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) What
is mixed economy? 1
(b) What is
opportunity cost? 1
(c) Give one
example of complementary goods. 1
(d) Fill in
the blanks: 1
AC = AVC +
____
(e) What does
the Average Fixed Cost (AFC) curve look like? 1
(f) Give an
example of variable cost. 1
2. Mention
two central problems of an economy. 2
3. Mention
any two determinants of market demand. 2
4. The total
money income of a consumer is M and he spends his entire money income on the
consumption of two commodities, viz. X and Y. The price of X and Y are Px and Py respectively. State the equation of his budget
line. 2
5. What is
marginal rate of substitution? 2
6. Mention
two determinants of the supply curve of a firm. 2
7. Explain
the relation between market price and marginal revenue of a price taking firm. 2
8. If the
total product with 5 units of a variable factor is 55, calculate the average
product of it. If the factor is increased by 1 more unit as a result of which
the total product becomes 60, what will be marginal product? 4
Or
Explain the
conditions for equilibrium of a firm. 4
9. What is
meant by Returns to scale? Explain the various returns to scale. 1+3 = 4
Or
Distinguish
between returns to factor and returns to scale. 4
10. The
production function of a firm is given as Q = 2 L½.K½ calculate the level of output when it employs
25 units of labour (L) and 16 units of Capital (K). 4
11. The
marginal revenue (MR) schedule of a production unit is given below. Calculate
the total revenue (TR) and the average revenue (AR) schedules.
Q
|
MR
|
1
2
3
4
5
6
|
21
19
17
11
7
3
|
12. Write
down four characteristics of monopoly market. 4
13. State and
explain the law of demand with the help of a demand schedule and a diagram. 6
Or
Explain the
concept of market equilibrium with the help of a demand and supply curves. 6
14. What is
price elasticity of demand? Explain briefly any two factors determining price
elasticity of demand for goods. 2+4 = 6
Or
Explain the
implications of the features, “Product differentiation” and “Selling Costs”
under monopolistic competition. 3 +3 = 6
PART B
15. (a) What
constitute fiat money? 1
(b) Define
involuntary unemployment. 1
(c) What is
aggregate supply? 1
(d) What is
National Income? 1
(e) Why is
post office not considered as bank? 1
(f) Give one
example of accommodating capital flow. 1
16. Suppose
the Net National Product at market price (NNPMP) of a country is Rs. 1600
crore. If the total indirect tax is Rs. 100 crore and the total amount of
subsidy paid by the government is Rs. 80 crore, find out the National Income of
the country. 2
17. What do
you understand by the problem of double counting in the context of a
measurement of National Income? 2
18.
Distinguish between induced investment and autonomous investment. 2
19. Name two
sources of non-tax revenue. 2
20. Mention
two main items of non-plan expenditure of a government budget. 2
21. What is
devaluation of currency? 2
22. Define
personal income and private income and distinguish between them. 2+2 = 4
23. If
National Income in an economy increases by Rs. 1000 crore as a result of a new
investment (△I) of Rs. 200 crore, find out the values of (i) MPC, and (ii)
Multiplier (K). 2+2 =4
24. Explain
the relationship between marginal propensity to consume (MPC) and marginal
propensity to save (MPS). 4
25. What is
meant by revenue deficit? Explain three implications of revenue deficit. 1+3 =
4
Or
What are the
basic objectives of a government budget? Explain them briefly. 4
26.
Distinguish between Balance of Trade (BOT) and Balance Of Payment (BOP). 4
Or
Differentiate
between fixed and flexible exchange rates. 4
27. Explain
the Precautions needed to be taken while calculating National Income by
expenditure method. 6
Or
Explain the
circular flow of income in a simplified economy with two sectors – households
and firms.6
28. Briefly
explain any four functions of money. 6
Or
Briefly
explain any four functions of the RBI. 6
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