This Paper has 42 answerable questions with 0 answered.
Roll No………………… | |
Time allowed : 3 hours | Maximum marks : 100 |
Total number of questions : 8 | Total number of printed pages : 2 |
PART —A |
(Answer Question No.1 which is compulsory and any three of the rest from this part.)
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Marks |
1. | (a) | State, with reasons in brief, whether the following statements are correct or incorrect. Attempt any five : | 3each | |
| | (i) | The study of economic phenomenon at the aggregate level is termed as macro economics. | | (0) |
| | (ii) | An increase in Cash Reserve Ratio (CRR) for banks can increase their capacity of credit creation. | | (0) |
| | (iii) | The cross–elasticity of demand is positive in case of substitute goods. | | (0) |
| | (iv) | There can be a surplus in ‘balance of payments’ even when the ‘balance of trade’ is negative. | | (0) |
| | (v) | An individual firm under perfect competition has full control over price | | (0) |
| | (vi) | Banks are not merely purveyors of money, but in an important sense, manufacturers of money. | | (0) |
| | (vii) | The external value of a nation’s currency is determined by its purchasing power in the domestic market. | | (0) |
| (b) | Comment on any two of the following : | 5each | |
| | (i) | Firm and industry are identical under monopoly. | | (0) |
| | (ii) | All capital is wealth, but all wealth is not capital. | | (0) |
| | (iii) | ‘Economic development’ is a wider concept than ‘economic growth’. | | (0) |
| | (iv) | Expansion of demand does not mean the same thing as increase in demand. | | (0) |
2. | (a) | State the facts on which Robbins’ definition of economics is based. | 3 | (0) |
| (b) | Briefly state the exceptions to the ‘law of demand’. | 3 | (0) |
| (c) | A consumer spends Rs.80 on a commodity when its price is Re.1 per unit and spends Rs.96 when the price is Rs.2 per unit. Calculate the price elasticity coefficient of demand for the commodity. | 3 | (0) |
| (d) | Re–write any six of the following sentences after filling–up the blank space with appropriate word(s)so as to convey the correct meaning : | 1each | |
| | (i) | The _____________ sector has the highest share in India’s national income. | | (0) |
| | (ii) | ______________ credit control measures control the direction of credit. | | (0) |
| | (iii) | Land, labour, capital and __________ are the major factors of production. | | (0) |
| | (iv) | Indifference curves are _______ to origin. | | (0) |
| | (v) | Commercial banks do not possess __________ capacity of credit creation. | | (0) |
| | (vi) | Product differentiation and selling costs are the most important features of________________. | | (0) |
| | (vii) | Marginal cost is the addition to total cost on account of the production of an ______________ unit. | | (0) |
| | (viii) | Better transport and banking facilities in the industrial area will come under _______________ economies. | | (0) |
3. | (a) | State the factors that may cause a shift in an iso–cost line. | 3 | (0) |
| (b) | What do you mean by ‘returns to scale’ ? How do these affect the total cost curve of a firm ? | 6 | (0) |
| (c) | Define ‘national income’. Will an increase in national income result in a corresponding increase in economic welfare of the society ? Give reasons in support of your answer. | 6 | (0) |
4. | (a) | Two demand schedules (D1 and D2) of an individual for Commodity–X are given below : Price | D1 | D2 | (Rs.) | (Units) | (Units) | 6 5 4 3 2 | 18 20 24 30 40 | 38 40 46 55 70 |
D1 is the initial schedule and D2 has resulted from an increase in the money income while other things are constant. (i) | What would happen if the price of Commodity X fell from Rs.5 to Rs.3 before the income of the individual rose ? | (ii) | At the unchanged price of Rs.5, what happens when the individual’s income rose? | | 4each | (0) |
| OR | | |
| | “Under price discrimination, a monopolist will charge higher price in the market having less elastic demand.” Explain with suitable diagram. | 8 | (0) |
| (b) | What do you understand by ‘marginal propensity to consume’ ? What role does it play in Keynesian consumption function ? | 7 | (0) |
5. | (a) | In Fisher’s Quantity Theory of money — P = | | State what these symbols stand for? | | 2 | (0) |
| (b) | Mention the monetary measures to control inflation. | 5 | (0) |
| (c) | Define ‘devaluation’. Point out its limitations as a tool of making balance of payments favourable. | 8 | (0) |
PART — B |
(Answer ANY TWO questions from this part.)
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6. | (a) | What is meant by ‘technological environment’ ? | 2 | (0) |
| (b) | “It is wrong to assume that an unregulated market is always competitive.” Explain. | 5 | (0) |
| (c) | Why is Indian economy known as a ‘mixed economy’ ? | 8 | (0) |
7. | (a) | What is meant by ‘disguised unemployment’ ? | 2 | (0) |
| (b) | Discuss the problem of income inequalities in India. | 5 | (0) |
| (c) | “A rapid increase of population creates hurdles in the economic development of India.” Do you agree with this statement ? Give reasons in support of your answer. | 8 | (0) |
8. | Write notes on any three of the following : | 5each | |
| (i) | National Bank for Agriculture and Rural Development (NABARD) | | (0) |
| (ii) | Non–Banking Finance Companies (NBFCs) | | (0) |
| (iii) | Components of tertiary sector in India | | (0) |
| (iv) | Features of Indian tax system | | (0) |
| (v) | Securities Exchange Board of India (SEBI). | | (0) |