Economics - 2007 (Set II - Delhi)
Q. 1. Answer the following questions : 1×4 = 4
Q. 2.Explain the effect of rise in the prices of related goods on the demand of a good. 3
Q. 3. State three causes of decrease in supply. 3
Q.4. Explain the relation between marginal revenue and total revenue. 3
Q. 5. Draw straight line supply curves with price elasticity of supply equal to (i) one, (ii) less than one and (iii) more than one. 3
Distinguish between fixed cost and variable cost and give one example of each.
Q. 6. When price of a good falls by 10 percent, its quantity demanded rises from 40 units to 50 units. Calculate price elasticity of demand by the percentage method. 4
A consumer buys 50 units of a good at a price of Rs. 10 per unit. When price falls to Rs. 5 per unit he buys 100 units. Find out price elasticity of demand by the ‘Total Expenditure Method’.
Q. 7. Give meanings of (i) marginal physical product, (ii) marginal cost, (iii) marginal revenue and (iv) supply schedule. 4
Q. 8. Calculate Total Variable Cost and Marginal Cost from the following cost schedule of a firm whose Total Fixed Costs are Rs. 12 : 4
Q. 9. How is the equilibrium price of a commodity affected by a leftward shift of the demand curve ? Explain with the help of a diagram. 4
How is the equilibrium price and quantity of a commodity affected by a decrease in its demand ?
Q. 10. Distinguish between the following : 6
Q. 11. Identify the three phases of the Law of Variable Proportions from the following and also give reason behind each phase : 6
Q. 12. Explain briefly the three features of perfect competition. 6
Explain the features of monopoly market.
SECTION - B
Q. 13. Answer the following questions : 1×4
Q. 14. Calculate Personal Income from the following data : 3
Q. 15. An increase in investment leads to total rise in national income by Rs. 500 crores. If Marginal Propensity to Consume is 09, what is the increase in investment ? Calculate. 3
Q. 16. Give meanings of (i) aggregate demand, (ii) aggregate supply and (iii) excess demand. 3
Q. 17. How is foreign exchange rate determined ? Use diagram. 3
What is foreign exchange market ? How is foreign exchange rate determined in this market ?
Q. 18. Give meaning of money supply,. State its components. 4
Give meaning of money. Explain its ‘medium of exchange’ function.
Q. 19. Explain briefly the ‘banker to the government’ function of the central bank. 4
Q. 20. Distinguish between ‘revenue expenditure’ and ‘capital expenditure’. Give two examples of each. 4
Q. 21. Distinguish between ‘fiscal deficit’ and ‘revenue deficit’. What does fiscal deficit indicate ? 4
Q. 22. Calculate Gross National Product at Market Price and Net National Disposable Income from the following data : 4, 2
Q. 23. Explain the ‘expenditure’ method of estimating national income. 6
Explain the term ‘compensation of employees’ and its components. Giving reasons, state whether the following are treated as compensation of employees :
Q. 24. What is ‘deficient demand’ in macroeconomics ? Show it on a diagram. Explain the role of open market operations in correcting it. 6
Distinguish between ‘deficient demand’ and ‘excess demand’ in macroeconomics. Explain the role of open market operations in correcting deficient demand.