Economics — 2006 (Set I — Compartment Delhi)
SECTION - A
Q. 1. Answer the following questions: (1 x 4 = 4)
Q. 2. Draw and define production possibility curve. Why is it downward sloping from left to right? (3)
Q. 3. Define utility. Explain briefly the law of diminishing marginal utility. (3)
Q. 4. State clearly any three features of a perfectly competitive market. (3)
Q. 5. Explain ‘differentiated products’ characteristic of monopolistic competition. (3)
Q. 6. Demand of a product is ‘elastic’. Its price falls. What will be its effect on total expenditure on the product? Give a numerical example. (4)
Q. 7. A firm sells 1000 units of a product at a price of Rs. 10 per unit. Its price elasticity of supply is 3. How many units will the firm be able to sell if the price falls to Rs. 7.50 per unit? (4)
Q. 8. Identify different phases of the law of variable proportions from the following schedule. Give reasons for your answer. (4)
Q. 9. Explain the changes that take place when at a given price of a commodity there is excess supply of it. Use diagram.
A product market is in equilibrium. Suppose the demand for the product decreases. What changes will take place in the market? Use diagram. (4)
For Blind Candidates only in lieu of Q. No. 9
At a given price of a commodity there is excess supply of it. Is this price an equilibrium price ? If not, how is the equilibrium price reached, explain. (4)
Explain the effects of an increase in demand of a commodity on its equilibrium price and equilibrium quantity.
Q. 10. Explain the effects of increase in income of the buyers of good ‘X’ cm the demand for ‘X’ use diagram showing demand for good on the x-axis and its price on the y-axis. (6)
A consumer consumes good ‘X’. Explain the effects of fall in prices of related goods on the demand of ‘X’. Use diagram showing demand for good ‘X’ on the x-axis and its price on the y - axis.
For Blind Candidates only in lieu of Q. No. 10
Explain the effects of change in the income of the buyers of a good on its demand. (6)
Explain the effects of change in the prices of related goods on the demand of a given good.
Q. 11. Explain briefly the following determinants of supply: (6)
Q. 12. Draw Average Total Cost, Average Variable Cost and Mar ginal Cost curves in a single graph. Also explain the relation between Marginal Cost and Average Total Cost. (6)
SECTION - B
Q. 13. Answer the following questions : (1 x 4 = 4)
Q. 14. Calculate Net Value Added at Market Price from the following data: (3)
Q. 15. In an economy investment increases by Rs.120 crores. The value of investment multiplier is 4. Calculate the marginal propensity to consume. (3)
Q. 16. What is deflationary gap ? State two measures to remove it. (3)
Q. 17. Explain how foreign exchange rate is determined in the market. (3)
Q. 18. Explain the ‘medium of exchange’ function of money. (4)
Explain the ‘store of value’ function of money.
Q. 19. Describe the ‘banker to the government’ function of the central bank. (4)
Q. 20. Define a government budget. State its any three objectives. (4)
Q. 21. What does fiscal deficit in a government budget mean? What are its implications?(4)
Q. 22. Explain the following terms giving suitable examples: (6)
Q. 23. Explain the roles of
Explain the roles of
Q. 24. Calculate