2020
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 does a Production Possibility Curve
indicates? 1
(b) If an increase in the price of good X
increases the demand for goods Y, then how the two goods are related? 1
(c) Total Variable
Cost (TVC) will be ______ when total product is zero. (Fill in the blank) 1
(d) A firm earns normal profit when
(i) AR > AC
(ii) AR = AC
(iii)
AR < AC
(iv) MR = MC (Choose the correct answer) 1
(e) In a
centrally planned economy, which of the following takes all economic decisions?
(i) Central Bank
(ii) Market
(iii) Government
(iv) Both Government and Central Bank 1
(f) What are
shapes of AR and MR curve for a firm under non-competitive market structure? 1
2. Mention
two reasons that give rise to economic problems. 2
3. What is
budget line? Why does it slope downward? 2
4. If a unit
tax is imposed, how does it impact the short – run supply curve of a firm? Show
with the help of diagram. 2
5. What is
‘break-even point’ of a firm? As which point of the AC curve, a firm under
perfect competition breaks-even? 1 + 1 = 2
6. What does
price elasticity of supply mean? Briefly explain. 2
7. What is a
monopolistic competitive market? 2
8. Discuss
four features of indifference curve. 4
9. Define and
draw average cost and average variable cost curve. Why these two curves can’t touch
each other? 3 + 1 = 4
Or
The Total
Cost (TC) schedule a production unit is given below. Find out TFC, TVC, AC and
MC Quantity produced
TC
0 10
1 40
2 60
3 80
4 95
5 110
6 130
7 160
10. Mention
four differences between perfect competition and monopoly. 4
11.The demand
and supply functions of a commodity is given by
Qd= 100 – 2P
Qs= 2P – 60
Find:
(i)
Equilibrium price
(ii)
Equilibrium quantity 4
Or
Explain with
the help of a diagram, how shifting of the supply curve of a commodity affects
its equilibrium price and output.
12. What do
you understand by returns to a scale? Write the meaning of constant, increasing
and decreasing returns to scale. 1 + 3 = 4
Or
State the
reasons behind the working of the law of diminishing marginal product.
13. State and
explain the law of demand with the help of an imaginary schedule and diagram. 6
Or
Calculate
price elasticity of demand by expenditure method:
(i) If an
increase in price from Rs.10 to Rs.12 per unit lowers quantity demanded from 25
units to 20 units.
(ii) If an
increase in price per unit from Rs.8 to Rs.10 lowers quantity demanded from 20
to 6 units.
(iii) If a
decrease in price from Rs. 12 to Rs.8 per unit increases quantity demanded from
20 to 28 units. 2+2+2=6
14. Define:
(i) Total
Product (TP)
(ii) Average
product (AP)
(iii)
Marginal Product (MP)
Explain the
relation between AP and MP with the help of suitable diagram. 1+1+1+3=6
Or
(i) What is
production function? 1
(ii) What do
you mean by fixed factor and variable factor of production? Give example.2
(iii) The
production function of a firm is given by Q=2L2K2. Find out
the maximum possible output that the firm can produce with 5 units of L and 2
units of K. What is the maximum possible output the firm can provide with zero
(0) units of L and 10 units of K? 3
PART – B
15. (a) What
is the relation between MPC and MPS? 1
(b) What is
investment? 1
(c) What do
you mean by ‘velocity of circulation’ of money? 1
(d) Who is
known as the ‘lender of last resort’? 1
(e) What is
government budget? 1
(f) In which
year GST came into effect in India? 1
16. Define
intermediate good. How intermediate goods are different from capital goods? 1+1=2
17. What is
investment multiplier? If Rs. 200 crore increases in investment increases
income by Rs.800 crore, then what will be the value of investment multiplier? 1+1=2
18. Write the
differences between ex-ante investment and ex-post investment. 2
19. Mention
two points of superiority of Selective Credit Measures over Quantitative Credit
Control Measures. 2
20. Write two
differences between revenue expenditure and capital expenditure. 2
21. What do you mean by devaluation of currency?
How does it affect the import of a country? 1+1=2
22. Define
GDP. Can GDP be used as an index of welfare of a country? Justify your answer. 1+3=4
23. How does
the central bank use its quantitative credit control measures to control
inflationary situation of an economy? 4
24. What is
Deficit Budget? Why a deficit budget is considered beneficial than a surplus
budget for a developing economy? 1+3=4
25. Mention
four differences between Direct taxes and Indirect taxes. 4
26. (i) What is balance of payment? 1
(ii) What are
the two main components of balance of payment? 1
(iii)Write
two differences between balance of payment and balance of trade. 2
Or
Write briefly
about: 2+2=4
(i) Open
Economy
(ii) Exchange
Rate
27. Explain
the procedure of calculating National Income by value-added method. 6
Or
From the data
given below calculate:
(i) GDP at
factor cost
(ii) GNP at
market price
(iii) NNP at
factor cost
(a)
Consumption Expenditure Rs. 2000 crore
(b)
Investment Expenditure Rs. 1200 Crore
(c)
Government Expenditure Rs. 450 crore
(d) Export Rs. 80 crore
(e) Import Rs. 95 crore
(f) Net
factor income from abroad Rs. 60 crore
(g) Indirect
taxes Rs. 90 crore
(h) Subsidies
Rs. 80 crore
(i)
Depreciation :Rs. 30 crore
28. Explain
the process of equilibrium income determination of an economy with the use of aggregate
demand and aggregate supply curves. 6
Or
29. What is
aggregate demand? Discuss the components of aggregate demand.1+5=6
