This Paper has 66 answerable questions with 0 answered.
P—3(EBF)
Syllabus 2008 |
| Time Allowed : 3 Hours | Full Marks : 100 |
| The figures in the margin on the right side indicate full marks. |
| SECTION I (60 Marks) |
| Answer Question No.1 which is compulsory and any two from the rest. |
| 1. | (a) | Answer the following : | 1x9=9 | |
| | | (i) | Effective demand is | (a) | Demand exceeds supply | | (b) | Aggregate demand is equal to aggregate supply | | (c) | Elasticity of demand for a product is high | | (d) | Difference between actual and forecast demand |
| | (0) |
| | | (ii) | Progressive taxation means | (a) | Tax burden decreases with income | | (b) | Tax burden increases with income | | (c) | Large quantity of tax evasion | | (d) | Large quantity of tax avoidance |
| | (0) |
| | | (iii) | Cross elasticity of demand relates | (a) | Price of one commodity and demand for another commodity | | (b) | substitutes and complementary goods | | (c) | Market and supply | | (d) | Production and cost |
| | (0) |
| | | (iv) | Average variable cost is | (a) | L shaped | | (b) | U shaped | | (c) | Dish shaped | | (d) | Horizontal straight line |
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| | | (v) | Central Problem of all Economies are | (a) | What to produce? | | (b) | How to produce? | | (c) | For whom to produce? | | (d) | All the above |
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| | | (vi) | Exceptions to the law of demand are | (a) | Conspicuous goods | | (b) | Giffen goods | | (c) | Shares’ speculative market | | (d) | All the above |
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| | | (vii) | Labour is a | (a) | Vital factor | | (b) | Non–essential factor | | (c) | Permanent factor | | (d) | Perishable factor |
| | (0) |
| | | (viii) | In inflation | (a) | Producers loose | | (b) | Creditors gain | | (c) | Fixed income earners gain | | (d) | Borrowers gain |
| | (0) |
| | | (ix) | Marginal Revenue is calculated as | | (0) |
| | (b) | Fill in the blanks : | 1x12=12 | |
| | | (i) | The goal of all firms in perfect competition is ________________ maximisation. | | (0) |
| | | (ii) | ______________ helps on economy to earn income from world market. | | (0) |
| | | (iii) | While _________________ tax is one whose burden cannot be shifted, incase ___________ tax, the burden is shifted. | | (0) |
| | | (iv) | Pricing to products is one of the problems of estimating ____________________. | | (0) |
| | | (v) | According to Malthus production of foodgrains increases at an arithmetical____________. | | (0) |
| | | (vi) | Fisher’s quantity theory of money is also called cash transaction __________________. | | (0) |
| | | (vii) | Deflation is an economic ___________________. | | (0) |
| | | (viii) | The level of Planned Investment is ____________ related to Interest rate. | | (0) |
| | | (ix) | The growth rate of GDP at constant price is called _____________ national income. | | (0) |
| | | (x) | Time utility of making a product available at the ______________ when it is required. | | (0) |
| | | (xi) | Disequilibrium in Balance of payments means deficit in _____________ account. | | (0) |
| | | (xii) | During inflation Bank rate should be _________________. | | (0) |
| | (c) | State which of the following statements is ‘True’ and which is ‘False’: | 1x9=9 | |
| | | (i) | Whether savings a virtue or a vice depends upon its use and its effects on income. | | (0) |
| | | (ii) | In public finance, the government cuts its coat according to its cloth. | | (0) |
| | | (iii) | One of the limitations of credit creation is the size of the cash reserve ratio. | | (0) |
| | | (iv) | Industrial Finance Corporation of India is a Development Bank. | | (0) |
| | | (v) | Balance of payments is wider than Balance of Trade. | | (0) |
| | | (vi) | The easiest way to tide over deficit in budget is to print more currency. | | (0) |
| | | (vii) | Group equilibrium is a concept relevant to perfect competition. | | (0) |
| | | (viii) | Adding value of all goods and services produced to arrive at national income of a country is called income method. | | (0) |
| | | (ix) | Ratio of consumption to income is called marginal propensity to consumer. | | (0) |
| | (d) | Define the following terms in not more than two lines: | 1x6=6 | |
| | | (i) | Cannon of Economy | | (0) |
| | | (ii) | Indirect tax | | (0) |
| | | (iii) | Repressed inflation | | (0) |
| | | (iv) | Taxable capacity | | (0) |
| | | (v) | Credit creation | | (0) |
| | | (vi) | Bank rate | | (0) |
| 2. | Define inflation. Discuss the causes of inflation. | 2+10=12 | (0) |
| 3. | Discuss merits and demerits of direct taxes. | 12 | (0) |
| 4. | Critically examine Ricardo’s theory of comparative cost. | 12 | (0) |
| SECTION II (40 Marks) |
| Answer Question No.5 which is compulsory and any two from the rest. |
| 5. | (a) | Answer the following : | 1x6=6 | |
| | | (i) | A bull is | (a) | A Speculator who expects price to fall | | (b) | A Speculator who expects price to rise | | (c) | A Speculator who invests in mutual fund | | (d) | A Speculator who invests in government bonds |
| | (0) |
| | | (ii) | One share one vote is applicable to | (a) | Joint stock company | | (b) | Co–operative society | | (c) | Partnership firm | | (d) | Joint Hindu family |
| | (0) |
| | | (iii) | Liability clause is contained in | (a) | Articles of Association | | (b) | Prospectus | | (c) | Memorandum of Association | | (d) | Special Resolution |
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| | | (iv) | listing in stock exchange is | (a) | Mandatory | | (b) | Optional | | (c) | Desirable | | (d) | Publishing the details |
| | (0) |
| | | (v) | The SWOT analysis stands for | (a) | Strength, Weaknesses, Opportunities, Threats | | (b) | Science, Wisdom, Opportunities, Triumph | | (c) | Success, Wisdom, Opportunities, Truth | | (d) | Simple, Weaknesses, Opportunities, Threats |
| | (0) |
| | | (vi) | Which of the following is not an advantage of verbal communication? | (a) | Easily understandable | | (b) | Less expensive and quicker | | (c) | Removes distances and barriers in communication | | (d) | Difficult to act on it due to missing details |
| | (0) |
| | (b) | Fill in the blanks : | 1x6=6 | |
| | | (i) | The prescribed minimum number of qualified persons authorised to transact the business at meeting is called _________________. | | (0) |
| | | (ii) | A stock market deals in ________________ securities. | | (0) |
| | | (iii) | A person who just lends his name and reputation for the benefit of the firm without taking active part is called ______________. | | (0) |
| | | (iv) | ______________ involves sending written message through telecommunication links. | | (0) |
| | | (v) | Acceptance of objectives after the superiors and subordinates sitting together is called _____________ | | (0) |
| | | (vi) | When the liability of a person covers both business and personal property, it is called _____________ liability. | | (0) |
| | (c) | State whether the following are ‘True’ and which are ‘False’ | 1x6=6 | |
| | | (i) | Economic Systems and Economic Policies are studied under Economic Environment. | | (0) |
| | | (ii) | Stock Exchange facilitate regular valuation of securities. | | (0) |
| | | (iii) | For communication to be effective it must be receiver oriented. | | (0) |
| | | (iv) | Registered partnership enjoys perpetual existence. | | (0) |
| | | (v) | Decoding refers to delivery of communication. | | (0) |
| | | (vi) | Social responsibility is an indication of business ethics. | | (0) |
| | (d) | Define the following terms in not more than two lines: | 1x6=6 | |
| | | (i) | Unlimited liability | | (0) |
| | | (ii) | Special resolution | | (0) |
| | | (iii) | Called up capital | | (0) |
| | | (iv) | Partner by estoppel | | (0) |
| | | (v) | Statement of lieu of prospectus | | (0) |
| | | (vi) | Forward delivery contract | | (0) |
| 6. | Discuss the functions of Stock Exchange and explain the method of trading in Stock Exchange. | 4+4=8 | (0) |
| 7. | Explain the steps involved in the incorporation of a Joint Stock Company. | 8 | (0) |
| 8. | Describe the essential elements in the process of an effective communication system. | 8 | (0) |
