Which of the following measures of price elasticity shows elastic supply? |
(Choose the correct alternative) |
(a) 0 |
(b) 0.5 |
(c) 1.0 |
(d) 1.5 |
Which of the following does not cause shift of supply curve of a good? (Choose the correct alternative) |
(a) Price of input |
(b) Price of the good |
(c) Goods and services tax |
(d) Subsidy |
Explain the central problem of 'What is produced and in what quantities'. |
Or |
In what circumstances may the production possibility frontier shift away from the origin? Explain. |
Write a budget line equation of a consumer if the two goods purchased by the consumer Good X and Good Y are priced at Rs. 10 and Rs. 5 respectively and the consumer's income is Rs. 100. |
Or |
Define marginal rate of substitution. Explain its behaviour along an indifference curve. |
Define price floor. Explain the implications of price floor. |
Or |
Market of a good is in equilibrium. Demand for the good 'decreases'. Explain the chain of effects of this change. |
Credit creation by commercial banks is determined by (Choose the correct alternative) |
(a) Cash Reserve Ratio (CRR) |
(b) Statutory Liquidity Ratio (SLR) |
(c) Initial Deposits |
(d) All the above |
Distinguish between stock and flow variables with suitable examples. |
Or |
What are capital goods? How are they different from consumption goods? |
Define full employment in an economy. Discuss the situation when aggregate demand is more than aggregate supply at full employment income level. |
Or |
What are two alternative ways of determining equilibrium level of income? How are these related? |
Discuss briefly the meanings of: |
(i) Fixed Exchange Rate |
(ii) Flexible Exchange Rate |
(iii) Managed Floating Exchange Rate |
What is government budget? Explain its major components. |
Or |
Explain (a) allocation of resources and (b) economic stability as objectives of government budget. |
Calculate (a) Operating Surplus, and (b) Domestic Income: | (Rs in crores) | |
(i) | Compensation of employees | 2,000 |
(ii) | Rent and interest | 800 |
(iii) | Indirect taxes | 120 |
(iv) | Corporation tax | 460 |
(v) | Consumption of fixed capital | 100 |
(vi) | Subsidies | 20 |
(vii) | Dividend | 940 |
(viii) | Undistributed profits | 300 |
(ix) | Net factor income to abroad | 150 |
(x) | Mixed income | 200 |
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