ECONOMICS 2015 PAPER NO. 2

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

1. National income is __________ concept. (stock, final, flow, intermediate)
2. _________ is regarded as primary factor of production. (Land, Labour, Capital, Entrepreneur)
3. Income elasticity of demand for inferior goods is ___________ (positive, negative, zero, greater than one)
4. Market demand is an aggregate of purchasing by ______ buyers. (some, all, one, two)
5. _________ Utility is the utility derived from the last unit of commodity consumed. (Average, Total, Marginal)

 (B) MATCH THE PAIRS                                                                                                                                                                                                                                 5 MARKS

GROUP A	GROUP B
Income method unemployment allowance Disposable Income National Income NNP (MP)	1.      GNP (MP) – Depreciation. 2.      Output method 3.      Transfer Income 4.      Transfer Payment 5.      Personal income – direct taxes 6.      Money value of goods and services 7.      Factor cost method 8.      Personal income – subsidy.

              

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

1. National income is computed every year.
2. Financial year in India is leap year.
3. Labour cannot be stored.
4. Financial year in India is from 1^st March to 28^th February.
5. A cheque is Optional money.
6. The Budget is a monthly statement.

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

1. Export.
2. Surplus Budget.
3. Government Income.
4. Cash credit.
5. Bank Money.
6. Wealth.

(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. Barter System V/S Monetary System.
2. Average propensity to consume (APC) V/S Marginal propensity to Consume (MPC).
3. Saving V/S Income.
4. Illegal Income V/S Transfer Income.
5. Income Method V/S Expenditure Method.
6. Micro Economics V/S Macro Economics.

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

1. Features of Labour.
2. Types of Money.
3. Secondary function of commercial bank.
4. Aggregate Demand.

Q.4 SHORT NOTES (ANY THREE)                                                                                                                                                                                                                             12 MARKS

1. Features of Land.
2. Types of Price Elasticity of Supply.
3. Importance of Price Elasticity of Demand.
4. Qualities of an Entrepreneur.
5. Types of Utility.

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

1. There are no difficulties in measurement of National Income. (V.Imp)
2. Price is the only determinants of Individual Demand.
3. Micro Economics studies the individual unit. (write features don't give heading)
4. There is no Assumption in Law of Demand.
5. There are no determinants in Market demand.

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

1. Explain the Law of Demand? And it's Exception?
2. Primary Function of Commercial bank?