2018
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
market economy. 1
(b) What does
a point below the production possibility frontier indicate? 1
(c) What is
meant by inferior goods? 1
(d) What is
an indifference curve? 1
(e) If there
is no change in quantity demanded despite a change in the price of a commodity,
what will be the price elasticity (ep) of demand? 1
(f) What is a
production function? 1
2.
Distinguish between positive economics and negative economics. 2
3. Mention
any two important factors determining price elasticity of demand. 2
4. Suppose,
when the price of a good is Rs. 4, the quantity demanded is 25 units. As price
increases to Rs. 5, the quantity demanded falls to 20 units. Calculate the
price elasticity of demand. 2
5. Can there
be some fixed cost in the long run? Justify your answer. 1+1 = 2
Or
What is
marginal product of an input? 2
6. Write down
the concept of normal profit. 2
7. What is
monopolistic competition? 2
8. What does
the Average Fixed Cost (AFC) curve look like? Why does it look so? 1+3 = 4
Or
What is meant
by Return to Scale? Give the meanings of various stages of Return to Scale. 1+3 = 4
9. What is an
isoquants? Why are the isoquants downward sloping? 2+2 = 4
10. What does
a firm wish to achieve? What three conditions must hold for a profit maximizing
firm in the short-run? 1+3= 4
Or
The
production function of a firm is given as Q = L½.K½ Calculate
the level of output (Q) when it employees 25 units of labour (L) and 9 units of
capital (K). 4
11. Explain
two characteristics of perfectly competitive market. 4
12. Explain
the effects of a rightward shift of demand curve on equilibrium price and
quantity when the number of firms in the market is fixed. Use suitable diagram
for your answer. 4
13. What is
demand curve? Show with the help of suitable diagrams how the market demand
curve can be derived from individual demand curves. 1+5 = 6
Or
Explain
consumer’s optimum with the help of indifference curve approach. 6
14. The short
run Total Cost (TC) schedule of a firm is given below. Calculate the TFC, TVC,
AFC, AVC, AC and MC schedules of the firm. 6
Q
|
TC
|
0
1
2
3
4
5
|
10
30
45
55
70
90
|
Or
Give the
meaning of Total Fixed Cost (TFC) and Total Variable Cost (TVC). Show with the
help of a diagram that Total Cost (TC) is the sum of TFC and TVC. 2+4=6
PART B
15. (a) What
is macroeconomics? 1
(b) What is
autonomous consumption expenditure? 1
(c) Define
excess demand in the context of income and employment determination. 1
(d) What are
public goods? 1
(e) What is
balanced budget? 1
(f) Write
down the meaning of flexible exchange rate.
1
16. What is
GDP Deflator? 2
Or
Define budget
deficit and trade deficit. 2
17. What is
Personal Disposable Income (PDI)? 2
18.
Distinguish between demand deposits and time deposits. 2
19. What is
the difference between Ex-ante investment and W-post investment? 2
20. Mention
any two items of non-plan expenditure of a government budget. 2
21. What is
Balance of Payment (BoP)? Mention two main accounts of BoP. 1+1= 2
22. Suppose
the GDP at market price of a country in a particular year is Rs. 1100 crore.
Net factor income from abroad is Rs. 100 crore. The value of Net Indirect Tax
is Rs. 150 crore nad National Income is Rs. 850 crore. Calculate the aggregate
value of depreciation. 4
23. Define Intermediate
goods, Final goods, Consumption goods and Capital goods. 4
24. Measure
the level of ex-ante aggregate demand when autonomous investment and
consumption expenditure account A is Rs. 50 crore, MPS is 0.2 and level of
income (Y) is Rs. 4000 crore. State whether the economy is in equilibrium or
not (cite reasons). 3+1 = 4
Or
The
autonomous consumption in an economy is Rs. 500 crore and total personal
disposable income is Rs. 5000 crore. If the marginal propensity to consume
(mpc) is 0.8, find out the level of aggregate consumption. 4
25. What is
revenue deficit in a government budget? Explain its implications of revenue
deficit. 1+3=4
26.
Differentiate between devaluation and depreciation of currency. 4
27. Explain
the circular flow of income in a simplified economy with two sectors –
households and firms.6
Or
Write down
some of the limitations of using GDP as in index of welfare of a country. 6
28. What are
the main functions of money? How does money overcome the shortcomings of a
barter system? 2+4 = 6
Or
Briefly
explain any four functions of the RBI. 6
****
