Q1. Q2. Q3.

Define money. What functions are performed by money? Explain how inflation affects the function of money? Define the term opportunity cost and production possibility curve with help of suitable diagram.

Q4. Q5.

Define the term factors of production. Briefly explain them. Define market, planned and mixed economic system. What are advantages and disadvantages?

Q6. Q7.

What are advantages and disadvantages of market economic system? What are advantages and disadvantages of Planned /Command /Controlled /Socialist economic system?

Q8. Q9.

What are advantages and disadvantages of mixed economic system? What is market mechanism? How does it solve the basic economic problems? Discuss whether the price mechanism is an effective way to solve the basic economic problems.

Q10. Q11.

What are different stages of production? Define term division of labour. What are advantages and disadvantages of division of labour?

Q12.

Explain what is meant the term by labour productivity? Why labour productivity might vary between the countries?

Q13.

Explain why it is difficult to measure unemployment accurately? Explain the reliability of the methods used to measure the unemployment.

Q14. Q15. Q16. Q17.

Define demand. Explain factors affecting demand. Define supply. Explain factors affecting supply Explain how equilibrium prices determined? Explain the effects on prices as demand rise or fall. Mention the reasons for rise and fall in demand.

Q18.

Explain the effects on prices as supply rise or fall. Mention the reasons for rise and fall in supply.

Q19.

Define price elasticity of demand (PED). Explain factors affecting PED. (POINTS)

Q20.

Define price elasticity of demand (PED). Explain factors affecting PED. (DEFINED)

Q21. Q22. Q23. Q24. Q25. Q26.

What are degrees of PED? Define price elasticity of supply (PES). Explain factors affecting PES. Explain the degrees of PES? Define income elasticity of demand(YED). Explain the degrees of YED? Distinguish between normal/superior and inferior goods. Define price cross elasticity of demand(XED/CED). What is XED of complementary, substitute and unrelated goods?

Q27.

How concept of PED is important for producer? Or how these concepts are useful for business organization?

Q28.

How concept of YED is important for producer?

Q29. Q30. Q31. Q32. Q33.

How concept of XED is important for producer? Differentiate between consumer surplus and producer surplus. How consumer surplus changes? How area producer surplus changes? Differentiate between maximum and minimum price. What the effects of setting maximum and minimum price?

Q34.

Why fluctuation in price of primary product is greater than fluctuation in price of secondary products.

Q35.

What methods can be adopted by government to stop the fluctuation in prices of primary products. (POINTS)

Q36.

What methods can be adopted by government to stop the fluctuation in prices of primary products. (DEFINED)

Q37. Q38. Q39. Q40. Q41. Q42. Q43.

What are the problems of buffer stock scheme? (POINTS) What are the problems of buffer stock scheme? (DEFINED) What are reasons of inelastic supply of primary products? What are reasons of elastic supply of secondary products? What are reasons of inelastic demand of primary products? What are reasons of elastic demand of secondary products? With reference to PED discuss the likely effects of increasing the general level of indirect taxation on goods and services

Q44.

Explain the concept of PED with reference to Revenue curve analysis

Q45.

Differentiate between Balance of trade(BOT) and Balance of payments (BOP)

Q46. Q47. Q48. Q49.

What are items of BOP? What are the causes of deficit in BOP? (POINTS) What are effects of deficit in BOP? (POINTS) When is deficit in BOP should not be a matter of concerned for a country? (POINTS)

Q50. Q51. Q52. Q53. Q54.

What policies are used to correct deficit in BOP? (POINTS) What are the causes of deficit in BOP? (DEFINED) When is deficit in BOP not harmful for the country? What are effects of deficit in BOP? (DEFINED) What policies are used to correct deficit in BOP + J- CURVE? (DEFINED)

Q55. Q56. Q57.

Define inflation. What are causes of inflation i-e demand pull And cost push? (POINTS) What are effects/consequences/disadvantages of high rate of inflation? (POINTS)

Q58. Q59. Q60.

Discuss whether inflation is always harmful? (POINTS) How inflation affect the different classes of society? Discuss how rapid rate of inflation affect the different classes of the society?

Q61. Q62. Q63. Q64. Q65. Q66. Q67. Q68. Q69.

Explain the difficulties in measuring inflation accurately? What are reasons for demand pull inflation and cost push inflation? What are effects inflation? (DEFINED) When inflation is not a serious problem for the country? How inflation is calculated? Define the term Exchange rate How exchange rate is determined under flexible exchange rate? How exchange rate is determined under fixed exchange rate? How exchange rate is determined under managed floating/ dirty exchange rate?

Q70. Q71. Q72.

What are causes of Appreciation in exchange rate? What are effects of appreciation in value of local currency? Discuss whether devaluation in Exchange rate always improve BOP of the country

Q73. Q74. Q75. Q76. Q77.

What are advantages and disadvantages of fixed exchange rate? What are advantages and disadvantages of flexible exchange rate? Explain absolute advantage theory of International Trade Comparative Cost advantage theory of International Trade Discuss whether the principal of Comparative advantage is satisfactory explanation of the trade pattern of an economy with which you are familiar

Q78.

What are advantages and disadvantages of (POINTS)

International Trade?

Q79. Q80. Q81.

What are advantages and disadvantages of Free Trade? (POINTS) What are protectionist measures? (POINTS) What are reasons/ causes/ advantages of (POINTS) protectionist measures?

Q82. Q83. Q84. Q85. Q86. Q87.

What are reasons disadvantages of protectionist measures? (POINTS) What is term of trade(TOT). When it is favourable and un favourable. Causes when TOT is favourable. Causes when TOT is unfavourable. What are the causes of detoriation in TOT? Define term of trade(TOT). How would you measure the changes in term of trade. Also what may cause a countys term of trade to change?

Q88.

Explain whether a worsening in a countrys terms of trade will cause a worsening in its balance of trade?

Q89.

What are advantages and disadvantages of FREE International Trade? (DEFINED)

Q90. Q91.

What are protectionist measures? (DEFINED) What are reasons/ causes/ advantages of (DEFINED) protectionist measures?

Q92.

What are reasons disadvantages of protectionist measures? (DEFINED)