Download test-series-iv - chandan poddar classes

Time Allowed : 3 Hours
Maximum Marks : 100
General Instructions:
(i) All questions in both the sections are compulsory.
(ii) Marks for questions are indicated against each.
(iii)
Questions Nos. 1 – 5 and 17 – 21 are very short – answer questions carrying 1 Marks
each. They are required to be answered in one sentence each.
(iv)
Questions Nos. 6 – 10 and 22 – 26 are short – answer questions carrying 3 Marks each.
Answer to them should normally not exceed 60 words each.
(v) Questions Nos. 11 – 13 and 27 – 29 are also short – answer questions carrying 4 Marks each.
Answer to them should normally not exceed 70 words each.
(vi)
Questions Nos. 14 – 16 and 30 – 32 are long – answer questions carrying 6 Marks each.
Answer to them should normally not exceed 100 words each.
(vii) Answer should be brief and to the point and the above word limits should be adhered to
as far as possible.
2.
3.
4.
5.
6.
7.
What is a planned economy?
[1]
When is a firm called price Maker?
[1]
Define a budget line.
[1]
What is ‘decrease’ in supply?
[1]
Define production function.
[1]
How is production possibility curve affected by unemployment in the economy? Explain.
[3]
[Pick the date]
1.
[Pick the date]
SECTION – A
When price of a good is ` 13 per unit, the consumer buys 11 units of that good. When price
rises to ` 15 per unit. The consumer continues to buy 11 units. Calculate price elasticity of demand.
[3]
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ECOMOMICS BY RAJESH JAISWAL Page 1
[Pick the date]
Distinguish between explicit cost and implicit cost and give examples.
[3]
9.
Draw in a single diagram the average revenue and marginal revenue curves of a firm which
can sell any quantity of the good at a given price. Explain.
Note: The following questions is for blind candidates only, in lieu of Q.No. 9
[3]
Explain the relation between average revenue and marginal revenue of a firm which is free to sell any
quantity at a given price.
[3]
10.
Explain the implications of the feature ‘large number of buyers’ in a perfectly competitive
market.
OR
Explain the implications of the feature ‘homogeneous product’ in a perfectly competitive
market.
[3]
11.
A consumer consumes only two goods X and Y. At a consumption level of these two goods,
he finds that the ratio of marginal utility of price in case of X is higher than in case of y. Explain the
reaction of the consumer.
[4]
12.
Explain how rise in income of a consumer affects the demand of a good. Give examples.
[4]
13.
Define marginal cost. Explain its relation with average cost.
[4]
OR
Define variable cost. Explain the behavior of total variable cost as output increases.
[4]
14.
What is producer’s equilibrium? Explain the conditions of producer’s equilibrium through
the ‘marginal cost and marginal revenue’ approach. Use diagram.
[6]
Note: The following questions is for the candidates only, in lieu of Q.No. 14
What is producer’s equilibrium? Explain the conditions of producer’s equilibrium through the ‘
‘marginal cost and marginal revenue’ approach. Use a schedule.
15.
Explain the conditions of consumer’s equilibrium with the help of the indifference curve
Analysis. [6]
16.
Market for a good is in equilibrium. There is ‘increase’ in supply of the good. Explain the
chain of effects of this change. Use diagram.
Note:- the following questions if for the Blind Candidates only, in lieu of Q.No. 16.
Market for a good is in equilibrium. There is ‘increase’ in supply of that good. Explain the chain
of effects of this change. Use a numerical example.
OR
Distinguish between ‘non – collusive’ and ‘collusive’ Oligopoly. Explain the following features of
oligopoly:
(i) Few firms
(ii) Non – price competition [6]
[Pick the date]
8.
SECTION – B
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ECOMOMICS BY RAJESH JAISWAL Page 2
17.
18.
19.
20.
21.
22.
23.
What are stock variables?
[1]
Define ‘depreciation’.
[1]
Define ‘statutory Liquidity Ratio’.
[1]
Define money.
[1]
What is foreign exchange?
[1]
Which transactions determine the balance of trade? When is balance of trade in surplus? [3]
Explain how ‘non – monetary exchanges’ are a limitation in taking gross domestic product as an
index of welfare.
[3]
24. In an economy the marginal propensity to consume is 0.75. Investment expenditure in the economy
increase by ` 75 crore. Calculate the total increase in national income.
[3]
25. Explain the distinction between voluntary and involuntary unemployment.
[3]
26. When price of a foreign currency falls, the demand for that foreign currency rises, Explain, why. [3]
OR
When price of a foreign currency falls, the supply of that foreign currency also falls. Explain, why. [3]
27. Explain the ‘redistribution of income’ objective of a government budget.
OR
Explain the ‘economic stability’ objective of a government budget.
[4]
28. From the following data about a government budget find (a) revenue deficit (b) fiscal deficit and (c)
Primary deficit.
30.
31.
32.
[Pick the date]
29.
(i)
Tax revenue
47
(ii)
Capital receipts
34
(iii)
Non – tax revenue
10
(iv)
Borrowings
32
(v)
Revenue expenditure
80
(vi)
Interest payments
20
[4]
Giving reasons, explain the treatment assigned to the following while estimating national income:
(i)
Family members working free on the farm owned by the family
(ii)
Payment of interest on borrowings by general government.
[4]
Explain the role of the following in correcting the inflationary gap in an economy:
(i)
Legal reserves
(ii)
Bank rate
[6]
OR
Explain the role of the following in correcting the deflationary gap in an economy:
(i)
Open market operations
(ii)
Margin requirements
Explain the following functions of the central bank:
(i)
Bank of issue
(ii)
Banker’s Bank
[6]
Calculate (a) ‘Net Domestic product at Factor Cost’ and (b) Private Income’ from the following:
[Pick the date]
(` Arab)
(` Crore)
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ECOMOMICS BY RAJESH JAISWAL Page 3
300
1000
(- 20)
100
130
30
50
40
200
100
20
0
[6]
ETC TUTORIALS-9891600662 ,9899828722
[Pick the date]
Domestic product accruing to government
Wages and salaries
Net current transfers to abroad
Rent
Interest paid by the production units
National debt interest
Corporation tax
Current transfers by government
Contribution to social security schemes by employers
Dividends
Undistributed Profits
Net factor income to abroad
[Pick the date]
(i)
(ii)
(iii)
(iv)
(v)
(vi)
(vii)
(viii)
(ix)
(x)
(xi)
(xii)
ECOMOMICS BY RAJESH JAISWAL Page 4