“Achieve Success through”
Omtex Classes PAPER THREE
“THE Home of Text”
TIME: - 3 hours THIRD PRELIMINARY EXAMINATION BISMILLAH MARKS: - 100
3.00pm to 6.00pm
Avoid Cancelation, Diagram is Necessary, Try to attend all questions, BISMILLAH
Q.1 (A) Complete the sentences by choosing correct alternative given below. BISMILLAH 5 marks
1. Converting log of wood into a table is addition of ___________ (Place Utility, Time Utility, Form Utility , Personal Utility)
2. Supply curve has _________ slope. (Positive, Negative, Horizontal, Vertical)
3. Supply is a _________ of stock. (Part, Total, Maximum, Minimum)
4. Receiving deposits and advancing loans is a ___________ function of any commercial bank. (Primary, Secondary, Current, Total)
5. The income of government through all sources called ____________________ (Public debt, Public expenditure, Public revenue, public taxation)
(B) State whether the following statements are true or false. BISMILLAH 5 marks
1. Refrigerator in restaurant is capital goods.
2. Government budget gives us the complete financial information of the country
3. Reservation price of perishable goods is generally high
4. Price is the only factor that determines demand for a commodity.
5. Free entry is an essential but not a sufficient condition of perfect competition.
(C) Choose the correct answer in each from the following four alternatives BISMILLAH 5marks
1. in case of perfectly elastic demand, the demand curve is __________
· Parallel to Y axis
· Parallel to X axis
· Downward sloping
· Upward Sloping
2. Central Bank is __________
· Bankers bank
· Provides lockers facility
· Commercial bank
· Provides Overdrafts facility
3. During depression, the Central Bank adopts the _____________
· near money policy
· dear money policy
· Cheap money policy.
· No money policy
4 National Income data is not completely reliable _____________
· Due to statistical and conceptual difficulties
· Due to illiteracy in the country
· N.I data is too large.
· It takes a long time in its calculation
5. Monopoly of Note-issue of the Central Bank is its:
§ Traditional function
§ Development Function
§ Modern Function
§ Secondary function
(D) Match the two columns given below: BISMILLAH
1. Micro economics
3. Surplus budget
4. Marginal utility
5. Moral Suasion
1. Composite Demand
2. Revenue more than expenditure
3. Selective method of credit control
4. Study of one millionth part of the country
5. Joint demand
6. Additional utility
Q. 2 (A) Define and explain the following concept. (Attempt any 4) BISMILLAH 8 marks
2. Monopolistic competition
3. Cross elasticity of demand
4. Aggregate Supply
5. Autonomous Investment
6. Pure Completion
7. Credit Card
8. Open Market Operation
(B) Rewrite the following statements as True of False. Give Reasons. (Any 4) BISMILLAH 8 marks
1. The concept of price-elasticity is of great practical importance
2. Selling cost is an important component in Perfect competition.
3. Macroeconomics helps in understanding economic problem of a State.
4. At the point of satiety, marginal utility is zero.
5. Price and supply has inverse relationship.
6. Microeconomics helps to understanding of economic problem o a nation.
7. Investment in demand is the sole determinants of aggregate demand.
8. Whenever income increases, saving also increases.
Q. 3 (A) Distinguish between (Any Four) of the following BISMILLAH 8 marks
1. APC V/S MPC
2. Expansion in demand V/S Contraction in Demand
3. Revenue receipt V/S capital Receipt
4. Utility V/S Usefulness
5. Perfect competition V/S Pure Competition
6. Government income V/S Government Expenditure
7. Elastic Demand V/S Inelastic Demand
8. Income Elasticity of demand V/S Cross Elasticity of demand
(B) Give reasons or explain the following in brief. (Any 4) BISMILLAH 8 marks
1. Goods with close substitute have an elastic demand explain this statements
2. Why stock and supply of perishable commodities is are equal?
3. What are the causes for the changes in the demand
4. Why are the transfer payment not included in the national income
5. Why do commercial bank have greater importance in development of a country
6. Explain the reasons for the evolution of money?
7. Why the concept of balanced budget is called as an ‘Ideal Concept’?
8. Why popularity of the macro economics increased?
Q. 4. (A) Answer the following questions in one or two paras (any 2) BISMILLAH 8 marks
1. Explain the functions of the Entrepreneur.
2. Saving Function?
3. Features of micro economics?
4. Secondary function of commercial bank?
(B) Write Short notes on the following: (any two) BISMILLAH
1. What are the factors determining demand
2. Exception to the Law of Supply
3. Consumption Function
4. Kinds of capital
Q. 5 Do you agree or disagree with the following statements. Give Reasons. (Any Two) BISMILLAH 16 marks
1. There are no exception to the law of demand.
2. Central bank is the lender of the last resort
3. Accepting Deposit is the only primary function of commercial bank
Q. 6 Answer the following (any two) BISMILLAH 16 marks
1. Define and Explain the Functions of Commercial Bank?
2. Explain the Different measures of measuring National Income?
3. Explain the law of Supply? And it Assumption?