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TIME: - 3 hours First preliminary examination MARKS: - 100
Q.1 (A) Complete the sentences by choosing correct alternative given below.
- Micro and macro approaches are _________________________ to each other. (Competitive, complementary, substitute, rival)
- __________is the desire backed up by ability to pay and willingness to pay for it. (Demand, Want, Commodity, Utility)
- The income of government through all sources called ____________________ (Public debt, Public expenditure, Public revenue, public taxation)
- Individual supply is a ___________________ economic variable. (Macro, Producer, Micro, Firm)
- Macro Economist was well explained by economist. (Marshall, Robbins, Adam Smith, J.M. Keynes)
(B) State whether the following statements are true or false.
- Reservation price of perishable goods is generally high
- Refrigerator in restaurant is capital goods.
- Macro economics studies the economy in its totality.
- Paper money economises on the use of precious metals.
- Free entry is an essential but not a sufficient condition of perfect competition.
(C) Choose the correct answer in each from the following four alternatives
- ‘Principles of Economics’ is the celebrated book of:
§ Dr. Alfred Marshall
§ J.M. Keynes
§ Lionel Robbins
§ Adam Smith
- Electricity has a composite demand:
§ It is less expensive resources
§ It is demanded for several uses
§ It is available at all time
§ It is used in combination with other resources.
- Monopolistic is a Price-maker and not a price taker.
§ Monopolist is intelligent in price-making
§ Demand for his commodity is very high
§ He is the seller in the market and has no close substitute for his product.
§ Three is free entry and exit of firms in the market.
- Labour cannot be stored:
o Labourer has less physical strength
o Labourer lacks mobility
o Labour is the most perishable factors of production.
o Labour is the most inactive factors of production
- Monopoly of Note-issue of the Central Bank is its:
§ Traditional function
§ Development Function
§ Modern Function
§ Secondary function
(D) Match the two columns given below:
Group A | Group B |
1. Point of Satiety 2. General Price Level 3. Perfect Competition 4. Variable Cash Reserve Ratio 5. Public expenditure greater than public revenue |
|
Q. 2 (A) Define and explain the following concept. (Attempt any 4) 8 marks
- Define Microeconomics
- Explain, with example, the term Utility
- Define Price Elasticity of Demand
- Define Cash Reserve Ratio
- Explain the concept of Gross National Product. (GNP)
- Define Consumption Function
- State the definition of Central Bank.
- What do you mean by Credit Cards.
(B) Rewrite the following statements as True of False. Give Reasons. (Any 4) 8 marks
- Salt has inelastic Demand.
- Selling cost is an important component in Perfect competition.
- Macroeconomics is based on too much assumption.
- As the income increases, Consumption also increases
- Functional budgeting of government is more important than balanced budgeting.
- Labour can be stored
- Today, barter system is in backward countries
- Demand and Desire are one and the same.
Q. 3 (A) Distinguish between (Any Four) of the following 8 marks
1. Direct Demand V/S Derived Demand
2. Elastic Demand V/S Inelastic Demand
3. Land V/S Labour
4. Gross National product V/S Net National Product
5. Metallic Coins V/S Paper money
6. Fixed Deposit Account V/S Current Account
7. Micro Economics V/S Macro Economics
8. Balanced Budget V/S Functional Budget
(B) Give reasons or explain the following in brief. (Any 4) 8 marks
- Why Monopolistic competition does have product differentiation?
- Is demand and Desire the same thing? Explain with an example.
- Why is competitive firm a ‘Price-taker?
- Give Reason why labour can not be stored/
- Why has the Popularity of Macroeconomics increased?
- Why is income from illegal activities not included in the national product?
- Why the concept of balanced budget is is called as an ‘Ideal Concept’?
- Why does land lacks mobility?
Q. 4. (A) Answer the following questions in one or two paras (any 2) 8 marks
- State and Explain the Law of Supply
- Explain with illustration, the Income method of Measuring National Income?
- Describe the Various Function Of Money?
- What are the Types of Price Elasticity of Demand?
8 marks
(B) Write Short notes on the following:
- Features of Microeconomics
- Exception to the Law of Demand
- Geffen Paradox
- Kinds of Investment
Q. 5 (A) Do you agree or disagree with the following statements. Give Reasons. (Any Two) 16 marks
- At the point of satiety, Total utility is at its maximum
- Demand Curves Sloes downwards from left to Right.
- AD is influenced by C+I+G+E
Q. 6 (B) Answer the following (any two) 16 marks
- Define and Explain the Function of Central Bank?
- Explain the Different measures of measuring National Income?
- Explain the law of demand? And it exemption?
