This Paper has 29 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.)
|
| Marks |
| 1. | (a) | State, with reasons in brief, whether the following statements are true or false: | 5each | |
| | | (i) | When two goods are substitutes for one another, their demand has negative cross–elasticity | | (0) |
| | | (ii) | Production function is a tool of analysis used to explain the cost–revenue relationship | | (0) |
| | | (iii) | In demand–pull inflation, aggregate supply of goods exceeds their demand. | | (0) |
| | | (iv) | A surplus in balance of trade necessarily implies a surplus in the current account of balance of payments of an economy | | (0) |
| | | (v) | The welfare of people increases with the increase in ‘Gross National Product’ (GNP). | | (0) |
| | (b) | Distinguish between any two of the following : | 5each | |
| | | (i) | ‘Credit card’ and ‘debit card’. | | (0) |
| | | (ii) | ‘Demand deposits of banks’ and ‘time deposits of banks’. | | (0) |
| | | (iii) | ‘Returns to a factor’ and ‘returns to scale’. | | (0) |
| 2. | (a) | “The quantity demanded of a commodity increases with a fall in price and diminishes with a rise in price.” Discuss. | 6 | (0) |
| | (b) | Compute 'marginal rate of technical substitution' (MRTS) oflabour (L) for capital (K) from the following table : | Combination | Units of Capital
(K) | Units of Labour
(L) | Output of Goods–X
(Units) | 1
2
3
4
5 | 2
3
5
8
12 | 50
45
40
35
30 | 400
400
400
400
400 |
| 5 | (0) |
| | (c) | When the income of a consumer is Rs. 40, his demand for a particular commodity is 8 units. When his income goes upto Rs. 50, his demand for that commodity becomes 10 units. Calculate his income elasticity of demand for the commodity | 4 | (0) |
| 3. | (a) | “Theoretically, it is ideal to have a mixed economy. However, it suffers from several drawbacks.” Critically evaluate this statement. | 6 | (0) |
| | (b) | “Marginal cost being equal to marginal revenue (MC=MR) is only a ‘necessary’ condition for attaining an equilibrium of a firm under perfect competition. However, it is not ‘sufficient’ for profit maximisation.” Explain the statement with the help of diagram(s). | 5 | (0) |
| | (c) | Explain the concept of ‘diseconomies of scale’ | 4 | (0) |
| 4. | (a) | What are the main difficulties in estimating ‘national income’ of a country? Explain. | 6 | (0) |
| | (b) | How do commercial banks affect the supply of money? | 5 | (0) |
| | (c) | Calculate GNPFCNNPFC and NDPFC with the help of following information: | | Rs. | | (i) | GNP at market price | 35,000 crore | | (ii) | Net indirect taxes | 4,000 crore | | (iii) | Consumption of fixed capital | 1,800 crore | | (iv) | Net factor income from abroad | 200 crore |
| 4 | (0) |
| 5. | (a) | Briefly review the concept of ‘investment multiplier’. Point out three kinds of leakages in investment multiplier. | 6 | (0) |
| | (b) | What is the difference between ‘balance of trade’ and ‘balance of payments’? State briefly the factors that cause dis–equilibrium in balance of payments. | 5 | (0) |
| | (c) | Discuss the factors that determine the consumption function. | 4 | (0) |
| PART—B |
(Answer ANY TWO questions from this part.)
|
| 6. | (a) | Write short notes on any two of the following : | 4each | |
| | | (i) | Laissez faire policy. | | (0) |
| | | (ii) | Technological environment. | | (0) |
| | | (iii) | Role of external trade in business environment. | | (0) |
| | (b) | Discuss the quality of life of Indian population. In what way is this related to its size and employment level? | 7 | (0) |
| 7. | (a) | “Infrastructure framework constitutes the foundation of modern economic growth.” Explain. | 8 | (0) |
| | (b) | “India suffers from several serious problems like those of regional disparities.” Discuss. | 7 | (0) |
| 8. | (a) | What is meant by ‘financial system’ of an economy? Discuss the major components of a financial system. | 5 | (0) |
| | (b) | Discuss the salient features of Indian tax system. | 5 | (0) |
| | (c) | Explain the concept of ‘non–banking financial companies’ (NBFCs) | 5 | (0) |
