PART%20I%20%2820MARKS%29%20%28COMPULSORY%29

Question%201-

i%29%20What%20is%20high%20powered%20money%3F%26nbsp%3B

ii%29%20What%20is%20is%20deficit%20financing%3F%26nbsp%3B

iii%29%20How%20is%20fiscal%20policy%20different%20from%20monetary%20policy%20%3F%26nbsp%3B

iv%29%20What%20is%20unlimited%20legal%20tender%20%3F

%26nbsp%3Bv%29%20Define%20the%20following-%20i%29%20normal%20resident%20ii%29%20transfer%20payment.%26nbsp%3B

vi%29%20Distinguish%20between%20Balance%20of%20Trade%20and%20Balance%20of%20Payment.

vii%29%20Identify%20the%20following%20as%20capital%20expenditure%20or%20revenue%20expenditure-

%26nbsp%3Ba%29%20Construction%20of%20dam

b%29%20Subsidies%20to%20firms

c%29%20Salaries%20of%20Defence%20staff

d%29%20Advances%20to%20public%20sector%20enterprises.

viii%29%20What%20is%20price%20discrimination%20%3F

ix%29%20Explain%20the%20problem%20of%20double%20counting%20in%20the%20estimation%20of%20national%20income

with%20example.

x%29%20How%20is%20intended%20supply%20different%20from%20actual%20supply%20%3F%26nbsp%3B

xi%29%20Draw%20two%20demand%20curves%20which%20have%20same%20price%20elasticity%20at%20all%20the%20points.

xii%29%20What%20is%20the%20significance%20of%20free%20entry%20free%20exit%20under%20perfect%20competition%20%3F

xii%29%20Show%20diagrammatically%20when%20changes%20in%20supply%20will%20have%20no%20effect%20on%20equilibrium%20quantity.

PART%20II

%28Attempt%20any%20five%20questions%20from%20this%20section%29

Question%202

a%29%20Explain%20how%20income%20effect%20and%20substitution%20effect%20are%20reasons%20for%20negatively%20sloping%20demand%20curve.%26nbsp%3B

b%29Explain%20consumer%20behavior%20on%20the%20basis%20of%20the%20given%20schedule%20and%20also%20state%20%5B3%5D%20the%20law%20on%20which%20it%20is%20based.

MUx%3D70%20Px%3D14%26nbsp%3B%3Cbr%3EMUy%3D126%20%26nbsp%3BPy%3D18

c%29State%20the%20law%20of%20demand%20and%20illustrate%20it%20with%20the%20help%20of%20a%20schedule%20and

demand%20curve.Explain%20giffen%20goods%20and%20expectations%20about%20future%20prices%20as%20exceptions%20to%20the%20law.%26nbsp%3B

Question%203

a%29Explain%20the%20relation%20between%20total%20utility%20and%20marginal%20utility%20with%20the%20help

of%20a%20diagram.%26nbsp%3B

b%29Explain%20the%20various%20degrees%20of%20price%20elasticity%20at%20different%20points%20on%20a%20linear%20demand%20curve%20with%20the%20help%20of%20a%20diagram.%3Cbr%3E%26nbsp%3Bc%29Explain%20consumers%20equilibrium%20on%20the%20basis%20of%20Ordinal%20approach%20with%20the%20help%20of%20a%20well%20labelled%20diagram.

Question%204

a%29How%20is%20elasticity%20of%20demand%20affected%20by%26nbsp%3B

i%29%20existence%20of%20substitutes

ii%29%20amount%20of%20money%20spent

b%29What%20is%20price%20ceiling%3F%20Show%20diagrammatically%20the%20impact%20of%20imposition%20of%20price%20ceiling%20on%20equilibrium%20price%20and%20quantity.

c%29With%20the%20help%20of%20a%20schedule%20and%20curve%2C%20show%20the%20relation%20between%20AR%20and%20MR%20under%20i%29%20perfect%20competition.

Question%205

ii%29%20imperfect%20competition.

a%29Distinguish%20between%20direct%20and%20indirect%20taxes%20with%20examples.

b%20%29How%20does%20public%20expenditure%20help%20in%20%u2013%20i%29stimulating%20production.

ii%29%20act%20as%20a%20counter%20cyclical%20measure%20.

c%20%29Differentiate%20between%20current%20account%20and%20capital%20account%20of%20Balance

of%20Payments.%20Explain%20the%20components%20of%20Current%20Account

Question%206

a%29Explain%20the%20functions%20of%20money%20as%20a-

i%20Medium%20of%20exchange

ii%20A%20medium%20of%20deferred%20payments%20.

b%20%29Discuss%20any%20two%20quantitative%20methods%20of%20credit%20control.

c%29%20Explain%20the%20process%20of%20credit%20creation%20by%20commercial%20banks%20with%20the%20help%20of%20a%20numerical%20example%20when%20the%20initial%20deposit%20in%20PNB%20being%20Rs.%201000%20crs%20and%20the%20reserve%20ratio%20being%2025%25%20.%20Is%20it%20a%20never%20ending%20process%20%3F%26nbsp%3B%3Cbr%3EQuestion%207

a%29Explain%20with%20diagram%20how%20is%20the%20demand%20curve%20under%20Monopoly%20different%20from%20that%20of%20monopolistic%20competition%20.

c%20%29%20i%29Define%20fixed%20and%20variable%20cost.%20Identify%20the%20following%20as%20fixed%20or%20variable%20cost%26nbsp%3B

%26nbsp%3B1.%20Expenses%20on%20raw%20material.

2.%20Interest%20on%20capital

3.%20Salary%20of%20casual%20workers

ii%29Does%20Marginal%20cost%20in%20short%20run%20fall%20invariably%20with%20the%20fall%20in%20short%20run%20average%20cost%20%3FJustify%20your%20answer%20with%20the%20help%20of%20a%20diagram.

Question%208

a%29%20Distinguish%20between%20devaluation%20and%20depreciation.%20What%20will%20be%20the%20impact%20of%20depreciation%20of%20domestic%20currency%20on%20export%20and%20import%20of%20a%20country%20%3F%20Explain%20with%20a%20numerical%20example.

b%20%29What%20is%20flexible%20exchange%20rate%20system%3F%20Show%20diagrammatically%20the%20determination%20of%20exchange%20rate%20under%20flexible%20exchange%20rate%20system.

c%29%20Explain%20the%20budget%20structure%20of%20the%20Union%20government.%3Cbr%3EQuestion%209

a%29Distinguish%20between%20National%20Income%20and%20Domestic%20Income%20.%20b%29Complete%20the%20following%20%3A

i%20GDP%20equal%20to%20NDP%u2010——-%20ii%20NNPfc%3DGDP%20mp——-

iii%20Depreciation%3DGNP———%20iv%20NIT%20%3D_______+________

c%29Define%20GDP%20at%20market%20prices.%20How%20is%20it%20different%20from%20GNP%20at%20factor%20cost.

d%29Draw%20a%20well%20labelled%20diagram%20to%20show%20circular%20flow%20of%20income%20in%20an%20Open%20Economy%20with%20leakages%20and%20injections%20and%20also%20explain%20the%20condition%20of%20equilibrium%20in%20the%20model%20of%20circular%20flow%20in%20such%20an%20economy.

%3Ca%20class%3D%22mention%22%20data-mention%3D%22%23Economics%22%20data-user-id%3D%22qrCP2UqtKqa4%22%20href%3D%22/topic/economics%22%3E%23Economics%3C/a%3E%20%3Ca%20class%3D%22mention%22%20data-mention%3D%22%23BoardExam%22%20data-user-id%3D%22n1qxeVjyd3qy%22%20href%3D%22/topic/board-exam%22%3E%23BoardExam%3C/a%3E%20%3Ca%20class%3D%22mention%22%20data-mention%3D%22%23ISCBoard%22%20data-user-id%3D%220Vmi9uIjkirx%22%20href%3D%22/topic/iscboard%22%3E%23ISCBoard%3C/a%3E%20%3Ca%20class%3D%22mention%22%20data-mention%3D%22%23India%22%20data-user-id%3D%22Bq4MmUPrXF8p%22%20href%3D%22/topic/india%22%3E%23India%3C/a%3E%26nbsp%3B