H.S.

2nd Year 2020

ECONOMICS

Full Marks: 100 Time: 3 Hours

PART-B

15. (a) What is the relation between MPC and MPS? 1

(b) What is investment?

(c) What do you mean by velocity of circulation of money? 1

(d) Who is known as the lender of last resort? 1 (e)

(e)What is government budget? 1 i) in which year GST came into effect in india? 1

16. Define intermediate good. How intermediate goods are different from capital good? 1 * 1 * 2

17 .What is investment multipter? If Rs. 200 crore increases in investment increases income by

Rs 800 crore, then what will be the value of investment mutiplier? 1+1=2

18. Write the differences between ex-arte investment and ex-post investment 2

19. Mention two points of superionty of fictive Credit Measures over Quantitative Codi Control
Measures 2

20. Write two differences betwees revenue expenditure and capital expenditure 2

21. What do you mean by devaluation of cumincy? How does it affect the import of a country?

22. Define GDP. Can GDP be used as an index of welfare of a country? Justify your answer

23. How does the central bank use its quantitative credit control measures to control inflationary
situation of an economy? 4

24. What is Deficit Budget? Why a deficit budget is considered beneficial than a surplus budget

for a developing economy?

25. Mention four differences between Deect taxes and indirect taxes. 4

26. (i)What is balance of payment? 1

(ii) What are the two main components of balance of payment? 1

(iii)Write two differences between balance of payment and balance of trade. 2

Or

Write briefly about:

(i) Open Economy

(ii) Exchange Rate

27. Explain the procedure of calculating National Income by value-added method.6

Or

HS 2nd Year ECONOMIC 2019

Time: Three hours

PART - B

15. (a) In what circumstances, the GDP of an economy can be equal to GNP? 1

(b) What is transfer payment? 1

(c) What is voluntary unemployment? 1

(d) What is Break-Even income? 1

(e) What is the full form of GST? 1 (f) What is zero primary deficit? 1

16. Mention two subject matter of Macroeconomics. 2

17. Mention any two types of leakages found in the Circular Flow of income. 2 18. What is investment
multiplier? Write the relationship between investment multiplier and MPC? 2

19. Mention the two primary functions of money. 2

20. Mention two differences between revenue receipts and capital receipts. 2
21. State two sources of supply of foreign currency. 2

22. The value MPC of an economy is 0.4. What amount of new investment is required to generate new
income of Rs. 500 crore in the economy? 4

23. Explain any two fiscal measures to solve the problem of excess demand in an economy, 2+2=4.

24. Mention two factors causing disequilibrium in Balance of Payment of a country. 4

25. Write down four differences between Direct Tax and Indirect tax. 4

26. What is Budget Deficit? What are three types of Budgetary Deficit? 1+3=4

27. Describe the Circular Flow of Income in a Three Sector Economy. 6

Or

Explain the Expenditure Method of calculating Gross Domestic product (GDP). 6

Or

28. Explain the process of credit creation by commercial banks. 6

Or

Describe the Quantitative methods adopted by the Central Bank to control credit created by

commercial banks. 6

H.S. 2nd Year, 2018 ECONOMICS

Full Marks: 100 Time: 3 hour

PART B

15. (a) What is macroeconomics? 1

16. (b) What is autonomous consumption expenditure? 1

(c) Define excess demand in the context of income and employment determination. 1

(d) What are public goods? 1

(e) What is balanced budget? 1

(f) Write down the meaning of flexible exchange rate. 1

16. What is GDP Deflator? 2

Or
Define budget deficit and trade deficit. 2

17. What is Personal Disposable Income (PDI)? 2

18. Distinguish between demand deposits and time deposits. 2

19. What is the difference between Ex-ante investment and W-post investment? 2

20. Mention any two items of non-plan expenditure of a government budget. 2 21. What is Balance of
Payment (BOP)? Mention two main accounts of BOP. 1+1=2

22. Suppose the GDP at market price of a country in a particular year is Rs. 1100 crore. Net factor
income from abroad is Rs. 100 crore. The value of Net Indirect Tax is Rs. 150 crore nad National Income
is Rs.850 crore. Calculate the aggregate value of depreciation. 4

23. Define Intermediate goods, Final goods, Consumption goods and Capital goods. 4 24. Measure the
level of ex-ante aggregate demand when autonomous investment and consumption expenditure
account A is Rs. 50 crore, MPS is 0.2 and level of income (Y) is Rs. 4000 crore. State whether the
economy is in equilibrium or not (cite reasons). 3+1 = 4

Or

The autonomous consumption in an economy is Rs. 500 crore and total personal disposable income is
Rs. 5000 crore. If the marginal propensity to consume (mpc) is 0.8, find out the level of aggregate
consumption. 4

25. What is revenue deficit in a government budget? Explain its implications of revenue deficit. 1+3=4
26. Differentiate between devaluation and depreciation of currency. 4

27. Explain the circular flow of income in a simplified economy with two sectors - households and
firms.6

Or

Write down some of the limitations of using GDP as in index of welfare of a country. 6

28. What are the main functions of money? How does money overcome the shortcomings of a barter
system? 2+4 = 6 or

Briefly explain any four functions of the RBI. 6

H.S. 2nd Year, 2017

ECONOMICS Full Marks: 100 Time: 3 Hours

Part - B

15. (a) What is the alternative name of macroeconomics? 1

(b) What is the significance of the 450 line in Keynesian income determination model?1

(c) What is the value of MPC and MPS is zero? 1

(d) What is foreign exchange rate? 1

(e) What is meant by appreciation of the currency of a country? 1

(f) What is invisible trade? 1

16. Give any two examples of macroeconomics variable. 2

17. State the concept of depreciation in the context of national income accounting. 2

18. If the marginal propensity to save (s) of an economy is 0.3, find out the value of the income
multiplier. 2

19. State any two measures of fiscal policy to correct, the problem of excess demand in an economy. 2

20. Give the concept of full employment equilibrium. 2

21. What is deficit financing? 2

22. What are the four factors of production? Write down the name of the remuneration to each of
them. 2+2

23. Explain any four causes of disequilibrium in BOP. 4

Or

Distinguish between factor income and transfer income. 4

24. It is planned to increase national income by Rs. 1,000 crore in an economy. How much

increase in investment is required to achieve this goal if MPC = 0.6?4

25. What is the meaning of government budget? Distinguish between revenue receipts and capital
receipts. 1+3

26. Point out two merits and two demerits of indirect tax. 2+2=4

27. Explain the income method of calculating GDP. 6

Or

Explain the relationship between investment multiplier and MPC. 6

28. Briefly explain any four functions of a commercial bank. 6

Or
Describe the speculative demand for money. 6

H.S. 2nd Year, 2016

ECONOMICS

Full Marks: 100

Time: 3 Hours

Part - B

15. (a) What constitute fiat money? 1

(b) What is aggregate supply? 1

(c) Define involuntary unemployment. 1

(d) What is National Income? 1

(e) Why is post office not considered as bank? 1 (f) Give one example of accommodating capital flow. 1

16. Suppose the Net National Product at market price (NNPMP) of a country is Rs. 1600 crore. If the total
indirect tax is Rs. 100 crore and the total amount of subsidy paid by the government is Rs. 80 crore, find
out the National Income of the country. 2

17. What do you understand by the problem of double counting in the context of a measurement of
National Income? 2

18. Distinguish between induced investment and autonomous investment. 2

19. Name two sources of non-tax revenue.2

20. Mention two main items of non-plan expenditure of a government budget. 2

21. What is devaluation of currency? 2

22. Define personal income and private income and distinguish between them. 2+2=4

23. If National Income in an economy increases by Rs. 1,000 crore as a result of a new investment (D) of
Rs. 200 crore, find out the values of (i) MPC, and (ii) Multiplier (K). 2+2=4

24. Explain the relationship between marginal propensity to consume (MPC) and marginal propensity to
save (MPS). 4

25. What is meant by revenue deficit? Explain three implications of revenue deficit. 1+3=4

Or
What are the basic objectives of a government budget? Explain them briefly. 26. Distinguish between
balance of trade (BOT) and balance of payment (BOP). 4

Or

Differentiate between fixed and flexible exchange rates.

27. Explain the Precautions needed to be taken while calculating National Income by expenditure
method. 6

Or

Explain the circular flow of income in a simplified economy with two sectors-households and firms.

28. Briefly explain any four functions of money. 6 Or Briefly explain any four functions of the RBI.

H.S. 2nd Year, 2015

ECONOMICS

Part-B

15. (a) What is macroeconomics? 1

(b) What is circular flow of income? 1

(c) Define intermediate goods. 1

(d) What is velocity of circulation of money? 1

(e) "The speculative demand for money i................. (directly/inversely) related to the market rate of
interest."(Fill in the blank by choosing the correct word from the bracket.) 1

(f) What is foreign exchange rate? 1

16. Explain the concept of depreciation in the context of national income accounting. 2

17. If the marginal propensity to consumer (C) of an economy is 0.9, find out the value of the income
multiplier. 2

18.Distinguish between consumption goods and capital goods? 2

19. Explain the significance of revenue deficit. 2

20. Define private goods and public goods.2

21. State two merits of fixed exchange rate. 2

22. What do you understand by the problem of double counting? Explain the need for avoiding double
counting in the estimation of national income. 2+2-4

23. It is planned to make a new investment of Rs. 1000 crores in a economy. How much will be the
increase in National Income if MPS is 0.4? 4

24. What is investment? Distinguish between gross investment and net investment. 2+2-4

25. Explain two functions operated through government revenue and expenditure measures. 4

26. Explain the concepts of autonomous and accommodating transactions of balance of payments. 4

Or

What do you mean by disequilibrium in balance of payment (BOP)? Mention any two causes of adverse
BOP of a country.

27. From the following data, find out personal income and personal disposable income. 4+2-6

1. NDP at factor cost 9,000 crore

2. Net factor income from abroad 150crore

3. Undistributed profit 500 crore

4. Corporate Tax 600 crore

5. Interest received by household 1,200

6. Interest paid by household 1,000

7. Transfer income 400 crore

8. Personal tax 600 crore

Or

Explain the income method of calculating GDP.

28. Briefly explain any four functions of a commercial bank. 6

Or

Explain three instruments of credit control used by the central bank.

H.S. 2nd Year, 2014

ECONOMICS

Part-B

15. (a) In which type of money, the face value is higher than the intrinsic value? 1

(b) Define final goods. 1

(c) What is bank rate? 1

(d) What type of budget should the government prepare in times of inflation? 1

(e) State one example of non-tax revenue.

(f) What is invisible trade? 1

16. Distinguish between gross investment and net investment. 2

17. What is personal disposable income?2

18. The marginal propensity to consume (MPC) of an economy is 0.9 and suppose, an additional sum of
Rs. 500 crores is invested in it. How much new income will be generated in the economy? 2

19. What is marginal propensity to save? 2

20. Mention two main accounts of balance of payments. 2

21. What does the revenue account of a government budget contain?

22. Distinguish between consumer goods and capital goods. 4

23. The autonomous consumption of an individual is Rs. 500 and his personal disposable income is Rs.
5000. If his marginal propensity to consume is level of aggregate consumption. 4

24. What is investment multiplier? Explain it with the help of a diagram. 4

25. Distinguish between balance of trade and balance of payments. 4

26. Distinguish between plan and non-plan expenditure. 4

27. Explain the circular flow of income in a simplified economy with two sectors households and firms.
6

Or

Explain the value added method of calculating GDP.

28. Explain the functions of the RBI. 6

Or
Describe the speculative demand for money.

H.S. 2nd Year, 2013

ECONOMICS

Part-B

15. (a) What is cash reserve ratio? 1

16. (b) Define high-powered money. 1

(c) Choose the correct one and fill in the gap: If ratio of additional consumption to additional income is
called (margi propensity to save/marginal propensity to consume/marginal income). 1 ences.i

d. What is aggregate supply? 1

(e) What is balance of payments? 1

(f) What is value added of a firm? 1

16. What is national disposable income? 2 17. What is net national product at factor cost? 2

18. Give the concept of transfer payment along with an example. 2

19. In an open economy, if the marginal propensity to consume (c) is 0.8 and the marginal propensity to
import (m) is 0.2, find the size of the income multiplier. 2

20. What is inflation? 2

21. What is ex-ante investment? 2

22. A firm produces goods of Rs. 500 per year and intermediate goods used by the firm is of worth Rs.
250. The cost of capital consumption is Rs. 20 per year. Calculate gross value added

and net value added by the firm. 4

23. Briefly explain the components of aggregate demand. 4.

24. Distinguish between autonomous investment and induced investment. 4

25. Trace out the relationship between government deficit and government debt. 4

26. What are the basic objectives of a government budget? - Explain them briefly.4

27. Discuss the reasons why it will not be correct to say that the GDP is the index for measuring welfare
of the people of a country. 6
Or

Explain the income method of calculating GDP.

28. Explain the role of the RBI as the lender of the last resort. 6

Or

Explain the concept of deficit financing.

H.S. 2nd Year, 2012

ECONOMICS

13. (a) In a modern economy, people hold money broadly for two motives. One is transaction motive,
what is the other. 1

(b) Name the monetary authority that issues currency notes in India. 1

(c) What is aggregate demand? 1

(d) Given the marginal propensity to save is 0.3, find out the income multiplier.

(e) Y=C+I+G+ NX - In this equation what does NX refer to? 1

14. Explain how to calculate gross national product from gross domestic product. 3

15. Distinguish between gross investment and net investment. 3

16. What is net national product at factor cost? 3

17. What is devaluation of currency? 3

18. What is gold standard? 3

19. Explain the concept of ex-ante consumption. 4 20. What are the sources of government revenue? 4

21. When does a government incur budget deficit? Suppose the total government

spending G = 150 and tax revenue T = 0.20Y. Now if the level of national income (Y) is 20000, what is the
condition of government budget? 1+3

22. Explain the circular flow of income in a simplified economy with two sectors households and firms.