Economics - 2007 (Set III - Delhi)
Q. 1. Answer the following questions : 1×4
Q. 2. Give meaning of (i) demand, (ii) normal good and (iii) inferior good. 3
Q. 3. Explain the effect of ‘input price changes’ on the supply of a good. 3
Q. 4. Explain the relation between marginal revenue and average revenue. 3
Q. 5. Draw Average Total Cost, Average Variable Cost and Marginal Cost curves in a single diagram. 3
When is supply of a commodity said to be (i) elastic, (ii) inelastic and (iii) perfectly inelastic ?
Q. 6. Price of a good rises from Rs. 10 per unit to Rs. 11 per unit. As a result quantity demanded of that good falls by 10 percent. Calculate its price elasticity of demand. 4
A consumer buys 70 units of a good at a price of Rs. 7 per unit. When price falls to Rs. 6 per unit, he buys 90 units. Use Total Expenditure Method to find whether the demand for the good is elastic or inelastic.
Q. 7. Give meanings of (i) marginal physical product, (ii) fixed cost, (iii) variable cost, and (iv) total revenue. 4
Q. 8. Calculate Marginal Cost and Total Cost from the following Cost Schedule of a firm whose
Q. 9. How is the equilibrium price of a good determined ? Explain with the help of diagram a situation when both demand and supply curves shift to the right but equilibrium price remains the same. 4
Explain with the help of a schedule how equilibrium price of a good is determined.
Q. 10. Explain the term ‘change in demand’ and represent the same graphically. Also state three factors responsible for ‘change in demand’. 6
Explain the terms ‘change in demand’ and ‘change in quantity demanded’. Also state three factors responsible for ‘change in demand’.
Q. 11. Distinguish between ‘returns to a factor’ and ‘returns to scale’. Explain briefly returns to scale by giving numerical examples 6
Q. 12. Explain briefly three features of monopolistic competition. 6
Explain the features of monopoly.
SECTION - B
Q. 13. Answer the following questions : 1×4
Q. 14. Calculate Personal Disposable Income from the following data : 3
Q. 15. In an economy, marginal propensity to save is 0.2. Investment increases by Rs. 100 crores. Calculate total increase in national income. 3
Q. 16. Give meanings of (i) cash reserve ratio, (ii) bank rate and (iii) open market operations. 3
Q. 17. Distinguish between ‘visible trade’ and ‘invisible trade’ in balance of payments. Give one example of each. 3
Q. 18. What is barter ? Explain the ‘unit of value’ function of money. 4
What is money ? Explain the ‘store of value’ function of money.
Q. 19. Explain the ‘banker’s bank and supervisor’ function of the central bank. 4
Q. 20. Distinguish between direct tax and indirect tax. Give two examples of each. 4
Q. 21. Distinguish between (i) tax and non-tax revenues and (ii) developmental and non-developmental expenditures. 4
Q. 22. Calculate ‘national income’ and ‘net national disposable income’ from the following data : 4, 2
Q. 23.Explain the income method of estimating national income. 6
Explain the distinction between ‘domestic product’ and ‘national product’ on the basis of concepts of resident and domestic territory.
Q. 24. Explain determination of equilibrium level of income through the Savings - Investment approach. Use diagram. What changes will take place when the economy is not in equilibrium ? Explain. 6
Explain determination of equilibrium level of income by the (i) Savings - Investment approach and (ii) Aggregate demand - Aggregate supply approach. What changes will take place when the economy is not in equilibrium ?