study material - hots questions economics 2009-10

8/16/2019 Study Material - Hots Questions Economics 2009-10

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kond`Iya ivaValaya saMgazna,na[- idllaI

KENDRIYA VIDYALAYA SANGATHAN

NEW DELHI

STUDY MATERIALBASED UPON

HIGH ORDER HIN!ING S!I""S #HOS$

%"ASS-&IISUB'E% ( E%ONOMI%S)**+-)*,*

AaMailak iSa.aa /vaM 0`iSa.aNa saMs1aanaZONAL INSTITUTE OF EDUCATION & TRAINING

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K.V.S. CO!LE", N.C.H. COLONY, KAN#URARG (WEST), U$AI-400078

dU6Baa9a k`20%%-%778%'4(kayaa-laya)0%%-%7747(olaI:4;sa)[--7aola * +//123566/2.9/

vao8asaa[-(saMko


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UNIT -1

INTRODUCTION

= ARK EACH

1. Why is PPC downward sloping from lf! !o righ!"

#. Why dos !h pro$lm of %hoi% aris"

&. Why dos PPC loo' %on%a !o !h origin"

. Wha! dos slop of PPC show"

*. Why !h pro$lm of %hoi% ariss in an %onomy"+. Wha! ar !h !wo fa%!ors !ha! %on!ri$,! s%ar%i!y"

. nior %i!i/ns sho,ld $ gin fr mdi%al fa%ili!is- is i! a posi!i or norma!i

s!a!mn!"

0. !,dy of s,gar ind,s!ry is !h $ran%h of mi%ro or ma%ro %onomi%s"

. Wha! shap will PPC !a' whn marginal ra! of !ransforma!ion is d%rasing"

4 ARKS EACH

12. Why dos PPC loo' %on%a !o !h origin" 34plain.

11. Cal%,la! 5RT4y a! diffrn! prod,%!ion possi$ili!is from !h following

hypo!h!i%al da!a. Draw a PPC on !h $asis of !h s%hd,l.

Prod,%!ion

Possi$ili!is

Commodi!y 6 Commodi!y 7

8 2 1*

9 1 1

C # 1#

D & 3 *

: * 2

1#. Why is !h prod,%!ion a! a poin! !owards lf! hand sid from PPC no! dsira$l"

1&. Why do grow!h of rso,r%s and !%hnologi%al adan%s shif! PPC !o !h righ!"


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1. Wha! is !h shap of prod,%!ion possi$ili!y %,r" ;i rasons for i!s shap.

1*. Why is prod,%!ion possi$ili!y %,r %alld oppor!,ni!y %os! %,r"

1+. 34plain !h ff%! of 3%onomi% grow!h on PPC"

1. Dis!ing,ish $!wn a %n!rally plannd %onomy and a mar'! %onomy.

10. Wh!hr !h following $longs !o 5i%ro or 5a%ro %onomi%s"

a) Thory of 3%onomi% grow!h $) Thory of s,pply

%) Wlfar 3%onomi%s

d) Thory of dis!ri$,!ion


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UNIT #

Cons,mr 3

1. Whn !h pri% of good 6 riss? !h dmand for ;ood 7 also riss. !a! !h

rla!ionship $!wn ;ood 6 and ;ood 7"

#. Whn !h pri% of %ar riss !h dmand for p!rol falls. >ow ar !hy rla!d"

&. Wha! happns !o !h $,dg! s! if $o!h !h pri%s as wll as !h in%om do,$l"

. 5n!ion diffrn% $!wn ;iffin good and infrior good (any on)

*. Wha! w %all %ons!an! dmand a! highr pri%"

+. 5n!ion !h rla!ionship $!wn pri% and ow will !his aff%! dmand %,r

for $,s !ral $!wn !h !wo %i!is"

12. If a good %an $ ,sd for many p,rposs? !h dmand for i! will $ las!i%. Why"

11. FIf a prod,%! pri% in%rass? a familyGs spnding on !h prod,%! has !o in%ras.H

Dfnd or rf,!.


5/33

1#. ,ppos !hr ar &2 %ons,mrs for a good? haing idn!i%al dmand f,n%!ion d(p)

A 12-&P for any pri% lss !han or

,ni!s of !ha! good !o $,y"

1. Th pri% las!i%i!y of dmand is 2.*? !h pr%n!ag %hang in


6/33

#. ,ppos a %ons,mr %an afford !o $,y + ,ni!s of ;ood 4 and 0 ,ni! of ;ood 7? if h

spnds his n!ir in%om. Th pri%s of !h !wo goods ar Rs.+B- and Rs.0B-

rsp%!ily. >ow m,%h is !h %ons,mrGs in%om"

#*. ,ppos !h pri% las!i%i!y of dmand for a good is (@ )2.#. >ow will !h

4pndi!,r on !h good $ aff%!d if !hr is 12J in%ras in !h pri% of !hgood"

#+. >ow dos !h ll of pri% of a good aff%! i!s pri% las!i%i!y of dmand" 34plain.

#. Th mar'! dmand for a good a! a pri% of Rs.12B- pr ,ni! is 122 ,ni!s. Whn !h

pri% %hangs? i!s mar'! dmand falls !o *2 ,ni!s. :ind o,! !h nw pri% if !h

pri% las!i%i!y of dmand is (-) #.

#0. 34plain !h in%om ff%! of fall in !h pri% of a %ommodi!y on i!s dmand.

#. 34plain !h s,$s!i!,!ion ff%! of a fall in !h pri% of a %ommodi!y.

&2. ,ppos !hr ar !wo $,ndls (2?#2) and (#2?2) and !hy ha


7/33

UNIT @ &

PRODUC3R 93>8IOUR 8ND UPPK71 mar' a%h

1. Wha! happns !o TP whn 5P is /ro"

#. Wha! happns !o 5PP whn TPP in%rass a! d%rasing ra!"

&. 8s !h aria$l inp,! is in%rasd $y on ,ni!? !o!al o,!p,! falls. Wha! wo,ld yo,

say a$o,! of marginal prod,%!ii!y la$o,r"

. Why 5C %,r is U-shapd in !h shor! r,n"

*. Why dos fi4d %os! no! infl,n% marginal %os!"

+. Whn a sllr slls his n!ir o,!p,! a! a fi4d pri%? wha! will $ !h shap of 8R

L 5R %,rs"

. how !ha! arag rn,


8/33

##. Wha! is !h shap of 8:C %,r"

#&. >ow is TC drid from a 5C s%hd,l"

#. Wha! will happn !o 8TC whn 5C 8TC"

#* O,!p,! in%rass $y & ,ni!s !o ,ni!s. 8s a rs,l! TC riss from Rs.1.+2 !o

Rs.#.*2. :ind o,! 5C.

#+ 8 firm is prod,%ing #2 ,ni!s. 8! !his ll of o,!p,!? !h 8TC and 8C ar

rsp%!ily


9/33

. Wha! is 5R" >ow is i! rla!d !o 8R"

*. Wha! will $ !h pri% las!i%i!y of s,pply if !h s,pply %,r is a posi!ily slopd

s!raigh! lin"

+. Cal%,la! TC and 8C

O,!p,! 1 # & * +

8:C +2 &2 #2 1* 1# 12

5C &2 #0 &2 &* &

. Cal%,la! 5C and 8C if fi4d %os! is 2

O,!p,! 1 # & * +

TC +2 02 2 112 1*2 #1+

0. :ind o,! TR and 5R

O,!p,! 12 0

8R + 0

. Compl! !h following !a$l -

O,!p,! 1 # &

Pri% - - -

5R 12 - -

TR - - # -

*2. If !h pri% las!i%i!y of s,pply of a %ommodi!y is *. 8 prod,%r s,pplis *22 ,ni!sof !his prod,%! a! a pri% of Rs.*B- pr ,ni!. >ow m,%h


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**. ;iing rasons s!a! wh!hr !h following s!a!mn!s ar !r, or fals.

a) 8C falls only whn 5C falls

$) Th diffrn% $!wn 8TC L 8C is %ons!an!

%) Whn TR is ma4im,m 5R is also ma4im,m

*+. 34plain !h li'ly $haio,r of !o!al prod,%! and marginal prod,%! whn only on

inp,! is in%rasd whil all o!hr inp,!s ar 'p! ,n%hangd.

*. Pro !ha! 8R is ow dos !h slling %os!s infl,n% !h monopolis!i% mar'!"

+2. Compl! !h following

O>(<


11/33

+*. Compl! !h following !a$l -

Uni!s of

Ka$o,r

TP 8P 5P

1 #2 -- ----- -- #1 ##

& ++ -- ---

-- --- ## ##

* -- #1 ---

++. >ow is 5C drid from TC" 34plain wi!h !h hlp of 4ampl.

+. Whi%h %os!? fi4d or aria$l? d!rmins marginal %os!" ;i rason.

+0. Classify !h following in!o fi4d %os! and aria$l %os! -

• 34pndi!,r on powr and f,l.

• 5inim,m l%!ri%i!y $ill.

• Wags !o prmann! s!aff.

• Daily wags.

• In!rs! on %api!al.

• Paymn! for !ranspor!a!ion of goods.

•

Tlphon %hargs $yond !h minim,m.

• Rn! for a $,ilding.

• 34%is d,!y.

+. how !h rla!ionship $!wn 5C and 8C wi!h !h hlp of diagram.

2. Compl! !h following !a$l -

O,!p,! Uni!s TC 8C 5C

1 12 -- --

-- -- 0 +

& # -- ---- -- 12 1&

1. Compl! !h following !a$l -

Pri% (Rs) 12 11 1# 1& 1 1* 1+

O,!p,! (Rs) -- --- --- * --


12/33

TR (Rs) 122 -- + --- 0 --- +

#. Whn will !h prod,%r will $ in ow dos !h imposi!ion of a ,ni! !a4 aff%! !h s,pply %,r of a firm"

0. Pro !ha! for profi! ma4imi/a!ion-

1) Th mar'! pri% (P) A 5C.

#) 5C %,r is non-d%rasing

. Wha! is !h rla!ionship $!wn 8C and 5C %,rs"

02. Why do !h 5C %,r %,! !h 8C %,r a! !h minim,m poin! of !h 8C%,r"

01. If yo, ar an n!rprn,r and wor'ing ,ndr %ondi!ions of prf%! %omp!i!ion

whn wo,ld yo, d%id !o la !h ind,s!ry in !h long r,n"


13/33

UNIT I L

:OR5 O: 58R=3T 8ND PRIC3 D3T3R5IN8TION1 mar' a%h

1. If !h firms ar arning a$normal profi!s? how will !h n,m$r of firms in !hind,s!ry %hang"

#. >ow m,%h loss %an a firm $ar"

&. 34plain !h mo!ia!ion $hind gran!ing pa!n! righ!s"

. Whi%h fa!,rs of monopolis!i% %omp!i!ion ar monopolis!i% in na!,r"

*. >ow dos an in%ras in !h pri% of a s,$s!i!,! good in %ons,mp!ion aff%! !h

ow will i! aff%! !h pri% and

ow is a singl $,yr a pri% !a'r in prf%! %omp!i!ion"

12. ;i an 4ampl of prf%!ly %omp!i!i mar'!"

11. Wha! is !h shap of dmand %,r in oligopoly"

1#. >ow many firms ar !hr in a monopoly mar'!"

1&. Wha! is pa!n! lif"

1. Wha! is %ar!l"

1*. Wha! is profi! ma4imi/a!ion %ondi!ion for a monopoly firm"

1+. In whi%h mar'! form !hr is no %los s,$s!i!,! of !h prod,%!"

1. Whi%h fa!,r of monopolis!i% %omp!i!ion is monopoly in na!,r"

10. Nam !h fa!,r of %omp!i!i mar'! fo,nd in monopolis!i% %omp!i!ion.

1. Wha! is prs,asi adr!ising"

#2. If firms ar arning a$normal profi!s? how will !h n,m$r of firms in !h ind,s!ry

%hang.

#1. If !h firm is ma'ing a$normal losss? how will !h n,m$r of firms in !h ind,s!ry

%hang"


14/33

##. Wha! 8r ol,m dis%o,n!s"

#&. Whn do w say !hr is 4%ss s,pply for a %ommodi!y in !h mar'!"

#. Wha! is sh,! down poin!"

& B mar' a%h

#*. Th !%hnology is s,%h !ha! !h K8C is minimi/d a! !h firm o,!p,!


15/33

%o,n!ris li' India. ,ppos !ha! i! dos 4por! a larg n,m$r of !lphon

ins!r,mn!s !o India

(8) >ow will i! aff%! !h pri% and ow do %hangs in 5R aff%! TR"

2. 8 firm is %on!mpla!ing wh!hr !o prod,% i!s 12!h ,ni! of o,!p,! and finds i!smarginal %os! for 12!h ,ni! is Rs.*2B- and i!s marginal rn, for !h 12!h ,ni!


16/33

. 8! !h


17/33

UNIT I

N8TION8K INCO53 L R3K8T3D 8;;R3;8T3

1 mar'

1. Whn is !h na!ional in%om lss !han doms!i% in%om"

#. Whn is !h na!ional in%om largr !han doms!i% fa%!or in%om"

&. Wha! is !h ff%! of an indir%! !a4 and a s,$sidy? on !h pri% of !h %ommodi!y"4. Are the wages and salaries received by Indians woring in

A!erican E!bassy in India a "art o# Do!estic $rod%ct o# India&'. (hy is the st%dy o# the "roble! o# %ne!"loy!ent in India

considered a !acro econo!ic st%dy&+. Whn is gross doms!i% prod,%! of an %onomy


18/33

1*. !a! wh!hr !h following is a s!o%' or flow

(a) Na!ional %api!al? ($) 34por!s? (%) Capi!al forma!ion? and (d) 34pndi!,r on food

$y ho,sholds.

1+. 8r !h following in%l,dd in !h s!ima!ion of Na!ional In%om a %o,n!ry" ;i

rasons.(i) 9on,s r%id $y mploys.

(ii) ;ornmn! 4pndi!,r on dfn%.

(iii) 5ony sn! $y a wor'r wor'ing a$road !o his family.(i) Profi! arnd $y a $ran%h of Indian 9an' in Kondon.

1. Are the #ollowing incl%ded in the esti!ation o# +ational Inco!e aco%ntry& *ive reasons.(i) Rn! fr ho,s !o an mploy $y an mployr.

(ii) P,r%hass $y forign !o,ris!s.(iii) P,r%has of a !r,%' !o %arry goods $y a prod,%!ion ,ni!.

(i) Paymn! of wal!h !a4 $y a ho,shold.

10. Is net e,"ort a "art o# +-IA& E,"lain.

1. (ill the #ollowing be incl%ded in gross do!estic "rod%ct Do!estic -actor Inco!e o# India& *ive reasons #or each answer.(i) Old ag pnsion gin $y go!.

(ii) :a%!or in%om from a$road.

(iii) alaris !o Indian rsidn!s wor'ing in 8mri%an m$assy in India. (i) Compnsa!ion of mploys gin !o rsidn!s of %hina wor'ing in Indian

m$assy in China.

() Profi! arnd $y a %ompany in India? whi%h is ownd $y a non-rsidn!. (i) Profi! arnd $y an Indian %ompany from i!s $ran%h in ingapor.

#2. (hy are e,"orts incl%ded in the esti!ation o# do!estic "rod%ct bythe e,"endit%re !ethod& /an gross do!estic "rod%ct be greaterthan gross national "rod%ct& E,"lain.

#1. 8r !h following in%l,dd in !h s!ima!ion of Na!ional In%om of India" ;i

rasons for a%h answr.

(i) Profi! arnd $y a forign %ompanyB$an' in India.(ii) 5ony r%id from sal of shars.

(iii) alary paid !o 8mri%ans wor'ing in Indian m$assy in 8mri%a.(i) alary paid !o Indians wor'ing in Indian m$assy in 8mri%a.() %holarship r%id $y a s!,dn!.

(i) Rmi!!an%s from a$oard.


19/33

##. Will !h following $ in%l,dd in Na!ional In%om" ;i rasons for a%h answr.

(i) ri%s of ownr o%%,pid ho,ss.

(ii) P,r%has of nw shars of a doms!i% firm.(iii) P,r%has of s%ond-hand ma%hin from a doms!i% firm.

(i) Cons,l!an%y f paid !o a forign 4pr!.

() Commission paid !o agn! for !h sal and p,r%has of shars.(i) Diidnd r%id on shars.

#&. Will !h following $ in%l,dd in Na!ional In%om" ;i rasons for a%h answr.(i) :r 5di%al fa%ili!y !o mploys $y !h mployr.

(ii) 5ony r%id from sal of old ho,s.

(iii) ;ornmn! 4pndi!,r on s!r! ligh!ing.

(i) In!rs! r%id $y a ho,shold from a %ommr%ial $an'.() R%ip!s from sal of land.

(i) In!rs! on p,$li% d$!

#. 8r the #ollowing incl%ded in the esti!ation o# +ational Inco!e a

co%ntry& *ive reasons.(i) ri%s rndrd $y family mm$rs !o a%h o!hr.

(ii) Wha! grown $y a farmr $,! ,sd n!irly for familyGs %ons,mp!ion.

(iii) 34pndi!,r $y gornmn! on proiding fr d,%a!ion.

(i) Paymn! of fs !o a lawyr ngagd $y a firm.() 5an of !h ma!%h award !o a playr of !h Indian %ri%'! !am.

(i) Paymn! of !h ma!%h f !o playrs of Indian %ri%'! !am.

#*. Are the #ollowing incl%ded in the esti!ation o# +ational Inco!e aco%ntry& *ive reasons.(i) Unmploymn! allowan% ,ndr NR3;8.

(ii) Indir%! !a4 (al !a4B4%is d,!y).(iii) alary r%id $y !h wor'rs ,ndr NR3;8.

(i) In%om !a4.

() Corpora!ion !a4.(i) Tralling 4pnss paid !o salsman $y !h mployr.

#+. /alc%late "rivate inco!e0 "ersonal inco!e0 "ersonal dis"osableinco!e and +ational dis"osable inco!e #ro! the #ollowing data1

(Rs. in Crors)(i) Na!ional in%om &222

(ii) aings of pria! %orpora! s%!or &2

(iii) Corpora! !a4 02(i) C,rrn! !ransfr from gornmn! +2() In%om from propr!y and n!rprn,rship !o gornmn! 1*2

(i) C,rrn! !ransfrs from rs! of !h world *2

(ii) aings of non-dpar!mn!al gornmn! s%!or 2(iii) N! indir%! !a4s #*2

(i4) Dir%! !a4s paid $y ho,shold 122

(4) N! fa%!or in%om from a$road (-) 12


20/33

#. /alc%late +I by inco!e and e,"endit%re !ethod1 (Rs. in Crors)

(i) ,$sidis *(ii) Pria! final %ons,mp!ion 4pndi!,r 122

(iii) N:I8 (-) 12

(i) Indir%! Ta4 #*() Rn! *(i) ;ornmn! final %ons,mp!ion 4pndi!,r #2

(ii) N! doms!i% fi4d %api!al forma!ion &2

(iii) Opra!ing s,rpl,s #2(i4) Wags *2

(4) N! 4por! (-) *

(4i) 8ddi!ion !o s!o%' (-) *(4ii) o%ial s%,ri!y %on!ri$,!ion $y mployrs 12

(4iii) 5i4d in%om 2

#0. /alc%late the val%e added by -ir! A and -ir! 2 #ro! the #ollowingdata1 3

(Rs. in Ka'hs)

(i) P,r%has $y :irm 8 from !h rs! of !h world 2(ii) als $y :irm 9 122

(iii) P,r%hass $y :irm 8 from :irm 9 +2

(i) als $y :irm 8 1#2

() 34por!s $y :irm 8 2(i) Opning s!o%' of :irm 8 *

(ii) Closing s!o%' of :irm 8 &2

(iii) Opning s!o%' of :irm 9 2(i4) Closing s!o%' of :irm 9 &2

(4) P,r%hass $y :irm 9 from :irm 8 +2

#. 3s!ima! (i) Prsonal In%om? (ii) Pria! In%om and (iii) Prsonal Disposa$l

In%om wi!h !h hlp of !h following da!a.

(Rs. in Crors)(i) Na!ional in%om 1&22

(ii) Corpora! !a4 1*

(iii) Dir%! prsonal !a4s 2

(i) aings of pria! %orpora! s%!or #*() In%om from propr!y and n!rprn,rship a%%r,ing !o ;ornmn!

8dminis!ra!i Dpar!mn!s &*

(i) C,rrn! !ransfr from gornmn! adminis!ra!i dpar!mn!s &2(ii) Na!ional D$! In!rs! 12

(iii) aings of non dpar!mn!al gornmn! n!rpriss *

(i4) C,rrn! !ransfrs from rs! of !h world 1*


21/33

&2. Esti!ate i5 $ersonal Dis"osable Inco!e0 ii5 $rivate Inco!e andiii5 +ational Inco!e #ro! the #ollowing data1

(Rs. in Crors)

(i) Prsonal in%om 1##*

(ii) aing of pria! %orpora! s%!or 1#(iii) Corpora! !a4 #&

(i) C,rrn! !ransfr from gornmn! adminis!ra!i dpar!mn!s &2() C,rrn! !ransfr from rs! of !h world #*

(i) In%om from propr!y and n!rprn,rship a%%r,ing !o ;ornmn!

8dminis!ra!i Dpar!mn!s #*

(ii) aings of non dpar!mn!al gornmn! n!rpriss #2(iii) N! indir%! !a4 1*

(i4) Dir%! !a4 paid $y !h ho,sholds #*

&1. Esti!ate the #ollowing with the hel" o# given data1

(i) ;DP5P ?(ii) N! al, 8ddd a! fa%!or %os! and (iii) pro !ha! i! is ow dos i! diffr from pria! in%om"

&+. Dfin %ons,mr goods and %api!al goods


22/33

&. 34plain Na!ional in%om a! %,rrn! pri% and %ons!an! pri%.

&0. 34plain Na!ional Disposa$l In%om.

&. Wri! ario,s %omponn!s of Na!ional In%om whil %omp,!ing $y 4pndi!,rm!hod

2. Dfin la'ags and inE%!ion in %ir%,lar flow.

1. :rom !h following informa!ion a$o,! firm 8? %al%,la! N8:C.I) P,r%has of raw ma!rial #*2

II) ;ross %api!al forma!ion 122III) ,$sidis &2

I) Closing !o%' #2

) als 22

I) N! %api!al forma!ion 2II) Opning s!o%' #*

#. :rom !h da!a gin $low? %al%,la! opra!ing s,rpl,s @

I) ;ross al, addd a! mar'! pri% 1*22II) Wags L salaris *22

III) N! indir%! !a4 *

I) Cons,mp!ion of fi4d %api!al #*

&. Cal%,la! ;ross Doms!i% Capi!al :orma!ion @

I Closing !o%' +2

II N! doms!i% fi4d %api!al forma!ion 22

III N! indir%! !a4 &2I Cons,mp!ion of fi4d %api!al 2

Opning !o%' 2

. Cal%,la! Prsonal Disposa$l In%om from !h following da!a -

I N! %,rrn! !ransfr from !h rs! of !h world &

II Pria! In%om #22III Prsonal Ta4s &2

I Na!ional D$! In!rs! *

Corpora! profi! !a4 #2I Undis!ri$,!d profi! 12


23/33

*. :rom !h following da!a? %al%,la! Pria! In%om -

I In%om from doms!i% prod,%! a%%r,ing !o pria! s%!or 222

II aing of non dpar!mn!al p,$li% n!rpriss #22

III C,rrn! !ransfrs from go!. adminis!ra!i dpar!mn! 1*2I aing of pria! s%!or 22

C,rrn! !ransfr from rs! of !h world *2

I N! fa%!or in%om from a$road -(2)II Corpora! !a4 +2

III Dir%! prsonal !a4 12

+. :ind o,! Prsonal In%om from !h following da!a -

I) In%om from doms!i% prod,%! a%%r,ing !o pria! s%!or ##

II) N! %,rrn! !ransfr from !h rs! of !h world &III) N! %,rrn! !ransfr from go!.

I) In!rs! on na!ional d$! 0) Undis!ri$,!d profi! 1

I) Corpora!ion Ta4 &

. :rom !h following da!a find o,! !h Compnsa!ion of 3mploys -

I) ;ross doms!i% prod,%! a! fa%!or %os! &*2II) Rn! &2

III) In!rs! #2

I) Profi! 12) Cons,mp!ion of fi4d %api!al &2

0. On !h $asis of !h following da!a? %al%,la! al, addd $y firm C -

I) als $y Ind,s!ry 8 !o Ind,s!ry 9 2

II) al, addd $y ind,s!ry 9 02

III) :inal sals #+2I) als $y ind,s!ry C !o Ind,s!ry D 12

) al, addd $y ind,s!ry D +2

. Cal%,la! al, of o,!p,! from !h following da!a -

I) N! al, addd a! fa%!or %os! #22II) In!rmdia! %ons,mp!ion 1*2

III) 34%is d,!y 2

I) ,$sidy 12

) Dpr%ia!ion #2


24/33

*2. Cal%,la! !h disposa$l in%om if prsonal in%om is Rs.12?222B- and ra! of

in%om !a4 is 1*J.

*1. Idn!ify !h %on%p! 6 in a%h of !h following-i) 6A,m of n! al, addd S C:C

ii) 6A Doms!i% in%om S C:C

iii) 6A ;DP a! fa%!or %os! S N! indir%! !a4si) 6A;NP a! mar'! pri%s - N:I8

) 6A;NP a! mar'! pri%s @ C:C

i) 6ANNP a! mar'! pri%s @ NIT

*#. Undr wha! %ondi!ions !h following is !r,"

1) NDP A NNP#) ;DP A NDP

&) al, of o,!p,! A al, addd

) NNP5P A NNP:C

*) Pria! In%om A Prsonal in%om+) Prsonal In%om A Disposal in%om

*&. Wha! is !h diffrn% $!wn plannd and ,nplannd inn!ory a%%,m,la!ion"

34plain !h rla!ion $!wn %hang in inn!oris and al, addd of a firm"

*. Wha! ar !h impor!an! limi!a!ions of ,sing ;DP as an ind4 of wlfar of a

%o,n!ry" 34plain.

**. >ow do w %al%,la! N! 34por!s" >ow is i! diffrn! from NI:8"

*+. Wha! ar !h non-mar'!d goods and sri%s and why ar !hy no! in%l,dd in

;DP"

*. Wha! is man! $y 4!rnali!is" ;i an 4ampl of nga!i 4!rnali!y whi%h is

no! !a'n in!o %onsidra!ion whil s!ima!ing ;DP.

*0. Wha! ar !h rol of la'ags and inE%!ions in !h %ir%,lar flow of in%om"


25/33

UNIT @

D3T3R5IN8ITON O: INCO53 L 35PKO753NT1 mar'

1. Why %an !h al, of 5PC $ no! gra!r !han 1"#. Dos an 4%ss of 8D or 8 always imply a si!,a!ion of infla!ionary gap"

&. how a poin! on !h %ons,mp!ion %,r a! whi%h 8PCA 1.

. In wha! rsp%! forign !rad will $ ,sf,l in rmoing !h adrs %onomi%

ff%!s of dfi%in! dmand@

*. Wha! happns in an %onomy? whn %rdi! aaila$ili!y is rs!ri%!d and %rdi! is

mad %os!lir"

+. If 5PC A 2.+*? wha! will $ !h al,s of 5P"

. If 8P A 2.#*? wha! will $ !h al, of 8PC"

0. >ow m,%h $ !h aggrga! saing in an %onomy a! ro ll of In%om"

. ;in 5PA 2.#? if !h in%om in%rass from Rs.12?222B- %rors !o 1#?222B-%rors? Wha! will $ !h addi!ional %ons,mp!ion in !h %onomy"

12. Wha! %an $ ma4im,m al, of 5P"

&B mar'

11. Wha! happns if 8D8 prior !o f,ll mploymn! ll of mploymn!"

1# Can 8D $


26/33

1. Dfin ins!mn! m,l!iplir. >ow is i! rla!d !o marginal propnsi!y !o %ons,m"

#2. Dfin %ons,mp!ion f,n%!ion wi!h !h hlp of a %ons,mp!ion s%hd,l or %,r

$ring o,! !h maning of $ra' n poin!

#1. Dfin infla!ionary ;ap. 34plain wi!h !h hlp of a diagram

##. 34plain wi!h !h hlp of a diagram how


27/33

&. If an in%ras of Rs. 12222 is ins!mn! in an %onomy rs,l!s in an in%ras inin%om of Rs. 2222. Cal%,la! !h marginal propnsi!y !o sa in !h %onomy.

&*. Cal%,la! !h %hang in In%om whni) 5PC A2.0

ii) Chang in Ins!mn! A Rs. 1222

&+. Cal%,la! !h %hang in in%om whn i) 5P A 2.0?

ii) Chang in ins!mn! ARs. 1222 Crors

&. In an %onomy ins!mn! in%rass $y Rs. #22 %rors. 8s a rs,l! of i! !o!alin%om in%rass $y Rs. 1222 %rors. Cal%,la! 5PC.

&0. ,ppos !h ll of plannd ins!mn! in an %onomy is Rs. #22 %rors and

following saing f,n%!ion is gin A -02 S 2.#* 7:ind !h ow m,%h

ins!mn! will $ r


28/33

. Compl! !h following !a$l -

In%om (Rs.) Cons,mp!ion

34pndi!,r

8PC 5P

022 *21222 &2

1#22 1122

122 1#+2

0. In an %onomy C A *22 S 2. 7 and I A 1222 (Whr C A Cons,mp!ion? 7 A

In%om? I A Ins!mn!)? %al%,la! !h following -1) 3


29/33

UNIT 0

5ON37 L 98N=IN;1 mar'

1. Wha! is !h main f,n%!ion of mony in an %onomy"

#. Nam !h ys!m of No!-iss, in India.

&. Dfin opn 5ar'! opra!ion.

. Nam !h addi!ional fa%ili!y whi%h !h $,sinssman g!s in !h %,rrn! dposi!

a%%o,n! of !h $an'.

*. Dis!ing,ish $!wn mony and nar mony.

+. Dis!ing,ish $!wn s!andard mony and s,$sidiary mony.

. Wha! is %rdi! mony"

& B mar'

0. 5ony a%!s as a yards!i%' of s!andard mas,r of al, !o whi%h all o!hr !hings%an $ %ompard. Dis%,ss i!.

. Th %n!ral $an' a%!s as lndr of !h las! rsor!. >ow"

12. Cn!ral $an' prforms !h f,n%!ion of a %laring ho,s. >ow"

11. Wri! a no! on si!,a!ion of liow dos a Cn!ral $an' a%! as a Claring >o,s"

#. Why ar all finan%ial ins!i!,!ions no! %ommr%ial $an'"


30/33

UNIT @

;OT. 9UD;3T L T>3 3CONO571 mar'

1. Whi%h !yp of rn, r%ip!s ar !ra!d as lgally %omp,lsory paymn! imposdon !h popl $y !h go!." ;i 4ampl also.

#. Whn !h lia$ili!y !o pay a !a4 is on on prson and !h $,rdn of !a4 falls on som

o!hr prson? s!a! !h !yp of !a4"

&. Wha! happns !o aggrga! dmand whn !h go!. $,dg! is in dfi%i!"

. Why is !a4 !ra!d as rn, r%ip!"

*. :ind o,! !h al, of !o!al r%ip!s of go!. 9,dg! if $,dg! dfi%i! is Rs #?222

%rors and !h !o!al 4pndi!,r is Rs &?222 %rors.+. Wha! will $ !h al, of fis%al dfi%i! if primary dfi%i! is *&?222 %rors and

in!rs! on $orrowings is Rs *?222 %rors"

. Wha! indi%a!s /ro primary dfi%i!"

0. Wha! indi%a!s rn, dfi%i!"

. 8ll non-plan 4pndi!,rs ar non-dlopmn!al. Do yo, agr"

12. :rom !h poin! of iw of %onomi% grow!h in a dloping %onomy wha! will

yo, prfr @ s,rpl,s $,dg! or a dfi%i! $,dg!"

11. Why is $orrowings %onsidrd as a %api!al r%ip!"

& B mar'

1#. Classify !h $orrowings and r%ory of loans in!o rn, and %api!al r%ip!s of

go!. $,dg!. ;i rason also.

1&. >ow gornmn! rallo%a!s !h rso,r%s and rdis!ri$,!s !h in%om !hro,gh

9,dg!"

1. Wha! ar !h $asis of %lassifying r%ip!s in!o rn, r%ip!s and %api!al

r%ip!s"

1*. !a! whi%h $,dg! 4pndi!,r dos no! rs,l! in %ra!ion of ass!s or rd,%!ion of

lia$ili!y. ;i 4ampls also.

1+. Dfin ;o!. 9,dg!. !a! any !hr o$E%!ions of i!.


31/33

1. Dfin Qrn,G L Q%api!alG r%ip! in a gornmn! $,dg!. ;i on 4ampl of

a%h.

10. !a! !h $asis of %lassifying go!. 4pndi!,r in!o rn, and %api!al

4pndi!,r. ;i an 4ampl of a%h.

1. Dis!ing,ish $!wn fis%al dfi%i! and rn, dfi%i!. Wha! dos fis%al dfi%i!

dpi%!"

#2. Dfin a Ta4. Dis!ing,ish $!wn dir%! !a4 and indir%! !a4. ;i 4ampls of a%h.

#1. Dfin 9,dg! dfi%i! and Primary dfi%i!. >ow is $,dg!ary dfi%i! m!"

##. Diffrn!ia! $!wn plan 4pndi!,r and non-plan 4pndi!,r.

#&. Dis!ing,ish $!wn dlopmn! and non-dlopmn! 4pndi!,r

#. Diffrn!ia! $!wn $alan% $,dg! and s,rpl,s $,dg!

#*. ;i mas,rs !o rd,% fis%al dfi%i!- sp%ially in !h %on!4! of Indian 3%onomy.

#+. !a! !hr impli%a!ions of fis%al dfi%i!.

#. Wha! is a !a4" Wha! ar i!s %hara%!ris!i%s"

#0. Wha! is !h signifi%an% of rn, dfi%i!"

#. :rom !h poin! of iw of %onomi% grow!h is a dloping %onomy? wha! will

yo, prfr s,rpl,s $,dg! or a dfi%i! $,dg!"

&2. Dis!ing,ish $!wn

a) Progrssi !a4a!ion

$) Propor!ional !a4a!ion

%) Rgrssi !a4a!iond) Dgrssi !a4a!ion

&1. ;i !h rla!ionship $!wn !h rn, dfi%i! and !h fis%al dfi%i!.

. 8r fis%al dfi%i!s n%ssarily infla!ionary"

&&. Dos p,$li% d$! impos a $,rdn" 34plain.

&. Is a $alan%d $,dg! good for India"


32/33

UNIT 12

:OR3I;N 36C>8N;3 R8T31 58R=

1. !a! whi%h !yp of 4%hang ra! has no offi%ial in!rn!ion in !h forign4%hang mar'!" >ow i! is d!rmind"

#. !a! whi%h of !h following a isi$l i!m is and whi%h is an inisi$l i!m in9alan% of paymn!s.

a) 34por! of E,! prod,%! $) of!war sri%s 4por!

&. Nam !h i!ms whi%h ar no! in%l,dd in !h %,rrn! a%%o,n! of IndiaGs 9alan% of paymn!

. In whi%h a%%o,n! of $alan% of paymn! !o,rism sri%s !o !o,ris! ar in%l,dd"

*. Whi%h !ransa%!ions- a,!onomo,s or a%%ommoda!ing $ring $alan% in !h $alan% of

paymn!s.

+. Whn 4%hang ra! of forign %,rrn%y falls i!Gs s,pply also falls. 34plain how"

. Whn 4%hang ra! of forign %,rrn%y falls? i!s dmand riss. 34plain how"

0. Wha! is nominal 4%hang ra!" Why i! is %alld so"

. ,ppos 1.#* 7n is rin! @ 2.0 r,p pr yn.

12. ,ppos India !rads only wi!h !h U8 (har 2J) and 3ngland (har &2J) and N3Rs of !h r,p ar Rs.*2B- pr dollar and Rs.02B- pr po,nd. Cal%,la! !h

nominal ff%!i 4%hang ra!. >in! N33R A &*S#ARs.*B-

11. Diffrn!ia! $!wn dal,a!ion and dpr%ia!ion.

1#. If !hr is in%ras in doms!i% in%om? how dos i! aff%! !h impor!s"

1&. >ow dos !h diffrn% of in!rs! ra!s $!wn !wo %o,n!ris aff%! !h 4%hang

ra!"

1. Why is !h opn %onomy a,!onomo,s 4pndi!,r m,l!iplir smallr !han !h

%losd %onomy on"


33/33

&B mar'

1*. Wha! ar !h fa%!ors rsponsi$l for inflow of forign %,rrn%y"

1+. Wha! will $ !h al, of impor!s? if !h n! impor!s ar Rs 1+2 %rors and !h al,

of 4por!s ar Rs 22 %rors.

1. If 9alan% of paymn! of a %o,n!ry is Rs (-) 122 %rors and !o!al paymn! ar Rs

*22 %rors. :ind o,! i!s !o!al r%ip!s.

10. 9alan% of paymn!s always $alan%s. Dis%,ss i!.

1. 34plain mri!s and dmri!s of fi4d 4%hang ra! sys!m

#2. Wha! do yo, ,ndrs!and $y ra! of 4%hang" Wri! diffrn! !yps of 4%hang

ra! sys!m. Dis%,ss !h impor!an% of 4%hang in !h %onomy

#1. ,ppos i! !a's 1.*2 yn !o $,y a r,p and !h pri% ll in apan is + and !h pri% ll in India is #. Cal%,la! !h ral 4%hang ra! $!wn India and apan.

>in! R3R A #.

##. Dis!ing,ish $!wn doms!i% dmand for goods and dmand for doms!i% goods.

#&. If !h 4%hang ra! of r,p in !rms of dollar falls? wha! will $ i!s impa%! onIndiaGs impor!"

#. Wha! is %,rrn! a%%o,n!" >ow is i! dis!ing,ishd from 9OT"

#*. >ow do yo, %lassify !h $alan% of paymn! a%%o,n!s" Wha! ar !h %omponn!s

of %api!al a%%o,n! of 9OP in India"

#+. ho,ld a %,rrn! a%%o,n! dfi%i! $ a %a,s for %on%rn" 34plain.

study material - hots questions economics 2009-10

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