# 2017 H.S. 2nd Year ECONOMICS Question Paper

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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