This Paper has

**62**answerable questions with**0**answered.Roll No……… | |

Time allowed : 3 hours | Maximum marks : 100 |

Total number of questions : 8 | Total number of printed pages : 7 |

PART â€” A | |

(Answer Question No.1 which is compulsory and any two of the rest from this part.) |

1. | (a) | State, with reasons in brief, whether the following statements are true or false : | ||||||||||||

(i) | In a capitalist economy, all means of production are exclusively owned by the government. | (0) | ||||||||||||

(ii) | A straight line demand curve has the same elasticity at each point on the curve. | (0) | ||||||||||||

(iii) | Transfer incomes are excluded from the calculation of national income. | (0) | ||||||||||||

(iv) | In the short–run, a firm that is operating at its shutdown point is earning no profit or no loss. | (0) | ||||||||||||

(v) | Depreciation of a currency makes the exports costlier and hence proves inflationary. | (0) | ||||||||||||

(2 marks each) | ||||||||||||||

(b) | Choose the most appropriate answer from the given options in respect of the following : | |||||||||||||

(i) | A consumer will continue to purchase a good until its ––
| (0) | ||||||||||||

(ii) | Quantity theory of money explains the relationship between quantity of money and –
| (0) | ||||||||||||

(iii) | Which one of the following curves is not ‘U’ shaped ––
| (0) | ||||||||||||

(iv) | Which one of the following was not the immediate cause of the 1991 economic crisis ––
| (0) | ||||||||||||

(v) | Which one of the following is not a function of the central bank ––
| (0) | ||||||||||||

(1 mark each) | ||||||||||||||

(c) | What is meant by ‘credit creation’ by the commercial banks ? Illustrate its process. | (0) | ||||||||||||

(5 marks) | ||||||||||||||

2. | (a) | Distinguish between any three of the following : | ||||||||||||

(i) | ‘Value in use’ and ‘value in exchange’. | (0) | ||||||||||||

(ii) | ‘Revenue budget’ and ‘capital budget’. | (0) | ||||||||||||

(iii) | ‘A firm’ and ‘an industry’. | (0) | ||||||||||||

(iv) | ‘Quantitative credit control measures’ and ‘qualitative credit control measures’. | (0) | ||||||||||||

(3 marks each) | ||||||||||||||

(b) | Re–write the following sentences after filling–in the blank spaces with appropriate word(s)/figure(s): | |||||||||||||

(i) | The _________ is defined as that time period over which a firm can vary all factors of production. | (0) | ||||||||||||

(ii) | In the modern economy, most of the production does not take place for ____________. | (0) | ||||||||||||

(iii) | An important reason for migration of population from rural to urban areas has been the comparative lack of _________ in the rural areas. | (0) | ||||||||||||

(iv) | _________ came into existence to overcome the difficulties of the barter system. | (0) | ||||||||||||

(v) | The ___________ is essentially a place where member governments try to sort out trade problems they face with each other. | (0) | ||||||||||||

(vi) | National income estimates do not cover _________ even though they may be adding to national product. | (0) | ||||||||||||

(1 mark each) | ||||||||||||||

3. | (a) | Define ‘market mechanism’. How does it help us to deal with the problem of allocation of resources ? | (0) | |||||||||||

(5 marks) | ||||||||||||||

(b) | What do you mean by the term ‘revenue’? Examine the relationship between average revenue and marginal revenue when a firm is faced with a linear downward sloping demand curve. | (0) | ||||||||||||

(5 marks) | ||||||||||||||

(c) | Discuss the structure of the Indian economy as a mixed economy. | (0) | ||||||||||||

(5 marks) | ||||||||||||||

4. | Attempt any three of the following : | |||||||||||||

(i) | Explain the income effect and substitution effect of a change in the price of a good. | (0) | ||||||||||||

(ii) | "Product differentiation and selling expenses form the foundation of monopolistic competition." Explain. | (0) | ||||||||||||

(iii) | Discuss the major objectives of Five Year Plans in India. | (0) | ||||||||||||

(iv) | Define ‘liquidity’. Discuss the factors which influence liquidity of an asset. | (0) | ||||||||||||

(v) | Discuss briefly the measures taken by the government to bring in structural reforms in Indian economy. | (0) | ||||||||||||

(5 marks each) |

PART â€” B | |

(Answer Question No.5 which is compulsoryand any two of the rest from this part.) |

5. | (a) | State, with reasons in brief, whether the following statements are true or false : | ||||||||||||

(i) | Statistical laws are not exact. | (0) | ||||||||||||

(ii) | Arithmetic mean is very much affected by extreme observations. | (0) | ||||||||||||

(iii) | A distribution having higher value of dispersion is said to be more uniform or consistent. | (0) | ||||||||||||

(iv) | The coefficient of correlation is not independent of origin and scale of measurement. | (0) | ||||||||||||

(v) | Index numbers are the specialised averages. | (0) | ||||||||||||

(2 marka each) | ||||||||||||||

(b) | Choose the most appropriate answer from the given options in respect of the following : | |||||||||||||

(i) | In ancient times, statistics was known as –
| (0) | ||||||||||||

(ii) | Statistical data are of two types. These are –
| (0) | ||||||||||||

(iii) | If the population is shown for each of the States in India, then we have data which are classified –
| (0) | ||||||||||||

(iv) | The difference between the maximum and minimum values in a given set of data is called –
| (0) | ||||||||||||

(v) | In any pie–chart, the sum of central angle is –
| (0) | ||||||||||||

(vi) | The value of the variable which occurs most frequently is called –
| (0) | ||||||||||||

(vii) | Equation Y_{t} = a.b^{t} represents –
| (0) | ||||||||||||

(viii) | Which one of the following measures of central tendency can be used for further mathematical treatment –
| (0) | ||||||||||||

(ix) | Seasonal variations are absent if the time interval between successive observations is –
| (0) | ||||||||||||

(x) | The index number that uses base year quantities as weights is known as –
| (0) | ||||||||||||

(1 mark each) | ||||||||||||||

6. | (a) | Distinguish between any three of the following : | ||||||||||||

(i) | ‘More than cumulative frequency table’ and ‘less than cumulative frequency table’. | (0) | ||||||||||||

(ii) | ‘Simple bar diagram’ and ‘multiple bar diagram’. | (0) | ||||||||||||

(iii) | ‘Linear correlation’ and ‘non–linear correlation’. | (0) | ||||||||||||

(iv) | ‘Time reversal test’ and ‘factor reversal test’. | (0) | ||||||||||||

(3 marks each) | ||||||||||||||

(b) | Re–write the following sentences after filling–in the blank spaces with appropriate word(s)/figure(s) : | |||||||||||||

(i) | _______________ is indispensable for functioning of the State. | (0) | ||||||||||||

(ii) | _________ the size of sample, more accurate results are likely to be. | (0) | ||||||||||||

(iii) | Graphical representation of a time series is known as ___________. | (0) | ||||||||||||

(iv) | The difference between upper and lower limits of a class gives _________ of the class. | (0) | ||||||||||||

(v) | The sum of deviations of the variables from their median, ignoring ‘+’ and ‘–’ sign, is always _________. | (0) | ||||||||||||

(vii) | ___________ is always computed from arithmetic mean. | (0) | ||||||||||||

(1 mark each) | ||||||||||||||

7. | Attempt any three of the following: | |||||||||||||

(i) | Define ‘statistics’ and discuss its importance in business and management. | (0) | ||||||||||||

(5 marks) | ||||||||||||||

(ii) | Define ‘geometric mean’. Point out its merits and demerits. | (0) | ||||||||||||

(5 marks) | ||||||||||||||

(iii) | From the following distribution of marks obtained by students in a certain examination, find the median marks:
| (0) | ||||||||||||

(5 marks) | ||||||||||||||

(iv) | What is ‘Lorenz curve’? What are its uses? | (0) | ||||||||||||

(5 marks) | ||||||||||||||

8. | Attempt any three of the following: | |||||||||||||

(i) | Following information relate to payment of weekly wages to workers in two firms, Firm–A and Firm–B;
Find out — (i) Which firm’s weekly wage bill is higher; and (ii) in which firm payment of wages is more uniform. | (0) | ||||||||||||

(5 marks) | ||||||||||||||

(ii) | "Correlation fails to explain cause and effect relationship between the variables." Comment. | (0) | ||||||||||||

(5 marks) | ||||||||||||||

(iii) | From the following information, calculate correlation coefficient between x and y:
| (0) | ||||||||||||

(5 marks) | ||||||||||||||

(iv) | Calculate the trend values by the method of moving averages, assuming 4–yearly cycle from the following data :
| (0) | ||||||||||||

(5 marks) |