| A firm is able to sell any quantity of a good at a given price. The firm?s marginal revenue will be: [1] |
| (Choose the correct alternative) |
| (a) Greater than Average Revenue |
| (b) Less than Average Revenue |
| (c) Equal to Average Revenue |
| (d) Zero |
| Differentiated products is a characteristic of (choose correct answer): |
| (a) Monopolistic competition only |
| (b) Oligopoly only |
| (c) Both monopolistic competition and oligopoly |
| (d) Monopoly |
| Demand curve of a firm is perfectly elastic under: (choose the correct alternative) |
| (a) Perfect competition (b) Monopoly |
| (c) Monopolistic Competition (d) Oligopoly |
| What is minimum price ceiling? Explain its implications. |
| Or |
| If the prevailing market price is above the equilibrium price, explain its chain of effects. |
| Define fixed cost. Give an example. Explain with reason the behaviour of Average Fixed cost as output is increased. |
| Or |
| Define marginal product. State the behaviour of margin product when only one input is increased and other inputs are held constant. |
| Examine the effect of (a) fall in the own price of good X and (b) rise in tax rate on good X, on the supply curve. Use diagrams. |
| For blind candidates in lieu of Q. No. 14. |
| Examine the effect of (a) fall in the own price of good X and (b) rise in tax rate on good X on supply of a good. Use schedule. |
| Explain the implications of the following in a perfectly competitive market: |
| (a) Large number of sellers |
| (b) Homogeneous products. |
| Or |
| (a) Barriers to entry of new firms |
| (b) A few or a few big sellers |
| National income is the sum of factor incomes accuring to: (Choose the correct alternative) |
| (a) Nationals |
| (b) Economic territory |
| (c) Residents |
| (d) Both residents and non-residents |
| Primary deficit equals: (Choose the correct alternative) |
| (a) Borrowings |
| (b) Interest payments |
| (c) Borrowings less interest payments |
| (d) Borrowings and interest payments both |
| Foreign exchange transactions which are independent of other transactions in the Balance of Payments Account are called: |
| (Choose the correct alternative) |
| (a) Current transactions |
| (b) Capital transactions |
| (c) Autonomous transactions |
| (d) Accommodating transactions |
| What is aggregate demand? State its components. |
| Or |
| Explain how controlling money supply is helpful in reducing excess demand. |
| An economy is in equilibrium. Calculate Marginal Propensity to consume: |
| National income = 1000 |
| Autonomous consumption expenditure = 200 |
| Investment expenditure = 100 |
| What is the difference between revenue expenditure and capital expenditure? Explain how taxes and government expenditure can be used to influence distribution of income in the society. |
| Or |
| What is the difference between direct tax and indirect tax? Explain the role of government budget in influencing allocation of resources. |
| Indian investors lend abroad. Answer the following questions: |
| (a) In which sub-account and on which side of the Balance of Payments Account such lending is recorded? Give reasons. |
| (b) Explain the impact of this lending on market exchange rate. |
| Find Gross National Product at Market Price: | ||
| (Rs. Crore) | ||
| (i) | Private final consumption expenditure | 800 |
| (ii) | Net current transfers to abroad | 20 |
| (iii) | Net factor income to abroad | \[()10\] |
| (iv) | Government final consumption expenditure | 300 |
| (v) | Net indirect tax | 150 |
| (vi) | Net domestic capital formation | 200 |
| (vii) | Current transfers from government | 40 |
| (viii) | Depreciation | 100 |
| (ix) | Net imports | 30 |
| (x) | Income accruing to government | 90 |
| (xi) | National debt interest | 50 |
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