(8 pages)

N11680/AECJN51 NOVEMBER 2021

INTRODUCTION TO ECONOMICS

Time : Three hours Maximum : 75 marks

SECTION A — (10 × 1 = 10 marks)

Answer ALL questions.

Choose the correct answer :
1. ö\ÀÁ Áøμ¯øÓ Gߣøu ö£õ¸ÍõuõμzvÀ
•ßö©õÈ¢ux
(A) Bh® ìªz (B) μõ¤ßì
(C) \õ•÷ÁÀ\ß (D) ©õºåÀ
Wealth definition was propounded by

(a) Adam Smith (b) Robins

(c) Samuelson (d) Marshall

2. Âø» ÁÈ •øÓ°ß £oPÎÀ JßÖ

(A) |ȧ
(B) EØ£zv
(C) EØ£zv ©ØÖ® ~PºøÁ JÊ[S£kzxÁx
(D) ~Pº÷Áõº
 One of the functions of price mechanism is
(a) welfare
(b) production
(c) regulates consumption and production
(d) consumer

3. öÁΨ£øh¯õÚ ~PºÄ GßÓ P¸zøu ÁÇ[Q¯x

(A) ©õºåÀ (B) Bh® ìªz
(C) öÁ¨»ß (D) Rßì
The concept of conspicuous consumption was given
by
(a) Marshall (b) Adam Smith
(c) Veblen (d) Keynes

4. ©õØÖ¨ ö£õ¸mPÎß Âå¯zvÀ, SÖUSz ÷uøÁ

ö|QÌa] Gߣx ____________ BP C¸US®.
(A) ÷|º©øÓ
(B) Gvº©øÓ
(C) JßÖUS® SøÓÁõÚx
(D) JßÖUS® AvP©õÚx
In the case of substitute goods cross elasticity of
demand will be
(a) positive (b) negative
(c) less than one (d) more than one

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5. ©ØÓ PõμoPÒ ©õÓõ©À C¸US® ÷£õx, Âø»
AvP›zuõÀ, AΨ¦® AvP›US®, Âø»
SøÓ¢uõÀ AΨ¦® SøÓ²®. CuØS ö£¯º
____________
(A) ÷uøÁ Âv
(B) AΨ¦ Âv
(C) ÷uøÁ ö|QÌa]
(D) AΨ¦ ö|QÌa]
When other factors remains constant, if price
increases, supply will also increase, if price falls
supply will also falls. It is known as
(a) Law of demand
(b) Law of supply
(c) Elasticity of demand
(d) Elasticity of supply

6. AΨø£ {ºn°US® PõμoPÎÀ JßÖ

(A) AΨ¦ (B) AΨ¦ ö|QÌa]
(C) ÷uøÁ ö|QÌa] (D) EØ£zva ö\»Ä
One of the determinant of supply is
(a) supply
(b) elasticity of supply
(c) elasticity of demand
(d) cost of production

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7. Q[Uk ÷uøÁ ÁøÍ÷Põk Gߣx RÌPshÁØÖÒ
GuÝhß ÷\º¢ux?
(A) {øÓĨ ÷£õmi (B) ]À÷»õº •ØÖ›ø©
(C) •ØÖ›ø© (D) HP÷£õP ÷£õmi
Kinked demand curve is in
(a) perfect competition
(b) oligopoly
(c) monopoly
(d) monopolistic competition
8. EØ£zvU PõμoPÎß AÍøÁ •Êø©¯õP,
÷uøÁUS HØ£ ©õØÖ® £s¦ Gߣx
RÌPshÁØÖÒ GuÝhß ÷\ºÁx?
(A) \©÷|õUS ÁøÍ÷Põk
(B) ÷uøÁU ÷Põk
(C) {øÓĨ ÷£õmi A[Põi
(D) ö\»ÄU ÷Põk
Perfect mobility of factors of production is one of
the characteristics of
(a) indifference curve
(b) demand curve
(c) perfect competition
(d) cost curves

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[P.T.O.]
9. "{»zvØS A\À ©ØÖ® AÈUP •i¯õu \Uv
Esk" GßÓ Gk÷PõÒ RÌPshÁØÖÒ GuøÚa
÷\º¢ux.
(A) AΨ¦ Âv
(B) ›UPõº÷hõÂß ÁõμU ÷Põm£õk
(C) ÷uøÁ Âv
(D) ÷uøÁ ö|QÌa]
Land has certain ‘original and indestructable
powers’ – This statement is an assumption of
(a) Law of supply
(b) Ricardian theory of rent
(c) Law of demand
(d) Elasticity of demand

10. ÷£õ¼ Áõμ® GßÓ P¸zvøÚ AÔ•P¨£kzv¯Áº

(A) ©õºåÀ
(B) ¤S
(C) Bh®ìªz
(D) Rßì
The concept of Quasi-Rent was introduced by
(a) Marshall
(b) Pigou
(c) Adam Smith
(d) Keynes

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 SECTION B — (5 × 7 = 35 marks)

Answer ALL questions, choosing either (a) or (b).

11. (A) ö£õ¸Î¯¼ß £ØÓõUSøÓ Áøμ¯øÓø¯

©º\Ú Ÿv¯õP £S¨£õ´Ä ö\´P.
Critically analyse the scarcity definition of
economics.

Or
(B) Âv u¸ •øÓø¯ Auß |ßø© wø©PÐhß
ÂÍUSP.
Explain the deductive method with merits
and demerits.

12. (A) ÷uøÁU÷Põk Hß RÌ÷|õUQ ö\ÀQÓx

Gߣøu ÂÍUSP.
Why does the demand curve slope
downwards? Explain.
Or
(B) ÷uøÁø¯ {ºn°US® PõμoPøÍ ÂÁ›.
Describe the factors which are determining
the demand.

13. (A) AΨø£ {ºn°US® PõμoPøÍ ÂÍUSP.

Explain the factors determining supply.
Or
(B) AΨ¦ ÂvUPõÚ Gk÷PõÒPøÍ ÂÁ›.
Describe the assumptions of law of supply.

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14. (A) •ØÖ›ø©°ß Snõv\¯[PøÍ ÂÍUSP.
Explain the characteristics of monopoly.

Or
(B) HP÷£õP ÷£õmi A[Põi°ß Snõv¯[PøÍ
ÂÁ›.
Describe the characteristics of monopolistic
competition.

15. (A) £n¨¦ÇUP (A) }ºø© ¸¨£U ÷Põm£õmøh

ÂÍUSP.
Explain the liquidity preference theory.

Or
(B) ¦zuõUP C»õ£U ÷Põm£õmøh ÂÁ›.
Describe innovation theory of profit.

SECTION C — (3 × 10 = 30 marks)

Answer any THREE of the following questions.

16. ö£õ¸Î¯¼ß ö\ÀÁ Áøμ¯øÓø¯ ©º\Ú

Ÿv¯õP B´Ä ö\´P.
Critically analyse wealth definition of economics.

17. ÷uøÁ ö|QÌa]°øÚ £õvUS® PõμoPøÍ ÂÁ›.

Explain the factors influencing elasticity of
demand.

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18. AΨ¦ Âv°øÚ Auß Â›ÁõUP® ©ØÖ®
_¸UPzvØPõÚ Áøμ£hzxhß ÂÁ›.
Diagrammatically explain the law of supply with
expansion and contraction of it.

19. {øÓĨ ÷£õmi°ß Snõv¯[PøÍ £mi¯¼k.

List out the characteristics of perfect competition.

20. ›UPõº÷hõÂß ÁõμU ÷Põm£õmøh Áøμ£hzxhß

ÂÁ›.
Diagrammatically explain Ricardian theory of
rent.

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