Rell No. aL | FE] Series SSR a 58/1 ® Please-chock that this question paper contains 8 printed pages * Code number given on the right hand side of the question papor should be written on the title page of the answer-book by the candidate. Plonse check that this question paper contains 32 questions, * Flouse write down the serial number of the question before attempting it < pin ota ae a fe ry xe A ake ye ae 9 TE Fatih re a ac fee me ate sec hm see gt & gu-ys wt Rel | © Pit sha a a fe ee oer Fo oom #1 2 FT a ae fee ye wt S oR, Fer ay aie See Pere | ECONOMICS Time allowed +3 hours Maximum Marks ; 100 Fp TAT <3 WS SETRTT SR: 100 General Instructions (0 AU questions in both she sections are compulsory. (@) Marks for questions are indicated against each. (HO) Questions No. 1—6 and 17-21 are very shorv-answer questions carrying 1 mark each. ‘They are required 10 be answered in one sentence cach. (iD. Questions No, 6-10 and 28-26 are short-answer questions carrying @ marke each Answers to them should normally not exceed 60 words each. (Questions No. 12-19 and 27-29 are also short-answer questions carrying 4 marks each. Answers to them should normally not exceed 70 wards each (ei) Questions No. 14-16 and 30-32 are long-onswor questions carrying 6 marks each, Ansivere to them should normally not exceed 100 wordsieach (Wi) Answers should Be brief and to the point and the above word limits sheuld be adhered to as far as possible. arava free: (ah aust & wet ez onfreret F | (i) ses rea & Prite ate see ae Ree me #1 (i) Te HOM 1-6 eT 17-2 ont creme aed & Parad wee a 1 six @ | ray Sat Set vor rer FF oer 2 1 (iv) HRT FE 6-10 Site 2226 creme ue7 Ee Rev acta 9 ote © i ade: a SR AAG: 60 Wey F sities ze ah afer 1 68/1 i P.T.O,) 77 Her -18 sit 27-29 Ht TET RTE, Rrvt ate a ie @ 1 ore aT See HII 70 veal a sift eT Bat eR 1 (ui) Wet Fe 14-16 Sik 30-32 Sree IH ae eT E, fer Hots He ale B Mele BT TR AAT: 100 WRT aT ieee aE aie aU | (oi) Se Barer car creamer ett eafee aay marine sue eh ge Hr & start wh few ort eee | SECTION A UE a 1. Define ‘Marginal Rate of Transformation’. ie ‘euiaer at dinia ee at afer difere 1 2, What is a demand schedule ? 1 nm aiggeh aan t 7 8. Define ‘production function’. 1 ‘seer wer’ at ofr are 1 4. What is ‘market supply’ 2 1 ‘arom ufa’ 3 ay afar 2 7 5. Define ‘equilibrium price’. 1 Sages aaa’ ai ofan de 1 6. Explain the central problem of ‘choice of technique’. 3 Say wren Tas a GI areET | 7. Price elasticity of demand of « good is (-)1, At a givon prico the consumer buys 60 units of the good. How many units will the consumer buy if the price falls by 10 percent ? 3 Uh Ag a FT at aa ote Gn 2 | GH Ge sina oH oT aq At co saat eien-2 | a saa io ait AR ae dl sae ay at feet oer oem 7 Given the marker price of a good, how does a consumer decide as to: how many units of that good to buy ? Explain. a Us ae Ht a we as Sima H UH soda ae Sa fia ae 2 fH ae saat fat 7 Sie? TARE | 68/1 210, 12, 58/1 production of that good fall ? Explain. 3 og oS BS Saner Swen 9 oh act amd at we Fee, wg WOR Sar sae sar im 2 areET | Bipluin what happens to the profits in the long run if the firme aro froo to enter the industry. oR Paxplain what happens to. losses in. the long run if the firme are free to leave the industry, 3 at 1 seer A wr ch Mt earn a etiam A an we ey ave are & WARE | aaa Be oS sah ee a rer Bh ear Fe wet me OFT f, WAET | Explain. producer's: equilibrium: using a schedule. Use total cost and total revenue approach, 4 oR Distinguish: botwoen (7) fixed cost’ und variable cost. giving examples and (ii) average cost and marginal cost giving an example, an aa ROR steer ag emeTeE get aI ate pe ener fear sein afr | arat ager 29 ey fer comm oh weiter arma & ay er anew sceeT A eee 3 ate orm site asia cima & ate size amet | Draw supply curves with price elasticity of supply throughout equal to (i) zero, (i) one, Gil) infinity and (iv) less than one, 4 We oyt ae die Bee Nes fg oe aft i sina att G) Ey, «iy GD ST Gnfinity) ¥ Gv) TE A ar a | For Blind Candidates only in lieu of @. No. 12 Sar afd witectinat & fre wes set 12 & era wy Distinguish between (i) elastic and inelastic “supply and (i) Perfectly clastic and perfectly, inelastic supply, 4 Oran ok Sco oft & as war co yoo aver atte winar detec off & a5 Si AMEE | 3 P10.13, Complete the following table: Price Output Total Revenue | Marginal Revenue Rs) (nits) @s) (Bs) E 1 é = é = = 2 = 8 6 = 1 = = oe frefefem afer yt afm ; ala see eet dott ‘ania eonfer @) (wa) @) @.) = 1 6 = 4 = E 2 = 3 6 zs 14. Explain the effect of the following on demand for a goo (i) Rise in income (i) Riso in prices of related goods frrfatan % Ga Fel at AT St Ves a Ta AAT: @ sma 3 aha Gi) Waker aeqai at amat F gfe 15. Explain, with the help of numerical examples, the effect on total output of a good when all the inputs used. in production of that good are inereased simultaneously and in the saine proportion. : afew aq 4 soe Hage TH arr Foe aa oh ae @ aq # aie at SIE A Sa seq H Set sce vet aa ma, Fes see a ae a IEG 1 16. Given market cquilibrium of a good, what are the effects of simultaneous increase in both demand and cupply of that good on its equilibrium price and quantity ? ‘OR ‘Explain the implications of the following = ()) The feature “differentiated products’ under monopolistic competition. Gi) The feature “large number of sellers’ under perfect competition. 56/1 417, 18, 19, 21. 22, TF ASK eget St Ret Ae) sy aap at air ok YE Set a ee am ae & gest ager shea sit war ee aay oe aA 7 aT frsfetas 3 seq arerse : © Tsikaiite statin & otis ‘scue fate’ Sawer | Go. yeh sitchin 8 sievier aah sen F eRe Reamer 1 SECTION B WE y Define ‘aggregate supply’. L “aaa ufe’ at aera | Give meaning of deficient demand 1 Sram HiT ay ard aerate | What is @ commercial bank ? 1 ans te Fay ain @ 2 20. Define government budget, A: Wend ase at unum ae | ‘What is Sixed exchange rate system ? 1 Frm (fier) fafa ex sone @ ae afi @ > Caloulate Net Value Added at factor cost from the follewing data : is (Re lakhs) (i) Depreciation 20 (ii) Intermediate cost 90 (ii) Subsidy 5 Gv) Sales 140 () Exports 7 (vi) Change in stock 10 (ii) Imports of raw materials 3 5/1 6 PTO.fioiated aiset 3 ane cma we free afar Het a fae aif: (era) @) Fee 20 (a) Rema ars 90 i (iy ars Ferre 8 (iy) Faat 140, @) Freie iy] (wi) ele Haier @10 (vi) WER AT BT SATA 8 28. When exchange rate of foreign currency falls, its demand rises. Explain, how. 3 ‘oa fat amr at faire ae Pret @, at saat te ae | SeeT, Ba 24, Distinguish between balance of trade and balance on current account. 3 oma ae sit ay rer We FH Fe AAT | 25, Explain the ‘medium of exchange’ funetion of money. a OR Explain the evolution of money, ae & fatera an sear ard ah sare aise | waar We) & fear at cane afore | 26, Give meaning of capital expenditure and revenue: expenditure in a government budget and an example of each. 3 wets o wp soe BA ee want awe FP aa se Toe orm & od acre | ‘2%. Th an economy an increase in investment leads to inerease in national income which is three times more than the increase in investment. Calculate marginal propensity to Soe ‘ ve adore % fae % ofe 8 ues am 7 ge fem A gle 3 de TT afte at @ | data se ght at ower Sif | 28. Explain the lending function ‘of commercial banks. 4 oR Explain ‘banker to the government’ function of central bank. afore at aT aaa 2A an ad FARE | raat fata is a ER WH at ad HST | 58/1 6 129. What is revenue deficit 2 What are its ‘implications ? x THA el wT ete 2 eek ow awe 2 80 Csleutate "National Income" and “Private Income! from the following date : a8 @ Net current transfers to the rest of the world (ii) "Private final consumption expenditure (iii) National debt interest Gi”) Net exports (20 ) Current transfers from government 5 (vi) Net domestic product at factor cost ‘accruing to government 25 (vil) Government final ‘consumption expenditure. 100 (vili) Net indirect tax a 30 (x) Not domestic capital formation 70 (x) Net factor income from abroad 10 Prstetes ae aga om she ‘Roamer oer We Griz &) i) Hy free at Fer tie (aq) veri 10, Gi) Frit Sif suey are 600 Gi) UE er ae eaTaT 15 (iy fast frat - 20 Re FT fst (RD Rea 6 Cot) HG BUY SI we ser Refit sere 25 (vO) RTE sitet say a 100 (vi) Fram ope ax 30. Gx) Fast tim fei aio 70 60 RS are free ere are 10 SI. Explain ‘consumption function’ with the help of # schedule and diagram, 6 OR Explain Saving function’ with the help of a schedule and diagram, Wh sage sit tofer 3 Ser 3 Sat eA’ Aree | aaa Ye SS sh tae at geen 8 seq me eT | bei 7 PTO.For Blind Candidates only in lieu of Q. No. 31 an qed viet S fae set wen a1 & eat ot Explain ‘sonsumption function’ with the help of a schedule. Also record marginal propensity to consume in the schedule, 6 oR Explain ‘saving function’ with the help of a schedule. Also record marginal’ propensity ty save in the schedule. UH a at ween A Sai ger! Ame | a A ania oor safe ot ot aise | wera Tem ORS A ae a aa Se! AAA | Sep A tain gar sat sf al He | 82, Giving reasons, explain how the following are treated in estimating national income : 22,2 () Wheat grown by a farmer but used entirely for family’s consumption. Gi) Beraings of the sharcholders from the wale of shares, (iii) Expenditure by government on providing free education. MNT Aa EL AEE fe UBT Sra a age amt aM freifefad i ara ae waaere fae stat @ @ aa 8 ame 7a sae at fea aeT sr a oa | su A wa H ara | (i) WR Bar F Raat s aA act ona 1 ai ase Ren aE gto fea Ta a | 58/1 a