Series SSO/2 Colgate) 58/2/1 a. Roll No. Candidates must write the Code on ta the title page of the answer-book. wand Bs a sa-gRetar & BETS Ww ware fee | * Please check that this question paper contains 11 printed pages. * Code number given on the right hand side of the question paper should be written on the title page of the answer-book by the candidate. * Please check that this question paper contains 32 questions. * Please write down the Serial Number of the question before attempting it. * 15 minutes time has been allotted to read this question paper. The question paper will be distributed at 10.15 am. From 10.15 am. to 10.30 a.m., the student will read the question paper only and will not write any answer on the answer script during this period. . Smt Ref we a ee ese a oft om at ak faq mm ae eR at on aaa Gays a fed | ° gyq sia at G fe ea we 7 32 mez | © Bu we a ait fran YS wet So wes, wR aT ain saya fee | © wore & yet & fae 15 fee Hoa fer er 2 | ear or faa aig F 10.15 34 fea WAT | 10.15 7 F 10.30 WTS oe San eT a TET it we soft & che a saegieen ww ae oe ae frat ECONOMICS aera Time allowed : 3 hours Maximum Marks : 100 Freitas arr: 3 qe aPTRET se : 100 58/2/1 1 RRO.General Instructions : (@) _ All questions in both the sections are compulsory. (ii) Marks for questions are indicated against each. (iti) Questions No. 1-5 and 17-21 are very short-answer questions carrying 1 mark each. They are required to be answered in one sentence each. (iv) Questions No. 6-10 and 22-26 are short-answer questions carrying 8 marks each. Answers to them should normally not exceed 60 words each. (v) Questions No. 11-13 and 27-29 are also short-answer questions carrying 4 marks each. Answers to them should normally not exceed 70 words each. (vi) Questions No. 14-16 and 30-32 are long-answer questions carrying 6 marks each. Answers to them should normally not exceed 100 words each. (vii) Answers should be brief and to the point and the above word limits should be adhered to as far as possible. armen freer: @) tat west & wt wer srr 2 1 (ii) eae ee & Preiter ais Tee arate Te FL (iii) WRF WOT 1-5 Tea 17-21 ate oem TE, feat oes 1 @ 1 svar ame Saer ww are Ft A artis 2 1 (iv) 994 FET 6-10 sik 22-26 TIYMITH TH farts & 8 sin 2 | Wee aT SH ATARI GO Weel F sift et BT TET (o) FET FET U1 - 13 ait 27-29 Ht EMIT ese, Re a 4 oe @ 1 acta ar sa ARI 70 Wea H sift Te RT ET | (vi) RT Hem 14-16 sik 30-32 areMeT® sat Te TE, Raat arte & 6 aa & | Hea BT Tae ATT 100 wets sire Fe ea AMET | (vii) ae Her wear TeareTe Bt afer aa Taras SH SG ae star & sire 58/2/1 Ree art aferSECTION A ws a 1. Why does an economic problem arise ? 1 anfis wren it sera tt 2 2 2. When is the demand of a commodity said to be elastic ? i Uh ae a HiT at cheek wa ae aT 8 7 3. Define variable costs. I vied amit at uta dif 4. What causes an upward movement along a supply curve ? 1 Ya aH TSR SH AN WA HT a e@ ? 5. Define marginal revenue. 1 dara daa at sear df | 6. Explain the problem of ‘how to produce’. 3 ‘Sa sore at a aren wrERT | 7. Explain the law of supply with the help of a supply schedule. 3 we yf sage st were & ofe & fey at orem aif 1 Qi “Drawid:otraigtsh line/demand-curve/end Bhow. on.it-a,point-ue whieh @ price elasticity of demand > 1 (ii) price elasticity of demand < 1 (iii) price elasticity of demand = 1 3 we tht tar ae ain am citar sik sa US fag feare fre 7 @ oat # iva ar > 1 Gi) Fin Ht aia che <1 Gi) Fin Ht ana Ga = 1 58/2/1 3 P.T.O.10. 1. For Blind Candidates only in lieu of Q. No. 8 fae qed wtenfoat & feu wea den 8 & wa a What is meant by price elasticity of demand ? If elasticity of demand of a commodity is less than 1, what will be the effect of a fall in its price on total expenditure on it ? Explain. Hin at sina cite ar aa ah 2? ae me ag a a ae 1a an’, at saat St yet a Ta SA a TW a Te TST? AART I Explain consumer's equilibrium in case of a single commodity, through the utility approach. OR Explain the law of diminishing marginal utility + utility schedule. seafin gear at wer Sw ay at Rafe Fs wat we svat sagt at meat 8 aaa des Fife | How is the supply of a commodity affected by changes in the prices of other commodities ? Explain. aa apt a sind Fo ved ae ae wreISe | sates at @.? Explain with the help of a total product curve the meaning of increasing returns to a factor. ane & adam (aga) seat a anh um Bc se ae ST Tea & ERT I For Blind Candidates only in lieu of Q. No. 11 fae eda vient & fre we eT 11 A Explain the meaning of increasing returns to a factor with the help of a total product schedule. Ba sere age st wera @ aes & ava sire a ad ane | 58/2/1 412. The 20 peres apply of commoditi fall in price of A results in a 40 percent fall in its supply. Calculate the percentage increase in supply of B if its price rises from Rs. 10 per unit to Rs. 11 per unit. 4 ASk Bagi a Ye at ae a aq 1:152%1 Aa aie 20 sfeat wea S saat yf 40 sfaea ved @ 1 ale Bat iva 10%. sft gad & aan 11%. af ae det 2 at saat ofa FSA art afore aie ar ofece aif | 13. Explain “large number of buyers and sellers” feature of perfect competition. 4 OR Explain “freedom of entry and exit to firms” feature of perfect” competition. 4 pi steerer at “adt den # set sit fata” favne Bae | aera wet strata at “wet at waar sik free A aden” fagvar aEET | 14. Giving reasons, state whether the following statements are true or false : 6 (@ A producer is in equilibrium when total cost and total revenue are equal. (i) The difference between average total cost and average variable cost decreases with decrease in the level of output. (ii) When marginal cost rises, average cost will also rise. aro ge ade fH freed saa wee a Te: Gam Ret wrt sit Her data aaa GS SF at seme aes a fafa F dear al Gi) ST TAR Fea site ge cre aN sites feed ara aT SRR FETT al (ii) wa tara arma aed 2, aH stag arms ot aT | 58/2/1 5 P.T.O.15. Explain three causes of a shift in demand curve of a commodity. OR Explain the difference between ‘decrease in demand’, and ‘decrease in quantity demanded’ with the help of a demand schedule. Give two causes of a decrease in demand. GS ag % cin am & faaat & de art at orem ahi | aaa we ait agg at aaa a ain A sey sik ciao Ho ae a ome wae | HiT A ah et ART TET | 16. Define equilibrium price. How is it determined ? Explain with the help of a schedule. Figen Fan at oer dae | ae Sa Pratt st ort 2? we aE at aera a WaT | SECTION B ura 17. Can the value of average propensity to save be negative ? If yes, when ? aq sited aaa sgh a yea oes @ vac 2 ? ate a, at wa? 18. Why is income tax a direct tax ? aM a yer a wa Bet 2? 19, What is the relationship between marginal propensity to save and multiplier ? dard aaa sgft sit qe A an way gate? 20, Give the meaning of deflationary gap. waits see aT sh aT | 21. Give the meaning of demand deposits of commercial banks. aintias dat at ait sat ar ard aagz | 58/2/1 622. Calculate net value added at factor cost from the following data : @ Gi) Gii) (iv) (v) (vi) (vii) 3 (Rs. is crores) Purchase of machinery to be used in the production unit 100 Sales 200 Intermediate costs 90 Indirect taxes 12 Change in stock 10 Excise duty 6 Stock of raw material 5 frafefad sisi @ ara cre & faa aff yea a ofees aif (&_wist #) @) semen gas Howey & fee Gidt we ae 100 Gi) fat 200 Gil) Herat Tg 90 (iv) SIT aT 12 (v) ie Fahad 10 (vi) SNe IH 6 (vii) a Fa a RTs 5 23, Explain any two functions of a commercial bank. 3 OR Explain any two functions of a central bank. 3 we afi da % fet ad arf at omen afc | agar s we ont da % fed a ari a orem aif 1 58/2/1 e P.T.O.24. Complete the following table : Income | Consumption | Marginal Propensity | Average Propensity to Save to Consume 0 12 20 26 etal ee 40 40 aus San 60 54 Bek sete frefafiad afer at yo aifae : aa sai nia Tae waht sited saat safe 0 12 20 26 wt woe 40 40 sen ee 60 54 oe ee 25. List the types of transactions that are recorded in the current account of balance of payments account. oan dae ae % ag ae F afc fer am at dei & wert at at ART | 26. How can a government budget help in reallocation of resources in an economy ? Explain. wader 9 doe a yr aed ac Hower ae 48 were A wa @ ? aHERT | 27. Explain two merits and two demerits of fixed foreign exchange rate. fax feet fafma x & a qt sit d sept a omen afc 1 58/2/128. 29. 30. 58/2/1 9 P.T.O. Explain the basis of classifying government receipts into revenue receipts and capital receipts. Give two examples of each. OR Explain the meaning and implications of fiscal deficit. sitad at wa afte sit fina ofted # awiigg eet sen at aif | wate & A saeor afar | seat qsetia a2 & af ait saat at orem aif 1 State any two problems of barter system of exchange. How does money solve them ? ag fata woret at até a aren aaeu | ast era SE Ha ae e 7 While calculating national income of India from its domestic factor income, how will you treat the following ? Give reasons for your answer. @ Salaries received by Indians working in branches of foreign banks in India. (G) Profits earned by an Indian bank from its branches abroad. (iii) Rent paid by embassy of Japan in India to an Indian resident. art 3 ia are are 3 usta a a after aed are am frefefad & aa wa aaen BT 2 al oat & few arm fae 1 @) fateh aah at ae erat 4 erie ate at ara aaa 1 GD) we andy ae ar are fateh ore 3 aia are | Gi) eRe 4% STR & qaee ae Us ania fared at fee eT fae |31. 32. C = 100 +.0-75 Y is a consumption function (where C = consumption expenditure and Y = national income) and investment expenditure is 800. On the basis of this information calculate : (equilibrium level of national income (i) savings at equilibrium level of national income OR In an economy, aggregate demand is less than aggregate supply. Is the economy in equilibrium ? If not, explain the changes that will bring the economy in equilibrium. C = 1004+ 0-75 Yu sam wer @ (we C = BTM oe MT Y = wa a) sit fader erat 800 @ | ga Geet & san Prafafad a ues afer : @ age are & daft EK Gi) Weta ara & dgfes eH Tee avrat we adore Fae ait we oe Soom eo ear oeerren dgea at fale F 202 af ad, dha ofa at open aifie St a dqer a fia Font From the following data, calculate “national income” by (i) income method and (ii) expenditure method. (Rs. in crores) @ Net domestic capital formation 360 Gi) Interest 200 Gili) Rent 300 (iv) Private final consumption expenditure 1300 (v) Government final consumption expenditure 730 (vi)’ Net exports (-) 20 (vii) Net indirect taxes ; 70 (viii) Net current transfers from rest of the world 80 (ix) Consumption of fixed capital 60 (x) Net factor income from abroad (50 (xi) Profits : 600 (xii) Compensation of employees 1200 58/2/1 % 10frrfetad siteet & (i) ara fafa, sik Gi) ara fae ae “aera sta” at citer aif : (east 4) @ free Seite Sit fra 360 @) =m 200 (ii) fT 300 Gv) fat afar srt aa 1300 (v) Beart ser son ore 730 (vi) frac frat (© 20 (vii) frac srrerer at 70 (viii) Wy fava @ fae Ysiee eeaitoT 80 Gy) fe hi a sri 60 (x) fate & Frat are sre 50 (xi) art 600 Gai) aetenfeat an oes 1200 3/2/1 11 1,500