“Way of Education”

R.V.COMMERCE
Time : 3.00 hrs.
ECONOMICS CLASSES
First Preliminary Examination Marks : 100 ”
ECONOMICS
Time : 3.00 hrs. First Preliminary Examination Marks : 100

Q.1. A) Fill in the blanks with suitable alternatives from the brackets. (5)
1) The Greek word Macro means ………………………………………. (small, large, zero, none of these)
2) If the price of the inferior goods falls, the demand for them will ………………………………….
(increase, decrease, remain constant, zero)
3) Elasticity of demand can be measured from demand curve by ……………………………. method.
(Total outlay, Percentage, Geometric, Mathematical)
4) NI at ………………………………. price is measured with price level of the base year.
(current, constant, market, factor)
5) Deposits on current a/c are refered to as ……………………………… deposits. (demand, fixed, saving, recurring)

B) State whether the given statements are True of False. (5)

1) Demand for petrol is an elastic demand.
2) Micro economics studies economic problem of an individual.
3) Supply curve slopes downwards.
4) Income tax is direct tax.
5) Credit control is the function of nationalised bank.

C) Choose the correct answers from the following alternatives. (5)

1) The law of DMU is useful for ………………………………
a) buyers b) sellers c) government d) all of these
2) In case of Giffen goods, the income elasticity of demand is ………………………………….
a) positive b) negative c) zero d) infinite
3) The relationship between the saving and rate of interest is ………………………………...
a) Inverse b) Positive c) Constant d) Proportional
4) Demat account facility is useful for ……………………………………..
a) retailers b) consumers
b) customers dealing in sale & purchase of shares d) wholesalers
5) One of the type of capital expenditure is ………………………………….
a) administrative expenditure b) investment expenditure on share
c) expenditure on social service d) expenditure on police.

D) Match the following Group A with Group B. (5)

Group A Group B
a. Demand and Price 1) Secondary function
b. Essential Commodities 2) Primary function
c. Consumption Function 3) Inverse Relationship
d. Saving 4) Income
e. Safe deposit vault 5) Inelastic demand
6) Subjective factors
7) Elastic demand

Q.2 A) Define or explain the following concepts. (any Four) (8)

1) Price equilibrium 2) Joint demand 3) Form utility 4) Commodity money
5) Gross National Product (GNP) 6) Central bank 7) Bills of exchange 8) Deficit budget
B) State with reason whether the following statements are True of False. (any Four) (8)
1) The demand for necessary is elastic.
2) In monopoly Market monopolist is not a price maker.
3) Macro-economics studies economic problems of an economy.
4) Effective demand increases employment.
5) Aggregate supply depends on many factors.
6) The rate of interest is different on fixed & saving deposits.
7) Commercial bank controls supply of credit.
8) Public revenue always equal to public expenditure.

Q.3 A) Distinguish between the following. (any Four) (8)

1) Micro economics & Macro economics.
2) Extension/Expansion in demand & Increase in demand.
3) Perfect elastic demand & Perfect inelastic demand.
4) Supply & Stock.
5) Income method & Expenditure method.
6) Income & Saving.
7) Fixed deposit & Saving deposit.
8) Surplus budget & Deficit budget.

B) Give reasons. (any Four) (8)

1) Utility depends upon the urgency of want.
2) Desire and demand are not the same.
3) Exceptional demand curve slopes downwards.
4) In Monopolistic competition, there is no product differentiation.
5) The supply of land is fixed.
6) Money acts as a store of value.
7) Purchase of Machinery is revenue expenditure.
8) Saving is determined by level of income.

Q.4 A) Write answers in brief. (any Two) (8)

1) State the features of labour.
2) State the features of Micro economics.
3) State the Primary function of money.
4) State the objective factors affecting the consumption function.

B) Write short notes. (any Two) (8)

1) Product method of measuring NI 2) Determinants of aggregate supply.
3) Bank overdraft 4) Surplus Budget

Q.5 Explain with reasons whether you agree or disagree with following statements. (any Two) (16)
1) There are no real exceptions to the law of diminishing marginal utility.
2) The study of Macro-economics is not important for the government.
3) Central bank has many weapons in its armoury to control credit creation in the economy.

Q.6 Answers in detail. (any Two) (16)

1) Explain the law of demand. What are its exceptions?
2) Explain the law of supply and its assumption.
3) What is Monopoly? Describe the features of monopoly.

Best of Luck