B
15. (a) What
is macroeconomics? 1
(b) What is
circular flow of income? 1
(c) Define
intermediate goods. 1
(d) What is
velocity of circulation of money? 1
(e) “The
speculative demand for money is _____ (directly/inversely) related to the
market rate of interest.” (Fill in the blank by choosing the correct word from
the bracket.) 1
(f) What is
foreign exchange rate? 1
16. Explain
the concept of depreciation in the context of national income accounting. 2
17. If the
marginal propensity to consumer (c) of an economy is 0.9, find out the value of
the income multiplier. 2
18.
Distinguish between consumption goods and capital goods. 2
19. Explain
the significance of revenue deficit. 2
20. Define
private goods and public goods. 2
21. State two
merits of fixed exchange rate. 2
22. What do
you understand by the problem of double counting? Explain the need for avoiding
double counting in the estimation of national income. 2+2 = 4
23. It is
planned to make a new investment of Rs. 1000 crore in a economy. How much will
be the increase in National Income if MPS is 0.4? 4
24. What is
investment? Distinguish between gross investment and net investment. 2+2 = 4
25. Explain
two functions operated through government revenue and expenditure measures. 4
26. Explain
the concepts of autonomous and accommodating transactions of balance of
payments. 4
Or
What do you
mean by disequilibrium in balance of payment (BOP)? Mention any two causes of adverse BOP of a
country. 4
27. From the
following data, find out personal income and personal disposable income. 4+2 = 6
Rs. In
crore
|
|
NDP at
factor cost
Net factor
income from abroad
Undistributed
profit
Corporate
tax
Interest
received by household
Interest
paid by household
Transfer
income
Personal
tax
|
9000
150
500
600
1200
1000
400
600
|
Or
Explain the
income method of calculating GDP. 6
28. Briefly
explain any four functions of a commercial bank. 6
Or
Explain three
instruments of credit control used by the central bank. 6
***
