ECONOMICS 2015 PAPER NO. 1

Q.1 (A) FILLS IN THE BLANKS                                                                                                                                                                                                                                  5 MARKS

1. Reserve Bank of India was nationalized in the year _____________. (1949, 1939, 1935, 1956)
2. When MU is _____________ TU decreases. (positive, negative, zero, high)
3. Micro economic analysis adopts _____________ method. (lumping, aggregative, slicing, inclusive)
4. The most liquid asset is __________ (cheque, money, shares, debentures)
5. During depression _________budget is preferable. (balanced, surplus, deficit, zero)

 (B) MATCH THE PAIRS                                                                                                                                                                                                                                 5 MARKS

GROUP A	GROUP B
Deficit budget Government Budget Fees, license fee Borrowings Plan expenditure	1.      Tax revenue 2.      Capital receipts 3.      irrigation 4.      non-tax revenue 5.      one year 6.      government expenditure > Government revenue 7.      two years

              

(C) SAY WHETHER THE FOLLOWING STATEMENTS ARE TRUE OR FALSE                                                                                 6 MARKS

1. Demand for labour is direct demand.
2. Total outlay is price multiplied by quantity.
3. Utility is the basis of demand.
4. Micro economics deals with allocation of resources
5. A cheque is bank money.
6. Consumption expenditure is the only component of aggregate Supply.

Q.2 (A) DEFINE / EXPLAIN (ANY THREE)                                                                                                                                                                                               6 MARKS

1. Bank Rate.
2. Government Expenditure.
3. Deficit Budget.
4. Indirect Tax.
5. Import.
6. Non-taxable income.

(B) GIVE REASONS (ANY THREE)                                                                                                                                                                                              6 MARKS

1. Single price prevails in perfect competition.
2. Labour cannot be stored.
3. Macro economics is different from micro economics.
4. Old age pension is transfer income
5. Under monopoly seller is a price maker.
6. Money act as a medium of exchange

Q.3 (A) DISTINGUISH BETWEEN (ANY THREE)                                                                                                                                                                                   6 MARKS

1. Revenue Receipt V/S Capital Receipt.
2. Qualitative credit control V/S Quantitative credit control.
3. Commercial Bank V/S Central Bank.
4. Loan V/S over Draft.
5. Current Deposit V/S Fixed Deposit.
6. Convertible Paper Money V/S Inconvertible Paper Money.

(B) ANSWER THE FOLLOWING (ANY TWO)                                                                                                                                                                                  6 MARKS

1. Features of Perfect Competition.
2. Types of Demand.
3. Function of Money.
4. Saving Function or Propensity to save.

Q.4 SHORT NOTES (ANY THREE)                                                                                                                                                                                                                             12 MARKS

1. Features of National Income.
2. Types of Price Elasticity of Demand.
3. Aggregate Supply. Or determinants of Aggregate supply.
4. Function of Entrepreneur.
5. Types of Cheques.

Q.5 DO YOU AGREE OR NOT (ANY THREE)                                                                                                                                                                                           12 MARKS

1. There is no exception in law of supply.
2. Micro economics deals with individual unit. (write features of micro economics)
3. Price discrimination is possible under monopoly.
4. Supply curve slopes downward from left to right.
5. Seller is a price taker under Monopoly. (write about features of monopoly Don't give heading)

Q.6 ANSWER IN DETAIL (ANY TWO)                                                                                                                                                                                                         12 MARKS

1. Explain the Law of Supply? And it's Assumption?
2. Function of Central Bank?