Part – A: I. Choose the correct answer: 5×1 =5 1. Central problems of an economy includes a) What to produce b) How to produce c) For whom to produce d) All of the above
2. A vertical demand curve is a) Perfectly elastic b) Perfectly inelastic c) Unitary elastic d) None of the above
3. Measuring the sum total of all factor payments will be called a) Product method b) Expenditure method c) Income method d) none of the above
4. The main function of money is a) Saving b) expenditure c) medium of exchange d) investment
5. Consumption which is independent of income is called a) Induced consumption c) Wasteful consumption b) Autonomous consumption d) Past consumption
II. Fill in the blanks: 5×1 =5 6. The demand for a good moves in the ________ direction of its price. 7. Marginal product and Average product curves are _______in shape. 8. For price taking firm marginal revenue is equal to _______ 9. A part of revenue is paid out as ________ for the service rendered by land. 10. ____________ issues coins in India.
III. Match the following: 1. Centrally planned economy a) Perfect information 2. Indifference map b) Wages 3. Perfect competition c) Government 4. Labour d) Intermediate good 5. Raw material e) A family of indifferent curve
IV. Answer the following question in a sentence/word. 5×1 =5 12. Expand MRS. 13. What is total fixed cost? 14. Give the meaning of imports. 15. How do we get personal disposable income? 16. What do you mean by barter system?
Part – B: V. Answer any NINE of the following questions in 4 sentences each. 9×2 =18 17. Distinguish between positive and Normative Economics. 18. Mention two different approaches which explain consumer behavior. 19. What do you mean by inferior goods? Give example. 20. What do you mean by price elasticity of demand? 21. Give the meaning of the concept of short-run and long run. 22. What are long run costs? 23. Give the meaning of shut down point. 24. What are the features of capitalistic economy? 25. What is the difference between consumer goods and capital goods? 26. What do you mean by externalities? Mention its two types? 27. Write the difference between nominal and real GDP. 28. Mention two motives of demand for money. 29. Give the meaning of investment multiplier. Write its formula. 30. Give the meaning of Paradox of thrift.
Model question paper for supplementary students in economics