HSE ( II ) 2011

Part- III

ECONOMICS

I. Odd one out and justify your answer ( 4x1= 4 ) 1. Income, wealth, Investment, Capital 2. GDP, Consumer, Income, Price, Taste 3. Air, Water, Pepsi, Shelter 4. Income effect, Price effect, Substitution effect, Multiplier effect. II Match the following (3x1 =3) 5 . 6 . 7 . A Economic system Budget Govt. Expenditure B Tax C Deficit

Capitalism Multiplier Surplus Mixed economy

III Give Terms ( 4x1= 4 ) 8. Change in Investment and change in income 9. Stabilization of the Economy 10. Exchange rate determined by the forces of demand and supply 11. Total liability of the RBI 12. Categorize under proper heads (4) General Price level, Price theory, Personal income, Unemployment, Inflation, Salary of a worker 13. (a) Calculate the following (8 ) (b) Draw TFC, TVC, TC Quanti TC TFC TVC AC AVC AFC MC ty 0 120 1 180 2 200 3 210 4 225 5 260 6 330 14. Suppose the price elasticity of demand for good X is -0.2. How the expenditure on the good be affected if there is a 10% increase in the price of the good ( 3 ) 15. Complete the table. (5) Term Components M1 M2 M3 M4 15.If Demand function Dx = 100-P and Supply function Sy = 50+P find Equilibrium price, Quantity, Demand and Supply. 16. If MPC = 0.8, Find the values of Expenditure Multiplier, Tax Multiplier 17. Classify the following under suitable Heading Textiles, insurance machinery, raw materials, tourism, Banking. (5 ) (3) (4)

18. Prepare a seminar report on functions of Central Bank. 19. Distinguish between Price Ceiling and Price-floor with diagrams 20. Find the Equilibrium point and justify the reason of the given diagram Y MC

(8) (6)

MR=AR

Q1

Q2

Qo

Q3

X (8)

21. Find GNPMP , GDPMP, NNPMP, and NNPFC.

Indirect Tax 4000 Subsidy 2000 Depreciation 500 Compensation of Employees 20000 NFI from Abroad -250 Operating Surplus 8000 Mixed Income 5000 22. Monetary policy is better than fiscal policy Justify your answer. (5) 23. Differenciate between Product Market Linkage and Factor Market Linkage ( 2 ) 24. Complete the flow chart. (2)

House Hold

Firms

Prepared by Cluster Group1. Malappuram Uploaded by Nujoom. M HSST Economics PHSS Pandallur