This Paper has 68 answerable questions with 1 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 (Marks 60) |
Answer Question No.1 which is compulsory and any two from the rest. |
Marks |
1. | (a) | Answer the following : | 1x9 | |
| | (i) | Economics is (A) | normative science | (B) | positive science | (C) | human science | (D) | political science | | | (0) |
| | (ii) | Deductive method involves (A) | Moving from general to particular | (B) | Moving from particular to general | (C) | Using mathematical reasoning | (D) | Applying ethical reasoning | | | (0) |
| | (iii) | Portfolio investment means (A) | Depositing money into a company | (B) | Buying debenture of a company | (C) | Buying shares of a company | (D) | Investing in fixed assets | | | (0) |
| | (iv) | Diamond–water paradox is explained through (A) | Law of substitution | (B) | Law of exchange | (C) | Law of supply | (D) | Law of diminishing marginal utility | | | (1) |
| | (v) | Theory of Demographic transition was developed by (A) | Malthus | (B) | Pigou | (C) | Walker | (D) | Keyness | | | (0) |
| | (vi) | Bank rate policy is a (A) | Quantitative method | (B) | Qualitative method | (C) | Optional method | (D) | Fiscal method | | | (0) |
| | (vii) | The theory of absolute cost advantage was developed by (A) | David Recardo | (B) | Malthus | (C) | Adam Smith | (D) | Marshall | | | (0) |
| | (viii) | Balance of Trade (A) | Includes balance of payments statement | (B) | Excludes balance of payments | (C) | Includes value of merchandise transaction alone | (D) | Includes value of service transactions | | | (0) |
| | (ix) | Direct taxes (A) | Are shiftable | (B) | Are not shiftable | (C) | Reflect economic health | (D) | Affect social welfare | | | (0) |
| (b) | Fill in the blanks : | 1x12 | |
| | (i) | Backward bending supply curve of labour indicates that labour prefers _____ to work at a high wage rate. | | (0) |
| | (ii) | Total economic costs = Explicit costs + _______+ Normal profit. | | (0) |
| | (iii) | Internal economies accrue to a firm when it ______. | | (0) |
| | (iv) | When consumer is made to pay one price upto a certain amount of purchase and another price for purchases exceeding this amount, it is called price discrimination of ______ degree. | | (0) |
| | (v) | Net national product is also called ____. | | (0) |
| | (vi) | Cross elasticity of demand relates price of one good and demand for _____ good. | | (0) |
| | (vii) | Investment multiplier = Change in Y/Change in _______. | | (0) |
| | (viii) | Creation of Saving and its productive investment is called ______. | | (0) |
| | (ix) | _____ function of money makes it available for future use. | | (0) |
| | (x) | Central Bank’s persuasive method to control the functioning of the commercial banks is called _______. | | (0) |
| | (xi) | The bank which was established in 1985 to rehabilitate the sick industrial units with authorized capital of Rs.2.5 crores is _____. | | (0) |
| | (xii) | Paper Gold is also called ______. | | (0) |
| (c) | State which of the following statement is "True" and which is "False".: | 1x9 | |
| | (i) | The existence of oligopoly in the long–run requires the existence of free entry of the new firms. | | (0) |
| | (ii) | Adding value of all goods and services produced to arrived at national income of a country is called income method. | | (0) |
| | (iii) | Ratio of consumption to income is called marginal propensity to consume. | | (0) |
| | (iv) | Ralating food production rate and population rate is Optimum Theory of Population. | | (0) |
| | (v) | Aggregate demand remaining the same, a fall in aggregate supply results in cost push inflation. | | (0) |
| | (vi) | Increased velocity of circulation of money causes recession. | | (0) |
| | (vii) | The IFC (Transfer of Undertaking and Repeal) Bill passed on March 24, 1993 privatised the IFC. | | (0) |
| | (viii) | Mutual funds operations in Private sector and joint sector are closely monitored by SEBI. | | (0) |
| | (ix) | Factor cost differences occur because of different factor endowments in different countries. | | (0) |
| (d) | Define the following terms in not more than two lines: | 1x6 | |
| | (i) | Marginal product: | | (0) |
| | (ii) | Real differentiation: | | (0) |
| | (iii) | Gresham’s law; | | (0) |
| | (iv) | Credit creation; | | (0) |
| | (v) | Regressive taxation; | | (0) |
| | (vi) | Deficit financing. | | (0) |
2. | What are the causes of inflation? What are its effects? How would you control it? | 4+4+4 | (0) |
3. | Write short notes on the following: | 6+6 | |
| (a) | Factors affecting supply; | | (0) |
| (b) | Cost–output relationship during short period. | | (0) |
4. | Explain the law of diminishing marginal utility. What are the limitations of the law? | 8+4 | (0) |
SECTION II (Marks 40) |
Answer Question No. 5 which is compulsory and any two from the rest. |
Marks |
5. | (a) | Answer the following : | 1x6 | |
| | (i) | After incorporation, a company conducts a meeting to deal with (A) | Issue of prospectus | (B) | Appointment of broker for underwriting shares | (C) | Appointment of a protem secretary | (D) | All the above | | | (0) |
| | (ii) | In a stock exchange (A) | any security can be transacted | (B) | only listed securities can be transacted | (C) | only securities of private companies be traded | (D) | any common person can conduct transaction directly | | | (0) |
| | (iii) | A stag operates (A) | to buy at a high price and sell at a low price | (B) | to buy shares at a high price to make profit in due course | (C) | to avoid buying at a high price but attempts to sell at a high price | (D) | to enter into forward contracts | | | (0) |
| | (iv) | Schematic format of a report includes (A) | subheadings | (B) | sequential subheadings | (C) | emergency communication | (D) | All the above | | | (0) |
| | (v) | Subsidiary company is one in which (A) | more than 40% shares are held by other company | (B) | majority of directors are appointed by the Government | (C) | more than 50% of the paid–up equity share capital is held by another company | (D) | shareholders of the company form the majority | | | (0) |
| | (vi) | Social environment includes (A) | Taxation policies | (B) | Culture and traditions | (C) | Quality improvement | (D) | Foreign direct investment | | | (0) |
| (b) | Fill in the blanks: | 1x6 | |
| | (i) | A person who just lends his name and reputation for the benefit of the firm without taking active part is called ____ . | | (0) |
| | (ii) | Equity shares issued at a discount or for consideration other than cash for providing know how or making available rights in the nature of intellectual property rights are called ____. | | (0) |
| | (iii) | To alter a clause of memorandum of association, a _____ resolution is required. | | (0) |
| | (iv) | The Securities Contracts (Regulation) Act was passed in ____ . | | (0) |
| | (v) | When a buyer of a share acquires a share without any right to receive the dividend declared is called _____ . | | (0) |
| | (vi) | Key result areas technique was suggested to discuss the business objectives by _____ . | | (0) |
| (c) | State which of the following statement is "True" and which is "False": | 1x6 | |
| | (i) | Joint Hindu Family Business requires registration. | | (0) |
| | (ii) | Registration of partnership is a statutory compulsion. | | (0) |
| | (iii) | A company is a voluntary association. | | (0) |
| | (iv) | Minimum subscription is necessary to cover underwriting commissions on sale of shares. | | (0) |
| | (v) | Bargain price order specifies the price at which the broker can buy or sell the security. | | (0) |
| | (vi) | Complimentary close in a letter refers to the signature of the sender. | | (0) |
| (d) | Define the following terms in not more than two lines: | 1x6 | |
| | (i) | Unlimited liability; | | (0) |
| | (ii) | Contingent dissolution; | | (0) |
| | (iii) | Organic objective; | | (0) |
| | (iv) | Company limited by guarantee; | | (0) |
| | (v) | Barriers to communication; | | (0) |
| | (vi) | Lame duck. | | (0) |
6. | Write short notes on: | 4+4 | |
| (a) | Memorandum of Association; | | (0) |
| (b) | Salient features of a good business letter. | | (0) |
7. | What is stock exchange? Discuss the functions of stock exchange. | 2+6 | (0) |
8. | State the meaning of business environment. Discuss the various types of business environment. | 2+6 | (0) |