This Paper has 28 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 : | 3each | |
| | | (i) | A pure capitalistic economy is characterised by absence of State intervention in economic activity. | | (0) |
| | | (ii) | As a consumer moves along an indifference curve from left to right, the marginal rate of substitution of Commodity–X for Commodity–Y increases. | | (0) |
| | | (iii) | Two isoquants may intersect each other. | | (0) |
| | | (iv) | Monopolistic competition is characterised by the homogeneity of product. | | (0) |
| | | (v) | Commercial banks have unlimited capacity to create credit. | | (0) |
| | (b) | Distinguish between any two of the following : | 5each | |
| | | (i) | ‘Inferior goods’ and ‘status related goods’. | | (0) |
| | | (ii) | ‘Cardinal approach’ and ‘ordinal approach’ in utility analysis. | | (0) |
| | | (iii) | ‘National income at current prices’ and ‘national income at constant prices’. | | (0) |
| 2. | (a) | When the price of Commodity–X is Rs.20 per unit, its quantity demanded is 50 units; and when the price goes up to Rs.40 per unit, its quantity demanded falls to 25 units. Find the price elasticity coefficient and give its interpretation. | 4 | (0) |
| | (b) | Fill in the blanks in the following table: Agricultural Output with Fixed Land
and Variable Units of Labour | Labour
(Units) | Total Output
(Tonnes) | Average Output
(Tonnes) | Marginal Output
(Tonnes) | 1
2
3
4
5
6
7 | —
—
—
48
—
—
60 | —
10
—
—
11
10
— | 8
—
16
—
—
—
— |
| 3 | (0) |
| | (c) | What is ‘inflationary gap’ ? | 4 | (0) |
| | (d) | Briefly explain the concept of ‘marginal propensity to save’. | 4 | (0) |
| 3. | (a) | What is meant by ‘selling expenses’ in the context of monopolistic competition ? | 3 | (0) |
| | (b) | What are ‘ridge lines’ ? Explain giving a suitable diagram. | 5 | (0) |
| | (c) | What is meant by ‘monopoly’ ? Explain the equilibrium of a monopolist firm in the long run. | 7 | (0) |
| 4. | (a) | Write notes on any two of the following: | 5each | |
| | | (i) | Investment multiplier | | (0) |
| | | (ii) | Demand pull inflation | | (0) |
| | | (iii) | Net barter terms of trade. | | (0) |
| | (b) | What is ‘bank rate’ ? How is it used by the central bank of a country to control credit creation by banks ? | 5 | (0) |
| 5. | (a) | Critically analyse the comparative cost advantage theory of international trade. | 8 | (0) |
| | (b) | What is meant by ‘national income’ ? Can it be taken as a measure of welfare ? Give reasons for your answer. | 7 | (0) |
| PART— B |
(Answer ANY TWO questions from this part.)
|
| 6. | (a) | What is meant by ‘government failure’ ? What are the reasons for government failure ? | 8 | (0) |
| | (b) | How does rapid growth of population create hurdles in economic development ? | 7 | (0) |
| 7. | (a) | Write short notes on the following :
(i) Dualistic nature of Indian economy
(ii) Drawbacks of road transport system in India. | 4each | (0) |
| | (b) | What is meant by ‘economic environment of business’ ? Mention the factors which influence it. | 7 | (0) |
| 8. | (a) | Define ‘subsidy’ | 2 | (0) |
| | (b) | Briefly discuss the financial sector reforms initiated in India in recent years. | 8 | (0) |
| | (c) | “Changing composition of India’s external trade reflects the changing nature of the economy.” Elaborate. | 5 | (0) |
