2nd Yr Economics

I. Choose the correct Answer. 1X3=3

01) NNP=GNP

a) Deduction b) Depreciation c) Investment d) None of the above.

02) Measuring sum total of all factor payments will be called.

a) Product method b) Expenditure method.

c)Income method d) None of the above.

03) The main function of money is

a) Saving b) Expenditure c) Medium of exchange d) Investment

II. Fill in the blanks 1X3=3

(Inventory, barter system, Stock)

04) __________ defined at a particulars point of time .

05) __________ is a stock variable.

06) Economic exchanges without the uses of money are referred to as ____.

III. Match the following 1X3=3

07) 1) Labour a) Median of exchange

02) PDI b) Wages

03)Money c) Personal disposable income.

IV. Answer the following questions in a sentence s 1X3=3

08) Give the meaning in GDP .

09) Give the meaning of Inermediate goods.

10) Give the meaning of money.

IV. Answer the following questions in four sentences 2X2=3

 11) Mention 3 methods of measuring GDP.

12) Mention any two functions of money.

V. Answer any 3 of the following questions in about four twelve sentences

each 4X3=12

13) explain the circular flow of income of economy.

14) unplanned accumulation and decumulation of inventories with an

example.

15) planned accumulation and decumulation of inventories with an

example.

16) explain the function of money. How does money overcome the short
comings of a barter system?.

V. Answer any 2 of the following questions in about four twenty sentences

each 6X2=12

17) explaint the micro economic identities.

18) Explain a numerical example to show that all the three methods of
estimating GDP gives us the same answer.

19) Write down some of the limitations of using GDP as an index of wayare
of a country.