General Instructions : All the questions are compulsory
Section-'A'
Q.1. Give two examples of government departmental commercial
enterprises in India.
Q.2. Give two examples of intermediate consumption in the
agricultural sector.
Q.3. Define Flow.
Q.4. Give two examples of 'collective consumption' expenditure.
Q.5. What do you understand by final consumption.
Q.6. How does the sale and purchase of secondhand physical
assets to and from the rest of the world affect domestic capital formation? Explain with
an example.
Q.7. Distinguish between Gross National Product at market price
& Net Domestic of factor cost.
Q.8. Which of the following is factor income from abroad for
Indian residents and why? 3
Profits of a foreign bank with a branch at Bombay.
Rent received by State Bank of India on buildings rented to a foreign embassy in New Delhi.
Salary received by an Indian employee working in a foreign embassy in
Q.9.How is Net Value Added estimated for the
General Government Sector?
Q.10.Distinguish Between Factor Payments and Transfer
Payments
Q.11. What is double-counting? How can it be avoided?
Q.12. Distinguish between ‘Net factor income form
abroad’ and ‘Net exports’
Q.13. Calculate Operating Surplus from the following data :
3
- Compensation of employees
100
- Indirect taxes
40
- Gross Value added at market price
330
- Consumption of fixed capital
30
- Mixed Income of self employed
40
- Subsidies
10
- Interest
30
- Intermediate Consumption
120
Q.14. Distinguish between Product based and Process based Division of labour with
the help of suitable example's.
3
Q.15 What precautions are necessary while estimating Gross Domestic Product
through Income Method? 3
Q.16 From the following data estimate: 5
Personal Income
Private Income
Personal Disposable Income
a) National Income
2500
b) Corporate Profit Tax
25
c) National debt interest
30
d) Direct Personal taxes
75
e) Savings of Private Corporate Sector
50
Income from property and enterpreneurship
Accruing to government administrative departments
75
Current Transfer from Government administrative
Departments
70
h) Savings of non-departmental public enterprises
10
i) Current transfer from Rest of the world
30
j) Depreciation
20
l) Net factor income from abroad
-5
Q.17. Calculate GNP at market price by:
- Expenditure Method
- Income Method
From the following data:
2+3
Rs. Cr.
- Private Final Consumption Expenditure
200
- Government Final Consumption Expenditure
20
- Gross domestic capital formation
40
- Net exports
-5
- Wages ans Salaries
165
- Employer’s contribution to Social Security Schemes
10
- Profits
15
- Interest
20
- Indirect Taxes
30
- Subsidies
5
- Rent
15
- Net factor income from abroad
5
- Consumption of fixed capital
5
Q.18. Mention the sub-sectors in which Income Method is
used in measuring their contribution to
N.I. explain the methodology of estimating National Income in Registered Manufacturing
Sector in India.
2+3
Q.19. If the demand for good Y increases as the price of
another good X rises, how are the two
goods related?
1
Q.20. As the variable input, labour is increases by one
unit total output falls. What would you
say about Marginal
Productivity of Labour?
1
Q.21. Why does Marginal Revenue Product decline even when
the price of the product
remains constant?
1
Q.22. What happens to the level of income in an economy
when there is deficient demand? 2
Q.23. Why does demand curve for a commodity slope
downwards from left to right? 2
Q.24. Briefly explain the central problems of an economy?
2
Q.25. Give meaning of inductive and deductive methods of
constructing economic theory. 3
Q.26. Briefly explain the nature of relationship between
the demand for a good by household and
price of
other
commodities
3
Q.27. A consumer purchased 20 units of a commodity when its
price was Rs. 4 per unit.He purchased 25 units of
the commodity
when its price fell to Rs. 3 per unit. What is the price elasticity of demand for the
commodity at that
price. 3
Q.28. Explain briefly the 3 sources of Supply of Loanable Funds.
3
Q.29. What are abnormal profits? Why do they arise?
3
Q.30. Difference between scarcity rent and differential rent?
3
Q.31. Define Consumption Function with the help of a Consumption
Schedule or curve bring out the meaning of
Break-even point.
3
Q.32. Differentiate between Inflationary and Deflationary gap.
3
Q.33. What is excess demand? Would you advocate expansion or
contraction of credit supply in a situation of
excess demand?
Q.34. Explain the law of Variable Proportions with the help of a
suitable diagram. 5
Q.35. How is a seller under Perfect Competition a price takes?
What is relevance of the characterstics that " there
are large numbers
of sellers" and "Uniform Price" in this context. 5
Q.36. Explain the relationship between Average Total Cost, Average Variable Cost
and Marginal Cost Curve.
5
