SET 1

Candidates are required to give answers in their own words as far as practicable. Figures in the margin
indicate full marks.
Attempt all the questions.
Group "A"
Very Short Answer Questions [11×1=11]
1. Define positive economics.
2. If the demand function and supply function are Qd = 10 – 2p and Qs = 3p
respectively, calculate the equilibrium price.
3. What is cross elasticity of demand?
4. What is economic growth?
5. What are the components of national income under income method?
6. List any four major mineral resources of Nepal.
7. What do you mean by natural resource management?
8. List any two impacts of deforestation in Nepalese economy.
9. What does quantitative analysis in economics refer to?
10. What is Giffen goods?
11. Find the equation of a straight line whose y-intercept is 3 and slope is -1.
Group “B”

Short Answer Questions (8×5=40)

12. How does Robbin’s definition of economics differ from previous definitions, and
what implications does this have for the study of economics?
OR
Compare and contrast the features of land and capital as factors of production
and highlight their role in the production process.
13. Consider the given table and answer the following questions.
Consumption Units TU MU
1 20
2 15
3 10
4 5
5 0
6 -5
a) Complete the given table.
b) Draw TU and MU curves.
c) Mention the relationship between TU and MU.
14. What factors influence the demand for a commodity or service, and how do they
impact consumers’ purchasing decisions? Explain.
15. Explain various types of price elasticity of supply.
16. Distinguish between gross domestic product and gross national product.
17. What criteria determine the quality of money in an economy, and how do these
criteria affect overall trust and confidence in the currency?
18. Describe the major characteristics of Nepalese economy.
19. Find the equation of the straight line that passes through the point (4, -2) and
makes equal intercepts on the axes.
OR
Find the equation of the straight line joining the points (1, 0) and (3, -3).
Group “C”

Long Answer Questions (3×8=24)

20. What happens to a firm’s output when all inputs are increased proportionally?
Explain it according to the law of returns to scale.
21. What is value of money? Explain the Fisher’s quantity theory of money.
22. What roles do Nepal’s natural resources such as water, forest and minerals play
in the country’s economy and development? Describe.
OR
Explain the potentiality of hydroelectricity in Nepal. Assess the problems
encountered in developing hydroelectricity in Nepal.

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