This Paper has 22 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) | Elasticity of demand for salt is almost zero. | | (0) |
| | | (ii) | Substitution effect is always positive. | | (0) |
| | | (iii) | The average revenue curve of an individual firm under perfect competition is a horizontal straight line. | | (0) |
| | | (iv) | Constant return to scale implies that an increase in the scale in some proportion results into an increase in the output in the same proportion. | | (0) |
| | | (v) | Fixed wage earners suffer both in inflation and deflation. | | (0) |
| | (b) | Differentiate between ‘micro–economics’ and ‘macro–economi’. Are they complementary to each other ? | 10 | (0) |
| 2. | (a) | With the help of suitable schedule and diagram, show the relationship between total, fixed and variable costs in the short–run. | 7 | (0) |
| | (b) | What is meant by ‘perfect competition’ ? State, with reasons, whether it is attainable. | 8 | (0) |
| 3. | (a) | “Discriminating monopoly is profitable, if two markets have different elasticity of demand.” Explain with the help of diagrams. | 7 | (0) |
| | (b) | What is ’national income’ ? Is it a reliable index of economic welfare ? | 8 | (0) |
| 4. | (a) | Give the statement of quantity theory of money. Explain it with the help of Cambridge Equation. | 7 | (0) |
| | (b) | Briefly explain the following : | (i) | Marginal propensity to consume. | | (ii) | Ill–effects of inflation. |
| 4 | (0) |
| 5. | (a) | Discuss the merits and demerits of the Ricardian Theory of comparative advantages. | 7 | (0) |
| | (b) | What is meant by ‘exchange rate’ of currency ? How is its equilibrium rate determined in the market ? | 8 | (0) |
| PART — B |
| (Answer ANY TWO questions from this part.) |
| 6. | (a) | Explain the role of government in infrastructure development. | 7 | (0) |
| | (b) | Discuss the salient elements of business environment of a firm. | 8 | (0) |
| 7. | (a) | Write a detailed note on population growth in India. | 7 | (0) |
| | (b) | What do you mean by ‘mixed economy’ ? Narrate the structure of mixed economy of India. | 8 | (0) |
| 8. | Write notes on any three of the following : | 5each | |
| | (a) | Non–banking finance companies | | (0) |
| | (b) | Financial sector reforms | | (0) |
| | (c) | Government subsidies | | (0) |
| | (d) | Industrial sickness. | | (0) |
