Any statement about demand for a good is considered complete only when the following is/are mentioned in it (Choose the correct alternative): |
(a) Price of the good (b) Quantity of the good |
(c) Period of time (d) All of the above |
Demand for a good is termed inelastic through the expenditure approach when if (Choose the correct alternative) |
(a) Price of the good falls, expenditure on it rises |
(b) Price of the good falls, expenditure on it falls |
(c) Price of the good falls, expenditure on it remains un-changed |
(d) Price of the good rises, expenditure on it falls |
A seller cannot influence the market price under (Choose the correct alternative) |
(a) Perfect competition (b) Monopoly |
(c) Monopolistic competition (d) All of the above |
Distinguish between 'increase in demand' and 'increase in quantity demanded' of a good. |
Or |
Explain the meaning of 'Budget set' and 'Budget line'. |
Define market supply. Explain the factor 'input prices' that can cause a change in supply. |
Or |
Give the behaviour of marginal product and total product as more and more units of only one input are employed while keeping other inputs as constant. |
Complete the following table: | ||||
Output (Units) | Average Fixed Cost (Rs) | Marginal Cost (Rs) | Average Variable Cost (Rs) | Average Cost (Rs) |
1 | 60 | 20 | - | - |
2 | - | - | 19 | - |
3 | 20 | - | 18 | - |
4 | - | 18 | - | - |
5 | 12 | - | - | 31 |
From the following total cost and total revenue schedule of a firm, find out the level of output, using marginal cost and marginal revenue approach, at which the firm would be in equilibrium. Give reasons for your answer. | ||
Output (units) | Total Revenue (Rs.) | Total Cost (Rs.) |
1 | 10 | 8 |
2 | 18 | 15 |
3 | 24 | 21 |
4 | 28 | 25 |
5 | 30 | 33 |
Distinguish between perfect oligopoly and Imperfect oligopoly. Also explain the "interdependence between the firms" feature of oligopoly. |
Or |
Explain the meaning of excess demand and excess supply with the help of a schedule. Explain their effect on equilibrium price. |
Demand deposits include (Choose the correct alternative) |
(a) Saving account deposits and fixed deposits |
(b) Saving account deposits and current account deposits |
(c) Current account deposits and fixed deposits |
(d) All types of deposits |
If the marginal propensity to consume is greater than marginal propensity to save, the value of the multiplier will be (Choose the correct alternative) |
(a) greater than 2 (b) less than 2 |
(c) equal to 2 (d) equal to 5 |
Explain the 'bankers' bank' function of the central bank. |
Or |
Explain the process of credit creation by commercial banks. |
An economy is in equilibrium. From the following data, calculate the marginal propensity to save: |
(a) Income = 10,000 |
(b) Autonomous consumption = 500 |
(c) Consumption expenditure = 8,000 |
Explain the precautions that should be taken while estimating national income by expenditure method. |
Or |
Will the following be included in the domestic product of India? Give reasons for your answer. |
(a) Profits earned by foreign companies in India. |
(b) Salaries of Indians working in the Russian Embassy in India. |
(c) Profits earned by a branch of State Bank of India in Japan. |
Calculate National Income | ||
(Rs) in crores | ||
(i) | Compensation of empolyees | 2,000 |
(ii) | Rent | 400 |
(iii) | Profit | 900 |
(iv) | Dividend | 100 |
(v) | Interest | 500 |
(vi) | Mixed income of self-employed | 7,500 |
(vii) | Net factor income to abroad | 50 |
(viii) | Net exports | 60 |
(ix) | Net indirect taxes | 300 |
(x) | Depreciation | 150 |
(xi) | Net current transfers to abroad | 30 |
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