ECONOMICS PAPER I.pdf

Bismillah

OMTEX CLASSES

ECONOMICS

80Marks

2.30 hours

Q.1 (A) Select the correct answer form the possible options given below and rewrite the statements: 5 Marks

1. The terms micro and macro economics were first used by ________ (Adam Smith, Robbins, Ragnar Frish, Marshall)

2. When price of commodity rises the demand for it ________ (Rises, Falls, remain constant, Becomes negative)

3. Cross elasticity of demand is applicable to ________goods. (Unrelated, Substitute, Inferior, Natural) 4. The part of income which is not spend on consumption is called_____ (Expenditure, Saving, Investment, Public debt)

5. Bank Rate is also called as ________rate. (Rediscount, Market, General, Exchange) (B) Match the correct Pairs: 5 Marks

1. 2. 3. 4. 5.

Group A Single Price Land Barter  Overdraft facility OMO

1. 2. 3. 4. 5. 6. 7. 8.

Group B Double coincidence of want Current Account Saving Account Rent Profit Monopoly Perfect Competition Quantitative Credit Control Measures

(C) State whether the following statements are True True or False: 6 Marks 1. 2. 3. 4. 5. 6.

There is no product differentiation in the monopolistic competition. Labour can't be stored. The word Macro is derived from the French word 'Makros'. Macro economics deals with the st udy of aggregates. Money increases productivity of capital. Rate of interest on fixed deposit is high.

Q.2 (A) Define or Explain the following concepts: (Attempt any Three) 6 Marks 1. Macro Economics 2. Labour  3.  National Income 4. Lender of the Last resort 5. Desire 6. Total cost (B) Give Reasons or Explain Explai n the Statements: (Attempt any Three) 6 Marks

1. 2. 3. 4. 5. 6.

Macro economics is the study of aggregates. Aggregate demand depends only on consumption expenditure. Commercial banks provide agency functions to earn profits. The CRR affects the lending capacity of the banks. During the period of inflation, surplus budget is advisable. Paid services are included in national income.

Q.3 (A) Distinguish Between: (Attempt any Three) 6 Marks 1. 2. 3. 4. 5. 6.

Commodity money V/S Metallic Money Central Bank V/S Commercial bank  Land V/S Capital Saving Account V/S Current Account Elastic Demand V/S Inelastic demand. Direct Tax V/S Indirect Tax

(B) Write Short Notes: (Attempt any Two) 6 Marks 1. 2. 3. 4.

Features of Micro Economics Determinants of Aggregate Demand Function of Money Saving Function

Q.4 Answer the following questions: (Attempt any Three) 12 Marks 1. 2. 3. 4. 5. 6.

State the determinants of Aggregate Supply Consumption function Determinants of individual demand. Assumption to the Law of diminishing marginal utility? State the components of Budget Secondary Function of Commercial Bank 

Q.5 Do you agree or disagree with the followi ng statements. Give reasons (Attempt any three) 12 Marks 1. 2. 3. 4. 5. 6.

Acceptance of deposit is the only primary function of commercial bank? Central bank is the bank of banks. There are no difference between stock and supply. Macro economics studies behaviour of individual unit. ( study features of Macro economics and write 6 points without heading) There are no difficulties in measuring national income. There is no real Exception in Law of diminishing marginal utility .

Q.6 Answer in Detail: (Attempt Any Two) Two) 16 Marks

1. 2. 3. 4.

Explain the Types of Price Elasticity of Demand? Define Law of Demand? Explain i ts Assumption? Features of Perfect Competition? Define central Bank? Also explain its Functions?