2017
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) Define
service. 1
(b) Fill in the blank:
The
allocation of _____of resources and distribution of the final goods and
services are the central problems of any economy. 1
(c) What is a
demand function? 1
(d) What
happens to total product when marginal product is zero? 1
(e) What does
a vertical supply curve imply? 1
(f) Why is
Average Total Cost (ATC) greater than Average Variable Cost (AVC)? 1
2. State the
meaning of microeconomics and macro economics. 2
3. Why does a
budget line slope downward? 2
4. If the
total utilities of 4 and 5 units of a commodity for a consumer are 56 and 60
respectively, calculate the marginal utility of 4 units of it for him. 2
5. State any
two exceptions of the law of demand. 2
6. Define the
term ‘Long-run’ as used in production. 2
7. State any
two assumptions of the law of variable proportions. 2
8. Distinguish
between supply and stock. 4
Or
Explain
briefly any four factors affecting supply of a commodity. 4
9. Explain
the law of supply with the help of a supply schedule. 4
10. State the
relationship between average cost (AC) and marginal cost (MC) using diagram. 4
11. State the
distinction between explicit cost and implicit cost. Give one example of each
of them. 2+2=4
12. Write
down three characteristics of monopolistic competition. State whether the
output produced by a firm under such a market is higher/lower than or equal to
that of a firm under perfect competition. 3+1
= 4
Or
“Monopoly
firm is a price maker” – Explain. 4
13. Explain
the two basic conditions of consumers’ equilibrium assuming that the consumer consumes
only two goods. 6
Or
Explain the
concepts of change in quantity demanded and change in demand using suitable diagrams.6
14. The
demand and supply functions of a firm under perfectly competitive market are
given below-
Qd=200-2p and
Qs=-100+3P
Find: (i)
The equilibrium price and output
(ii) If due
to increased cost, the supply function becomes Qs=-200 + 3P, what will be the changes equilibrium
Price and Output. 3+3 = 6
Or
The Total
Cost (TC) and price (P) at different units of output of a monopolist are given
below:
(i) Find out
the total revenue (TR), marginal revenue (MR) and marginal cost (MC) schedules.
(ii) Find out
the equilibrium quantity of output (Q). (1+2+3)+1=6
Q TC P
1 20 15
2 35 14
3 45 13
4 51 12
5 58 11
6 66 10
7 76 9
8 88 8
PART
– B
15.(a) What
is the alternative name of macroeconomics? 1
(b) What is the significance of the 45⁰ line
in Keynesian income determination model? 1
(c) What is the value of MPC when MPS is zero?
1
(d) What is foreign exchange rate? 1
(e) What is meant by appreciation of the
currency of a country? 1
(f) What is
invisible trade? 1
16. Give any
two examples of macroeconomic variable. 2
17. State the
concept of depreciation in the context of national income accounting. 2
18. If the
marginal propensity to save (s) of an economy is 0.3, find out the value of the
income multiplier. 2
19. State any
two measures of fiscal policy to correct the problem of excess demand in an economy.2
20. Give the
concept of full employment equilibrium. 2
21. What is
deficit financing? 2
22. What are
the four factors of production? Write down the name of the remuneration to each
of them. 2+2=4
23. Explain
any four causes of disequilibrium in BOP. 4
Or
Distinguish
between factor income and transfer income. 4
24.It is
planned to increase national income by Rs. 1000 crore in an economy. How much
increase in investment is required to achieve this goal if MPC = 0.6? 4
25. What is
the meaning of government budget? Distinguish between revenue receipts and
capital receipts. 1+3 =4
26. Point out
two merits and two demerits of indirect tax. 2+2=4
27. Explain
the income method of calculating GDP. 6
Or
Explain the
relationship between investment multiplier and MPC. 6
28.Briefly
explain any four functions of a commercial bank. 6
Or
Describe the
speculative demand for money. 6
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