Download 08048-Economics Prepared by Shylaja 08048

MODEL EXAMINATION
HSE II
ECONOMICS
Max.Score 80
1. Prepare an imaginary production possibility schedule and based on that draw a production
possibility curve.
(score 3)
2. When the price of a commodity is Rs.20 quantity demanded is 800 units. Then its price rise by
Rs.5 per unit its quantity demanded falls by 20%. Calculate the price elasticity. Is its demand
elastic. Give reason?
(Score 5)
3. By spending his entire cash balance Mr. Rajesh buy 5 Kg of rice and 2 Kg of sugar. If the price of
rice is 20 Rs, sugar is 25 Rs. Find how much cash balance he had. If the price of sugar reduced to
Rs.20 what happens to his budget line. Draw.
(Score 5)
4. Prepare a seminar report on short run production function?
(Score 5)
5. Calculate AVC, TVC, TC from the following cost schedule of a firm whose fixed cost is Rs.10.
Out put
1 2 3 4
(Units)
M.C(RS.) 6 5 4 6
(Score 3)
6. What condition must hold if a profit maximizing firm produces positive out put in a competitive
market?
(Score 3)
7. If the technology advances what will be its effect on supply?
(Score 2)
8. By using the supply function S = 20 + 4Px prepare a supply schedule and supply curve with the
prices given below.
Price:- 2,4,8,10
(score 5)
9. How is the equilibrium price of a quantity affected by a left ward shift in supply curve. Explain
with the help of a diagram.
(Score 2)
10. Give differences between perfect competition Monopoly and Monopolistic competition.
(Score 4)
11.
Micro Variables
Macro Variables
(Score 3)
------------------------------------------------------------------------------------------------------------------------------------------------------------12. Complete the chart showing the interdependence of sectors
(Score 4)
13. Calculate G.N.D.I
NI 2000Cr.
Net current transfers 200 Cr.
Consumption of fixed capital 100 Cr
N.F.I.A 50Cr.
Net indirect tax 250 CR
(Score 5)
14. Before the invention of money different commodities were used for transaction purposes.
Identify the consequences and difficulties during those system of exchange
(Score 3)
15. Commercial banks are not merely traders in money they are creators of money. Do you agree
with this statement.
(Score 4)
16. Calculate the value of multiplier if MPC is 9.2
(Score 1)
17. Measure the level of exante aggregate demand autonomous investment and consumption
expenditure. A is RS.50 crores MPS = 0.2 and level of income is Rs.4,000 crores state whether
the economy is in equilibrium or not
(Score 4)
18. Suppose that C = 70 + .70(YD), I = 90, G = 100 T = 0.10y.
a) Find equilibrium income
b) What are tax revenues at equilibrium income
c) Does the govt. have a balanced
budget
(Score 5)
19. Distinguish between balance of trade and balance of payment
(Score 3)
20. What is the marginal propensity to import when M 60 + ).60y. What is the relation between
marginal propensity to import and aggregate demand function?
(Score 4)
21. X suppose the market determined price of sugar is too high for common people to afford. If the
govt. come forward to help the poor by imposing control on price of sugar what impact will it
have on the market for sugar.
(Score 3)
22. What do you understand by parametric shift of a line? How does a line shift when its
a) Slope decreases
b) Its intercept increases.
(Score 4)