OMTEX CLASSES                                                 ECONOMICSBISMILLAH                                               Istpreliminary exam….
3 hours                                                                                                                                                            100 marks
Don’t make any correction on objectives.
Write four points for two marks answer.

Q.1 (A) Fill in the blanks with appropriate alternatives given in the brackets: (5 marks)BISMILLAH  
1.      The budget is presented by the ___________before the parliament. (Prime Minister, Home Minister, Finance Minister, Chief Minister)
2.      In general the duration of Budget is of _________month. (twelve, six, nine, fifteen)
3.      The currency notes issued by the Central Bank are _______legal tender. (limited, unlimited, zero, negative)
4.      _______function is not performed by commercial bank. (credit control, lending, borrowing, credit creation)
5.      Under perfect competition there are _________sellers. (two, few, many, large number of )

(B) State the whether the following statements are true or false: (5 marks) BISMILLAH  
1.      An entrepreneur should be rigid in thoughts.
2.      Money is not a good store value.
3.      Consumption is one of the determinants of aggregate supply                                 OMTEX CLASSES
4.      The relationship between price and Supply is positive.                                             Group C
5.      Perfect competition is a theoretical concept.

(C) Choose the correct answer: (5 marks)BISMILLAH  
1.      Reservation Price is __________ expected price. (minimum, maximum, ordinary, higher)
2.      Capital is a______________factor of Production. (real, artificial, natural, free)
3.      The Income of the government through all sources is called public________ (money, income, debt, revenue)
4.      The relationship between the saving and rate of interest is____________. (inverse, become Zero, Increase, remain constant)
5.      For satisfying human wants, uses of goods and services mean __________. ( consumption, saving, income, expenditure)

(D) Match the following Group ‘A’ with Group ‘B’: (5 marks)BISMILLAH  
Group ‘A’
Group ‘B’
1.      Indirect tax
2.      Direct Tax
3.      Sound finance
4.      Functional finance
5.      Statement of income and expenditure
1.      Balanced Budget
2.      Budget
3.      Asset
4.      Unbalanced Budget
5.      Income Tax
6.      Liability
7.      Excise duty

Q.2 (A) Explain the following concepts or give definition: -BISMILLAH                                          (any 4) (8 Marks)
1.      Loan
2.      Clearing House
3.      Travelers Cheque
4.      Credit Money
5.      Direct Tax
6.      Prof. Fisher’s Definition of National Income.
7.      Government Expenditure.
8.      Price Discrimination.
     (B) State whether the following statements are true or false give reason: -BISMILLAH                         (any 4) (8 Marks)
1.       The services of housewife are not included in national income.
2.      Labour is a perishable factor.
3.      Illegal income is not included in nation income.
4.      In Surplus Budget income is more than Expenditure.
5.      Overdraft is provided only to current Account Holders.
6.      Revenue receipts are included in revenue account of budget. Pg no…40
7.      Indirect taxes follow the principles of equity. Pg no… 42
8.      There is no selling cost included in Monopolistic Competition.
    Q.3 (A) Distinguish Between: - BISMILLAH                                                                                          (any 4) (8 Marks)
1.       Convertible Money V/S Inconvertible Money.
2.       Government Income V/S Government Expenditure.
3.      Bank Rate V/S Interest Rate
4.      Quantitative Credit Controls V/S Qualitative Credit Controls.
5.      Current Deposit V/S Recurring Deposit
6.      Propensity to consume V/S Propensity to Save
7.      Income V/S Saving
8.      Real capital V/S Money capital.

(B) Give Reason or Explain: -            BISMILLAH                                                                                    (any 4) (8 Marks)
1.       Labour is paid salary as reward.
2.       Geffen goods are called inferior goods.
3.       When Income increases consumption also increases.
4.       There is indirect relationship between Demand and Price.
5.       Under Perfect competition the firm is a price taker.
6.       Land is Natural factor of production.
7.       The demand curve slopes downward from left to right.
8.      The difficulties of barter system are removed by money.

  Q.4 (A) Answer the following: -       BISMILLAH                                                                                    (any 2) (8 Marks)
1.       State the features of Monopoly.
2.       Factor determinants of Elasticity of Demand.
3.      Quantitative Method of credit Control by Central Bank?
4.       Features of Land?

       (B) Short Notes: -            BISMILLAH                                                                                                            (any 2) (8 Marks)
1.       Micro Economics.
2.       Determinants of Aggregate supply.
3.       Factor Determinants of consumption Function.
4.       Importance of Price Elasticity of Demand.

Q.5 State with reason, whether you agree or disagree with the following statements: -BISMILLAH   (any 2) (16 Marks)
1.      Entrepreneur is the Capitan of the Industry. (write function)
2.      There are no difficulties involved in measuring national income.
3.      There is no Exception in Law of Demand.

Q.6 Answer the following questions in detail: - BISMILLAH                                                                    (any 2) (16 Marks)
1.      Define Central Bank? Explain its Function?
2.      What are the Methods of Measuring National Income?
3.      Components of Government Budget?