Economics — 2006 (Set I— Compartment OutSide Delhi)
General Instructions: See in Set-I, D.B. (Cornptt.), 2006.
SECTION - A
Q.1. Answer the following questions (1 x 4 = 4)
Q. 2. What is meant by returns to scale ? Give one reason for increasing returns to scale. (3)
Q. 3. State clearly the three features of monopolistic competition. (3)
Q. 4. Draw Average Revenue and Marginal Revenue curves of a firm under
For Blind Candidates only in lieu of Q. No. 3
Distinguish between perfect competition and monopoly.
Q. 5. How is price determined under perfect competition? Explain briefly. (3)
Q. 6. Define and draw a production possibility curve. What does the movement along the curve show? (4)
For Blind Candidates only in lieu of Q. No. 6
Explain the problem of ‘How to produce’. (4)
Q.7. Complete the following table: (4)
Q. 8. A firm supplies 500 units of a good at a price of Rs. 5 per unit. The price elasticity of supply of the good is 2. At what price will the firm supply 700 units? (4)
Q. 9. Distinguish between ‘change in quantity supplied’ and ‘change in supply’. State two factors responsible for ‘change in supply’. (4)
Distinguish between fixed cost and variable cost. Give two examples of each.
Q. 10. Explain the effect of the following on the demand of a good: (6)
Q. 11. Define price elasticity of demand. State any four factors that affect it. (6)
Q. 12. Explain the law of variable proportions using Total Physi-. cal Product and Marginal Physical Product curves. (6)
Explain the relation between marginal cost and average variable cost with the help of a diagram.
For Blind Candidates only in lieu of Q. No. 12
Explain the law of variable proportions with the help of a total and marginal physical product schedule (6)
Explain the relation between marginal cost and average variable cost with the help of a cost schedule
SECTION - B
Q 13. Answer the following questions (1x4)
Q. 14. Calculate Personal Disposable Income from the following data: (3)
Q. 15. In an economy investment increases by Rs. 600 crores. If marginal propensity to consume is 0.7, what is the increase in total national income? (3)
Q. 16. Give meaning of involuntary unemployment, under employment and full employment (3)
Q. 17. Define ‘revenue’ and ‘capital’ receipt in a government budget. Give one example of each. (3)
Q. 18. Explain the “bankers’ bank and supervisor” function of the central bank (4)
Explain the “acceptance of deposits” function of the commercial banks.
Q. 19. Explain ‘unit of value’ function of money (4)
Q. 20. What is a budget deficit 9 What is primary deficit and what does it indicate? (4)
Q. 21. Distinguish between the currnt account and the capital account of the balance of payments. State two components of each. (4)
Q. 22. Giving reason, state whether the following are included in national income: (6)
Q. 23. Explain briefly the components of aggregate demand. Also explain determination of national income based on aggregate demand and aggregate supply. Use diagram. (6)
How is the ‘saving = investment’ approach of income determination derived from the aggregate demand and aggregate supply approach? Explain the ‘saving = investment’ approach. Use diagram.
For Blind Candidates only in lieu of Q. No. 23
Explain the components of aggregate demand. Why must aggregate demand and aggregate supply be equal at equilibrium level of income? (6)
Why must saving and investment be equal at equilibrium level of income? Explain.
Q. 24. Calculate