This Paper has 31 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) | The cross elasticity of demand is negative in case of substitute goods. | | (0) |
| | | (ii) | Under monopoly, marginal revenue is equal to average revenue. | | (0) |
| | | (iii) | Average fixed cost curve is a horizontal straight line indicating that the average fixed cost remains the same at all levels of output. | | (0) |
| | | (iv) | Fixed wage earners suffer both in inflation and deflation. | | (0) |
| | | (v) | Robbins definition of economics makes it a science of choice making. | | (0) |
| | (b) | (i) | Given below is the demand schedule for a commodity. What is the nature of elasticity of demand for the commodity ? Give reasons for your answer : Price
Rs.
5
6
8
10 | Quantity Demanded
(units)
12.0
10.0
7.5
6.0 |
| 3each | (0) |
| | | (ii) | Given below is the long–run production function. Which type of returns to scale are being shown in the table ? Give reasons for your answer : Units of Inputs
(Labour+Capital)
1 + 1
2 + 2
4 + 4
8 + 8
16 + 16 | Quantity Demanded
(units)
10
30
60
100
180 |
| 3each | (0) |
| 2. | (a) | Distinguish between M1 and M3 measures of money supply as used in India. | 3 | (0) |
| | (b) | “Saving is necessarily equal to investment.” Comment. | 4 | (0) |
| | (c) | Explain the properties of an isoquant curve. | 4 | (0) |
| | (d) | An investment of Rs.100 crore results in generation of additional Rs.400 crore of income in an economy. Estimate the value of marginal propensity to consume. | 4 | (0) |
| 3. | (a) | State and explain the ‘law of variable proportions’. Out of the three stages in its operation, which do you think is the most relevant for the producer ? | 7 | (0) |
| | (b) | Define ‘income elasticity of demand&rssquo;. How will the income elasticity of demand for an inferior good be different from that of a normal good ? | 5 | (0) |
| | (c) | What do you mean by ‘open market operations’ (OMO) ? | 3 | (0) |
| 4. | (a) | Distinguish between any two of the following : | 5each | |
| | | (i) | ‘Perfect competition’ and ‘monopolistic competition’. | | (0) |
| | | (ii) | ‘Inflationary gap’ and ‘deflationary gap’. | | (0) |
| | | (iii) | ‘Fisher’s version’ and ‘Cambridge version’ of quantity theory of money. | | (0) |
| | (b) | Define— | 2each | |
| | | (i) | Gross Domestic Product (GDP). | | (0) |
| | | (ii) | Stagflation. | | (0) |
| 5. | (a) | Define ‘national income’. Explain the significance of national income estimates. | 7 | (0) |
| | (b) | What do you mean by ‘rate of exchange’ ? How is the rate of exchange of a currency determined ? | 8 | (0) |
| PART — B |
| (Answer ANY TWO questions from this part.) |
| 6. | (a) | What do you mean by ‘business environment’ ? State the factors that affect the economic environment of a business firm. | 8 | (0) |
| | (b) | Discuss in brief the basic features of the Indian economy. | 7 | (0) |
| 7. | (a) | Discuss in brief the following : | 3each | |
| | | (i) | Salient features of Indian tax system. | | (0) |
| | | (ii) | Composition of India’s national income. | | (0) |
| | | (iii) | Principal objectives of economic planning in India. | | (0) |
| | (b) | Explain the concept of ‘balance of payments’. | 6 | (0) |
| 8. | (a) | What do you mean by ‘disinvestment’ ? Account for the declining role of public sector in the Indian economy. | 7 | (0) |
| | (b) | Write notes on any two of the following : | 4each | |
| | | (i) | Financial instruments | | (0) |
| | | (ii) | Financial institutions | | (0) |
| | | (iii) | Financial markets. | | (0) |
