Model Examination 2010-2011 Economics

Time : 2.45hr HSE (II) 1. 2. demand for money. Represent it on a graph. Categorise the following into two main branches of economics. Total employment, price of gold, gross domestic saving, profit of a firm, National income, salary of a teacher. 3. 4. Prepare a chart showing the functions of money Fill in the blanks 1) NNP 2) NNPFC 3) GNP 4) NNP FC 5. 6. by this ? = = = --------------------------------------------------------+---------------(3) (3) (3) (4) Max. Score : 80 (4) Consider r is the market rate of interest. When r=rmin, what is the speculative

+ depreciation = -----------------

Suppose cdr and rdr for an economy are 1 and 0.3 respectively what you understand Suppose Balu wants to consume two goods X and Y The prices of two goods are Rs. 5 and Rs. 6 respectively. The consumers income is Rs. 30 write down all the bundles that are available to the consumer. (b) Draw the budget line (4) (3) AP MP 4 7 12 8 3 0 (4) TP

7.

Following table shows the MP of labour. Find TP, AP Units of Labour 1 2 3 4 5 6

8. 9.

Explain the shapes of TC, TVC, AFC and SMC Find odd one out a) Note issue, Accepting deposits, Bankers bank, lender of last resort b) Fees, fine, income tax, escheat. c) 1/1-C, 1/MPS, S/Y, Y/I

(3)

10.

State whether the following statements are true or false and rewrite if necessary.

a) The real exchange rats is the relative price of foreign goods in terms of foreign good. b) The demand curve is elastic when marginal revenue has a positive value. c) Elasticity is 1 at the point where the demand curve meet the horizontal axis 11. 12. 13. 14. 15. 16. 17. 18. Construct a PPC and mark a possibility for an economy at the time of school opening by using books and cloths are two commodities. Give two flows from firms to government Write a seminar paper on comparison between perfect completion and Monopoly. Consider a demand curve d(p)=50-2P find the elasticity of demand at price 5. A firm produce a commodity with Rs. 20 as its minimum AVC suppose its markets price is Rs. 15. What quantity will supply the firm at Rs. 15. give an explanation. Suppose C=0.8 and m=0.3 calculate open and closed economy multiplier Distinguish between desalination and depreciation The table describes consumption at various levels of income Income. Consumption Calculate saving, MPC, and MPS 19. is Rs. 10. Quantity 0 10 2 3 4 5 6 TC in Rs 50 60 69 78 86 96 108 Find out profit maximizing output level and graphically represent it. 20. C=100+.8Y. Find (1) equilibrium income (2) consumption at equilibrium income and (3) saving 21. Classify the following into Revenue expenditure and capital expenditure. Subsidy, investment in shares, Loans to foreign government, capital project of plants, salary, grants to state, interest payment. 22. 23. 24. economy, explain the measures adopted by RBI Write down some of the limitations of using GDP as an index of welfare of a country How will a change in price of petrol affect the equilibrium price and quantity of car Prepared by Kochirani Mathew, St. Marys H.S.S Kaliyar Cluster- St. Georgs H.S.S, Muthalakodam. (3) (4) (3) (3) RBI has changed monetary instruments to control inflationary tendencies in the Indian (4) 100 75 110 82 120 90 130 96 140 102 (3) (3) (3) (3) (3) (2) (1) (3)

Total cost schedule of a firm under perfect competition is given below. The price of the good

(6)

Suppose that for an economy investment is equal to 20 and consumption is given by