Economics - 2007 (Set I - Delhi)
Q. 1. Answer the following questions :
Q. 2. Explain the effect of increase in income of the consumer on the demand for a good. 3
Q. 3. State three causes of increase in supply. 3
Q. 4. Explain the relation between marginal cost and average cost. 3
Q. 5. Explain producer’s equilibrium with the help of a diagram. 3
Explain the meaning and conditions of producer’s equilibrium.
Q. 6. A consumer buys 40 units of a good at a price of Rs. 3 per unit. When price rises to Rs. 4 per unit he buys 30 units. Calculate price elasticity of demand by the total expenditure method. 4
A consumer buys 80 units of a good at a price of Rs. 5 per unit. Suppose price elasticity of demand is (-)2. At what price will he buy 64 units ?
Q.7. Give meaning of:
Q. 8. Calculate ‘total variable cost’ and ‘total cost’ from the following cost schedule of a firm whose fixed costs are Rs. 10. 4
Q. 9. At a given price there is excess demand for a good. Explain how the equilibrium price will be reached. Use diagram. 4
What is meant by ‘excess demand’ for a good ? Explain the changes which will bring about equilibrium price.
Q. 10. Distinguish between :
Q. 11. State the phases of the law of variable proportions in terms of total physical product. Use diagram. 6
State the phases of the law of variable proportions in terms of total physical product and marginal physical product.
Q. 12. Explain the following features of perfect competition : 6
Explain the following :
Section - B
Q.13. Answer the following questions : 1×4
Q. 14. Calculate ‘private income’ from the following data : 3
Q. 15. A Rs. 200 crore increase in investment leads to a rise in national income by Rs. 1000 crores. Find out marginal propensity to consume. 3
Q. 16. Give meanings of : 3
Q. 17. Give three sources each of demand and supply of foreign exchange. 3
Q. 18. Give meaning of money. Explain the ‘store of value’ function of money. 4
What is ‘barter’? Explain ‘standard of deferred payment’ function of money.
Q. 19. Explain the’acceptance of deposits’function of commercial banks. 4
Q. 20. Distinguish between ‘revenue receipt’ and ‘capital receipt’ and give two examples of each. 4
Q. 21. What is ‘fiscal deficit’ ? What are its implications ? 4
Q. 22. Calculate national income and gross national disposable income from the following data: 4+2
Q.23. Explain the production method of estimating national income. 6
Explain the income method of estimating national income.
Q. 24. Explain the problem of ‘excess demand’ in an economy with the help of a diagram. Explain the role of bank rate in cprrecting it. 6
Explain the meaning of’excess demand’ and ‘deficient demand’ in an economy.