“Achieve Success through”
Omtex Classes PAPER one
“THE Home of Text”
TIME: - 3 hours MARKS: - 100
Q.1 (A) Complete the sentences by choosing correct alternative given below.
1. Micro and macro approaches are _________________________ to each other. (Competitive, complementary, substitute, rival)
2. __________is the desire backed up by ability to pay and willingness to pay for it. (Demand, Want, Commodity, Utility)
3. The income of government through all sources called ____________ (Public debt, Public expenditure, Public revenue, public taxation)
4. Individual supply is a ___________________ economic variable. (Macro, Producer, Micro, Firm)
5. Macro Economist was well explained by economist_______________. (Marshall, Robbins, Adam Smith, J.M. Keynes)
(B) State whether the following statements are true or false.
1. Reservation price of perishable goods is generally high
2. Refrigerator in restaurant is capital goods.
3. Macro economics studies the economy in its totality.
4. Paper money economizes on the use of precious metals.
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
- ‘Principles of Economics’ is the celebrated book of:
1. Dr. Alfred Marshall
2. J.M. Keynes
3. Lionel Robbins
4. Adam Smith) unique
- Electricity has a composite demand:
1. It is less expensive resources
2. It is demanded for several uses
3. It is available at all time
4. It is used in combination with other resources
- Monopolistic is a Price-maker and not a price taker.
1. Monopolist is intelligent in price-making
2. Demand for his commodity is very high
3. He is the seller in the market and has no close substitute for his product,
4. There is free entry and exit of firms in the market.)
- Labour cannot be stored:
o Labourer has less physical strength
o Labourer lacks mobility
o Labour is the most perishable factors of production.
o Labour is the most inactive factors of production
- 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:
1. Point of Satiety
2. General Price Level
3. Perfect Competition
4. Variable Cash Reserve Ratio
5. Public expenditure greater than public revenue
Q. 2 (A) Define and explain the following concept. (Attempt any 4) 8 marks
1. Define Microeconomics
2. Explain, with example, the term Utility
3. Define Price Elasticity of Demand
4. Define Cash Reserve Ratio
5. Explain the concept of Gross National Product. (GNP)
6. Define Consumption Function
7. State the definition of Central Bank.
8. Explain Credit Cards
(B) Rewrite the following statements as True of False. Give Reasons. (Any 4) 8 marks
1. Issuing travelers cheque is the primary function of commercial bank.
2. Central banks controls credit creation.
3. Money has no store value.
4. As the income increases, Consumption also increases
5. Functional budgeting of government is more important than balanced budgeting.
6. Labour can be stored
7. Today, barter system is in backward countries
8. Demand and Desire are one and the same.
Q. 3 (A) Distinguish between (Any Four) of the following 8 marks
1. Direct Demand V/S Derived Demand
2. Fixed Capital V/S Variable Capital
3. Average Propensity to consume V/S Marginal propensity to consume
4. Individual Problem V/S National Problem
5. Consumption V/S Investment
6. Fixed Deposit Account V/S Current Account
7. Micro Economics V/S Macro Economics
8. Monopoly V/S Monopolistic competition
(B) Give reasons or explain the following in brief. (Any 4) 8 marks
1. Why Monopolistic competition does have product differentiation?
2. Is demand and Desire the same thing? Explain with an example.
3. Why is competitive firm a ‘Price-taker?
4. Give Reason why labour can not be stored.
5. Why has the Popularity of Macroeconomics increased?
6. Why is income from illegal activities not included in the national product?
7. Why the concept of balanced budget is called as an ‘Ideal Concept’?
8. Why does land lacks mobility?
Q. 4. (A) Answer the following questions in one or two paras (any 2) 8 marks
1. What are the factor determining aggregate Supply?
2. Explain with illustration, the Income method of Measuring National Income?
3. Describe the Various Function Of Money?
4. What are the Types of Price Elasticity of Demand?
(B) Write Short notes on the following:
1. Features of Macroeconomics
2. Exception to the Law of supply
3. Types of Monopoly
4. Kinds of demand
Q. 5 Do you agree or disagree with the following statements. Give Reasons. (Any Two) 16 marks
1. At the point of satiety, Total utility is at its maximum
2. Demand Curves Sloes downwards from left to Right.
3. AD is influenced by C+I+G+E
Q. 6 Answer the following (any two) 16 marks
1. Define and Explain the Function of Central Bank?
2. Explain the Features of Monopolistic Competition?
3. Explain the Law of Demand? And it’s Assumption?