This Paper has 26 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, whether the following statements are true or false : | 3each | |
| | | (i) | Micro–economics and macro-economics analyse the same economic aggregates. | | (0) |
| | | (ii) | A firm under perfect competition is a price–taker. | | (0) |
| | | (iii) | GNP is always less than GDP. | | (0) |
| | | (iv) | Commercial banks have more liquidity when the CRR is raised by the central bank. | | (0) |
| | | (v) | There exists an inverse relationship between the multiplier and the MPS. | | (0) |
| | (b) | Distinguish between any two of the following : | 5each | |
| | | (i) | 'Positive science' and 'normative science', | | (0) |
| | | (ii) | 'External economies' and 'internal economies'. | | (0) |
| | | (iii) | 'Income effect' and 'substitution effect' with the help of indifference curves. | | (0) |
| 2. | (a) | Define ‘consumer equilibrium’. Determine this concept using the equi–marginal principle. | 5 | (0) |
| | (b) | Calculate the marginal rate of technical substitution of Y for X from the following table : Combination
A
B
C
D
E | Factor–X
1
2
3
4
5 | Factor–Y
12
8
5
3
2 |
| 2 | (0) |
| | (c) | Distinguish between ‘expansion in demand’ and ‘contraction in demand’ with the help of suitable diagrams. | 4 | (0) |
| | (d) | Explain the concept of ‘stagflation’. | 4 | (0) |
| 3. | (a) | Explain the relationship between ‘short–run average cost curves’ and ‘long–run average cost curves’. | 3 | (0) |
| | (b) | Describe in brief the different components of the domestic factor income. | 5 | (0) |
| | (c) | What are the three types of price discrimination followed by monopoly firms ? Discuss. | 7 | (0) |
| 4. | (a) | “Inflation in small doses is desirable. But, if it is left uncontrolled, it will eat in to the very fabric of an economic system.” Do you agree ? Substantiate your answer. | 7 | (0) |
| | (b) | Critically examine the ‘quantity theory of money’. | 8 | (0) |
| 5. | (a) | Distinguish between ‘autonomous investment’ and induced investment&rsquo. Explain the determinants of investment in an economy. | 7 | (0) |
| | (b) | Explain and evaluate in brief the Ricardian theory of comparative cost advantage. | 8 | (0) |
| PART— B |
(Answer ANY TWO questions from this part.)
|
| 6. | (a) | Analyse the importance of the market structure in the business environment of a firm. | 7 | (0) |
| | (b) | What do you mean by ‘business environment’ ? What are its different components ? | 8 | (0) |
| 7. | (a) | “India is a poor, but developing economy.” Substantiate this claim by considering the features of Indian economy. | 7 | (0) |
| | (b) | Analyse the changes in the composition and direction of India’s foreign trade since independence. | 8 | (0) |
| 8. | (a) | “An efficient system of transport forms the core of the infrastructure of an economy.” Comment on this statement in the Indian context. | 7 | (0) |
| | (b) | Write short notes on the following : | 4each | |
| | | (i) | Indian financial system | | (0) |
| | | (ii) | Current industrial policy. | | (0) |
